Company: Wienerberger AG
Industry: Construction Materials
Country: Austria
Sector: Materials
Company type: Stock Corporation
Revenue (EUR): 4513000000
Employees: 20000

Reported EU Taxonomy activities:
Manufacture of energy efficiency equipment for buildings
Installation, maintenance and repair of energy efficiency equipment
Installation, maintenance and repair of charging stations for electric vehicles in buildings (and parking spaces attached to buildings)
Installation, maintenance and repair of renewable energy technologies
Electricity generation using solar photovoltaic technology
Manufacture of equipment for the production and use of hydrogen
Construction of new buildings
Renovation of existing buildings

EU Taxonomy KPIs (currency: EUR, units: millions)
Turnover:
totalTurnover: value: 4223.431
percentage: 100.0%
eligibleTurnover: value: 2153.995
percentage: 51.0%
alignedTurnover: value: 2093.823
percentage: 49.6%
nonEligibleTurnover: value: 2069.436
percentage: 49.0%
CapEx:
totalCapex: value: 367.345
percentage: 100.0%
eligibleCapex: value: 212.363
percentage: 57.8%
alignedCapex: value: 198.403
percentage: 54.0%
eligibleNotAlignedCapex: value: 13.96
percentage: 3.8%
nonEligibleCapex: value: 154.982
percentage: 42.2%
OpEx:
totalOpex: value: 243.41
percentage: 100.0%
eligibleOpex: value: 163.066
percentage: 67.0%
alignedOpex: value: 158.924
percentage: 65.3%
nonEligibleOpex: value: 80.344
percentage: 33.0%

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# <span id="page-0-0"></span>2023 | Annual and Sustainability Report

ld of wienerberger

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2023 | Annual and Sustainability Report

# [SUSTAINABILITY REPORT](#page-27-0)

# [CORPORATE](#page-175-0) [GOVERNANCE REPORT](#page-175-0)

[MANAGEMENT REPORT](#page-193-0)

[FINANCIAL STATEMENTS](#page-222-0)

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# TABLE OF CONTENTS

- [CEO Letter](#page-3-0)
- [Letter from the Chairman of the](#page-5-0) [Supervisory Board](#page-5-0)
- [Equity Story](#page-7-0)
- **[0](#page-7-0)** [Our Vision](#page-9-0)
- [Our Strategy](#page-10-0)
- [Our Values](#page-11-0)
- [Innovation at wienerberger](#page-13-0)
- [Sustainability at wienerberger](#page-19-0)

### **[9](#page-28-0)**

### **[Sustainability Report 2023](#page-28-0)**

- [Key Indicators of wienerberger](#page-29-0)
- [Sustainability at wienerberger](#page-31-0)
- [For the People Social](#page-55-0) [Sustainability](#page-55-0)
- [For the Planet Environmental](#page-84-0)  [Sustanability](#page-84-0)
- **[4](#page-0-0)** [Non-Financial Reporting](#page-123-0)
- [GRI Content Index](#page-166-0)
- [Confirmation by the](#page-172-0) [Managing Board](#page-172-0)
- [Auditor's Report](#page-173-0)

### 

### **[Corporate Governance](#page-175-0)  Report**

- [Corporate Governance](#page-176-0) [at wienerberger](#page-176-0)
- [Members of the Managing Board](#page-177-0)
- **[0](#page-0-0)** [Members of the Supervisory](#page-179-0) [Board](#page-179-0)
- [Mode of Operation of the](#page-183-0) [Managing Board and the](#page-183-0) [Supervisory Board](#page-183-0)
- [Success through Diversity](#page-187-0)
- [External Evaluation of Compliance](#page-190-0)  [with the Corporate Governance](#page-190-0)  [Code](#page-190-0)
- **[2](#page-0-0)** [Auditor's Report](#page-191-0)

### 

### **[Management Report](#page-194-0)**

- [Economic Environment and](#page-195-0) [Capital Markets](#page-195-0)
- [Financial Review](#page-198-0)
- [Value Management](#page-205-0)
- [Operating Segments](#page-206-0)
- [Financials of the Fourth Quarter](#page-209-0) [of 2023](#page-209-0)
- [Outlook 2023](#page-210-0)
- [Additional information](#page-211-0) [about the Company](#page-211-0)
- [Research and Development](#page-211-0) [wienerberger Share and](#page-213-0)
	- [Shareholders](#page-213-0)
- [Risk Management and the Internal](#page-217-0) [Control System](#page-217-0)

### **[Consolidated Financial](#page-222-0) [Statements](#page-222-0)**

- [Consolidated Income Statement](#page-223-0)
- [Consolidated Statement of](#page-224-0) [Comprehensive Income](#page-224-0)
- [Consolidated Balance Sheet](#page-225-0)
- [Consolidated Statement](#page-226-0) [of Cash Flows](#page-226-0)
- [Consolidated Statement](#page-227-0) [of Changes in Equity](#page-227-0)
- [Notes to the Consolidated](#page-228-0) [Financial Statements](#page-228-0)
- [Statement by the Managing](#page-294-0) [Board](#page-294-0)
- [Group companies](#page-295-0)
- [Auditor's report](#page-300-0)

### **[7](#page-306-0) [Service](#page-306-0)**

- 
- [Glossary](#page-307-0)
- [Financial Calendar](#page-311-0)
- Ten-Year Review
- [Key Performance Indicators](#page-314-0) [Adresses of Major Companies](#page-315-0)
- [Imprint](#page-316-0)

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# <span id="page-3-0"></span>**CEO Letter**

### Dear Shareholders,

in an extremely volatile and challenging economic environment 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.

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, technological optimization led to a decrease in energy consumption and, alongside cost savings, a sustainable reduction of CO₂ emissions.

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.

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

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 wienerberger'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.

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 strengthens 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 renovation 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.

Thanking you for your trust, I remain Yours sincerely,

**Heimo Scheuch** Chairman of the Managing Board of Wienerberger AG CEO

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### *Heimo Scheuch, CEO*

With our solutions, we are shaping a better world for future generations.

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# <span id="page-5-0"></span>**Letter from the Chairman of the Supervisory Board**

### Dear Shareholders,

First of all, I should like to thank all of wienerberger's employees and the Managing Board of the Group for their hard work and dedication in 2023. The company faced strong headwinds. The drastic decline in residential new build, especially on the European continent, brought major challenges for everyone. Nevertheless, the results achieved are impressive.

wienerberger looks back on a history of more than 200 years and has often experienced and mastered both cyclical and extraordinary slumps in sales. Based on this experience, the management reacted swiftly and took all necessary measures to cope with this demanding situation. This is why we have every reason to be highly satisfied with the outcome.

Over the years, wienerberger's targeted efforts to reduce its dependence on new build in favour of renovation went almost unnoticed. Those efforts are now proving their worth and becoming all the more visible.

The Supervisory Board actively monitored and supported this development. Please refer to the Management Report for further details on the development of business, which I will not repeat here. Instead, in the following paragraphs I will report on the Supervisory Board's work.

# **Composition of the Managing Board and the Supervisory Board**

As of the end of the 154th Annual General Meeting on May 5, 2023, Regina Prehofer and Peter Johnson, long-standing members of the Supervisory Board, as well as Oswald Schmid, stepped down from the Supervisory Board of Wienerberger AG. Moreover, the 154th Annual General Meeting resolved to reduce the number of capital representatives from nine to seven. Besides Myriam Meyer, who had been a member of the Supervisory Board since 2015 and stood for re-election, Effie K. Datson and Katrien Beuls were elected to the Supervisory Board.

There were no changes on the Managing Board in the reporting year. Having discussed the matter, and acting on the recommendation of the Nomination and Remuneration Committee, the Supervisory Board reappointed Harald Schwarzmayr and Gerhard Hanke, whose mandates ended on June 30, 2023, and February 29, 2024 respectively, for another three-year term on the Managing Board.

# **Activities of the Supervisory Board and its Committees**

In 2023, the Supervisory Board fulfilled its obligations in accordance with the relevant legal provisions, the Articles of Association and the Rules of Procedure within the framework of eight plenary meetings, six meetings of the Audit and Risk Committee, seven meetings of the Nomination and Remuneration Committee, and five meetings of the Sustainability and Innovation Committee. During the plenary meetings and the meetings of the Audit and Risk Committees, the Managing Board provided the Supervisory Board with comprehensive information, both orally and in writing, on the business performance and the position of the company, including its financial management.

In addition to regular reports on the current operational and financial situation of the company received in the course of its meetings, the Supervisory Board focused on the strategic orientation of the Group, with a special emphasis on strategic acquisition and investment projects as well as financial projects, such as the placement of a sustainability-linked bond with a volume of € 350 million on the Austrian capital market. Other key areas of the Supervisory Board's work included the discussion and adoption of the 2023-2026 Sustainability Program, the elaboration of the remuneration policies for the Managing Board and the Supervisory Board as of 2024, and the reappointment of Gerhard Hanke and Harald Schwarzmayr to the Managing Board.

In the 2023 business year, a major part of the Audit and Risk Committee's work consisted in monitoring group-wide accounting processes, the internal control system, the risk management system, the internal audit function, and cyber security issues. Moreover, the committee dealt in detail with the requirements of the Corporate Sustainability Reporting Directive (CSRD), the European Sustainability Reporting Standards (ESRS), and the EU Taxonomy Regulation. The external auditor, Deloitte Audit Wirtschaftsprüfungs GmbH, participated in all meetings of the Audit and Risk Committee.

In the course of its constituent meeting on May 5, 2023, the Supervisory Board merged the previously separate committees in charge of nomination and remuneration issues into a single committee. The priorities of the committee's work included preparations for the elections to the Supervisory Board at the 2023 Annual General Meeting and the reappointment of Harald Schwarzmayr and Gerhard Hanke to the Managing Board. The

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committee also proposed targets for the variable remuneration of the members of the Managing Board, drafted the remuneration 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.

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

# **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 consolidated financial statements prepared pursuant to sect. 245a of the Austrian Companies Code in accordance with the International Financial Reporting Standards (IFRS) complied with the applicable legal provisions. The auditor issued an unqualified audit opinion on both the separate and the consolidated financial 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.

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, following prior examination by the Audit and Risk Committee, the Supervisory Board reviewed and approved the Management

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 company's financial position, the Supervisory Board endorsed the Managing Board's proposal for profit distribution.

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 Governance Code in any material aspect. The evaluation of compliance 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.

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.

Image /page/6/Picture/10 description: The image shows a signature in blue ink on a light gray background. The signature consists of a series of connected, looping strokes that form an abstract, cursive-like design. The strokes vary in thickness, with some parts appearing bolder than others. The overall impression is that of a quick, stylized autograph.

*Peter Steiner Chairman of the Supervisory Board of Wienerberger AG*

Image /page/6/Picture/12 description: A portrait of a man with white hair and glasses wearing a blue suit and light blue shirt. He is smiling slightly and looking directly at the camera. The background is white.

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# <span id="page-7-0"></span>**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, renovation, 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.

## **Why invest in wienerberger?**

### **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 innovative 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.
- **›** 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 construction.
- **›** 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.

# **2. Added value for our shareholders through stable earnings growth**

With a clear strategic focus and a proven track record in delivering 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**

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.

Image /page/7/Picture/14 description: The image shows the text "SHARE OF INNOVATIVE PRODUCTS" in a dark green color, followed by the text ">35%" in a larger, bold, dark green font. Below that, the text "until 2026" is written in a smaller, dark green font.

### **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.

> I M P R O V E D E F F I C I E N C Y **€ 136 mn** EBITDA contribution in 2021 – 2023

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### **External Growth through M&A**

Given our low gearing and our strong cash flow generation, we are well-equipped to grow through acquisitions and are evaluating 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 attributable to the combination of the acquired company with our own portfolio.

> **~5×** EV / EBITDA multiple 3 years post-merger and including synergies

S T R O N G M & A T R A C K R E C O R D

### **3. Resilience through diversity**

- **›** 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 balance 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

Image /page/8/Figure/10 description: The image shows three sections of business growth. The first section is titled "STRONG ORGANIC GROWTH" and shows a CAGR of +7% revenue growth and a CAGR of +11% EBITDA growth. The second section is titled "STRATEGIC TRANSFORMATION" and shows two pie charts. The first pie chart shows the distribution of 2012 with 65%, 20%, and 15%. The total value is 2.4 bn €. The second pie chart shows the distribution of 2023 with 49%, 29%, and 22%. The total value is 4.2 bn €. The legend shows that the dark green color represents Renovation, the light green color represents Infrastructure, and the white color represents Newbuild. The third section is titled "VALUE CREATION FOR SHAREHOLDERS" and shows +174% Total Shareholder Return and a CAGR of +36% ROCE.

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# <span id="page-9-0"></span>**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 solutions for new build, renovation, and infrastructure projects. We want to inspire potential employees, customers, business partners, and our entire industry. Our common vision:

> **We provide for a better tomorrow!**

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-ofthe-art solutions in the field of sustainable construction, from which our customers and employees – as well as our shareholders and future generations – will profit in the long term.

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# <span id="page-10-0"></span>**Our Strategy**

# **Our Priorities**

All our entrepreneurial activities are subject to clearly defined and ambitious ESG criteria. Our primary goals are to increase our share of value creation in a building and to become a full-range provider of system solutions for energy and water management. To achieve these goals, we focus on key factors: innovation, operational excellence, and M&A and portfolio optimization. In our core markets in Europe and North America, we are continuously pursuing the expansion of activities in our core segments: new build, renovation, and infrastructure.

### **Our 3 Pillars of Growth**

product mix, and supplementing it by

digital services.

Image /page/10/Figure/6 description: The image shows three columns describing different types of growth. The first column is titled "Organic growth" and has an image of a lightbulb above it. Below the title is the text "through Innovation" and a paragraph that reads "Since 2010, we have grown organically by an average of over 7% per year. We are continuing this trend by advancing our transformation into a full-range system provider, steadily improving our". The second column is titled "Process improvements" and has an image of a gear above it. Below the title is the text "through Operational Excellence" and a paragraph that reads "We will generate additional earnings growth through the continuation of our efficiency enhancement program focused on manufacturing excellence, commercial excellence, supply chain". The third column is titled "External growth" and has an image of a line graph with an upward trend. Below the title is the text "through M&A and portfolio optimization" and a paragraph that reads "An extremely attractive pipeline and the positive track record of recent years provide the basis for further value-accretive transactions. At the same time, we regularly review our corporate portfolio".

regularly review our corporate portfolio for growth prospects and profitability.

management, and administration.

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# <span id="page-11-0"></span>**Our Values Strong values to shape the future**

wienerberger's success story is more than 200 years old. Since the beginning, we have committed ourselves to improving people's quality of life by producing first-class, innovative and ecological solutions, and to developing solutions for tomorrow which can be integrated into a recycling and/or reusable system, so that future generations have the same opportunities as we have today.

We want to shape the future together, with respect, trust, passion and creativity, and we want to make our contribution – on every continent, in every country, at every site, and across all fields of activity.

# **Trust**  grounds us

Trust is the basis wienerberger is built on. We encourage and support each other, and we believe in each other. This solidarity makes us stronger and motivates us in our daily work. Our trust in our skills and in our future ensures that we can manage even the biggest challenges.

> Trust is the basis of successful human relations.

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<span id="page-12-0"></span>Respect: Show appreciation, take on responsibility – for humans and for the environment.

# **Respect**  unites us

To us at wienerberger, respect means showing appreciation and taking on responsibility – for humans and for the environment. wienerberger respects and appreciates diversity. This enables all employees to authentically participate, and to give their best while feeling accepted and included.

# **Passion**  drives us

Passion is the engine which drives our innovative power, our growth, and our development as an international organization. We strive for exploiting our full potential, we are motivated in all our actions, and we think positively. We are committed and pursue our visions and goals in order to contribute significantly to overall success.

Passion is the engine which drives our innovative power, our growth, and our development as an international organization.

We break with habitual mindsets and create new ones – the status quo is unacceptable.

# **Creativity**  brings us to life

Creativity is a core resource for wienerberger, which determines our work. It opens up new perspectives and pushes us to find innovative solutions, and hence to contribute to a more sustainable way of life. With the courage to change things for the better, we leave well-trodden paths and look for new ways to shape the world of tomorrow.

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# <span id="page-13-0"></span>**Innovation at wienerberger**

With our commitment to sustainability, our focus on innovation, operational excellence, as well as M&A and portfolio optimization, we continuously set new standards on our journey to become a leading provider of innovative and ecological solutions for the entire building envelope in the areas of new construction and renovation as well as infrastructure for water and energy management. By employing innovative system solutions, supported by modern cutting-edge technology, wienerberger contributes to reducing emissions, saving natural resources, and mitigates the effects of climate change on people and the planet. Discover our vision for a sustainable future and explore tangible examples of how wienerberger is turning its ambition into reality.

### **Smart Water Management**

### **Global Challenges**

The effects of climate change result in weather extremes like dry periods, heat waves with rising temperatures as well as heavy rainfalls, and floods. The supply with critical resources like fresh water is challenged. In addition, more and more natural land is being sealed with impermeable surfaces, contributing to water scarcity on the one hand and increasing the likelihood and severity of urban flash floods on the other hand, leading to costly damage to infrastructure and buildings. This impacts the wellbeing of millions of people as well as our economy. At the same time, the European water infrastructure is ageing and in requirement of significant re-investment and climate adaptation measures over the coming decades. All these

developments call for urgent action to effectively mitigate the effects of climate change and to sustainably use valuable resources and protect the environment.

**€ 289 bn** will be needed by the 28 Member States for additional expenditure on water supply

and sanitation by 2030\*

Addressing the challenges of climate change and rapid urbanization requires innovative solutions in sustainable water management. At wienerberger, we're committed to developing smart all-in solutions, swiftly and sustainably, to conserve this precious resource. Our role extends beyond being a full-service provider; we're focused on ensuring a sustainable future for generations to come,

says Heimo Scheuch, CEO of wienerberger

*\* OECD (2020), Financing Water Supply, Sanitation and Flood Protection: Challenges in EU Member States and Policy Options, OECD Studies on Water, OECD Publishing, Paris.*

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### **Vision**

At wienerberger, we recognize these global challenges as opportunities for innovation and are dedicated to finding sustainable solutions that benefit both humanity and the environment. In doing so, we ensure that our solutions meet the highest quality and environmental standards by using state-of-theart technologies and materials. Our approach to sustainable water management goes beyond rhetoric; it's a dedicated effort to provide comprehensive solutions that integrate seamlessly within diverse markets. We are strengthening our business and value propositions for these structurally growing end markets to capitalize on these developments. Our strategic focus is to deliver solutions that not only align with market trends but also contribute to the sustainable development of our communities and industries.

### **Global Solution Portfolio**

wienerberger provides reliable solutions for energy infrastructure and water management across all key sectors for residential, commercial, industrial, and agricultural applications. Our solutions lay the foundation for thriving communities and a resilient economy. To drive the further expansion in these areas, wienerberger is raising its efforts with the development of innovative and intelligent solutions. Recent examples include technology enabling a digital twin of water networks, water-saving precision irrigation technology and state-of-the-art digitalized systems for rainwater harvesting, infiltration and reuse.

Rainwatermanagement

Image /page/14/Picture/5 description: The image shows a rainwater harvesting system being installed. The system is made up of green plastic crates that are being assembled on a construction site. The text in the image describes the system as a Raineo system from Pipelife. It collects rainwater, purifies it through filtering, and then stores it underground in so-called Stormboxes. The collected water can either be released from the Stormbox to seep slowly into the soil, or it can be retained before being transported into the public sewage system or harvested for further use in irrigation.

Drip irrigation system by Pipelife provides farmers with tailor-made 360-degree solutions, which not only reduce water consumption thanks to drip irrigation, but also diminish water losses during irrigation.

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### **From Product to Solution Partner: the Nordic Example**

The progressive and environmentally conscious market landscape in the Nordic region has consistently proven to be conducive to realizing wienerberger's forward-looking strategy. The company has transitioned from being a highly reliable product supplier to becoming a proficient partner that offers comprehensive and innovative solutions to address local challenges.

Despite being rich in water and having a high consciousness for sustainability, Finland, Norway, and Sweden face challenges related to climate change, an ageing infrastructure, rapidly growing urban agglomerations, and a growing yet also ageing population. For instance, rapid urban development requires increasingly larger-diameter and bespoke solutions for stormwater and wastewater management. This stands in contrast to widely dispersed, often remote rural settlements, making the efficient supply of water and energy over long distances a challenging endeavor for utilities.

In the region Nordics, wienerberger is the leading provider of infrastructure pipe solutions. To further strengthen its market presence, wienerberger is investing significantly into the capabilities and operational excellence of its local production network, transforming the business into a holistic solution provider, and extending the business model by adding smart solutions to our customer offering.

### **Operational Excellence**

wienerberger has strengthened its regional pipe production network by extending and upgrading its production plant in Ljung, Sweden. Completed in 2023, the new flagship factory is now the largest and most efficient pipe factory in the region. Situated in the heart of the Nordics, wienerberger reaches 75% of Scandinavia's population within a radius of 300-400 kilometers. Equipped with state-of-the-art production technology, the factory can accommodate the increasing demand for larger-diameter and bespoke infrastructure system solutions, with pipe diameters reaching up to 3.6 meters, in urban areas such as Stockholm, Gothenburg, Copenhagen, and Oslo.

> The Pipelife plant in Ljung, Sweden serves the Nordic market with state-of-the-art water management products

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With remote-controlled, intelligent pump stations, Pipelife offers solutions for wastewater, rainwater and groundwater systems.

### **Holistic Solution Provider**

wienerberger is leveraging its leading position in infrastructure pipe solutions to evolve into a comprehensive partner for municipal water management. Our traditional solution offering revolves around plastic pipes, fittings, and related accessories. We are expanding our range to not only provide larger and bespoke plastic-based solutions, but to encompass as well the more technical systems necessary to transport water from point A to point B in the municipal water and sewage network. This includes for example pumping stations, pressure increase stations, and customized chamber and tank solutions. For these water assets, we also provide web-based remote monitoring and control systems.

### **Extending the Business Model into Smart Solutions**

Finally, we are incorporating smart solutions into our portfolio to enable our customers to add more intelligence to their potable, stormwater and wastewater networks. Built on IoT technology, these solutions offer deep insights into the performance of the water networks and assist utilities in addressing challenges such as the detection of leaks in pressure pipe networks, the inflow of foreign water into the sewage system, or the identification and reporting of overflow events.

wienerberger is enhancing its presence in the Nordic markets by evolving from a traditional supplier of pipes and fittings to a provider of comprehensive solutions for water and energy management. This strategic expansion broadens our addressable market, establishing wienerberger as the preferred and reliable provider of choice for our valued end customers. Our initiative is not merely an extension of our product range; it is a transformative step towards solidifying our leadership and commitment to the regions we serve.

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# **Energy Efficient New Build & Renovation**

### **Challenges**

With the EU's target to achieving a fully decarbonized building stock by 2050, significant efforts will be required in the years and decades to come to enhance the energy performance of buildings. Today, an alarming percentage of around 40% of Europe's building stock requires urgent attention, necessitating renovations and retrofits to align with modern energy efficiency standards. This becomes critical as heating and cooling of buildings account for a considerable 40% of our overall energy consumption.

### **Vision**

Confronting the pressing challenges of our time, wienerberger is leading the charge in pioneering eco-efficient solutions for sustainable and affordable housing through smart innovation, automation, and prefabrication techniques. Our dedication is manifest in our advanced strategies for developing new structures and upgrading existing ones. Our objective is clear: to markedly improve the energy efficiency of underperforming buildings, transforming them into models of climate-friendly design. In doing so, we aim to not only elevate living standards but also make a substantial contribution to a more sustainable future.

wienerberger's portfolio for renovation showcases a diverse array of products designed to meet the growing demand for sustainable building practices. With a strong selection of solutions focusing on decreasing carbon footprints and operational expenses, our offerings are geared towards modernizing existing structures while prioritizing environmental considerations.

As the renovation sector expands, wienerberger is well-positioned to benefit from this trend, combining our products to a suite of solutions that respond to current standards and anticipate future developments in construction technology. This underlines our significant exposure to the renovation market and our potential to leverage market growth effectively. We envision a future where each building, whether new or old, is equipped with one solution that covers all its energy needs and will become a net zero building.

# **>40%**

of European buildings stock is responsible of final energy consumption.

With our strong market position, our strategy is clear: We are developing an innovative and sustainable solution portfolio that not only meets the needs of the market but also continues to distinguish us as industry leaders. We're not just keeping pace; we're defining the future of sustainability and innovation in our sector,

says Heimo Scheuch, CEO of wienerberger.

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### **Energy Efficient New Build & Renovation by the example "UK/Ireland"**

In the face of current critical environmental challenges, the necessity to retrofit our homes for sustainability, energy efficiency, and responsibility has never been more critical. According to the UK government's Net Zero Strategy, around 18 million homes currently hold an Energy Performance Certificate (EPC) rating of "D" of lower. Of these, approximately 4 million are social housing units: lower-cost rented housing provided by landlords and local authorities, which aim to provide affordable homes for lower-income and vulnerable tenants.

The UK government has set a target for social housing providers to achieve a minimum EPC rating of "C" by 2035. To this end, the government has allocated a fund of £ 1.4 billion for investment in the modernization and upgrade of social housing over a ten-year period. As a leading international supplier of innovative and ecological solutions for the entire building envelope in new construction and renovation, as well as for infrastructure in water and energy management, wienerberger offers solutions for these challenges.

### *The Renatus Project of wienerberger*

With our expertise, a pilot project has been initiated in the UK to enhance the existing housing infrastructure. The initiative, named "Renatus", transforms houses into eco-friendly dwellings that not only reduce CO₂ footprints and operational costs but also improve the living standards for residents and lower lifetime costs for homeowners.

A demonstration of the Renatus approach is evident in the transformation of two post-war semi-detached bungalows. These buildings were initially below par in terms of energy performance - a common issue with constructions from this period. wienerberger launched a comprehensive program for assessment, testing, and modeling to identify energy savings and decarbonization improvements, adopting a "fabric first" strategy. This strategy prioritizes the energy efficiency of a property above all else. Energy efficiency is considered at every stage of the fabric first approach, especially concerning the building envelope.

With this strategy, it is possible to:

- **›** reduce investment and operational costs
- **›** improve energy efficiency
- **›** reduce carbon emissions

Additionally, the fabric first approach reduces maintenance needs over the building's lifetime, and wienerberger's solutions thus significantly improve occupant comfort. According to estimates for the Renatus project, improvements in thermal efficiency, integration of low-carbon heating solutions, and photovoltaics, can reduce CO₂ emissions by up to 95%, and operational costs by as much as 80%.

**95%** 

less CO₂ emissions in the Renatus Project

After the project's completion, the EPC ratings are expected to rise from "E" to "A". This represents a significant and sustainable improvement and highlights the immense potential of using innovative wienerberger solutions.

To sustainably confirm the effectiveness of the Renatus project, three additional properties from different eras – the 1920s, 1970s, and 2010s – are currently being retrofitted. The goal here is also to implement current standards and future-proof the properties. After the renovation, the properties will be thoroughly assessed to confirm the effectiveness of the Renatus model, aiming to develop a replicable strategy for future projects and to underscore the effectiveness of wienerberger products.

The Renatus project is just one example that highlights the simple and sustainable use of wienerberger products. wienerberger's commitment to promoting sustainable living is clearly emphasized. The projects, spanning various decades, represent a significant portion of properties in urgent need of renovation. A large number of these properties have an EPC rating of "C" or worse. With this challenge in mind, and practical projects underway, wienerberger positions itself as a strong competitor in the market, ready to meet the demands of sustainable future.

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# <span id="page-19-0"></span>**Sustainability at wienerberger**

wienerberger stands at the forefront of sustainability, distinguishing itself as a leading provider of innovative and ecological solutions across the entire building envelope, as well as in infrastructure for water and energy management. Our commitment to a livable future is encapsulated in its comprehensive approach to sustainability, addressing key pillars of environmental impact, social responsibility, and governance integrity.

# **Our Sustainability Program 2023 2023 Targets**

### **Finalization of Sustainability Program 2023**

In 2020, we introduced our Sustainability Program for the period 2020–2023, which outlined clear targets on the most material aspects of our business. It was well received by both internal and external stakeholders and accelerated our sustainable development as a result.

Image /page/19/Figure/6 description: The image shows a diagram with the text "All targets achieved" in the center. Surrounding this text are six circles, each containing an icon and text related to sustainability goals. The top left circle contains a recycling icon and the text "Circularity". The top center circle contains a cloud with "CO2" inside and the text "Decarbonization and Energy Mix". The top right circle contains trees and the text "Biodiversity". The bottom left circle contains people icons and the text "Training & Development". The bottom center circle contains people icons and the text "Diversity". The bottom right circle contains a globe icon and the text "Social Commitment". Each circle also contains a checkmark symbol, indicating that the target has been achieved.

{20}------------------------------------------------

# **Our 2023 environmental targets**

Our Sustainability Program 2023 was founded on three environment-related pillars: decarbonization, circular economy and biodiversity.

### **Circular Economy**

Our goal is to design products for end-of-life reusability, promoting sustainability and reducing environmental impact. We are committed to resource efficiency and closed value creation cycles.

### **Decarbonization**

wienerberger is dedicated to energy efficiency and decarbonization across its business areas, supporting the global vision of a CO₂-neutral economy. We're actively reducing our emissions in production through technological optimization and increased green electricity use. Ongoing process improvements, new technologies, and innovative R&D projects positioned us to meet our ambitious 2023 target.

Target 2023: **100%**  of new products designed to be **reusable or recyclable**

> Achievement 2023:

Target 2023: **15% less CO₂ emissions**  (Scope 1 and 2) by 2023 compared to 2020

2023: **15.6% less CO₂ emissions**  (Scope 1 and 2) by 2023 compared to 2020

Achievement

# **99.3%**  of new products

designed to be **reusable or recyclable**

### **Biodiversity**

Biodiversity is a priority across all our production sites. At wienerberger, we are committed to respecting nature reserves, using resources carefully, and optimizing land use to enhance flora and fauna presence.

Target 2023: **All195**  production sites with **Biodiversity Action Plans**

Achievement 2023: **All195**  production sites with implemented **Biodiversity Action Plans**

{21}------------------------------------------------

# **Our 2023 social targets**

**Diversity**

Our Sustainability Program 2023 was rounded by three social pillars: diversity, training and development and CSR projects.

### **Social Commitment**

wienerberger is committed to creating the greatest possible benefit for society. For many years, we have been supporting social projects and institutions. With a special focus on the countries we operate in, we help to provide housing and decent living conditions for people in need within the framework of social projects.

Image /page/21/Figure/5 description: The image contains information about wienerberger's diversity and training & development targets and achievements. The text at the top states that wienerberger is aware that the percentage of women in specific positions is only one aspect of diversity and that their targets regarding the percentage of women are a first step to build awareness for gender equality. There are several circular graphics showing targets and achievements for 2023. One shows a target of >=15% women in senior management and >=30% women in white-collar positions, with an achievement of 16% women in senior management and 34% women in white-collar positions. Another shows a target of 200 housing units per year for people in need, and an achievement of 312 housing units built. The text about training & development states that wienerberger believes in advancing and supporting employees in a targeted manner and in facilitating networking and an international exchange of knowledge. There is a target of 10% more hours of training per employee by 2023, as compared to 2020, and an achievement of 89% more hours of training per employee compared to 2020.

# **Our Governance commitment**

**Target 2023:** Committed to the highest national and international governance standards.

**Achievement 2023:** A consistent focus on: business strategy, board diversity and compensation, executive compensation and succession management.

{22}------------------------------------------------

# **Sustainability Program 2026: Shaping our sustainable future 2026 Targets**

Image /page/22/Figure/2 description: The image shows a diagram with different sustainability and responsibility topics. The topics are arranged in a circular fashion, each within a green circle. The topics include: Circularity, Water management, Decarbonization and Energy Mix, Biodiversity, Revenue from products supporting net zero buildings, Training & Development, Waste management, Social Commitment, Health & Safety, and Diversity, Equity & Inclusion.

We are convinced that, following on our Sustainability Program 2023, there is much more we can achieve with additional know-how, further investments and intensified efforts such as those outlined in the Sustainability Program 2023 – 2026.

Heimo Scheuch, CEO of wienerberger At wienerberger, sustainability is part of who we are. As we continue to innovate and improve our impact on the planet and people, we are proud to introduce the wienerberger Sustainability Program 2026. This program is a vital step on our journey towards achieving climate neutrality by 2050 and aligning with the sustainability targets of the European Green Deal.

The Sustainability Program 2026 extends the environmental and social topics, leveraging our sustainability targets to organic growth, both within our internal processes as well as assisting society with products supporting energy efficiency and climate resilience. It provides the right strategic and operational focus for the sustainable development of our business.

{23}------------------------------------------------

# **Our Social Targets 2026**

At wienerberger we put people first: We remain humble & embrace differences, we lead by example and act as advocates for diversity & inclusion and we offer our employees a safe, attractive working environment with development opportunities. But our commitment extends far beyond our colleagues at work. Because our solutions are developed by people, for people, we act in the interests of our customers, our partners, our staff, and society as a whole. This is reflected in our 2026 social targets: they encompass initiatives to enhance diversity and inclusion, improve employee well-being, and support the communities in which wienerberger operates.

### **Health and Safety:**

We continue our focus on personal health and safety, further striving towards the principle of zero harm. This emphasis will be supported by a stronger involvement of management in meetings on safety issues, aiming at 20,000 visible leadership hours per year.

### **Training & Development:**

We understand the value of our employees' professional advancement for wienerberger's continued success. Therefore, we commit to all employees receiving 18 hours of training per employee and year. In addition, an accumulated 30,000 hours of training for installers will be provided as the lack of skilled labor on building sites is a major bottleneck for the current building industry. To particularly support young talents, 500 apprentices will be trained until 2026.

# **18** hours of training per employee and year (2023 – 2026)

**500**  apprentices in total trained (2023 – 2026)

> **30,000** hours of training for installers

(2023 – 2026)

# **Zero Harm principle**

**20,000** 

visible leadership hours per year (2023 – 2026)

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### **Diversity and Inclusion:**

Diversity and inclusion initiatives at wienerberger aim to create a workplace culture where individuals from various backgrounds are valued and provided with equal opportunities. To increase our focus on promoting diversity within the workforce and fostering an inclusive and empowering environment, so called inclusion and diversity action plans will be developed and implemented in all countries until 2026, including equal pay and equal opportunity policies.

### **Social Commitment:**

Through our long-lasting cooperation with the non-profit organization Habitat for Humanity and our regional approach, we will support the building of 200 housing units with our products for people in need in our local markets every year.

**200**

housing units per year built with our products for people in need

Development and implementation of an

# **inclusion and diversity**

action plan in all countries (2023 – 2026)

{25}------------------------------------------------

# **Our 2026 Environmental Targets**

The 2026 environmental targets refer to specific objectives and goals set by wienerberger for the year 2026, aimed at reducing our company's environmental impact and promoting sustainability. These targets include reducing greenhouse gas emissions, minimizing resource consumption, and enhancing eco-friendly practices across the organization.

### **Decarbonization and Energy Mix:**

Decarbonization involves reducing carbon emissions in production and transport as well as transitioning to cleaner, low-carbon energy sources. In the next three years, we aim to reduce our CO₂ emissions further, and split our ambitions into three areas: We want to achieve a 25%-reduction of emissions from primary energy sources and raw materials as well as from electricity consumption and generation (scope 1&2, intensity based). In addition, we will put emphasis on scope 3 emissions, indirect emissions stemming from outside our company, aiming to achieve a 10% reduction by targeted measures in the areas of purchased goods and services, transport as well as fuel

and energy related activities. Furthermore, we want to increase the use of renewable energy at our own production sites to 15%.

**25%** reduction in scope 1 & 2 CO₂ emissions (2020 – 2026)

**10%** reduction in scope 3 CO₂ emissions (2022 – 2026)

**15%** of renewable energy used in own operations (2023 – 2026) **10%**

### **Circularity:**

Circularity refers to creating a closed-loop system where products and materials are recycled, reused, or repurposed to minimize waste and reduce the consumption of new resources. Durability is a leading circular principle as it directly addresses the issue of resource consumption and waste generation. wienerberger has highly durable products, lasting for over 100 years. Our ongoing commitment to circularity involves designing products and processes that minimize waste and maximize the efficient use of resources. To this end, we aim to increase the share among all sold products to over 80% for highly durable products and to over 90% for recyclable and/or reusable products.

### **Biodiversity:**

Biodiversity encompasses the variety and variability of life on Earth, including ecosystems, species, and genetic diversity. Our efforts to preserve biodiversity involve actions to protect natural habitats, support local flora and fauna, and ensure that our operations do not negatively impact the delicate balance of ecosystems. At all of wienerberger's production sites,

biodiversity plans will be implemented to achieve a 10% improvement of fauna in the next three years. This will be complemented by the training of 400 biodiversity ambassadors, uniquely equipped to measure indicators for a healthy fauna, as well as the planting of 100,000 trees until 2026.

improvement of fauna resulting from the biodiversity plans implemented for all production plants (2023 – 2026)

# **400**

biodiversity ambassadors trained (2020 – 2026)

# **100,000**

trees planted, equivalent to one tree per employee per year (2022 – 2026)

**>80%**  of sales from highly durable

products (>100 years)

# **>90%**

of products sold are recyclable and / or reusable (2023 – 2026)

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<span id="page-26-0"></span>**Revenue from products supporting net zero buildings:**

The building sector is responsible for approximately 39% of global energy and process-related CO₂ emissions. Energy management and innovative products that support the construction, renovation and operation of net-zero energy buildings are hence a main lever in decarbonization efforts worldwide. wienerberger's innovative systems and technologies for the building sector have an essential role in designing, constructing, and operating net zero buildings. Driving development, growth and availability of these products will be essential for the buildings sector and Europe's ambition to become CO₂ neutral by 2050. The target captures those product categories which support energy efficient buildings, such as: systems for roofs, outer walls including façades, heating, cooling and solar power generation.

### **Water management:**

Water management encompasses a range of practices and strategies to efficiently and responsibly use water resources. As climate change necessitates better management of water as an ever-more precious resource, we set out to harvest, retain and save 35 million m3 of water until 2026 through our products. This includes reusing water for various appliances or lowering the water consumption in agriculture. In addition, we commit ourselves to reducing water consumption in our own production by 15%.

### **Waste management:**

Waste management focuses on how we handle and dispose of the waste generated by our operations. Our approach to waste management includes reducing waste production, promoting recycling and reuse, and ensuring proper disposal of waste materials to minimize environmental impact. For our sustainability program 2026 we commit to a 15% reduction of waste at our production sites to complement our efforts towards circularity.

**15%** reduction of waste

 in own operations (2023 – 2026)

**>75%** 

of total revenue from building products contributing to Net Zero Buildings

**35** million m3 of water harvested, retained, and saved through our products in infrastructure and agriculture (2023 – 2026)

**15%**

reduction of water consumption in own operations (2023 – 2026)

{27}------------------------------------------------

{28}------------------------------------------------

# <span id="page-28-0"></span>SUSTAINABILITY REPORT 2023

### 

## **[Key Indicators](#page-29-0) [of wienerberger](#page-29-0)**

### 

## **[Sustainability at wienerberger](#page-31-0)**

- [wienerberger at a Glance](#page-32-0)
- [ESG Governance Structure](#page-41-0)
- [Green Financing](#page-44-0)
- [Risk Management and](#page-44-0)  [Due Diligence Processes](#page-44-0)
- [Business Conduct](#page-45-0)
- [Stakeholder Management](#page-49-0)
- [Supplier Management](#page-51-0) [Commitment, Partnerships,](#page-53-0)
- [Indices & Ratings](#page-53-0)

### 

### **[For the People -](#page-55-0) [Social Sustainability](#page-55-0)**

- [Employees](#page-56-0)
- [Local Residents, Consumers](#page-76-0)  [and End-Users](#page-76-0)
- [Social Commitment](#page-78-0)

### 

### **[For the Planet -](#page-84-0) [Environmental Sustainability](#page-84-0)**

- [Climate Action](#page-85-0)
- [Water Management](#page-101-0)
- [Circular Economy and](#page-106-0)  [Resource Use](#page-106-0)
- [Biodiversity](#page-115-0)

### **[4](#page-0-0) [Non-Financial Reporting](#page-123-0)**

- Methodology for Non-Financial Reporting
- [TCFD Report](#page-129-0)
- [Sustainability-Linked](#page-142-0)  [Progress Report](#page-142-0)
- [Taxonomy](#page-143-0)
- [Comprehensive overview of](#page-148-0)  [Non-Financial indicators 2023](#page-148-0)
- [GRI Content Index](#page-166-0) [Confirmation by the](#page-172-0)
- [Managing Board](#page-172-0)
- [Auditor's Report](#page-173-0)

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# <span id="page-29-0"></span>**Material Indicators of wienerberger**

### **Financial Indicators**

| Corporate Indicators |         | 2021    | 2022    | 2023    | Chg. in % |
|----------------------|---------|---------|---------|---------|-----------|
| Revenues             | in MEUR | 3,971.3 | 4,976.7 | 4,224.3 | –15       |
| EBITDA               | in MEUR | 694.3   | 1,026.2 | 783.3   | –24       |
| Operating EBITDA     | in MEUR | 693.9   | 1,020.9 | 810.8   | –21       |
| EBIT                 | in MEUR | 420.4   | 721.2   | 477.3   | –34       |
| Profit before Tax    | in MEUR | 374.3   | 688.3   | 424.3   | –38       |
| Profit after tax     | in MEUR | 310.7   | 567.9   | 334.4   | –41       |
| Free Cashflow        | in MEUR | 420.6   | 597.7   | 257.5   | –57       |
| ROCE                 | in %    | 12      | 18      | 11      | –         |
| Net debt             | in MEUR | 1,134.5 | 1,079.3 | 1,214.7 | +8        |
| Gearing              | in %    | 53      | 44      | 46      | –         |

### **Non-Financial Indicators1)**

| Non-Financial Indicators - Environment                                                             |                                                                            | 2021    | 2022    | 2023    | Chg. vs.<br>base year<br>2020 in % |
|----------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------|---------|---------|---------|------------------------------------|
| Index of specific direct and indirect<br>CO₂ emissions, Scope 1 and 2<br>(2020 = 100%) 1) 2) 3) 4) | in %, based on kg CO₂/quantity of products<br>ready for sale (2020 = 100%) | 92      | 87      | 84      | –15.6                              |
| Index quantity of products ready for sale 8)                                                       | Index in % based on production volume<br>(2020 = 100%)                     | 107     | 110     | 75      | –25                                |
| Index of specific direct CO₂ emissions,<br>Scope 1 (2020 = 100%) 1) 2) 3)                          | in %, based on kg CO₂/quantity of products ready<br>for sale (2020 = 100%) | 97      | 94      | 93      | –7                                 |
| Index of specific indirect CO₂ emissions,<br>Scope 2 (2020 = 100%) 1) 4) 7)                        | in %, based on kg CO₂/quantity of products ready<br>for sale (2020 = 100%) | 60      | 41      | 29      | –71                                |
| Absolute direct and indirect CO₂ emissions,<br>Scope 1 + Scope 2 1) 4) 5)                          | in kilotons                                                                | 2,659.2 | 2,922.9 | 1,988.0 | –32                                |
| Absolute direct CO₂ emissions, Scope 1 1) 5)                                                       | in kilotons                                                                | 2,483.5 | 2,767.7 | 1,909.4 | –26                                |
| Absolute indirect CO₂ emissions, Scope 2 1) 4)                                                     | in kilotons                                                                | 175.6   | 155.2   | 78.6    | –77                                |
| Absolute indirect CO₂ emissions, Scope 3                                                           | in kilotons                                                                | –       | –       | 2,244.6 | –                                  |
| Index specific energy consumption 1) 6)                                                            | in %, based on kg CO₂/quantity of products<br>ready for sale (2020 = 100%) | 99      | 97      | 99      | –1                                 |
| Absolute energy consumption 1) 6)                                                                  | in gigawatt-hours                                                          | 9,389.5 | 9,482.9 | 7,236.2 | –17                                |
| Implemented Biodiversity Action Plan                                                               | Number of sites with biodiversity action plan                              | 5       | 67      | 195     | –                                  |
| Specific water use                                                                                 | in m³/ton                                                                  | 0.243   | 0.226   | 0.267   | 18                                 |
| Waste                                                                                              | in kilotons                                                                | 126.7   | 105.8   | 95.3    | –9                                 |

*1) For two companies newly acquired in 2023, emission and energy indicators are not included for the 2023 reporting year. // 2) Direct specific CO2 emissions (Scope 1) refer to CO2 emissions from raw materials (in ceramic production) as well as the fuel emissions of the entire Wienerberger Group. // 3) The calculation excluded CO2 emissions from biogenic input materials. // 4) The calculation of indirect CO2 emissions from purchased electricity is based on the current CO2 emission factors of Corporate Procurement. // 5) Direct CO2 emissions (Scope 1): ETS and non-ETS. ETS source: EU Transaction Log (EUTL). Non-ETS: Calculation in accordance with national rules or on the basis of EU standard emission factors. For plants in the USA CO2 emissions from the production process are also reported. Including CO2 emissions from biogenic input material. Quantities from Wienerberger's CO2 monitoring corresponding to national rules. // 6) Total energy consumption includes energy consumed in production, but excludes administration (except in a few individual cases where separate invoicing is not possible). // 7) Limited comparability to prior year due to scope and calculation methodology adaptions. // 8) Limited comparability of the data-tables to the past data-table disclosed in prior year due to changed scope of consolidation and adaptions of calculation methodology. Comparability of these data in three-years-trend is given. // For all non-financial indicators, the rates of change vs. previous periods are calculated on the basis of non-rounded values. Electronic data processing may result in rounding differences. // General remarks applying to all parts of the 2023 Sustainability Report: All non-financial indicators and their rates of change are calculated on the basis of non-rounded values. // Electronic data processing may result in rounding differences. // Some of the differences vs. the previous year are in the decimal range. // The calculation methods used and the reporting scope are explained in the respective chapters of the 2023 Sustainability Report.*

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| Non-Financial Indicators - Social                      |                                                                          | 2021     | 2022     | 2023     | Chg. in % |
|--------------------------------------------------------|--------------------------------------------------------------------------|----------|----------|----------|-----------|
| Ø Employees as at 31.12. 1) 2)                         | Full-time equivalents (FTEs)                                             | 17,624.1 | 19,078.4 | 18,913.2 | -1        |
| Employees as at 31.12. 3)                              | Headcount                                                                | 16,650   | 18,482   | 17,881   | -3        |
| New entrants 3)                                        | Headcount                                                                | 2,716.0  | 3,288.0  | 2,544.0  | -23       |
| Employee turnover 4)                                   | in %                                                                     | 11       | 14       | 14       | +5        |
| Ø Training hours / employee 3) 5)                      | in hours and per year                                                    | 13.1     | 16.3     | 19.9     | +89       |
| Percentage of women 3) 6)                              | in %, relative to headcount                                              | 15       | 16       | 17       | +3        |
| Percentage of women in<br>senior management 3)         | in %, relative to headcount                                              | 15       | 15       | 16       | +4        |
| Percentage of women in<br>white-collar positions 3) 7) | in %, relative to headcount                                              | 33       | 34       | 34       | +2        |
| Accident frequency 8)                                  | Number of occupational accidents /<br>number of hours worked x 1,000,000 | 4.4      | 4.1      | 3.6      | -14       |
| Accident severity 8)                                   | Accident-related sick-leave days /<br>number of hours worked x 1,000,000 | 180.0    | 180.1    | 119.7    | -34       |
| Number of fatal occupational accidents                 | Number within the Wienerberger Group                                     | 1        | 0        | 0 11)    | 0         |
| Ø Sick-leave days / employee 9)                        | in days                                                                  | 11.5     | 12.3     | 8.4      | -32       |
| Housing units for people in need 10)                   | Number per year                                                          | 325      | 254      | 312      | -         |

*1) Agency and temporary workers are included from their first hour of work at Wienerberger. // 2) Including the four companies newly acquired in 2022 // 3) Employees directly employed by Wienerberger. // 4) Ratio of persons leaving the Wienerberger Group (termination by employee or employer or mutually agreed termination) to average number of employees (headcount) in permanent employment in the reporting year, excluding temporary and agency workers as well as workers under term contracts; persons retiring or on leave do not count as persons leaving the company. Excluding North America; due to special national legal provisions the indicators are not comparable to those of other business units. // 5) Internal and external initial and further training measures per employee (headcount). International training events are not included. // 6) Share of women among all employees except in production. // 7) Share of women in administration and sales (including marketing and inventories). // 8) Including temporary and agency workers (from their first hour of work at Wienerberger) and employees under term contracts // 9) Accident-related and non-accident-related sick-leave days. Agency and temporary workers are included in data on accident-related sick-leave days. Data on non-accident-related sick-leave days include all employees directly employed by Wienerberger. Excluding North America; due to special national legal provisions the indicators are not comparable to those of other business units. // 10) Housing unit for humanitarian projects: Buildings: Construction/renovation of residential and non-residential buildings. One housing unit = one single-family house / one apartment / a predefined surface in a non-residential building // Infrastructure (drinking-water or wastewater connection): Construction/renovation: connection of four housing units to drinking water supply or wastewater disposal / connection per predefined surface in a non-residential building = one housing unit. // 11) Within our policy, events (fatal - ,lost time -, medical intervention accidents) of acquired companies that have not finished the one-year integration process are not reported.* 

|                                                                          |      | 2021 | 2022 | 2023 | Chg. in<br>% |
|--------------------------------------------------------------------------|------|------|------|------|--------------|
| Key figures on our products and system solutions                         |      |      |      |      |              |
| Percentage of products designed for reuse or recycling in total revenues | in % | –    | 98   | 99   | +1           |
| Percentage of innovative products in total revenues                      | in % | 31   | 32   | 32   | –            |

{31}------------------------------------------------

# <span id="page-31-0"></span>**Sustainability at wienerberger**

Sustainability has always been an integral part of wienerberger's corporate strategy. With our sustainable solutions for housing construction, energy-efficient renovation, as well as piping solutions for infrastructure, buildings and agriculture, we are not only continuously improving people's quality of life but are also proactively part of the solution ourselves when it comes to tackling climate change and its effects.

Heimo Scheuch, Chairman of the Managing Board of Wienerberger AG, CEO

Image /page/31/Picture/6 description: The image shows a green magnifying glass with the letter 'W' inside the lens. The magnifying glass is outlined in green, and the letter 'W' is also green. The background is white.

[wienerberger](#page-32-0)  at a Glance 33

[ESG Governance](#page-41-0)  Structure 42

Image /page/31/Picture/10 description: The image shows a stylized drawing of a hand holding a balance scale. The hand is open and facing upwards, as if offering or supporting something. Above the hand, a balance scale is depicted with two pans hanging from a central beam. The scale appears to be in equilibrium, with both pans at the same level. The drawing is done with a single, consistent line weight, and the color of the lines is a muted green. The background is a plain, light beige color, providing contrast to the green lines of the drawing.

[Business](#page-45-0) Conduct 46

Image /page/31/Picture/12 description: The image shows a green line drawing of a person in a circle, with seven smaller circles connected to the larger circle by lines. The smaller circles are arranged around the larger circle in a radial pattern.

Stakeholder [Management](#page-49-0) 50

Image /page/31/Picture/14 description: The image shows a green line drawing of a magnifying glass with three horizontal lines inside the lens. A gear is positioned in the lower left corner of the magnifying glass.

Risk Management [and Due Diligence](#page-44-0) Processes 45

Image /page/31/Picture/21 description: The image shows a line drawing of a truck carrying two boxes. The truck is drawn in green lines and is facing right. The truck has a cab, a bed, and four wheels. The two boxes are on the bed of the truck.

Supplier [Management](#page-51-0) 52

Image /page/31/Figure/18 description: The image shows a bar graph with three bars of increasing height. An arrow points upwards and to the right, starting from the base of the first bar and ending near the top of the third bar. A star is located above the third bar.

Commitment, [Partnerships, Indices](#page-53-0)  & Ratings 54

{32}------------------------------------------------

# <span id="page-32-0"></span>**wienerberger at a Glance**

# **Company profile**

wienerberger is a leading international provider of smart solutions for the entire building envelope in new build and renovation as well as for infrastructure in water and energy management. Currently, we have 216 production sites operating in 28 countries and we export our products to international markets. We are the worldwide market leader in bricks and the number-one producer of clay roof tiles in Europe. Moreover, we are among the leading suppliers of pipe systems in Europe and concrete pavers in Central and Eastern Europe. Through the acquisition of Meridian Brick, wienerberger also became the leading provider of façade solutions in the USA and Canada.

wienerberger is a free-float company with 100% of its shares being publicly traded. For details on the shareholder structure, please refer to pages [216](#page-215-0) and [217](#page-216-0) of this Annual Report.

Our 18,913 employees are the foundation of our organization. Their excellent cooperation is based on a firmly rooted, vibrant corporate culture that is characterized by shared values – trust, respect, passion, and creativity. For further information on our corporate culture and our corporate values, please refer to our [Website1](https://www.wienerberger.com/de/ueber-uns/unternehmenskultur.htm) and to pages [12](#page-11-0) and [13.](#page-12-0)

### **Vision and corporate strategy**

wienerberger improves people's quality of life and creates a better world for generations to come by providing innovative and sustainable solutions for new-build, renovation, and infrastructure projects.

Our vision is to be the most highly regarded provider of sustainable building materials and infrastructure solutions and the preferred employer in our local markets.

The primary goal of our entrepreneurial activities is to grow sustainably and continuously and to achieve our financial targets, all in compliance with our strict and ambitious ESG (environmental, social, governance) goals. For wienerberger, ESG, innovation, and operational excellence, as well as M&A and portfolio optimization, are the most important pillars of sustainable growth. Further information on our corporate mission and our value proposition is provided in this Annual Report on [pages 10-27](#page-9-0).

Over the past years, wienerberger has continuously reoriented its corporate strategy: We have evolved from a volume- and production-driven manufacturer of standard products into a full-range provider of innovative and smart system solutions for energy-efficient housing construction, renovation, and infrastructure. The wienerberger corporate strategy, our priorities, and the interrelation between our financial and non-financial criteria are also described in greater detail on [pages 10-27](#page-26-0) of this Annual Report.

# **Operating segments and product groups**

wienerberger's durable products and smart system solutions are used for the construction and renovation of buildings, and even entire city quarters. The product portfolio now ranges from roof and wall systems to façade solutions, engineering services for buildings to innovative pipe systems for safe and secure energy and water supply, as well as systems for rainwater management and wastewater disposal.

### **New reporting structure in Europe**

In 2022, wienerberger decided to adapt its operating structure as of the 2023 business year, changing over from a product-oriented structure centered on business units – wienerberger Building Solutions and wienerberger Piping Solutions – to a regional structure with Region Europe West and Region Europe East. This new structure will contribute toward harnessing synergies between the various operating segments within the countries and regions.

The new format of the information presented has no influence on its granularity and its comparability with previously reported information, as the presentation of prior periods has also been adapted to the new structure.

### **Reporting structure in North America**

A combined management structure of this type has been practiced successfully by North America for several years.

Further information on the reporting structure and product groups of wienerberger is presented in the 2023 Annual Report on [pages 207-209](#page-206-0) and [234-235.](#page-233-0)

*<sup>1)</sup> https://www.wienerberger.com/en/about/corporate-culture.html*

{33}------------------------------------------------

# CORE APPLICATIONS OF OUR PRODUCTS AND SYSTEMS

Image /page/33/Figure/3 description: The image is divided into three vertical sections, each representing a different type of solution. The first section, titled "Solutions for the Building Envelope and Concrete Pavers," features an illustration of houses with solar panels and paving. It lists wall, façade, and roof systems (including PV solutions) for single- and two-family homes, multi-family homes, and non-residential construction. It also mentions paving and water management for gardens and pavements and parking areas. The section indicates that new builds, renovations, repairs, and modernization are available. The decision-makers and customer groups include architects, designers, public-sector clients, private investors, building contractors, processors, distribution partners, and dealers. The product users are users of buildings and the public at large. The second section, titled "In-house-Solutions," features an illustration of a building's internal systems. It lists electrical cooling and heating installations, drinking water and wastewater, garden irrigation, and irrigation systems and storage of water. It also indicates that new builds, renovations, repairs, and modernization are available. The decision-makers and customer groups include designers, electricians, plumbers, building contractors, processors, distribution partners, and dealers. The product users are end customers and users of buildings. The third section, titled "Infrastructure Solutions," features an illustration of a building with water and energy infrastructure. It lists water management and wastewater disposal, energy supply, data transfer, and special products for industry. It also indicates that new builds, renovations, repairs, and modernization are available. The decision-makers and customer groups include investors, communities, public-sector clients, designers, building contractors, processors, distribution partners, dealers, and private clients. The product users are end customers, users of buildings, the public at large, and network operators.

{34}------------------------------------------------

Image /page/34/Picture/17 description: This image shows a map of Europe and India with numbers on each country. The numbers are 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, and 26.

### **Wienerberger in North America**

Image /page/34/Figure/4 description: This image shows a map of the United States and Canada, with each state or province labeled with a number. The numbers are as follows: 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, and 16. The text "ducts, and plastic pipes for infrastructure and building installations" is at the top of the image, and the text "Wienerberger Markets" is at the bottom.

In North America, Wienerberger operates a total of 28 production sites in the USA and Canada. Our focus is on innovative products and system solutions in facing bricks, concrete and calcium silicate pro-

# WIENERBERGER PRODUCTION SITES

### **Wienerberger in Europe**

In Europe, we provide innovative system solutions for the entire building envelope based on our broad range of clay blocks, facing bricks, roof tiles, and pavers. Our product mix also includes plastic pipes and ceramic pipes for solutions in water management, energy supply and in-house installations. We are represented in 25 countries with a total of 187 production sites.

### **Wienerberger in India**

In the Indian market, the birthplace of mudbrick architecture, we operate one production site for clay block solutions.

### **Wienerberger Markets in Europe**

- Markets with production sites
- Export markets

# **Anzahl der Standorte**

### Clay Blocks

- Facing Bricks
- Roofing Systems
- 1 Pavers
- 
- 1 Plastic Pipes 1 Ceramic Pipes
- Digital Products & Solutions

### **Wienerberger Markets**

### **in North America**

Markets with production sites

Export markets

| Markets with production sites                                                                                          |               |   |                   |   |                    |    |   |   |   |   |   |
|------------------------------------------------------------------------------------------------------------------------|---------------|---|-------------------|---|--------------------|----|---|---|---|---|---|
| Export markets                                                                                                         |               |   |                   |   | 1 Belgium          | 3  | 8 | 2 |   | 4 |   |
|                                                                                                                        |               |   |                   |   | 2 Bulgaria         | 1  |   |   | 1 | 1 |   |
|                                                                                                                        |               |   |                   |   | 3 Denmark          | 1  |   |   | 1 | 1 |   |
|                                                                                                                        |               |   |                   |   | 4 Germany          | 15 | 3 | 5 | 1 | 2 |   |
| Number of production sites<br>■ Facing Bricks<br>△ Calcium Silicate Products<br>■ Concrete Products<br>○ Plastic Pipes | 1 Alabama     | 1 | 9 North Carolina  | 2 | 5 Estonia          |    | 1 |   |   | 1 |   |
|                                                                                                                        | 2 Arkansas    | 1 | 10 Oklahoma       | 2 | 6 Finland          |    | 1 |   |   | 3 |   |
|                                                                                                                        | 3 Colorado    | 1 | 11 Ontario        | 2 | 7 France           | 4  | 1 | 3 |   | 1 |   |
|                                                                                                                        | 4 Georgia     | 2 | 12 Pennsylvania   | 1 | 8 United Kingdom   |    | 9 | 7 |   | 1 |   |
|                                                                                                                        | 5 Indiana     | 1 | 13 South Carolina | 1 | 9 Ireland          |    |   |   |   | 1 |   |
|                                                                                                                        | 6 Kentucky    | 1 | 14 Tennessee      | 1 | 10 Italy           | 4  |   |   |   |   |   |
|                                                                                                                        | 7 Michigan    | 1 | 15 Texas          | 5 | 11 Croatia         | 1  |   | 1 | 1 | 1 |   |
|                                                                                                                        | 8 Mississippi | 1 | 16 Virginia       | 1 | 12 Netherlands     | 1  | 9 | 3 | 5 | 3 | 2 |
|                                                                                                                        |               |   |                   |   | 13 North Macedonia |    |   | 1 |   |   |   |

| 14 Norway         |   |   |   | 4 |   |
|-------------------|---|---|---|---|---|
| 15 Austria        | 7 | 2 |   | 1 |   |
| 16 Poland         | 7 | 1 | 5 | 2 |   |
| 17 Romania        | 4 |   | 3 |   |   |
| 18 Russia         | 2 |   |   |   |   |
| 19 Sweden         |   |   |   | 1 | 1 |
| 20 Serbia         |   | 1 |   |   |   |
| 21 Slovakia       | 2 |   | 1 |   |   |
| 22 Slovenia       | 1 | 1 |   |   |   |
| 23 Czech Republic | 7 | 2 | 1 | 2 |   |
| 24 Turkey         |   |   |   | 2 |   |
| 25 Hungary        | 5 | 2 | 2 | 1 |   |
| 26 India          | 1 |   |   |   |   |

*Status 31/12/2023*

| 1 Alabama     | 1   | 9 North Carolina  | 2   |
|---------------|-----|-------------------|-----|
| 2 Arkansas    | 1   | 10 Oklahoma       | 2   |
| 3 Colorado    | 1   | 11 Ontario        | 2 1 |
| 4 Georgia     | 2 1 | 12 Pennsylvania   | 1   |
| 5 Indiana     | 1   | 13 South Carolina | 1   |
| 6 Kentucky    | 1   | 14 Tennessee      | 1   |
| 7 Michigan    | 1   | 15 Texas          | 5   |
| 8 Mississippi | 1   | 16 Virginia       | 1   |

### *Status 31/12/2023*

### **Number of production sites**

- Facing Bricks
- Calcium Silicate Products
- Concrete Products
- 1 Plastic Pipes

{35}------------------------------------------------

# **Value creation of wienerberger products and system solutions**

With its innovative and sustainable solutions for new-build, renovation, and infrastructure projects, wienerberger improves people's quality of life and creates a better world for generations to come. For the main applications of our products and systems we design sustainable solutions for the building envelope and paved surfaces, as well as in-house and infrastructure solutions.

Based on the process of value creation, they can be classified as follows:

- **›** Ceramic products and systems
- **›** Plastic pipes and systems
- **›** Concrete products

Examples of wienerberger product and system solutions designed to address the global challenges of climate change ([page 86](#page-85-0)), sustainable water management ([page 102](#page-101-0)), circular economy & resource use [\(page 108\)](#page-107-0), as well as biodiversity ([page 117](#page-116-0)) can be found in the corresponding chapters.

### **Value chain of ceramic products and systems**

### Use phase – Building solutions

wienerberger's building solutions are designed for energy-efficient and future-proof building construction. Our roof tiles, clay blocks, facing bricks, and ceramic pavers are used for singlefamily homes and multi-story residential buildings as well as for non-residential buildings, such as office buildings, hospitals, schools, and kindergartens. Building solutions by wienerberger for "Net Zero Buildings" are either highly energy-efficient, capable of producing or converting renewable energy resources for their own operation, or characterized by a very low CO2 footprint during construction.

### Use phase – Ceramic pipes

Ceramic pipes (clay pipes) and accessories produced by wienerberger are ideally suited for cost-effective, safe, sustainable wastewater disposal. Sturdy, environment-friendly and requiring little maintenance, they prove their merits not only in municipal and industrial applications, but also in residential buildings as well as commercial and public buildings. Their long service life is one of the main advantages of wienerberger's ceramic pipes, especially for demanding applications.

### End of service life

Brick products have a very long service life of at least 100 years and great potential for reuse. At the end of their service life, ceramic products can be recycled internally and externally or reused for other applications. In this context, we are intensively exploring the possibility of recycling and the use of ceramic construction debris, which can either be reused directly in the brick production process or used for the development of new applications. wienerberger sees great potential in the "urban mining" concept, which is aimed at saving resources through the recovery and reuse of secondary raw materials from the so-called anthropogenic stock (see also the chapter "Circular Economy & Resource Use" on [page 108\)](#page-107-0).

### Sourcing

The most important raw materials for wienerberger's ceramic products and systems are clay, as well as additives and aggregates, and alternative binders. Clay is either extracted from our own clay pits or procured from external suppliers and transported by them to the respective wienerberger plants. Other raw materials, as well as packaging material, are also procured externally. Our plants are supplied with energy and water for the production process.

### Production

Clay is prepared by crushing and grinding. After interim storage of the prepared clay in the souring house, the material is shaped through extrusion in forming dies or pressed into molds. Once cut to size, the products are placed on pallets and transported to the dryer.

The drying process serves to extract moisture from the clay and prepares the products for firing. Certain ceramic products undergo surface treatment before their firing process, through which the products are hardened. Although mostly thermal energy is used for drying and firing, the use of electricity for this purpose is gaining in importance. After finishing, the ceramic products are packaged and delivered to the customers.

{36}------------------------------------------------

### **Value chain of plastic pipes and systems**

### Use phase

Plastic pipes and systems produced by wienerberger are important arteries of reliable, resource-efficient water management and energy supply. In-house solutions for residential and non-residential buildings include electrical installations, heating and cooling systems, hot and cold water supply systems, wastewater and rainwater systems, as well as installations and systems for irrigation and water storage. Infrastructure solutions include gas, water, wastewater, and rainwater systems, as well as solutions for energy supply, data transmission, and products for special industrial applications.

### End of service life

Plastic pipes can be recycled internally and externally. Within the framework of the Circular Plastics Alliance, wienerberger supports all efforts to increase the use of recycled plastic materials in Europe to at least 10 million tons per year by 2025.

### Sourcing

Raw materials for the production of plastic pipes and systems, such as PE, PP, and PVC, as well as secondary raw materials and packaging material, are procured from our suppliers and transported by them to the respective wienerberger plants.

Our plants are supplied with energy and water for the production process. Water for cooling purposes is also drawn from surface bodies of water (rivers, lakes, and in Scandinavia also the ocean) and subsequently returned to them in accordance with the applicable legal provisions.

### Production

Plastic granulates are mixed and heated in an extruder to produce a melt. The heated plastic melt is then pressed through a die for shaping. The resultant pipe strand is cooled in water to harden the plastic material. The continuous pipe strand is then cut to size according to requirements.

Another production method is injection molding. Raw materials for pipe accessories are first heated and then the melt is formed in molds. To a growing extent, 3D printing and computer-aided assembly of parts are being used in pipe production.

Electricity is the main source of energy used in the production of plastic pipes and pipe system components. After being cut to size, the plastic pipes and pipe system components are packaged and delivered to the customers.

### **Value chain of concrete products**

### Use phase

wienerberger's range of concrete products comprises concrete roof tiles, concrete pavers and slabs, steps, edgings, kerbstones and palisades, fences, wall stones and slope stabilizer blocks. They are used for private, commercial, and public applications, such as public squares, public gardens, roadways, and parking lots. wienerberger pavers designed for water infiltration, which are laid on permeable ground, allow rainwater to seep away through wide gravel or turf joints or through drainage holes, so that water is stored in the ground and thus increases the groundwater level. Unsealing the soil and creating green spaces facilitates the adaptation to climate change and contributes to sustainable water management.

### End of service life

Concrete products by wienerberger are suited for reuse as well as internal and external recycling.

### Sourcing

The most important raw materials for the production of wienerberger's concrete products are sand and gravel, cement, aggregates, alternative binders and filling agents, as well as water. These are procured from suppliers as primary or secondary raw materials (externally recycled materials) and transported to the respective wienerberger plants. Energy, water, and packaging materials are also procured for the production process. For wienerberger's concrete products, "urban mining", i.e. the recovery and use of secondary raw materials from the so-called anthropogenic stock, is gaining in importance as a source of raw materials (see also the chapter "Circular Economy & Resource Use" on [page 108\)](#page-107-0).

### Production

Mixing the raw materials is the first step in the production of concrete products. This is followed by shaping through pressing or casting. For certain products, various surface-finishing processes, such as washing, grinding, blasting, or coating, may be applied before or after the drying process. The cured finished products are then packaged and delivered to our customers.

{37}------------------------------------------------

ienerberger

**Produktion**

**Nutzungsphase**

**Beschaung und Anlieferung**

Aufbereitung > Formgebung > Trocknung > >

Endbearbeitung > Verpackung

> Abbau aus eigenen Tonreserven, Fremdbezug von Ton, Zusatz- und Zuschlagstoen, alternativen Bindemitteln

> Transport der Rohstoe zu den jeweiligen Werken

> Rekultivierung von Tongruben

Wiederverwendung

Energie

Wasser

Verpackungsmaterial

WERTSCHÖPFUNG KERAMISCHER PRODUKTE UND SYSTEME

GEBÄUDELÖSUNGEN UND ROHRE

Stoiche Verwertung / Recycling von Produktionsabfällen

Oberflächenbehandlung

Brennen/ Sintern

Produkte und Systeme für Gebäudelösungen und Rohre

Dachziegel Hintermauerziegel Vormauerziegel Pflasterziegel

 Keramisches Zubehör Keramische Rohre Zubehörteile

Nutzung von Abwärme

Wiederverwendung der Energie

Wiederverwendbare/ recyclebare Produkte

Urban Mining

**Ende der**

**Nutzungsdauer**

Internes und externes Recycling, Verwertung

Lieferung

z.B. Dachziegel

# VALUE CREATION – CERAMIC PRODUCTS AND SYSTEMS

BUILDING SOLUTIONS AND PIPES

Image /page/37/Figure/3 description: The image shows a diagram of the life cycle of building solutions and pipes. The diagram is divided into several stages, including sourcing and distribution, production, use phase, end of service life, and reuse. The sourcing and distribution stage involves the extraction of raw materials from clay pits, the purchase of clay, additives, aggregates, and alternative binders, the transport of raw materials to the plants, and the recultivation of clay pits. The production stage involves preparation, shaping, drying, surface treatment, firing/sintering, finishing, and packaging. The use phase involves the use of the products in buildings and pipes. The end of service life involves internal and external recycling and recovery. The reuse stage involves the reuse of the products, such as roof tiles. The diagram also shows the use of energy and water in the production process, as well as the recovery of materials and the recycling of production scrap. The diagram also shows the products and systems for building solutions and pipes, including roof tiles, clay blocks, facing bricks, clay pavers, ceramic accessories, ceramic pipes, and accessories.

{38}------------------------------------------------

**wienerberger**

# VALUE CREATION – PLASTIC PIPES AND SYSTEMS

Image /page/38/Figure/2 description: The image shows a diagram of the value creation process for plastic pipes and systems. The diagram is divided into four main sections: Sourcing and Distribution, Production and Assembling, Use Phase, and End of Service Life. The Sourcing and Distribution section includes the purchase of refined raw materials, packaging material, purchase of secondary raw material, bio-based circular plastics, energy, water, and the transport of raw materials to the plants. The Production and Assembling section includes silos, pipes, fittings, extrusion, injection molding, 3D printing, prefabricated products, confectioning, recycling of production scrap, packaging, and delivery. The Use Phase section includes in-house solutions such as hot and cold water, heating and cooling, waste water and rain water systems, and electro installations. It also includes infrastructure solutions such as water and gas systems, waste water and rain water systems, and cable protection. The End of Service Life section includes reusable/recyclable products, urban mining, and internal and external recycling and recovery.

{39}------------------------------------------------

ienerberger

**Produktion**

**Nutzungsphase**

**Beschaung und Anlieferung**

Mischen > Formgebung + Pressen > > Härten

Verpacken > Lieferung

> Fremdbezug von Zement, Sand, Kies, Zuschlagstoen (rezyklierte) und alternativen Binde- und Füllmitteln > Transport der Rohstoe zu den jeweiligen Werken

WERTSCHÖPFUNG BETONPRODUKTE

BETONPFLASTER UND -PLATTEN UND GESTALTUNGSELEMENTE

Stoiche Verwertung / Recycling von Produktionsabfällen

Für private, kommerzielle und öffentliche Anwendungen:

 Betonpflaster Betonplatten Betondachziegel

Stufen

 Randeinfassungen Bordsteine und Palisaden Zäune, Mauersteine, Hangbefestigungen

Wartungsund Reinigungsphase für eine längere Lebensdauer

Oberflächenbehandlung

Wiederverwendung

Wiederverwendbare/ recyclebare Produkte

**Ende der**

**Nutzungsdauer**

Internes und externes Recycling, Verwertung

Energie Wasser Verpackungsmaterial

Urban Mining

# VALUE CREATION – CONCRETE PRODUCTS

CONCRETE PAVERS AND SLABS AND DESIGN ELEMENTS

Image /page/39/Figure/3 description: This image illustrates the lifecycle of concrete pavers and slabs, emphasizing design elements and sustainability. The cycle begins with "Sourcing and Distribution," which includes the purchase of cement, sand, gravel, recycled aggregates, alternative binders, and fillers, as well as the transport of raw materials to plants. Energy, water, and packaging materials are also sourced. The next phase is "Production," involving mixing, molding, pressing, surface treatment, and curing. Material recovery and recycling of production scrap are integrated into this stage. The products are then packaged and delivered. The "Use Phase" highlights various applications such as concrete pavers, slabs, roof tiles, steps, edgings, borders, palisades, fences, walls, and slope stabilizer blocks for private, commercial, and public use. Maintenance and cleaning during this phase extend the service life. "End of Service Life" focuses on internal and external recycling and recovery, including urban mining. Reusable and recyclable products are emphasized, and the cycle is completed with "Reuse," promoting sustainability.

{40}------------------------------------------------

# <span id="page-40-0"></span>**Materiality analysis and the sustainability program**

### **Materiality analysis**

In 2020, in the course of the reorientation of its strategy, wienerberger again performed a materiality analysis with the support of an external partner. This analysis was implemented in accordance with the applicable regulatory requirements and international reporting frameworks (Global Reporting Initiative, GRI). As mandated by the CEO in 2020, wienerberger updated its materiality analysis on the basis of input received from internal and external stakeholders.

In a first step of the materiality analysis, wienerberger's relevant stakeholder groups were identified and weighted. For a targeted survey of the most essential matters, wienerberger's relevant stakeholder groups were re-evaluated and weighted. The stakeholder groups were classified by product segment on the basis of "wienerberger's impacts on its stakeholders" and the "influence of stakeholders on wienerberger", ranked by order of priority and weighted accordingly. The average of all weightings per product segment was calculated to obtain the consolidated weighting for within the entire Group.

The results of the 2020 materiality analysis were presented to the Managing Board and the Supervisory Board of wienerberger. They constituted an integral element for the orientation of the wienerberger corporate strategy and provided an important basis for the definition of targets and measures for wienerberger's Sustainability Program 2023 and the subsequent Sustainability Program 2026.

In this process, the following five core topics were identified as particularly relevant:

- **›** Climate & energy
- **›** Circular economy
- **›** Employees
- **›** Biodiversity & environment
- **›** Business ethics & social impacts

The 2020 materiality matrix is presented on [page 126](#page-125-0) of this Sustainability Report. Further information can be found in the wienerberger [Sustainability Report 2022](https://annualreport.wienerberger.com/2022/_assets/downloads/entire-wb-ar22.pdf) ([pages 57-58](#page-56-0)) as part of the Annual Report.

### **The Sustainability Programs 2020-2023 and 2023-2026**

The wienerberger Sustainability Program 2023 was an essential step on the path of our transformation and in the pursuit of our long-term goals in line with the European Green Deal. At the end of 2023, the wienerberger Sustainability Program 2023 was concluded and succeeded by our new Sustainability Program 2026 with additional ambitious targets.

The targets defined in the Sustainability Program 2023 primarily referred to the ESG topics identified as being material in 2020: climate & energy, the circular economy, biodiversity & environment, employees, and business ethics & social impacts. Moreover, we reaffirmed our commitment to meeting the highest national and international governance standards (see Corporate Governance Report). In 2020, wienerberger set itself measurable targets for 2023 for each of the ESG topics identified as being material. Detailed information on the targets of the wienerberger Sustainability Program 2023, as well as our achievements by the end of 2023, is presented on pages [58](#page-57-0), [80](#page-79-0), [87,](#page-100-0) [109,](#page-108-0) and [118](#page-117-0) .

The logical next step taken by wienerberger was to define new, ambitious ESG targets for 2026. The wienerberger Sustainability Program 2023-2026 is presented in detail on [pages 75-76,](#page-100-0) [84,](#page-101-0) [100-101](#page-174-0), [106,](#page-175-0) [114-115](#page-113-0), and [123](#page-122-0).

{41}------------------------------------------------

# <span id="page-41-0"></span>**ESG Governance Structure**

The responsible, long-term approach of wienerberger's management is an essential prerequisite for the implementation of the corporate strategy, the achievement of the company's goals, and the sustainable increase in enterprise value in accordance with ecological, social, and economic criteria along all stages of the wienerberger's value chain. As a listed company with international operations, wienerberger is committed to strict principles of good corporate governance and transparency as well as the continuous further development of an efficient system of corporate control.

In order to better understand the assessments and priorities mentioned by our stakeholders within the framework of the 2020 materiality analysis (see [pages 41](#page-40-0) and [126](#page-125-0)), wienerberger conducted in-depth stakeholder dialogues (see [page 50](#page-49-0)). wienerberger established clear structures and responsibilities for sustainability management across the entire Group to ensure a uniform approach and efficient implementation of the measures taken, as well as the achievement of our targets. Moreover, we regard sustainability as a crucial factor of our corporate success and have therefore integrated ESG criteria in areas such as our remuneration policy ([page 44](#page-43-0)) or corporate financing.

# WIENERBERGER INTERNAL ORGANIZATIONAL STRUCTURE

### **Managing Board**

CEO, CFO, COO East & COO West recognize topics and issues of growing importance and defines targets for the Group

### **Supervisory Board**

Committees incl. Sustainability & Innovation Committee and Audit & Risk Committee1) oversee and advise the Managing Board

### **Corporate Functions2)**

inform the Managing Board about recent developments, support the implementation of initiatives and define guidelines

### **Operating Segments**

Europe East, Europe West, North America observe potential areas of improvement and report to the Managing Board, propose specific action plans according to guidelines

### **Local Management**

supports practical implementation of measures to ensure overall target achievements

*1) Committees responsible for ESG-Topics /Risks & Opportunities.*

*2) Human Resources, Corporate Sustainability & Innovation, Public Affairs, Corporate Secretary & Legal Services, Corporate Procurement, Corporate Risk & Internal Audit, Health & Safety, Accounting, Tax, Group Reporting & Controlling, Corporate Communications, Investor Relations, Corporate Treasury*

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# **Managing Board and Supervisory Board**

The Managing Board and the Supervisory Board of Wienerberger AG play a central role in the company's efforts to address the most important aspects relating to sustainability.

As a collegiate body, the Managing Board, which currently has four members, is jointly responsible

for the management of the company. Regardless of their shared overall responsibility, each Managing Board member is in charge of a clearly defined field of business. The work of the Managing Board is premised on shared responsibility for strategic and operational issues and a continuous exchange of information on important measures and developments in the individual fields of business. The Managing Board consistently incorporates sustainability aspects and the associated opportunities and risks related to the environment, social matters, and corporate governance into the development and implementation of wienerberger's corporate strategy.

The Managing Board provides the Supervisory Board with regular, timely, and comprehensive information on all relevant questions of business performance, including risks and risk management. Within the Managing Board, the Chair of the Managing Board acts as the central link to the Supervisory Board. In line with the principles of good corporate governance, the Chair of the Managing Board and the full Supervisory Board or its Chair engage in continuous and open exchange and discussions on strategic topics.

The Supervisory Board decides on issues of fundamental importance and on the strategic orientation of the company. The Supervisory Board and the Managing Board maintain intensive cooperation. Their chairpersons, in particular, regularly engage in discussions on the sustainable development and strategic orientation of the company. This also applies to the wienerberger Sustainability Program (currently 2023-2026, previously 2020-2023), the targets to be pursued and outlines the strategy to achieve these targets. This also applied to the Sustainability Program 2023, which was successfully concluded at the end of 2020-2023.

This structure is intended to ensure that ESG topics, especially those that are relevant to climate action, are taken into account in the elaboration of the corporate strategy, in financial planning, and in the annual budgeting process, as well as in investment decisions. In the performance of its functions, the Supervisory Board is supported by two committees:

- **›** Sustainability and Innovation Committee: As at 31 December 2023, the Sustainability and Innovation Committee consisted of five Supervisory Board members.
- **›** Audit and Risk Committee: As at 31 December 2023, the Audit and Risk Committee had five members. The Committee met six times in 2023.

The wienerberger Managing Board, the Senior Vice President for Corporate Sustainability & Innovation, and the Chairman of the European Works Council of Wienerberger AG participated in the meetings. The CEO not only participates in the meetings of the Sustainability and Innovation Committee, but also engages in regular exchanges with the Supervisory Board on ESG topics.

Detailed information on the mode of operation of the Managing Board and the Supervisory Board as well as the tasks of the two committees can be found in the Corporate Governance Report (starting from [page 184\)](#page-175-0).

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# <span id="page-43-0"></span>**Corporate functions, regions, and local management**

### **Corporate functions**

The Corporate Sustainability & Innovation Department is headed by a Senior Vice President, who reports directly and at regular intervals (at least once per quarter) to the Chairman of the Managing Board and four times per year to the full Managing Board of Wienerberger AG. He ensures group-wide coordination of the sustainability and innovation strategy, the sustainability program (currently 2023-2026, previously 2020-2023, see [page 41\)](#page-40-0), and sustainability management. He is also responsible for wienerberger's sustainability reporting. Moreover, the department supports the fulfilment of all legal requirements regarding sustainability reporting and voluntary reporting on relevant topics (such as TCFD, see [page 130](#page-129-0)). The department not only is in charge of aligning wienerberger's sustainability strategy with the company's innovation agenda, but also supports the implementation of both agendas and ensures continuous dialogue with and involvement of the stakeholder groups, such as customers and users of our products and system solutions.

At corporate function level, clearly defined responsibilities and targets contribute significantly to the implementation of the wienerberger strategy. For example, "Group Org. Development and HR" or "Corporate Procurement" submit regular progress reports to the Managing Board.

### **Operating segments**

In 2023, wienerberger adapted its operational structure in Europe, changing over from a product-oriented structure centered on business units – wienerberger Building Solutions and wienerberger Piping Solutions – to a regional structure composed of Region Europe West and Region Europe East (see [page 33](#page-32-0)). At regional level, the COOs of Europe West and Europe East as well as the CEO of North America (NOAM) are responsible for achieving the sustainability targets. They monitor potential areas of improvement, discuss them with the wienerberger Managing Board, and elaborate specific plans of action for the integration of the sustainability strategy in their respective regions. They are supported by their regional sustainability officers.

### **Local management**

The internal organizational structure is rounded out by our experienced local management teams, who play an important role in all ESG matters. They support the practical implementation of policies and measures at local level and thus ensure that the targets set at group level are attained.

# **ESG criteria for variable remuneration**

Our variable remuneration scheme comprises a short-term remuneration component for Managing Board members (shortterm incentive, STI) and a long-term component (long-term incentive, LTI), which every member of the Managing Board and selected executives are entitled to. While the STI is primarily based on financial parameters, the LTI is intended to motivate potential beneficiaries to orientate their activities toward a sustainable increase in enterprise value and to identify more strongly with the company's long-term plans and targets. As set out in the remuneration policy, two thirds of the LTI targets are financial in nature and one third refers to ESG. More detailed information on the variable remuneration for the Managing Board is contained in the 2023 wienerberger Remuneration Report to be found on our website.

The following information can also be found in our 2023 Remuneration Report: the ratio of total annual remuneration of the highest paid employee of the organization and the median of the total annual remuneration of all employees, using the example of the Austrian country organization. wienerberger plans to publish the ratio of the percentage increase in annual total compensation for the highest paid person in the organization to the median percentage increase in annual total compensation for all employees, using the example of the Austrian country organization.

The variable remuneration of our employees in various management positions of wienerberger is designed along the lines of the incentive scheme for Managing Board members. Depending on the functional profile of each executive, the targets for the short-term remuneration component are determined on the basis of the budget of wienerberger or of the respective executive's area of activity and supplemented by individually agreedupon financial or non-financial targets. Local management (see also Organizational Structure of wienerberger on [page 42\)](#page-41-0) has, for example, the components EBITDA, optimization of occupational safety, reduction of CO2 emissions, and individual targets in its variable remuneration.

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# <span id="page-44-0"></span>**Green Financing**

wienerberger assumes responsibility for its entire value chain not only in its operational business, but also in corporate financing. Therefore, in 2019, wienerberger for the first time opted for a sustainability-oriented form of finance. To refinance the 4% corporate bond that matured in April 2020, a € 170 million loan was taken out at a rate of interest linked not only to the usual financial indicators, but also to the company's sustainability rating. An improvement in wienerberger's sustainability performance thus directly results in lower financing costs.

In 2023, wienerberger's ESG rating, which is reviewed annually, was again updated by EcoVadis. Based on further progress achieved in its sustainability management, wienerberger won its first platinum rating (2022: gold) and now ranks among the top 1% of all companies rated by EcoVadis.

In 2021, wienerberger elaborated a new syndicated loan with a sustainability component, the terms of which are linked, among other factors, to the results of the ESG rating by EcoVadis.

In September 2023, wienerberger took another successful green financing step by linking its financing activities to the achievement of important targets of the Sustainability Program 2026. wienerberger was the first company in the Austrian capital market to issue a sustainability-linked bond in with retail segment. With an issued volume of € 350 million, the maturity of the bond is five years with a coupon of 4.875% per annum. More information is available on [page 143.](#page-142-0)

The performance of the bond is closely linked to the achievement of the following targets laid down in the Sustainability Program 2023-2026:

- **›** minus 25% CO2 emissions of our own activities (Scope 1+2 emissions) vs. 2020
- **›** 75% revenues from products supporting Net Zero Buildings

These targets reflect wienerberger's commitment to sustainable developments in the construction industry. For detailed information, please refer to our w[ebsite1](https://www.wienerberger.com/en/media/press-releases/2023/20230928-Wienerberger-successfully-places-its-first-Sustainability-Linked-Bond.html ) .

# **Risk Management and Due Diligence Processes**

The responsible management of wienerberger with long-term goals in mind is an essential prerequisite for the sustainable success of the company. An overview of the major impacts, risks, and opportunities in non-financial matters is shown on [page 126](#page-125-0) (materiality matrix).

Information on the ESG concepts and due diligence processes applied by wienerberger in respect of social and governance aspects as well as environmental matters is contained in the sections "For people" ([pages 56-84](#page-55-0)) and "For the planet" ([pages 85-123\)](#page-84-0).

Climate-related risks and opportunities are described in the chapter "TCFD" (see [page 130\)](#page-129-0).

Information on wienerberger's risk management, the related data collection processes, and the internal control system applicable to financial and non-financial matters is contained in the Risk Report starting on [page 285](#page-284-0).

*1) https://www.wienerberger.com/en/media/press-releases/2023/20230928-Wienerberger-successfully-places-its-first-Sustainability-Linked-Bond.html* 

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# <span id="page-45-0"></span>**Business Conduct**

Ever since the foundation of wienerberger over 200 years ago, we, as a company operating successfully on an international scale, have assumed a heavy responsibility in society. Determined to consistently justify the confidence of our stakeholders, we ensure that our actions are guided by clear ethical principles and a firmly established capital-market-compliance policy. For us, this encompasses a commitment to business ethics, honest communication, the creation of a transparent economic environment, personal accountability for what we do, and acting as a reliable and useful member of society.

According to our definition, the term "compliance" encompasses all instruments and measures designed to ensure that wienerberger and its employees act in conformity with the law in respect of all legal provisions that specifically apply to our company. Commitment to compliance with all applicable national and international legal standards is a fundamental principle of Wienerberger AG.

In many countries, wienerberger is subject to comprehensive and increasingly stringent regulations on safety, health, and the environment. wienerberger considers itself duty-bound to observe these rules and regulations at all times, if necessary through investments in optimization measures. For years, wienerberger has been committed to implementing the ten principles of the UN Global Compact. In accordance with the wienerberger Social Charter, the company undertakes to comply with the relevant conventions and recommendations of the International Labor Organization (ILO).

# **Corporate governance at wienerberger**

As a listed company with international operations, wienerberger is committed to the strict principles of good corporate governance and transparency, as well as the continuous further development of an efficient corporate control system.

For a detailed description of activities undertaken in the reporting year and an outline of wienerberger's corporate governance regime, please refer to the 2023 Corporate Governance Report starting on [page 176](#page-175-0). Information on compliance and the fight against corruption is also contained in the Corporate Governance Report, published as part of the 2023 wienerberger Annual Report.

## **wienerberger Code of Conduct**

We share the vision of shaping the future on the basis of strong values, with trust, respect, passion, and creativity as driving forces. We want to do our part by providing solutions for people and our planet that make life easier and more convenient.

In 2021, in order to highlight the significance and the binding nature of these principles, wienerberger elaborated a groupwide Code of Conduct, which was implemented in parallel with a whistleblowing service. In 2023, we updated the Code of Conduct by including the wienerberger values: trust, respect, passion, and creativity.

### **Purpose and application**

The Code of Conduct applies to Wienerberger AG as a whole, including all subsidiaries in which wienerberger holds a stake of at least 50%. The principles laid down in the code are intended to ensure that we share a common understanding, demonstrate good judgement, and maintain high standards of ethics and integrity in our dealings with all our stakeholders. We expect the same behavior from our business partners, such as suppliers, contractors, and customers.

As spelled out clearly in our Code of Conduct, wienerberger does not tolerate any misconduct whatsoever, and in case of violations the necessary steps will be taken or sanctions imposed. If, after verification of the information received, it is ascertained that an employee or business partner has violated the Code of Conduct, this may have serious consequences under labor law and, depending on the severity of misconduct, result in contractual consequences.

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<span id="page-46-0"></span>Furthermore, wienerberger does not tolerate any discrimination of or reprisal against persons who raise concerns, ask questions, or report suspected misconduct in good faith. All reports are thoroughly examined and (if permitted by law) treated confidentially.

Image /page/46/Figure/3 description: The image is a poster with the title "SeeHearSpeakUp" at the top. Below the title is an illustration of a green whistle. Below the whistle are the words "See something? Hear something? Speak up!" in large, bold font. Below that is the text "Are you aware of any illegal, unethical, or inappropriate behavior in your workplace? Please report the matter in one of the following confidential ways:". Below that is a list of three ways to report: "Call the whistleblowing number of your country (toll-free)", "Email to report@seehearspeakup.co.uk", and "Report online via seehearspeakup.co.uk/wienerberger". At the bottom of the poster is the text "SeeHearSpeakUp is an external and independent whistleblowing service that allows you to report concerns anonymously – 24/7 and 365 days a year!"

We encourage all our employees and business partners to voice their concerns and speak up when they observe a breach of the wienerberger Code of Conduct. In the majority of cases, the matter can be discussed and clarified with superiors or colleagues from HR. If this is felt to be inappropriate, employees can contact the wienerberger Whistleblowing Committee or report their concerns anonymously via the "SeeHearSpeakUp" whistleblowing service.

### **Whistleblowing Service**

wienerberger wants to be absolutely sure that any suspected misconduct in our company can be reported via appropriate secure channels. Concerns have to be taken seriously and people reporting them must not be subjected to any pressure. This is a key aspect of the whistleblowing service that is available throughout Wienerberger AG. This service is provided in cooperation with an external, independent global partner for whistleblowing services.

Through its external partner, wienerberger offers all its employees and business partners the possibility of reporting their observations anonymously and confidentially in their native language. Thus, the whistleblowing service is also available to our external stakeholders, e.g. our business partners.

Reports can be submitted in three ways:

- **›** via the online reporting system, which is easily accessible on the Internet
- **›** by email in the local language
- **›** via a toll-free whistleblowing phone number of the country concerned in the local languagee

The whistleblowing service supports the wienerberger Whistleblowing Committee in the investigation of illegal, unethical, or inappropriate conduct, suspected violations of the compliance policy, and the processing of complaints.

### **Whistleblowing Committee and whistleblowing policy**

The wienerberger Whistleblowing Committee comprises experts from Corporate Legal Services, Corporate Risk & Internal Audit, Group Org. Development & HR, and the Corporate Secretary.

For matters that pose a potential risk to the interests of wienerberger or others, we also refer to the wienerberger whistleblowing policy, which applies across the group. While circumstances may vary from case to case, our whistleblowing policy ensures that all reported incidents are handled in a fair manner. Details on the reporting of incidents, the protection of whistleblowers, and support provided by wienerberger are also outlined in our whistleblowing policy.

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### **Follow-up procedure upon receipt of a report**

Each report is verified by the wienerberger Whistleblowing Committee before an investigation of the reported incident is initiated. The Whistleblowing Committee ensures that all reports of possible violations are investigated. Upon conclusion of the investigation, a final report is prepared in which the results of the investigation and the proposed measures/recommendations are summarized. Depending on the substance and the severity of the case, the Whistleblowing Committee transmits the final report to other internal bodies, committees, or relevant bodies, including the wienerberger Managing Board.

All enquiries and reports are treated confidentially and in line with the applicable legal provisions, the wienerberger Code of Conduct, and any other policies in place, regardless of whether the report was submitted to the whistleblowing service by telephone, by email, or as an online report. The follow-up procedure is the same for reports submitted by external or internal stakeholders.

### **Implementation**

The Managing Board, the Supervisory Board, and the wienerberger Works Council fully support the ideas and guidelines of the Code of Conduct. We expect all employees and business partners to familiarize themselves with our binding code and comply with its principles.

The wienerberger Code of Conduct is available in all 24 languages spoken in the countries in which Wienerberger AG operates.

We will continue to inform all our employees about the contents of the code on an ongoing basis and communicate its principles via various channels and through specific training. We encourage all employees and business partners to report potential violations of our Code of Conduct

### **Reports received in the year 2023**

In 2023, the whistleblowing service was used to a relevant but manageable extent. The service has been well received and used by our employees as well as our external stakeholders. In the course of 2023, a total of 20 reports were received. Half of the reports were received via the online reporting system; the other half came in by email. No reports were made by telephone.

None of the 20 reports received in 2023 were classified as constituting a high risk by the Whistleblowing Committee. Most (95%) of the concerns reported (19 reports) were classified as low-risk by the Whistleblowing Committee, while only one concern reported (= 5%) was perceived as constituting a medium risk. Nine of the reports received (45%) concerned general misconduct in dealing with employees, colleagues, and working instruments. Five of the reports (25%) related to matters of occupational health and safety. Three of the reports (15%) had to do with business behaviour. One report each related to earned income, theft, and substance abuse at work. All reports received in 2023 were thoroughly investigated, processed and closed. As in the previous year, no cases of severe misconduct, such as embezzlement or fraud as defined in the EU Whistleblower Directive, were reported in 2023.

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# **Privacy, Data Protection, and Cybersecurity**

The protection of information systems and data has always been a matter of high priority for wienerberger in all the company's business relations. We treat personal data confidentially and in line with strict data protection rules. We continuously invest in data security measures to ensure the best possible protection of our information systems and the data contained therein.

Our central Information and Data Security Department, headed by the Chief Information Security Officer, has a group-wide function. The department is staffed by experts in security governance and security operations and supported by our regional security and data protection coordinators. Additionally, there are contact points for data protection and information security within the local companies.

Our experts on information and data security within wienerberger focus on the introduction, operation, and continuous enhancement of information security measures designed to prevent security breaches. Their work includes not only IT risk management, but also the coordination of training measures for employees, the simulation of phishing and cyberattacks, the management and supervision of technical protection measures, as well as the constant monitoring and enhancement of the level of maturity of our sites in matters of security. We protect our systems by defining and implementing standards, keeping our infrastructure up to date, employing the most advanced protection measures, and defining appropriate indicators (KPIs) in order to verify the effectiveness of our measures.

To identify irregularities in our systems and data and ensure effective and fast processes for the elimination of such irregularities, our Defense Center uses the most advanced technologies and expert knowledge, ranging from artificial intelligence to highly specialized external cybersecurity analysts.

A high level of quality can be guaranteed by wienerberger through the consistent analysis of security-related indicators. In order to immediately detect potential threats and react accordingly, Wienerberger AG also cooperates with renowned partners that are available 24/7, if needed.

### **Protection of personal data**

Personal data of any kind – be it data of employees, customers or business partners – are treated confidentially and in accordance with the data protection rules. Violations of data protection provisions can result in disciplinary measures.

To maintain the high quality of data protection, an international team of security and data protection coordinators has been put in place at wienerberger and in the country organizations. Together with external specialists, a quality standard for data protection has been elaborated and successfully implemented across the group. Compliance with the standard is documented and monitored by way of a central governance, risk, and compliance management system.

Regular internal checks serve to review and optimize the standard. These checks encompass all business areas, country organizations, and partner companies processing data on our behalf.

### **Cybersecurity**

Cybersecurity incidents can have a disruptive effect and cause harm to employees, customers, or the company as a whole. In an effort to minimize cyber risks, we regularly back up our data, protect our devices and networks, encrypt important information, and require that passwords be changed at regular intervals.

wienerberger's employees are responsible for complying with these measures and have to protect themselves against risks arising from a variety of sources. They do so by using strong passwords, updating programs and systems at regular intervals, and never trying to circumvent access controls.

In order to guarantee data integrity, system availability, confidentiality, and accountability, all employees must be aware of the rules governing the use of IT systems and other physical assets. To this end, an information security policy has been introduced, the content of which is communicated to the employees through videos, on-site training, e-learning, or simulation exercises.

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# <span id="page-49-0"></span>**Stakeholder Management**

As a responsible member of society, wienerberger makes every effort to fully understand the needs of its stakeholders. Therefore wienerberger also takes the concerns of its stakeholders into account in the elaboration of its corporate strategy. Our stakeholders include our employees, customers, and business partners, such as real estate developers, designers and architects, suppliers, investors, analysts and banks, local residents and local authorities, political decision-makers and representatives of the public administration, regulators, organized interest groups, research institutions and universities, media, and civil-society organizations (NGOs).

wienerberger's stakeholder groups are extremely diverse and have different needs, interests, and questions. The various stakeholder groups are therefore addressed by different departments or organizational units within wienerberger and our communication instruments vary accordingly. In addition to personal meetings, we communicate and provide information through regular newsletters and information brochures, Internet-based information platforms, and information events.

# **Stakeholder dialogues**

We attach particular importance to open, continuous and target-group-oriented dialogue, as this promotes mutual understanding of each other's interests, expectations and goals. wienerberger therefore conducts regular stakeholder dialogues. The aim of these dialogues is to take a deep dive into the key issues and aspects from a stakeholder perspective in order to identify risks and opportunities for the company at an early stage. Moreover, we want to better understand what moves social groups and what they expect from us.

The Chairman of the Managing Board (CEO) of wienerberger communicates with these stakeholder groups through various channels. These include dialogue with our employees and exchanges of opinion with capital market participants, e.g. within the framework of roadshows, investor conferences, communication with financial media, or the Capital Markets Day. Within the framework of his podcast, the CEO of wienerberger

conducts interviews with representatives of various stakeholder groups on current topics. He also exchanges views with politicians and the Vienna Stock Exchange at high-level events and appears in the media in the form of interviews. Furthermore, the CEO of wienerberger engages in exchange with CEOs of other large companies in the course of panel discussions on various subjects, including on ESG topics.

### **ESG stakeholder dialogues in 2023**

In the course of 2023, wienerberger again conducted ESG dialogues with selected groups of stakeholders on environmental, social, and governance topics in the form of hybrid workshops. The discussions in the workshops dealt with those topics that were classified as material in the double materiality analysis (in accordance with the European Sustainability Reporting Standards (ESRS)). To this end, selected representatives of stakeholder groups that are material for wienerberger were invited. wienerberger primarily addressed the following stakeholder groups: employees, real-estate developers, designers and architects, investors, suppliers, local authorities, civil-society organizations (NGOs), and banks.

These ESG dialogues were coordinated by the Corporate Sustainability & Innovation Department in cooperation with an external partner and other corporate functions of wienerberger as well as the management teams of country organizations, including Belgium, Italy, France, the Netherlands, Austria, Poland, the Czech Republic, and the US.

The interviews were conducted on the basis of a structured questionnaire, but encouraged open questions and discussions. These ESG dialogues between wienerberger and its stakeholders were particularly well received.

Our stakeholders welcomed the opportunity to engage in personal conversations and an exchange of ideas on new ESG trends and innovations in this area, as well as their impact on the materiality of topics for wienerberger.

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# **Stakeholders & Communication Instruments**

### **Primary Stakeholders**

### Our employees

- **›** Internal digital communication channels
- **›** Brochures and printed materials
- **›** Events
- **›** Trainings

### Our customers and business partners

- **›** Sales team
- **›** Digital platforms
- **›** Digital online channels (homepage and social media)
- **›** Customer service
- **›** Brochures and reports
- **›** Environmental product declarations (EPDs)

### Capital market participants

- **›** Annual and quarterly reports
- **›** Presentations
- **›** Mailings on current developments
- **›** Road shows
- **›** Investor conferences
- **›** Personal conversations
- **›** Capital Markets Day

### Suppliers

- **›** Exchange in the course of our on-site supplier audits
- **›** Communication of ESG rating results
- **›** Supplier Code of Conduct
- **›** Digital and personal exchange on sustainability topics in the area of supplier management

### **Community**

### Local residents, communities, and public authorities

- **›** Personal exchange of information on site
- **›** Information events
- **›** Written and digital transmission of information

### Research institutions and universities

**›** Research cooperation

### Political level

- **›** Membership in European and national representative bodies and platforms
- **›** Participation in technical committees

### Media

- **›** Press releases and press conferences
- **›** Media enquiries
- **›** Interviews

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# <span id="page-51-0"></span>**Supplier Management**

Within the framework of our business relations, we ensure that our suppliers also comply with ESG standards. Full ESG compliance is based on two conditions: compliance with the wienerberger Supplier Code of Conduct, on the one hand, and the availability of an externally validated sustainability rating of the supplier by EcoVadis, on the other hand. As an alternative, the procurement team can perform a wienerberger sustainability desktop self-assessment (internal performance rating).

Depending on their ESG compliance and audit results, each supplier is assigned a key supplier score and, if necessary, instructed to take corrective action. The objective is to comprehensively rate suppliers for sustainability and service compliance and prescribe corrective measures, if necessary.

Moreover, wienerberger initiated ESG performance incentives for its suppliers, the intention being to recognize outstanding performance and ESG compliance and encourage continuous performance improvements. In addition, distinctions are awarded to country procurement teams in recognition of outstanding performance in the field of sustainable procurement excellence.

The following sections present examples of aspects and instruments of wienerberger's supplier management that contribute to ESG compliance:

### **Responsible Sourcing Policy 2020+ – ESG Steering Committee in Procurement**

Corporate Procurement at wienerberger has further intensified its focus on ESG criteria in supplier management. The Responsible Sourcing Policy 2020+ released by the Managing Board in 2020, an integral part of the Procurement Strategy 2020+, continued to serve as an essential basis for our supplier management in 2023.

The Procurement Strategy 2020+ defines our ambitious ESG criteria applied in supplier management. The strategy comprises the following three areas:

- **›** Promoting improvements in ESG (environment, social, governance) in all our sourcing activities, in combination with risk management.
- **›** Identifying and minimizing procurement risks alongside efforts to maximize opportunities and ensure compliance.
- **›** Ensuring that our policies, procedures, measures, and reporting rules are observed both internally and externally.

### **wienerberger Supplier Code of Conduct**

The wienerberger Supplier Code of Conduct (SCOC) sets out the minimum requirements that wienerberger expects its suppliers to meet in terms of responsible action regarding the environment, social aspects, and governance, including respect for human rights and compliance with other requirements of the ten principles of the UN Global Compact. The implementation of the SCOC and its application in the Supplier Relationship Management tool (SRM, see following section) was further advanced in 2023.

### **Supplier Relationship Management (SRM) tool**

The wienerberger Supplier Relationship Management tool is an internal data platform containing information on the financial terms and conditions as well as the ESG performance and risks of all of wienerberger's own suppliers (tier 1). The tool is linked to wienerberger's SAP system and the platform of EcoVadis, the international partner for sustainability ratings (ESG ratings).

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### **On-site audits of selected suppliers**

Our Responsible Sourcing Policy 2020+ provides that target suppliers undergo an external CSR assessment (e.g. by EcoVadis). The need for on-site audits of suppliers is therefore reduced to a minimum. Nevertheless, wienerberger's objective is to have at least one employee in each country organization certified to perform supplier audits.

The audits cover essential ESG criteria, such as the health and safety of employees, respect for human rights, the prevention of corruption and bribery, and environmental protection. On the basis of the audit results, recommendations are made to the suppliers regarding appropriate corrective measures to be taken and deadlines are set for the implementation of improvements.

### **Rating of suppliers by an ESG rating agency**

Since 2019, wienerberger has had the sustainability performance of suppliers and potential supplier risks in selected areas of procurements rated by EcoVadis, an international partner for sustainability ratings (ESG ratings). Suppliers are rated in terms of their performance and their compliance with local, national, and international standards regarding environmental protection, labor rights, human rights, ethics, and sustainable sourcing.

### **Encouraging suppliers to improve their ESG performance**

Within the framework of the SRM tool for procurement, wienerberger monitors the current performance of the target suppliers assessed by means of the tool and suggests improvements in the field of ESG. External and internal measures taken by suppliers, which must be in line with the wienerberger Responsible Sourcing Policy 2020+, are evaluated and rated.

### **Screening of suppliers against international sanction lists and verification of their financial resilience**

Every new supplier has to undergo a stringent acceptance procedure before being registered in wienerberger's SAP system (Marlin tool).

Since 2019, all of wienerberger's suppliers and customers registered in the SAP system have been screened on a monthly basis via an interactive data platform for their inclusion in international sanction lists (published by the United Nations, the EU, and the Office of Foreign Assets Control (OFAC) of the US Department of the Treasury) and appropriate steps have been taken, if necessary. All decisions taken in this context are being documented in the sanctions management software.

### **Supplier Management in 2023 – Overview**

- **›** 100% of all suppliers selected on the basis of predefined criteria relating to their business relevance are reviewed in terms of their ecological/social impacts.
- **›** In 2020, wienerberger used a matrix based on a method designed by the Sustainability Accounting Standards Board (SASB) to identify potential impacts of suppliers, differentiating between the specific characteristics of individual fields of sourcing.
- **›** By means of a new tool, wienerberger is able to swiftly identify potential negative supplier impacts or risks and respond accordingly.
- **›** Every supplier within the scope of the wienerberger SRM Tool (see [page 52\)](#page-51-0) is managed and evaluated by the tool in terms of operational and ESG performance.
- **›** Every SRM supplier evaluation cycle results in corrective measures to be discussed with the supplier, even in case of a satisfactory evaluation.
- **›** As laid down in the Responsible Sourcing Policy 20+, wienerberger established a cross-departmental ESG Committee authorized to decide on the termination of a supplier relationship for non-compliance with ESG criteria. In 2023, no cases were submitted to the committee.
- **›** wienerberger's supplier management has been reviewed and assessed by EcoVadis, an international partner for sustainability ratings (ESG ratings) for five years and by CDP (Carbon Disclosure Project) for the past two years.
- **›** In 20231, wienerberger was again assessed by EcoVadis, received the PLATINUM medal and is among the top 1% of the evaluated companies in our industry. In particular, the company's ESG-oriented supplier management is in the top 1% and thus among the best of the evaluated companies in our industry.

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# <span id="page-53-0"></span>**Commitment, Partnerships, Indices, and Ratings**

Sustainability has always been ingrained in our DNA and has played an essential role throughout our company's 200-year history. We assume responsibility for creating a future worth living in from ecological, social and economic perspectives.

This is also reflected in our partnerships and external ratings. For additional information and current sustainability ratings, please refer to our w[ebsite.](https://www.wienerberger.com/en/sustainability/ratings-and-recognition.html)

### **We support these initiatives Our sustainability ratings**

Image /page/53/Picture/6 description: The image shows the logo for the United Nations Global Compact. On the left is a circular emblem with the text "UN GLOBAL COMPACT" surrounding a stylized globe. Two olive branches encircle the bottom half of the globe. To the right of the emblem are the words "United Nations" above "Global Compact".

Image /page/53/Picture/7 description: The image contains two logos. The logo on the left is partially visible and appears to be a wordmark with the letters 's' and 't' visible. The logo on the right is the United Nations Sustainable Development Goals logo. It features the UN emblem at the top, followed by the words 'SUSTAINABLE DEVELOPMENT' stacked above the word 'GOALS' in a bold, sans-serif font.

Image /page/53/Picture/8 description: The image shows the logo of the International Labour Organization (ILO). The logo consists of the letters "ILO" stacked on top of each other, surrounded by a gear-like design at the bottom and a laurel wreath around the sides. The background is a light gray color.

Image /page/53/Picture/9 description: The image contains a blurry, low-resolution graphic on a light gray background. The graphic appears to be a logo or symbol, but the details are indistinct due to the image quality. The text is illegible.

Image /page/53/Picture/10 description: The image shows a circular seal with text that is difficult to read due to the image's low resolution. The seal has a dark center with lighter text around the perimeter. The overall color scheme is grayscale.

Image /page/53/Picture/12 description: The image shows a circular badge with the text "PLATINUM 2023 ecovadis Sustainability Rating" on it. The badge is silver and has a white background.

Image /page/53/Picture/13 description: The image is a logo for CDP Disclosure 2023. The logo is black and white and features the letters "CDP" in a stylized font, with the words "DISCLOSURE" and "2023" stacked below. The logo is set against a light gray background.

Image /page/53/Picture/14 description: The image shows the MSCI ESG RATINGS logo with a rating of AAA.

Image /page/53/Picture/15 description: The image contains two gray rectangles. The rectangle on the left is darker and contains the text "Coreview DSE Performance" in white. Below this rectangle is the text "Version for 1.5.5 <1.5.6>". To the right of the darker rectangle is a lighter gray rectangle with the text "Prime" in white.

Image /page/53/Picture/16 description: The image contains the letters 'v' and 'a' in a bold, sans-serif font. Below the letters, there are some blurred text.

Image /page/53/Picture/17 description: The image contains the word "SUSTAINALYTICS" in a sans-serif font. The text is slightly blurred and appears to be part of a larger document or presentation.

**54**

# **UN Sustainable Development Goals (UN SDGs)**

The Agenda 2030 for Sustainable Development of the United Nations (UN) comprises 17 Sustainable Development Goals (SDGs). Within the framework of the 2020 materiality analysis, the direct and indirect impacts of wienerberger on the SDGs along the entire value chain were evaluated. Subsequently, relevant SDGs and their targets were identified on the basis of the impacts described and with reference to external sources (e.g. GRI, UN Global Compact, [https://sdgcompass.org/,](https://sdgcompass.org/) European Commission, 2018: Mapping the role of raw materials in sustainable development goals). The SDGs were weighted on the basis of these impacts and the relevant targets of each SDG. Ten of the 17 SDGs were identified as being more or less relevant to wienerberger. The relevant UN SDGs, broken down by topic, are presented in the respective chapters of this Sustainability Report.

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# **Voluntary commitment to compliance with the ten principles of the UN Global Compact**

wienerberger acceded to the UN Global Compact in 2003. Thus, wienerberger is officially committed to the implementation of the ten principles of the Global Compact regarding human rights, labor standards, environmental protection – including the precautionary principle – and the prevention of corruption.

The wienerberger Social Charter, which confirms the company's commitment to compliance with the relevant conventions and recommendations of the International Labor Organization (ILO, a specialized agency of the United Nations), was signed by the Managing Board of Wienerberger AG and the chairman of the European Works Council in 2001.

Within its own sphere of influence, wienerberger guarantees the protection of human rights. It goes without saying that wienerberger tolerates neither child labor nor forced labor nor any form of discrimination. It should be noted, however, that wienerberger has no particular exposure to vulnerable population groups. A supervisory committee, comprising equal numbers of representatives of the wienerberger management and the European Works Council, monitors compliance with the provisions of the Social Charter.

wienerberger's commitment includes the respect for human rights, fair working conditions, payment of adequate remuneration, the avoidance of excessive working hours, permanent employment relationships, and respect for the freedom of assembly and the right of employees to engage in collective bargaining.

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# <span id="page-55-0"></span>**For the people. We put people first**

We embrace diversity and offer our employees a safe, attractive working environment with development opportunities.

But our commitment extends far beyond our colleagues at work. Because our solutions are developed by people, for people, we act in the interests of our customers, our partners, our staff and society as a whole.

Image /page/55/Figure/5 description: The image shows a line drawing of three people. The person on the left has long hair, suggesting they are female. The person in the middle is wearing a tie. The person on the right is wearing a hard hat, suggesting they are a construction worker or engineer. The drawing is in green.

[Employees](#page-56-0) 57

Image /page/55/Picture/7 description: The image shows a group of five stick figures. Four of the figures are male, and one is female. The figures are all standing in a row, and they are all facing forward. The figures are all green, and the background is white.

[Local Residents,](#page-76-0)  Consumers and End-Users 77

Social [Commitment](#page-78-0) 79

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<span id="page-56-0"></span>Image /page/56/Picture/2 description: The image shows a green circle with a white outline of three people inside. To the right of the circle is the word "Employees" in green.

### **Important for the people …**

Creating a fair and safe working environment for employees that fosters their development is a central responsibility of any company. This is not only a token of respect in mutual interactions, but also has a positive impact on social stability and a company's future viability in a dynamic and volatile environment.

Employees who feel appreciated and trusted are more creative and innovative. Any investment in the employees' well-being as well as their initial and further training promotes a culture of innovation, which is an essential prerequisite for a company's ability to address current challenges with creative and sustainable solutions.

## **… and important for wienerberger.**

We regard our employees as the basis of our success and a key factor in our efforts to sustainably improve people's quality of life. As a company, we are committed to strengthening an open and participatory culture in which all employees can contribute fully to the realization of this vision. Our day-to-day cooperation is shaped by our central values: trust, respect, passion, and creativity.

The development of our employees also contributes to the further development of wienerberger. Creating the prerequisites for individual and organizational development is therefore a matter of high priority for us. Together, we want to break new ground and regard the challenges of the future as an opportunity for innovation and progress. We want to shape tomorrow's work environment, offer safe jobs that are meaningful and hold potential for the future, and allow room for self-actualization and growth.

Image /page/56/Picture/9 description: The image shows two Sustainable Development Goals (SDGs). On the left, SDG 3 is displayed, which is "Gesundheit und Wohlgehen" (Good Health and Well-being). It features a green background with a white heart and a heartbeat line. On the right, SDG 8 is displayed, which is "Menschenwurdige Arbeit und Wirtschaftswachstum" (Decent Work and Economic Growth). It features a maroon background with a white upward-trending graph.

For us, people always come first. Our solutions are made by people, for people. This passion for what we do drives us in our daily work. It is the engine behind our innovative strength, our continuous development, and the growth of wienerberger.

> **Ulrike Baumgartner-Foisner Senior Vice President Group Organizational Development & HR**

> > **57**

### H I G H L I G H T S EMPLOYEES

- **›** [Strong values and lived diversity](https://www.wienerberger.com/en/stories/2023/20231206-wienerberger-shaping-the-future-with-strong-values.html)
- **›** [Developing people, shaping the work](https://www.wienerberger.com/en/stories/2023/20230705-Apprenticeships-at-Wienerberger.html)  [environment](https://www.wienerberger.com/en/stories/2023/20230705-Apprenticeships-at-Wienerberger.html)
- **›** [Sharing values and excelling in growth](https://www.wienerberger.com/en/stories/2023/20230816-Young-Potentials-at-Wienerberger-Excel-Themselves.html)

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# <span id="page-57-0"></span>**Sustainability Program 2020–2023 Targets and Performance on Diversity, Training and Development**

For wienerberger, assuming responsibility for all our employees is of primary importance. We are committed to diversity, inclusion, and equal opportunities in our company and support our employees in developing their skills and talents. Together, we can improve people's quality of life with our products and system solutions. We offer our employees a safe and motivating work environment and are committed to showing them respect and appreciation.

### **Diversity**

wienerberger is aware of the fact that the percentage of women in specific positions is only one of many important aspects of diversity. Our targets regarding the percentage of women are to be taken as a first step: Our main concern is not to define quotas, but to build awareness for the positive impact of gender equality.

## **Training and Development**

At wienerberger, we believe in advancing and supporting our employees in a targeted manner and in facilitating networking and an international exchange of knowledge.

# **Targets 2023 ≥15% women in senior management**

**≥30% women in white-collar positions**

# **10%**

**more hours of training per employee by 2023, as compared to 2020**

# **Achievements 2023**

**16% women in senior management** 

**34%** 

**women in white-collar positions**

**89% more hours of training per employee compared to 2020**

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# **Targets 2020-2023 Success Factors, Challenges, Lessons Learned**

## **Success factors**

Our commitment to diversity and HR development, as reflected in the Sustainability Program 2023, was a driving force for far-reaching changes in personnel matters.

We were actively involved in existing HR processes, such as recruiting, and implemented awareness-building and training initiatives. In doing so, we aimed at simplification, standardization, strengthening of the employee experience, and digitalization. We also focused on creating a firm basis for inclusion and diversity, embedding our values and leadership principles in our system, and providing development opportunities for all groups of employees. Among other aspects, we promoted international exchange and cooperation within our group-wide HR network.

Our efforts to support all activities and changes through intensive communication across all levels of the corporate hierarchy, to ensure transparency, and to provide room for dialogue on a level footing, are another crucial success factor. Additionally, we focus on building awareness for sensitive topics.

All developments are based on senior management's commitment to an active, inclusive, and sustainable HR policy that reflects and promotes our universe of values.

# **Challenges**

The diversity of jobs and working environments as well as the large number of wienerberger sites makes it difficult for us to adopt a uniform approach when defining and implementing measures. Our target groups differ in terms of their working environments, their daily lives, and their accessibility. For example, the goal of increasing the annual number of training hours per employee can be achieved through a wide range of measures tailored to the various target groups – from digital micro-learning and online training to on-the-job training. While incorporating a training session in an office environment is relatively easy, training may have to be planned for overlapping shifts in a factory environment.

Alongside adequate organization, this also requires an agile, pragmatic, and people-focused approach to the initiatives taken.

Finding the right balance between the pursuit of our central targets, our vision, and the diversity of working environments therefore represents a constant challenge.

In addition, in economically challenging times it is important to live up to our social responsibility when making the necessary adjustments to staffing levels, without losing sight of our objectives. At the same time, ongoing and new HR initiatives should be designed as efficiently as possible.

### **Lessons learned**

An even stronger integration of wienerberger's values into our training programs, HR processes, and leadership principles has helped us to further strengthen our shared corporate culture. We continue to rely on our executives and employees as role models and multipliers in our comprehensive local campaigns.

Our focus on modern, target-group-oriented training and talent development programs, the ongoing digitalization of our training offer, and the promotion of international exchange and mentoring across all levels strengthens our position as an attractive employer and makes us fit for the future.

The continuous harmonization of our core HR management processes (recruitment, performance management, succession planning, talent nomination, etc.) enables us to collect and analyze group-wide data in a structured manner. This allows us to better respond to the needs of our employees and design training initiatives and other measures in a more targeted way.

The success of our programs so far confirms that we are living up to our vision of creating an even more inclusive, diverse and attractive working environment. Within the framework of the Sustainability Program 2023, we not only achieved and surpassed the targets set, but also created an excellent basis for further steps.

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# **Additional Information**

Working together for a better future! Following this motto, our employees contribute to the success of our company through their daily work and their efforts to actively improve people's quality of life, both now and in the future. Our central task is therefore that of creating a working environment and promoting a corporate culture that focuses on people.

On the basis of our actively pursued HR agenda, we make every effort to bring the wienerberger vision to life by:

- **›** enabling a modern leadership style,
- **›** promoting diversity and equal opportunities,
- **›** investing in skills and capabilities that will be needed in the future,
- **›** and strengthening our employee experience.

We rely on a strong and fully empowered international HR community that supports and advocates for these targets as a driving force of change.

We continue to focus on designing our processes with people in mind and on comprehensive digitalization measures, such as the further roll-out of our central HR information system, which continuously improves our group-wide analyses and our management options. This enables us to direct our focus on people, improve their working environment, and meet the challenges of the labor markets even more effectively.

Our Safety, Health and Education (SHE) reporting, a tertiary system of key data collection on occupational health and safety as well as training and development, is also used to manage our programs and monitor their success.

In the following sections, we provide a detailed overview of our current agenda as well as our initiatives and processes in essential areas of our HR management:

- **›** Diversity and equal opportunities
- **›** Job creation and stability of employment
- **›** Skills development and career progression for our employees
- **›** Occupational health and safety

### **Diversity and Equal Opportunities**

We are convinced that diversity in our teams in both demographic and cognitive terms results in improved performance and higher team satisfaction, fosters creativity and innovation, and thus contributes to wienerberger's success.

We therefore focus on bringing together people of any gender and with diverse talents, personality features, careers, and cultural backgrounds. The resulting diversity of competencies and the internationality of our employees reflect the diversity of our customers, investors, business partners, and markets, reaffirm our innovative mindset, and makes us fit for the challenges of a dynamic and fast-changing business environment.

The principles upheld by wienerberger ensure that all employees, regardless of age, gender, cultural background, origin, or other characteristics, have the same rights and opportunities, from recruitment to initial and further training to professional advancement. Based on these principles, wienerberger does not tolerate any form of discrimination.

Since 2009, we have collected data on diversity and equal opportunities within the framework of our sustainability reporting. Since the beginning of data collection, no incidents of discrimination have been reported (for further information, e.g. on our whistleblower process, please refer to [page 45](#page-44-0) of our sustainability report).

The international character of the company is strengthened through a system of job rotation between different functional areas and country organizations. Employees are being encouraged to spend some time working for a wienerberger company abroad or assume a permanent position there. Such moves are being supported by our Global Mobility Team based at wienerberger's headquarters. In a further effort to foster diversity, training programs and e-learning courses in diversity are provided, the objective being to embed diversity and inclusion aspects in all HR processes. Intercultural training and awareness building for central aspects of diversity have become an important component of wienerberger's initial and further training programs.

We also want to facilitate the reconciliation of work and family life. In principle, wienerberger wants to offer all its employees the possibility of taking parental leave in line with local practices and the legal provisions in effect and in accordance with their individual wishes.

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Within the framework of our Sustainability Program 2023, we significantly outperformed the diversity targets for our employees, which were set at a minimum of 15% women in senior management positions and at least 30% women in white-collar positions.

Our efforts to attain these targets are a major step toward building awareness for gender equality. The corresponding measures, processes and programs as well as the structures created in this context constitute an important platform for the development and implementation of comprehensive action plans for inclusion and diversity in all countries in the years to come (within the framework of the Sustainability Program 2023-2026). The essential prerequisites for these actions plans, which are based on the principles of equal pay and equal opportunities, were created in 2023.

### **Percentage of women**

In 2023, the number of women employed by wienerberger increased by roughly 4% to 3,122 compared to the previous year. Women accounted for approximately 17% of wienerberger's total workforce, up by one percentage point from 16% in 2022.

Compared to the previous year, the percentage of women in senior management positions also increased by one percentage point from 15% to 16%. In 2023, as in the previous year, women in white-collar positions accounted for approximately 34% of the group's workforce.

We continue to give preference to women in new appointments to senior management positions, provided their qualifications are equivalent to those of male candidates. Further measures for the advancement of women include coaching sessions for women about to reach the "next level" or efforts to draw attention to successful women both within the company and in external communication.

### **Share of women in senior management positions1)** based on headcount

Image /page/60/Figure/9 description: This bar chart shows the percentage of women in 2021, 2022, and 2023. In 2021, the percentage of women was 15%. In 2022, the percentage of women was 15%. In 2023, the percentage of women was 16%.

*1) Exclusively employees directly employed by wienerberger. // All non-financial indicators are calculated on the basis of non-rounded values. Electronic data processing may result in rounding differences.*

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### **Share of women in white-collar positions1)** based on headcount

Image /page/61/Figure/3 description: This image is a bar chart showing the percentage of women in 2021, 2022, and 2023. The x-axis shows the percentage, and the y-axis shows the year. In 2021, the percentage of women was 33%. In 2022, the percentage of women was 34%. In 2023, the percentage of women was 34%.

*1) Exclusively employees directly employed by wienerberger. // Share of women in administration and sales (including marketing and inventories). // All non-financial indicators are calculated on the basis of non-rounded values. Electronic data processing may result in rounding differences.*

| Numbers and percentages of women<br>by function area 1) |           | 31.12.2021 | 31.12.2022 | 31.12.2023 | Chg. in % |
|---------------------------------------------------------|-----------|------------|------------|------------|-----------|
| Women                                                   | headcount | 2,560      | 2,991      | 3,122      | +4        |
| In production                                           | in %      | 5          | 6          | 7          | +3        |
| Administration                                          | in %      | 45         | 47         | 47         | +5        |
| Sales (including marketing and inventories)             | in %      | 27         | 28         | 29         | +5        |
| In white-collar positions (administration and sales) 2) | in %      | 33         | 34         | 34         | +5        |
| wienerberger                                            |           | 15         | 16         | 17         | +3        |

*1) All employees directly employed by wienerberger. // 2) All employees except in production. Sales including marketing and inventories // All non-financial indicators are calculated on the basis of non-rounded values. Electronic data processing may result in rounding differences.*

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### **Types of employment contracts**

In 2023, the percentage of women in permanent employment working full-time was 85.0%, corresponding to an increase by 0.4 percentage points compared to the previous year (2022: 84.6%). The percentage of permanently employed women working part-time remained unchanged at 15.0% in 2023. The percentage of permanently employed men working full-time in 2023 was 97.4% (2022: 97.8%). A mere 2.6% of all permanently employed men were working part-time.

Overall, the 2023 numbers of wienerberger employees under permanent employment contracts working part-time show that about half of them (54.4%) are women. 45.6% of employees working part-time are men.

Of all women directly employed by wienerberger in 2023, 5.2% were working under term contracts. In comparison, of all men directly employed by wienerberger in 2023, only 1.6% were working under term contracts.

### **Employees by type of employment contract and gender1)** based on headcount

Image /page/62/Figure/7 description: This image is a bar chart comparing the number of men and women in different types of employment contracts in 2021, 2022, and 2023. The chart shows the number of men and women in full-time permanent positions, part-time permanent positions, and under-term contract positions. The chart also shows the total number of men and women in all types of employment contracts. In 2023, there are 16,666 men and an unspecified number of women in full-time permanent positions. In 2022, there are 17,196 men and an unspecified number of women in full-time permanent positions. In 2021, there are 15,368 men and an unspecified number of women in full-time permanent positions. In 2023, there are 814 men and an unspecified number of women in part-time permanent positions. In 2022, there are 778 men and an unspecified number of women in part-time permanent positions. In 2021, there are 695 men and an unspecified number of women in part-time permanent positions. In 2023, there are 401 men and an unspecified number of women in under-term contract positions. In 2022, there are 508 men and an unspecified number of women in under-term contract positions. In 2021, there are 587 men and an unspecified number of women in under-term contract positions. In 2023, the total number of men and women is 17,881. In 2022, the total number of men and women is 18,482. In 2021, the total number of men and women is 16,650.

*1) Exclusively employees directly employed by wienerberger. // All non-financial indicators are calculated on the basis of non-rounded values. Electronic data processing may result in rounding differences.*

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### **Age structure**

The average length of service of 11 years with wienerberger is reflected in the age structure of our permanently employed workforce in 2023, which hardly changed in comparison to 2022.

In 2023, 49% of our employees were between 30 and 49 years old, roughly the same as in the previous year. 12% were younger than 30 (minus one percentage point compared to 2022), and 39% were older than 50 years, compared to 38% in the previous year.

Image /page/63/Figure/5 description: This image is a bar chart that shows the number of people in different age groups in the years 2021, 2022, and 2023. The x-axis shows the number of people, and the y-axis shows the years. The bar chart shows that in 2023, there were 17,480 people, in 2022, there were 17,974 people, and in 2021, there were 16,063 people. The age groups are less than 30 years, 30-49 years, and greater than or equal to 50 years.

**Age structure of our employees1)** based on headcount

*1) Employees under permanent employment contracts. // All non-financial indicators are calculated on the basis of non-rounded values. Electronic data processing may result in rounding differences.*

# **Job Creation and Stability of Employment**

Alongside adequate, safe, and health-preserving working conditions, fair remuneration, freedom of assembly, and the right of our employees to collective bargaining are fundamental principles of our human resources management. In 2023, about 68% of all wienerberger employees were covered by collective bargaining agreements. wienerberger does not discriminate in any way against employees who, due to the local legal situation, cannot have their interests represented by legally regulated bodies, such as works councils or trade unions.

wienerberger complies with the relevant recommendations of the International Labour Organization (ILO) regarding employment and working conditions. It goes without saying that wienerberger respects human rights and does not tolerate child labour and forced labour or any form of discrimination.

Moreover, wienerberger is making every effort to ensure that all employees, regardless of the type of employment relationship (full time, part time, temporary work), are treated equally and fairly, especially in terms of remuneration and other benefits, subject to the respective national legislation and remuneration policy.

By implementing the wienerberger Code of Conduct in 2021, we laid down a clear set of rules to be observed by the employer and by employees. For further information on the wienerberger Code of Conduct, please refer to [page 44.](#page-43-0)

### **Total number of employees**

In 2023, wienerberger, on an annual average, employed a workforce of 18,913 people (full-time equivalents), i.e. approximately 1% (165 full-time equivalents) less than in 2022. The most significant decrease was reported in Region Europe West (-104), followed by North America (-78), while Region Europe East recorded a slight increase (+16).

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In the difficult economic environment of 2023, our main concern was to ensure job stability and, at the same time, preserve our cost-effectiveness. We always evaluate restructuring measures comprehensively and carry out necessary adjustments with care. In 2023, such interventions were required in the Europe East region in particular. Gradual adjustments to the personnel structure took place there, particularly from the second quarter onwards. While these changes are most evident in the year-end headcount, they are less reflected in the average full-time equivalents shown for the year.

In terms of headcount as of December 31, 2023, the number of wienerberger employees was 17,881, i.e. 3.3% below the previous year's figure (18,482).

| Ø Employees by regions 1)<br>Full-time equivalents | 2021   | 2022   | 2023   | Chg. in % |
|----------------------------------------------------|--------|--------|--------|-----------|
| Europe West                                        | 8,734  | 9,162  | 9,059  | -1        |
| Europe East                                        | 7,282  | 7,487  | 7,503  | +0.3      |
| North America                                      | 1,608  | 2,429  | 2,351  | -3        |
| wienerberger                                       | 17,624 | 19,078 | 18,913 | -1        |

*1) Agency and temporary workers are included from their first hour of work at wienerberger. // All non-financial indicators are calculated on the basis of non-rounded values. Electronic data processing may result in rounding differences.*

Image /page/64/Figure/7 description: This bar chart shows the number of employees in different employment types for the years 2021, 2022, and 2023. The y-axis shows the years, and the x-axis shows the number of employees. The chart shows the number of full-time, part-time, and under-term contract employees. In 2021, there were 16,650 employees. In 2022, there were 18,482 employees. In 2023, there were 17,881 employees.

### **Employees by type of employment contract1)** based on headcount

*1) Employees directly employed by wienerberger. // All non-financial indicators are calculated on the basis of non-rounded values. Electronic data processing may result in rounding differences.*

As of December 31, 2023, 95.3% of all employees directly and permanently employed by wienerberger (headcount) were working full-time and 4.7% part-time. 17,480 persons (headcount), i.e. 97.8% of all wienerberger employees, had permanent employment contracts (+0.5% compared to 2022). Employees under term contract accounted for a mere 2.2% of the workforce. A very small part of the work at wienerberger is performed by staff legally defined as self-employed.

In principle, wienerberger prefers to work with employees under permanent employment contracts and wants to keep the percentage of agency workers as low as possible.

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## 1.1.1.1

### 1.1.1.1.1

#### 1.1.1.1.1.1

We define agency workers as employees who work regularly for a wienerberger organization, but are subject to national legal provisions and are not deemed to be wienerberger employees. They are not directly employed by wienerberger but, in legal terms, have an employment relationship with an external third party. If the 1,077 full-time equivalents of these agency workers are added to the total number of full-time equivalents of all wienerberger employees in 2023, agency workers account for 5.4% (-1% compared to the previous year).

### **Employee turnover**

Compared to the previous year, the rate of employee turnover at wienerberger (excluding North America) remained stable at around 14%.

While Region Europe East reported an increase in the rate of employee turnover from around 15% to 18% (+22%), Region Europe West saw a reduction in the rate of employee turnover from 13% to 12%.

As in previous years, the figures for North America are reported separately, since they are not fully comparable with those of the other operating segments and regions due to specific national legal provisions. The percentage of the holding company, which is accounted for as part of North America but, given its geographic location, is not subject to these specific national provisions, is included in the total of the group.

A total of 2,207 employees, i.e. 109 more than in the previous year, left the company in the reporting year (headcount; excluding North America, as the figures are not comparable to those of the other regions due to specific national legal provisions).

Restructuring measures, such a reduction in the number of shifts or (temporary) plant closures, led to the elimination of 479 jobs, i.e. 22% (includes only permanent employment contracts concluded directly with wienerberger). 1,734 employees (78%) – 280 women and 1,454 men – left wienerberger for other reasons. 366 of these employees were younger than 30 years, 928 were between 30 and 49 years of age, and 440 were 50 years of age or older.

In 2023, the average length of service with wienerberger remained remarkably high at 11 years. We regard this as a strong vote of confidence by our employees and an indication of a high level of employee satisfaction.

| Employee turnover by regions 1)    | 2021 | 2022 | 2023 | Chg. in % |
|------------------------------------|------|------|------|-----------|
| in %                               |      |      |      |           |
| Europe West                        | 12   | 13   | 12   | -11       |
| Europe East                        | 8    | 15   | 18   | +22       |
| wienerberger (excl. North America) | 11   | 14   | 14   | +5        |
| North America 2)                   | 53   | 33   | 37   | +10       |

*1) Ratio of persons leaving wienerberger (termination by employee or employer or mutually agreed termination) to average number of employees (head-count) in permanent employment in the reporting year, excluding temporary and agency workers as well as workers under term contracts; persons retiring or on leave do not count as persons leaving the company. Total leavers reported in prior years for the group included Holding allocations for North America. // 2) Due to special national legal provisions the indicators are not comparable to those of other regions. // All non-financial indicators are calculated on the basis of non-rounded values. Electronic data processing may result in rounding differences.*

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### **Employee turnover excluding North America1)** based on headcount

Image /page/66/Figure/4 description: This image is a bar chart that shows the number of employees leaving the company, of which due to restructuring, and the turnover ratio. In 2023, 2,207 employees left the company, 479 of which were due to restructuring, and the turnover ratio was 14. In 2022, 2,098 employees left the company, 82 of which were due to restructuring, and the turnover ratio was 14. In 2021, 1,632 employees left the company, 102 of which were due to restructuring, and the turnover ratio was 11.

*1) Employees with permanent employment contracts. Total leavers reported in prior years for the group included Holding allocations for North America. // All non-financial indicators are calculated on the basis of non-rounded values. Electronic data processing may result in rounding differences.*

In 2023, the number of employees newly recruited by wienerberger dropped by 744 compared to the previous year (based on headcount), which corresponds to an approximate 23 % decrease. Owing to the economically challenging situation in 2023, we refrained from recruiting new employees and achieved the necessary adjustments to our staff levels by way of retirements and people leaving for other reasons.

| New entrants by regions 1)<br>based on headcount | 2021  | 2022  | 2023  | Chg. in % |
|--------------------------------------------------|-------|-------|-------|-----------|
| Europe West                                      | 1,041 | 1,164 | 908   | -22       |
| Europe East                                      | 1,083 | 1,390 | 776   | -44       |
| North America                                    | 592   | 734   | 860   | +17       |
| wienerberger                                     | 2,716 | 3,288 | 2,544 | -23       |

*1) Employees directly employed by wienerberger // All non-financial indicators are calculated on the basis of non-rounded values. Electronic data processing may result in rounding differences.* 

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# **Competence Development and Advancement of our Employees**

At wienerberger, we attach great importance to advancing and supporting our employees in a targeted fashion and in facilitating networking and an international exchange of knowledge. In 2023, the number of training hours per employee was increased by approximately 89%, compared to 2020. Thus, we significantly outperformed the target of a 10% increase over the course of our 2020-2023 Sustainability Program.

All wienerberger training programs are aimed at providing training that is tailored to the employees' specific areas of work and designed to facilitate long-term succession management. The training programs comprise internal and external initial and further training measures.

wienerberger also takes targeted measures to increase employee satisfaction. For this reason, we conduct group-wide anonymous employee surveys at regular intervals, most recently in 2023.

wienerberger supports all employees whenever necessary, in particular within the framework of organizational restructuring, even beyond the end of their employment relationship. As a rule, outplacement counselling and coaching is provided to support job seekers.

The following sections contain a detailed description of our measures and list further indicators of competence development and the advancement of our employees.

### **Training and HR development**

In 2020, we set ourselves the target of increasing the average number of training hours per employee and year by 10% by 2023. Relative to a baseline value of 10.6 hours, this corresponds to a target of 11.7 hours per employee and year. Having attained this target in 2021, we further increased the number of training hours per employee to 16.3 in 2022. Despite the challenging market conditions seen in 2023, we further increased the number of training hours per employee to 19.9, which corresponds to an increase by roughly 22% compared to the previous year and 89% versus the 2020 baseline. This shows that we succeeded in outperforming our original target by far. However, our focus remains on fostering a learning culture within our organization, the objective being to maintain the amount of time invested in initial and further training at its current level or reach an even higher level in the years to come.

Within the framework of our Safety, Health and Education (SHE) reporting, the number of training hours is anonymously recorded on a country-by-country basis. Through our ongoing digitalization efforts, we also create system-based possibilities of documenting investments in training at a granular level, personalizing training programs, providing easy access to learning, and generally enhancing the employee experience.

In 2023, alongside the continuation and further development of our current talent programs, such as Ready2Grow, Ready-4Expertise 2.0, and our mentoring initiative, we focused on the reorientation of our international, group-wide training program for plant managers and introduced a skills-development model. We regard to the further development of our plant managers, especially in terms of leadership skills, health & safety, and continuous improvement, as key to the improvement of the working environment, employee satisfaction, and efficiency in our plants. The introduction of a group-wide skills-development model embedded in central processes (e.g. performance management) is to enable us to identify and leverage the further-training potential of our employees in a more targeted manner.

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The table on "Training hours per employee and year" includes neither international training programs, such as Ready4Excellence, which are organized centrally and financed by the holding company, nor on-the-job training. Including international training programs, the number of hours per wienerberger employee spent in training amounted to 20.3 in 2023 (2022: 16.7 hours).

In the interest of well-structured, transparent, and long-term management of career and succession planning, an annual evaluation of senior management is performed and a succession planning process, in particular for senior management positions, takes place. As of December 31, 2023, 146 positions were covered, without taking the positions of the four Managing Board members with senior management status into account.

| Training hours per employee and year by regions 1) | 2021 | 2022 | 2023 | Chg. vs. base year 2020 in % |
|----------------------------------------------------|------|------|------|------------------------------|
| Europe West                                        | 12.3 | 15.8 | 19.6 | +96                          |
| Europe East                                        | 14.4 | 19.8 | 24.3 | +104                         |
| North America                                      | 10.4 | 7.1  | 7.3  | +83                          |
| wienerberger                                       | 13.1 | 16.3 | 19.9 | +89                          |

*1) Internal and external initial and further training measures per employee (headcount). International training events are not included in this table. // Employees directly employed by wienerberger. // All non-financial indicators are calculated on the basis of non-rounded values. Electronic data processing may result in rounding differences.*

### **Employee satisfaction**

In 2023, an employee satisfaction survey was again performed among all wienerberger employees. In line with the usual practice of such surveys, information on the level of employee engagement and enablement was collected. As empirically validated by numerous studies, these dimensions show very well how motivated and enabled our employees feel.

Compared to the last survey conducted in 2021 with a return rate of 80%, the rate of participation in the 2023 survey increased by one percentage point to 81%. At the end of 2023, wienerberger began to communicate the results of the survey, broken down by corporate functions and departments, to all employees at the respective sites.

Compared to the 2021 survey, the results obtained in 2023 show a notable increase in the enablement dimension (+3%). A comparison with the results of surveys conducted by other organizations from the same industry shows that wienerberger ranks significantly above the industry average, especially in terms of enablement (feeling enabled). Despite the challenging environment, the results of the engagement dimension remained almost stable (-1%).

It is worth noting that our employees appreciate wienerberger's central efforts to provide comprehensive development options and to foster an atmosphere of mutual respect in the daily working routine (+4% in both dimensions compared to the record year of 2021).

Based on the results of the employee survey, measures to further improve the working environment will be planned and elaborated in all wienerberger organizations, involving employees and employee representatives.

Following the regular cycle, the next employee survey is to be conducted in 2025.

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# **Occupational Health and Safety**

At wienerberger, providing safe and healthy working conditions for everybody is our responsibility. We take this commitment very seriously.

At the heart of Health & Safety lies the wienerberger Health & Safety Policy and our belief that our employees are at the center of our efforts to ensure occupational health and safety.

In order to translate our Health and Safety responsibilities into actions, our H&S policy, various H&S systems, methods, and

tools are an integral part of the wienerberger organization. We strive to learn from our employees' experiences. Changes and improvements are made continuously, new H&S standards are added. We recognize positive safety behavior and reward good ideas.

The key H&S change in 2023 was the addition of leading indicators to the lagging safety indicators already in use. Our wienerberger locations embraced this change and now have a strongly improved focus on activities that contribute to the prevention of harm being done to our workforce.

| Accident Frequency and Accident Severity Rate1) | 2021  | 2022  | 2023  | Chg. in % |
|-------------------------------------------------|-------|-------|-------|-----------|
| AFR 2)                                          | 4.4   | 4.1   | 3.6   | -14       |
| ASR 3)                                          | 180.0 | 180.1 | 119.7 | -34       |

*1) Within our policy, events (fatal - ,lost time -, medical intervention accidents) of acquired companies that have not finished the one-year integration process are not reported // 2) Accident Frequency: number of lost time accidents per million hours worked // 3) Accident Severity Rate: accident-related sick-leave days per million hours worked.*

### FATALITY

Despite our efforts to ensure safe and healthy working conditions, two weeks after acquisition, a Danish wienerberger plant experienced a tragic accident, resulting in a fatality. Of course our first priority was to support the needs of the families and team members of the individual involved. The incident, classified as a workplace traffic accident, underscored the importance of prioritizing workplace traffic safety measures. The details of the accident and its causes were thoroughly investigated and remedial actions were implemented. In this context the Workplace Traffic Standard was updated for all wienerberger locations to prevent any form of reoccurrence. The incident serves as a sombre reminder of our wienerberger imperative to prioritize employee safety. It confirms the need to implement proactive measures to prevent such tragedies in the future. As we reflect on this tragic event, our commitment to the well-being of our workforce is unwavering.

### **wienerberger Health & Safety Policy**

Our vision is to be the producer and supplier of building materials and infrastructure solutions with the best safety record in our industry sector. Our goal is clear: no harm, zero accidents.

If incidents or accidents do occur, wienerberger applies a cooperative approach to learn from what happened. Together with employees, causes are investigated and measures are developed to avoid repetition. At wienerberger, we are convinced that the health and safety of our employees generates added value for the company and society as a whole and leads to enhanced employee commitment.

### Employees are at the center of our efforts to ensure occupational health and safety

At wienerberger, we prioritize the well-being and safety of our employees. We ensure that they are at the forefront of our occupational health and safety efforts through various initiatives. We acknowledge and reward positive safety behavior, as well as commending good ideas, best practices, and improvements in health and safety performance.

Communication about health and safety is key. We make sure our employees are kept informed about relevant matters. Listening to our employees is essential. Whether on the shop floor or through surveys, information about safety concerns, consul-

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tations, etc., we value their input greatly. Their feedback helps shape our decisions regarding health and safety priorities.

Furthermore, we actively involve our employees in incident and accident investigations and their subsequent follow-up. By engaging them in these processes, we ensure that their voices are heard and that they play a significant role in maintaining a safe and secure work environment.

### **Health & Safety Management**

We employ effective health & safety management systems throughout our organization in order to ensure the implementation of five health and safety fundamentals.

Image /page/70/Picture/7 description: The image shows a green magnifying glass with an exclamation point inside the lens. The magnifying glass is outlined in green, and the exclamation point is also green. The background is a light gray color.

1) Identifying and flagging up work-related hazards or hazardous situations Identifying and flagging up work-related hazards or hazardous situations.

At wienerberger plants and sites, occupational hazards and risks are identified and assessed using recognized methods. These risk assessments form the basis for risk mitigation and training of employees.

All employees are encouraged to participate actively in the identification and mitigation of hazards.

- **›** Every wienerberger employee is obliged to immediately stop any activity or procedure that is unsafe or not compliant with safety regulations. Work may only be resumed as soon as a safe working environment is ensured.
- **›** wienerberger employees can easily and quickly report concerns about safety via the wienerberger safety app, which enables identification, reporting and evaluation of work-related hazards or hazardous situations.
- **›** Potential hazards and health and safety concerns can also be reported to the local occupational health and safety committee. The committee's task is to prioritize the risks identified and initiate appropriate measures.

Image /page/70/Picture/14 description: The image shows a line drawing of a person standing and pointing to a screen. The screen displays a triangle with an exclamation point inside, which is a common symbol for a warning or alert.

### 2) Providing H&S training

Everyone is sufficiently trained and informed to perform our activities as safely as possible.

Health and Safety training is key to a strong safety culture. wienerberger provides specific Health and Safety training, suited to the needs of the employees concerned. Various training methods are applied, including face-to-face training, e-learning, individual coaching, and gamification. Every new employee has to undergo an introductory safety training module.

### 3) H&S inspections and audits

Our plants are well managed and properly maintained. This is seen as a prerequisite for accident prevention.

Regular inspections, site visits, and audits are performed in order to support our local leadership in managing and maintaining their production sites. Inspections and site visits are usually organized and implemented at local, country, or regional level. H&S auditing is carried out across the entire group.

H&S auditing is a key method for H&S performance evaluation. A standard auditing tool is used to determine compliance with wienerberger Health & Safety standards, rules and regulations. Audits take place at regular intervals and are performed by specifically trained H&S auditors. Basic H&S standards (emergency preparedness, inspections, personal protectivde equipment, reporting, reward systems etc.) are also an integral topic for the Internal Auditing Department. The results of audits are analyzed

Image /page/70/Picture/22 description: The image shows a line drawing of a person pointing to a sign with an exclamation point inside of a triangle. The person is drawn with a circle for the head and a line for the body and arm. The sign is a rectangle with a triangle inside of it. The exclamation point is inside of the triangle.

Image /page/70/Picture/23 description: The image shows a line drawing of a person wearing a hard hat and holding a clipboard, standing next to a conveyor belt with three gears on it. Two people wearing hard hats are standing behind the conveyor belt.

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↑

<span id="page-71-0"></span>and used to support individual locations and the company as a whole in optimizing our H&S performance.

### 4) Procedures for the investigation of work-related H&S incidents

All accidents, incidents, and safety concerns reported are investigated to determine the cause and take appropriate corrective and preventative measures.

wienerberger has defined and implemented procedures for the investigation of work-related accidents and incidents. Accidents are investigated to determine the causes and the risks associated with them. Lessons learned from these investigations are shared throughout wienerberger to prevent reoccurrence. Incidents and accidents are analyzed at operational level, at group level (by HR, works council, and management), at regional level and across regions.

### 5) The wienerberger H&S Portal:

Information on incidents, accidents, occupational health, and occupational hygiene is collected, analyzed and made accessible.

The H&S Portal is an essential learning and support tool used to facilitate the exchange and monitoring of H&S information. Information on incidents, accidents, occupational health, and occupational hygiene is collected, analyzed and made accessible via the wienerberger H&S Portal. The Portal is used in many different ways. It serves as the home of our safety management system, it is an H&S library for data collection, it has a function in H&S information processing and it supports the reporting of safety concerns. Concerns about safety can be reported into the Portal by any wienerberger employee, contractor or guest using a web-based app.

### **Mental health**

wienerberger is not only doing its utmost to guarantee the physical safety of its employees, but also cares about their mental health. We are therefore steadily enlarging the range of learning formats and services offered and intensifying our awareness-building campaigns. In this context, clear rules of conduct for the digital workplace are indispensable.

An attitude of respect shown by executives towards employees also has a substantial impact on their wellbeing. Clearly defined leadership principles and rules of conduct, which are based on our values and embedded in our training and onboarding programs, contribute to the creation of a safe and healthy working environment.

### **Occupational health at wienerberger**

### wienerberger's approach to occupational health

Each wienerberger country organization ensures compliance with the local occupational health legislation. For key topics such as the potential exposure to respirable crystalline silica, wienerberger has developed and implemented occupational health standards. Information on occupational health topics, such as the results of regular exposure measurements, is collected and assessed centrally using the wienerberger H&S Portal.

### Protection from exposure to respirable crystalline silica

At wienerberger ceramic production sites, we address the specific risks linked to the potential exposure to respirable crystalline silica. wienerberger is committed to providing appropriate protection against respirable crystalline silica1 exposure for its employees. 2021 saw the implementation of a new wienerberger standard to protect employees from exposure to respirable crystalline silica: the Respirable Crystalline Silica Standard (RCS). wienerberger participates in the bi-annual survey regarding exposure of employees to respirable crystalline silica, performed within the framework of the NEPSI social

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partnership agreement (Negotiation Platform on Silica https://www.nepsi.eu)1.

### **Measuring and Improving Health and Safety Performance**

### Leading and lagging Health and Safety indicators

Lagging indicators provide information on what went wrong. They look back on what incidents and accidents happened. However, at wienerberger we believe that it is important to look forward, using leading indicators. With the addition of leading indicators to our H&S performance monitoring in 2023, wienerberger instigated an important and fundamental change in the approach to and perception of health and safety.

The leading Health & Safety indicators used at wienerberger provide information on the effort that is put into the prevention of health and safety issues (hours of safety training, number of safety concerns reported and closed, visibility of leaders on the shopfloor, H&S audit results). We believe that leading activities drive the improvement of lagging H&S indicators. This belief is supported not only by international safety literature, but, more importantly, also by our 2023 safety performance. Based on the leading and lagging performance results achieved, actions are designed for further development and improvement of Health and Safety at wienerberger production sites.

### THE STRENGTH OF USING LEADING H&S INDICATORS, AN EXAMPLE

The number of safety concerns is measured as a leading indicator. In total, tens of thousands of safety concerns were submitted by employees and subsequently resolved. Statistical analysis of the 2023 numbers shows a link between the high number of safety concerns submitted on the topic of slips, trips, and fall risk and a significant reduction of lost time accidents attributed to the aforementioned incidents.

### Accident frequency (with lost working time)

In 2023, a total of 33.2 million working hours were performed. The number of lost time accidents per million hours worked (accident frequency rate) was reduced to 3.6 in 2023, compared to 4.1 in 2022 and 4.4 per 1 million hours worked in 2021. The North American operating segment of wienerberger improved significantly in 2023. Their AFR went down from 1.9 in 2022 to 1.0 per 1 million hours worked in 2023.

wienerberger's organization-wide commitment to optimizing occupational Health and Safety resulted in a consistent downward trend in the number of lost time accidents. The accident frequency continued to decrease by an impressing 14% from 2022 to 2023. This positive change is at least partially driven by the addition of leading safety indicators to our monitoring of safety performance.

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| Accident frequency by regions 1) 2) | 2021 | 2022 | 2023 | Chg. in % |
|-------------------------------------|------|------|------|-----------|
| Europe West                         | 5.9  | 5.2  | 4.4  | -16       |
| Europe East                         | 3.5  | 3.5  | 3.5  | +1        |
| North America                       | 1.0  | 1.9  | 1.0  | -48       |
| wienerberger                        | 4.4  | 4.1  | 3.6  | -14       |

*1) Number of lost time accidents (occupational accidents resulting in a loss of at least one working day) / number of hours worked x 1,000,000) // including temporary and agency workers (from their first hour of work at wienerberger) and employees under term contracts // 2) Within our policy, events (fatal - ,lost time -, medical intervention accidents) of acquired companies that have not finished the one-year integration process are not reported. // All non-financial indicators are calculated on the basis of non-rounded values. Electronic data processing may result in rounding differences.*

*1) The NEPSI system collects data on potential hazards for employees, health checks, training, the distribution and use of personal protective equipment (PPE), and technical measures, such as the enclosure of the production lines concerned.*

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| Number of fatal occupational accidents | 2021 | 2022 | 2023 |
|----------------------------------------|------|------|------|
|                                        | 1    | 0    | 01)  |

*1) Within our policy, events (fatal - ,lost time -, medical intervention accidents) of acquired companies that have not finished the one-year integration process are not reported.* 

### Accident severity

In 2023, accident severity, measured in accident-related sick-leave days per million hours worked, showed a marked improvement of outstanding 34% compared to 2022. As this improvement illustrates, not only was the number of lost time accidents reduced in 2023, but the consequences of the reported lost time incidents for the people involved were less severe.

The wienerberger production sites have performed well in implementing the change of focus to leading safety indicators, thus actively supporting the prevention of accidents.

| Accident severity by regions 1) 2) | 2021  | 2022  | 2023  | Chg. in % |
|------------------------------------|-------|-------|-------|-----------|
| Europe West                        | 223.6 | 194.5 | 114.2 | -41       |
| Europe East                        | 168.9 | 169.2 | 118.1 | -30       |
| North America                      | 13.2  | 156.1 | 141.2 | -10       |
| wienerberger                       | 180.0 | 180.1 | 119.7 | -34       |

*1) Number of sick-leave days related to lost time accidents (occupational accidents resulting in a loss of at least one working day) / number of hours worked x 1,000,000 // including temporary and agency workers (from their first hour of work at wienerberger) and employees under term contracts. // 2) Within our policy, events (fatal - ,lost time -, medical intervention accidents) of acquired companies that have not finished the one-year integration process are not reported. // All non-financial indicators are calculated on the basis of non-rounded values. Electronic data processing may result in rounding differences.*

### **Sick-leave days**

In 2023, the average number of sick-leave days (accident-related and non-accident-related) per employee (excluding the North America Region) decreased by around 32 % to 8.4 (2022: 12.3). Among other factors, this is due to the lower severity of accidents and overall shorter sick-leave periods.

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| Sick-leave days per employee by regions 1) | 2021 | 2022 | 2023 | Chg. in % |
|--------------------------------------------|------|------|------|-----------|
| Europe West                                | 12.3 | 13.7 | 8.1  | -41       |
| Europe East                                | 10.6 | 10.6 | 8.7  | -18       |
| wienerberger (excl. North America)         | 11.5 | 12.3 | 8.4  | -32       |
| North America 2)                           | 3.0  | 3.6  | 4.4  | +21       |

*1) Accident-related and non-accident-related sick-leave days. Agency and temporary workers are included in data on accident-related sick-leave days. Data on non-accident-related sickleave days include all employees directly employed by wienerberger. // All non-financial indicators are calculated on the basis of non-rounded values. Electronic data processing may result in rounding differences. // 2) Due to special national legal provisions (regarding employees on sick leave) the indicators are not comparable to those of other regions and therefore reported separately.*

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**wienerberger**

# **Sustainability Program 2023–2026 Social Targets Health and Safety, Training and Development, Diversity and Inclusion**

At wienerberger we put people first: we remain humble & embrace differences, we lead by example and act as advocates for diversity & inclusion and we offer our employees a safe, attractive working environment with development opportunities. Our commitment extends far beyond our colleagues at work. Because our solutions are developed by people, for people, we act in the interests of our customers, our partners, our staff and society as a whole. This is reflected in our 2026 social targets: they encompass initiatives to improve employee safety and well-being, to enhance training and development as well as diversity and inclusion.

### **Health and Safety**

We continue our focus on personal health and safety, concentrating our efforts around the principle of zero harm. This emphasis will be supported by a stronger involvement of management in meetings on safety issues, aiming at 20,000 visible leadership hours per year. The focus of our new target is on setting leading indicators which support wienerberger's safety culture. In particular, the involvement of management in shop floor dialogue supports this cultural change and ensures direct management engagement with safety issues.

A Visible Management Leadership (VML) session is defined as a planned interaction between a member of the local management team and workers at the location where they perform their jobs. The dialogue is about creating awareness of possible risks and how these risks can be mitigated.

**Zero Harm (principle)** 

# **20,000**

**visible leadership hours per year (2023 – 2026)**

**18 hours of training per employee and year (2023 - 2026)**

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# **Training and Development**

We understand the importance of our employees' professional advancement to wienerberger's continued success. Therefore, we commit to all employees receiving 18 hours of training per person and year. With a view to supporting young talent, 500 apprentices will be trained in the period up to 2026. In addition, a total of 30,000 hours of training for installers will be provided as the lack of skilled labor on building sites is currently a major bottleneck for the building industry.

Our training effort for all functions company-wide is an important tool for our organizational development. Setting a training target helps employees to acquire and enhance the skills necessary to perform their jobs effectively. It shows employees that wienerberger values their professional advancement and is willing to invest in their success.

By creating opportunities for apprentices from various backgrounds we increase the availability of motivated, diverse, and skilled people who can buy into wienerberger's mission and vision.

One of the major bottlenecks in today's building industry is the lack of skilled persons on building sites. In a number of countries we have already developed excellent training packages for aspiring installers and provide application and product training to increase the level of know-how. These training courses also forge a strong connection with wienerberger and our brand.

wienerberger currently invests 5,900 hours per year in training for installers. Stepping up our cumulative target to 30,000 hours for the period 2023 to 2026 improves efficiency and expertise in using and installing our products.

# **Diversity and Inclusion**

Diversity and inclusion initiatives at wienerberger aim to create a workplace culture in which individuals from various backgrounds are valued and provided with equal opportunities. To increase our focus on promoting diversity within the workforce and fostering an inclusive and empowering environment, inclusion and diversity action plans will be developed and implemented in all countries in the period up to 2026, including equal pay and equal opportunities policies. The objective of rolling out an inclusion and diversity action plan for all countries where wienerberger is active is a major expansion of our 2023 target on gender diversity.

**In Total 500 apprentices trained (2023 - 2026) In Total** 

**In Total**

# **30,000**

**hours of training for installers (2023 - 2026)**

**Development and implementation of an inclusion and diversity action plan in all countries (2023 - 2026)**

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# <span id="page-76-0"></span>**Local Residents, Consumers & End Customers**

A safe and healthy work environment, as well as safe and healthy living conditions along the entire value chain, are matters of high priority for wienerberger. We therefore focus not only on the safety and health of our employees, but also on the safety of local residents, customers, and users of our products along the supply chain.

👍

- **›** We are committed to maintaining good relations with local residents in the vicinity of our plants and clay pits. This includes, in particular, minimizing the impact of our activities on people and the environment.
- **›** We optimize our products and systems to ensure their safe and easy installation by both professional and private users.
- **›** Our products and systems are designed to ensure a healthy indoor climate and good air quality in buildings. It goes without saying that this includes the avoidance of hazardous substances.
- **›** With our products and systems we contribute to the construction of climate-resilient housing.
- **›** We engage in open dialogue with our stakeholders. Complaints and suggestions are taken as an order to improve our own performance.

# **Protection of local residents**

Local residents and the environment are directly affected by our production activities and the extraction of raw materials. We make every effort to minimize these impacts by employing the most advanced technologies in our plants, taking efficient measures to reduce emissions, and optimizing our logistics. As regards the extraction of clay, wienerberger is committed to taking extensive health and safety measures and minimizing the exposure of local residents (as well as of employees, see [page 72\)](#page-71-0) to noise and dust. A trusting relationship with local residents and effective measures to protect their health and safety are of high importance to wienerberger. We therefore seek to engage in open dialogue with everyone concerned.

# **Safe and easy use of our products**

We are continuously optimizing our products and system solutions in order to simplify their use by our customers: architects, design engineers, developers, craftspeople, and end customers.

Ease of installation is an essential factor for users of our products. For example, in the field of building solutions, we support architects and design engineers with analog and digital design tools and personal advice. Clay and concrete pavers are being optimized for easier installation. In the pipe segment, years of work have gone into solutions that facilitate the installation and use of plastic piping systems.

Our qualified and well-trained employees as well as our service centers support our customers to the best of their abilities in the application of our products and system solutions.

It goes without saying that wienerberger complies with all legal requirements at European, national and regional level regarding the avoidance and substitution of hazardous substances (see also [page 111\)](#page-110-0).

# **A healthy indoor climate and good air quality in buildings**

Our products are not only extremely durable, but also guarantee a healthy indoor climate and a high quality of air in buildings.

We conscientiously ensure that hazardous substances are avoided and, if this is not possible, substituted by other materials. wienerberger complies with all legal requirements at national and regional level regarding the avoidance and substitution of hazardous substances, especially in raw materials. Compliance with all legal requirements is continuously monitored and, if necessary, appropriate corrective or remedial measures are taken without delay.

Standardized practices for the avoidance of hazardous substances are applied at all our production sites. An internal policy provides for a strict classification of all input materials and contains binding instructions for employees regarding the use of secondary raw materials and the avoidance of hazardous substances at the production sites. Compliance with all rules and regulations is monitored on the basis of the annual raw materials report.

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# **Climate-resilient housing**

Rising expectations to be met in the design of affordable, energy-efficient and climate-resilient housing pose new challenges for society. With our energy-efficient solutions and products, for example for N[et Zero Buildings](https://www.wienerberger.com/en/media/press-releases/2023/20231106-wienerberger-expands-its-sustainability-commitments.html), including integrated roofing solutions, exterior walls and façades, heating and cooling systems, as well as photovoltaic installations, we contribute to the reduction of greenhouse gas emissions in the building sector and to climate protection. wienerberger products and system solutions are an integral part of sustainable building concepts, such as [Principle 2226®](https://www.wienerberger.com/en/media/press-releases/2023/20231127-2226-ein-Gebaudekonzept-mit-Zukunft-Technology-made-in-Austria.html) which ensures the highest possible level of energy efficiency at affordable costs.

Given the increasing pace of climate change (as evidenced, for instance, by rising summer temperatures and the growing frequency of heat waves), the influence of open spaces on the micro-climate is gaining in importance. On account of their thermal storage capacity, our products and system solutions contribute to the reduction of heating requirements in winter, a pleasant indoor climate in summer, and the creation of climate-resilient architecture. Moreover, with its products and system solutions, wienerberger facilitates measures that contribute to the adaptation to climate change (see the chapter "Climate Protection", [page 86\)](#page-85-0).

# **Stakeholder feedback: Our complaints management**

All stakeholders can get in touch with the local teams at the wienerberger sites or directly contact the wienerberger headquarters. As a matter of principle, the wienerberger whistleblowing service is easily accessible to all our stakeholders for complaints at any time (see [page 47](#page-46-0)).

Depending on the product group concerned, complaints regarding product quality or other issues are handled in various ways. wienerberger manages complaints management through regular exchanges with the local teams. Complaint management is managed locally by the respective national companies. Any necessary corrective measures are implemented immediately.

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# <span id="page-78-0"></span>**Social Commitment**

## **Important for the people …**

The right to adequate housing is a human right recognized in international human rights law as part of the right to an adequate standard of living. The UN Committee on Economic, Social and Cultural Rights underlines that the right to adequate housing should be seen as the right to live somewhere in security, peace, and dignity.

Although this right is firmly anchored in the global system of rights of the world's population of well over eight billion, far more than one billion people do not have adequate housing. Millions of people live under conditions that are dangerous to their lives and their health, in overcrowded slums and informal settlements, or under circumstances where their human rights and their dignity are not respected. By adopting Agenda 2030, the world community set itself 17 ambitious goals for sustainable development, the Sustainable Development Goals (SDGs). According to SDG target 11.1, access for all to adequate, safe, and affordable housing and basic services is to be ensured and slums are to be upgraded. For the time being, the world community is still far from attaining the goal of sustainable cities.1

### **… and important for wienerberger**

As a provider of building material and infrastructure solutions, we want to use our products and our expertise to the greatest possible benefit of society. We continuously support a large number of social projects and organizations in almost all the countries we operate in. We are convinced that we can help best in our fields of core competence: through the provision of solutions for building construction and infrastructure and the dissemination of sustainable building know-how.

Image /page/78/Picture/8 description: The image shows three Sustainable Development Goals (SDGs). The first SDG is number 3, which is for Good Health and Well-Being. The icon for this goal is a white heartbeat line with a heart at the end, set against a green background. The second SDG is number 6, which is for Clean Water and Sanitation. The icon for this goal is a white glass of water with a water droplet inside and an arrow pointing downwards, set against a blue background. The third SDG is number 11, which is for Sustainable Cities and Communities. The icon for this goal is a white cityscape with buildings and a house, set against an orange background.

As one of the world's largest suppliers of building material and infrastructure solutions, we bear great responsibility in matters relating to ESG (environmental, social, governance). It is extremely important to provide housing for socially underprivileged people and improve their living conditions. Together with various partner organizations, such as Habitat for Humanity International, we contribute to the achievement of this goal"

> **Heimo Scheuch CEO of wienerberger**

> > **79**

HIGHLIGHTS – SOCIAL COMMITMENT

[Habitat for Humanity International: Housing for All](https://www.wienerberger.com/en/stories/2023/20231220-Habitat-for-Humanity-International-Housing-for-All.html)

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# <span id="page-79-0"></span>**Sustainability Program 2020–2023 Target and performance on our Social Projects**

wienerberger is committed to creating the greatest possible benefit for society. For many years, we have been supporting social projects and institutions. Within the framework of our social projects, we create housing and decent living conditions for people in need, above all in the countries we operate in.

> **Achievement 2023**

**312**

**housing units1) built**

**Target 2023**

**We create** 

Image /page/79/Picture/9 description: The image shows the text "we create 200 housing units¹) per year for people in need with our products and in the markets we operate in."

*1) Housing unit for CSR projects:*

*housing unit; new construction/renovation in non-residential buildings per predefined surface of 60 m² = one housing unit.*

*Buildings: New construction/renovation of residential and non-residential buildings: one single-family house/one apartment = one housing unit; one multi-family house or non-residential building (e.g. hospitals) per predefined area of 60m² = one housing unit. Infrastructure (fresh water or waste water connection): Residential construction/renovation: connection of four housing units to the fresh water supply or wastewater disposal system or connection per predefined surface of 60 m² in non-residential construction = one housing unit. Piping systems for building services: New construction/renovation of residential and non-residential buildings: one single-family house/one apartment = one* 

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# **Target 2020-2023 Success Factors, Challenges & Lessons Learned**

## **Success factors**

For many years, in accordance with wienerberger's CSR donations policy, we have supported people in need through product donations in the markets we operate in and contributed our building-construction and infrastructure know-how to social construction projects. Moreover, volunteering campaigns are organized, with wienerberger employees providing hands-on assistance in the construction of houses on site.

Diverse CSR projects implemented by wienerberger together with Habitat for Humanity International, a non-governmental organization, count among the success factors for the achievement of this target. At local level, wienerberger's country organizations have carried out a wide variety of construction and renovation projects for people in need.

### **Cooperation with Habitat for Humanity International**

Since 2012, i.e. over a period of more than ten years, wienerberger has been supporting social projects in various countries in cooperation with Habitat for Humanity International, a non-profit organization active all over the world.

👍

### H A B I TAT F O R H U M A N I T Y I N T E R N AT I O N A L (NON-PROFIT-ORGANISATION)

Habitat for Humanity International, a non-profit organization founded in the USA in 1976, focuses on the creation of sustainable housing for and with people in need in the poorest regions of the world. All projects are based on the principle of "helping people help themselves". Through its work, Habitat for Humanity International actively advocates every human being's right to shelter.

According to Habitat for Humanity International, wienerberger has helped about 6,100 people since the beginning of its cooperation with the non-profit organization in 2012, thereby enabling them to live under adequate, healthier, and safer conditions. Our cooperation with Habitat for Humanity International also contributes substantially toward drawing the public's attention to the importance of affordable housing. So-called "housing forums" are co-organized with Habitat for Humanity International, the objective being to build heightened awareness for the importance of social housing among political stakeholders and the public administration. The current cooperation agreement with Habitat for Humanity International encompasses product donations by wienerberger as well as other support measures in Bulgaria, the United Kingdom, North Macedonia, Poland, Romania, Slovakia, Hungary, and the United States.

Some of these cooperation projects with Habitat for Humanity International are presented in the following:

### Hungary: Roofs of residential buildings repaired

In 2023, the roofs of many residential buildings in the Hungarian communities of Baranyaszentgyörgy, Felsőegerszeg, Sellye, and Kákics were repaired. Thanks to the donation of clay roof tiles, the roofs of single-family buildings inhabited by underprivileged families were repaired in cooperation with the local partner organization.

### Poland: Housing for Ukrainian refugee families

A broad range of wienerberger building products were used by Habitat Poland in its "Empty Spaces" project (Dąbrowa Górnicza and Bytom in Silesia) for the creation of housing for Ukrainian refugee families. The objective of the project is to convert vacant buildings into dwellings for families in need, among them Ukrainian families who fled from the war and settled in Poland.

Poland: Construction of a new residential building and adaptation of an existing building owned by the " 'St. John Paul II' Foundation for Polish Families"

In the community of Świętochłowice in Poland, wienerberger has donated products for the adaptation of an existing residential building and the construction of a new one owned

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and operated by the " 'St. John Paul II' Foundation for Polish Families" (Fundacja Rodzin Polskich im. św. Jana Pawła II)1. The foundation, which was established by private individuals, supports the integration of people on the margins of society, including families, children and adolescents, the elderly, and people with disabilities.

### Slovakia: Valaska community center

A community center for underprivileged local groups (including people with disabilities, the Roma minority, single mothers, and elderly people) is being set up in the Slovak community of Valaska. With projects focused on education, employment, charitable work, community development, and volunteerism, living conditions are to be systematically improved. In 2023, wienerberger donated concrete pavers produced by Semmelrock for the project.

### United States: New housing built for families in need

Among the projects supported by General Shale, our North American subsidiary, are five single-family houses for underprivileged families in the surroundings of Huntsville, Alabama. The families are currently living in sub-standard dwellings and will move into their new homes in 2024. Additionally, affordable single-family homes for low-income families were built in the North Memphis and South Memphis areas in cooperation with Habitat of Greater Memphis.

### Romania: wienerberger employees volunteering at construction sites

In June and September 2023, some 60 employees of wienerberger Romania volunteered to work at two construction sites operated by Habitat for Humanity International in Cumpăna in the district of Constanta and in Țuțora in the district of Iasi. At the Cumpăna construction site, wienerberger employees donated their working time to actively contribute to construction progress. Moreover, wienerberger supported the project by bringing in 20 students from the local School of Building Engineering. Another project organized by Habitat for Humanity International in Romania is "Hope Build" in Tutora, where volunteers joined forces with the project's beneficiaries, setting up housing units in no more than five days. Here, too, our employees were actively involved in the project.

### **Local CSR projects**

Apart from its cooperation with Habitat for Humanity International, wienerberger also supports diverse construction and renovation projects at local level via its country organizations. Product donations and supportive measures are complemented by voluntary help provided on site by our employees.

A selection of further CSR projects undertaken by our local country organizations, especially in 2023, are presented in the following:

### Austria: New Caritas hostel

At the center of Laa an der Thaya in Lower Austria, a new hostel run by Caritas, an Austrian charity, was built for young people with disabilities. By contributing all the clay blocks and roof tiles needed for this facility with a floor space of 713 m³, wienerberger made a significant contribution to this project.

### Czech Republic: Reconstruction of a school and a kindergarten for autistic children and children with disabilities

In Prague, the capital of the Czech Republic, wienerberger supplied building products free of charge for the reconstruction of a school and a kindergarten for autistic children and children with disabilities run by the social welfare organization of the Protestant Church. The school can accommodate about 80 pupils.

### The Netherlands: Newly built "Samaritaan Bommelerwaard" Hospice

The new "De Samaritaan Bommelerwaard" hospice in the Dutch community of Zaltbommel looks after terminally ill people who can neither stay in hospital nor be cared for at home or in assisted-living facilities2. Products donated by wienerberger were used in the construction of the new building.

### Italy: Day-care center for autistic children and young adults

In the Italian town of Novara, a day-care center for autistic children and young adults, "Ambaradaut – Una casa per l'autismo", was renovated. The center helps people to lead autonomous lives and acquire the skills needed to enter the working world. The range of services provided includes therapies and workshop activities. wienerberger supported the renovation with product donations.

*<sup>1)</sup> https://fundacjarodzin.pl/dom/en/strona-glowna-english/*

*<sup>2)</sup> https://www.hospicedesamaritaan.nl/*

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### Italy: Floods in the Emilia-Romagna region

When the floods in the Emilia-Romagna region in Northern Italy devastated infrastructure, private buildings, and other essential facilities, wienerberger provided instant help. wienerberger employees were given leave to help their colleagues as well as communities and families faced with an extremely difficult situation. Roads were cleared of debris, goods were collected and donated to cover basic needs, and volunteers helped to clean up people's homes.

### India: Know-how for the construction of affordable housing

wienerberger India developed an innovative solution for the local construction of affordable houses at a cost of € 4,000 each. Thanks to the use of Porotherm bricks for the entire building envelope, these low-cost houses provide excellent thermal insulation and are perfectly suited for the Indian climate. On top of all these advantages, the houses look aesthetically attractive. It takes two months to build such a house, which is ideal given the high demand for affordable housing in India.

### **Challenges**

In many cases, wienerberger cooperates with partner organizations that are often dependent on additional donations from other companies. For this reason, and in view of the current difficult market environment and local legal conditions, wienerberger has only limited influence on the speed of completion of an ongoing or the start of a new CSR housing project. Irrespective of this, the individual wienerberger country organizations continuously support their project partners with know-how.

## **Lessons Learned**

Thanks to the support received from wienerberger's country organizations and, above all, the personal commitment of individual employees, various CSR measures were implemented, helping many people in need. In 2023, projects were implemented in all regions in which wienerberger operates. These projects were not limited to residential construction alone, but included social facilities such as community centers, hospices, and care facilities for people in need. Alongside new-build activities, the renovation of residential buildings and community centers or the adaptation of buildings previously used for other purposes gained in importance in 2023. In addition to donations of ceramic products, concrete pavers and plastic pipe solutions were also made available for these CSR projects. In line with wienerberger's CSR donations policy, the need for instant assistance and support, especially in the event of natural disasters, is in the focus of attention.

Our commitment will remain strong in the years to come, and we will continue to make every effort to live up to our goal of being a useful member of society and creating value for all.

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**wienerberger**

# **Sustainability Program 2023–2026 Social Targets Housing Units for People in Need**

wienerberger's vision of improving people's quality of life is an inclusive mission. Despite the economic and social improvements made in all our markets, there is a significant group of people who lack the basic necessities of life such as decent housing, health care, and education.

wienerberger has established a long-lasting and trustful cooperation with Habitat for Humanity International. Through this cooperation, we deliver a significant annual amount of housing units for people in need in Europe and North America. In recent years we have also developed an additional regional approach. This allows country management teams to support local needs, which can be unforeseen and arise due to natural disasters and regional conflicts. Our fast and unbureaucratic local approach has been very effective and will be continued in the Sustainability Program 2023-2026.

**housing units per year built with 200 our products for people in need** 

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# <span id="page-84-0"></span>**For the planet. We care about a healthy planet**

At wienerberger, we think that it's our obligation to actively protect our planet, and therefore, to handle natural resources reliably.

We design and produce innovative ecological solutions of the highest quality. At the same time, we protect our environment as much as possible. This is why we continuously reduce the CO2 emissions of our production, consistently promote responsible water management and circular economy. Furthermore, we foster biodiversity through various measures taken at our sites.

Image /page/84/Picture/5 description: The image shows a line drawing of the Earth with a sun, a cloud with rain, and arrows indicating a cycle. The sun is in the lower left corner, and the cloud is in the upper right corner. The arrows go from the sun to the Earth, from the Earth to the cloud, and from the cloud back to the Earth, indicating a cycle.

[Climate Action](#page-85-0) 86

Image /page/84/Picture/7 description: The image shows a line drawing of a hand with a water droplet above it. The hand is open and facing upwards, as if to catch the droplet. The droplet is a simple teardrop shape. The drawing is in a single color, a shade of green, and is set against a light background.

Water [Management](#page-101-0) 102

Image /page/84/Picture/9 description: The image shows a green recycling symbol. The symbol is composed of three arrows arranged in a triangular shape, each pointing in a clockwise direction. The arrows are connected at their tips, forming a continuous loop.

[Circular Economy and](#page-106-0) Resource Use 107

Image /page/84/Picture/11 description: The image shows a line drawing of three trees. The tree on the left has a rounded, cloud-like shape. The tree in the center is tall and thin, with a pointed top. The tree on the right is round. All three trees are green.

[Biodiversity](#page-115-0) 116

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<span id="page-85-0"></span>Image /page/85/Picture/2 description: The image shows the text "Climate Action" in a bold, dark green font. To the left of the text is a circular icon, also in dark green, containing a white outline of the Earth with arrows indicating cyclical processes. A sun and a cloud with raindrops are also depicted within the circle.

### **Important for the planet …**

As a result of continuously increasing concentrations of greenhouse gases in the atmosphere, global air temperatures have been rising for years ("global warming"). This has led to clearly noticeable climatic changes: melting glaciers and ice sheets, rising sea levels, a higher frequency of extreme weather events, and more extreme heat waves and droughts.

Companies in all sectors and industries are urgently called upon to rapidly reduce the direct and indirect greenhouse gas emissions associated with their processes and products. The building sector, in particular, accounts for more than one third of worldwide energy consumption and about 39% of CO2 emissions. Therefore, companies operating in this sector have a special obligation to develop climate-friendly business models. It is essential that companies record their CO2 emissions, define reduction targets, implement appropriate measures, and verify the success of measures taken.

### **… and important for wienerberger**

For wienerberger, climate protection and the adaptation to climate change along the entire value chain are particularly important topics in connection with wienerberger's mission to improve people's quality of life and create a better world for future generations.

wienerberger products and system solutions have a service life of more than 100 years and are suited for the construction of climate-neutral buildings. With our building and infrastructure systems, we offer durable solutions for energy-efficient buildings, for the adaptation to climate change, and for climate-neutral buildings powered by clean energy (“Net Zero Building”<sup>1</sup>). Moreover, we continuously monitor our own greenhouse gas emissions and are making consistent efforts to reduce them. This includes our Scope 1, 2, and 3 emissions. In this way, we support the European Green Deal and the long-term strategy of the United States aimed at achieving net-zero emissions by 2050. In doing so, we are setting the course for the future.

Image /page/85/Picture/9 description: The image contains two squares side by side. The square on the left is yellow and contains the number 7 in the upper left corner, followed by the words "AFFORDABLE AND CLEAN ENERGY" in smaller font. Below the text is a white icon of a sun with a power button in the center. The square on the right is green and contains the number 13 in the upper left corner, followed by the words "CLIMATE ACTION" in smaller font. Below the text is a white icon of an eye with a globe inside.

It urgently needs the reaction to the fast increasing consequences of climate change. wienerberger therefore consistently focuses on innovative and smart solutions as part of its climate protection efforts.

### H I G H L I G H T S CLIMATE ACTION

- **>** -neutral brick plant Highly efficient thin-brick production without any input of fossil energy
- **›** [A roof for protection and energy production](https://www.wienerberger.com/en/stories/2023/20231110-Sustainable-roof-systems-From-protection-to-multi-function.html) Photovoltaics, roof renovation, and innovative strategies for the future
- **›** [Clean energy](https://www.wienerberger.com/en/stories/2023/20230111-Clean-Energy-New-Paths-for-Tomorrow.html) New pathways for tomorrow
- **›** [Automated Load Curve Balancing with AI](https://www.wienerberger.com/en/media/press-releases/2022/20220225-Wienerberger-Receives-2021-MIMA-Award-in-Sustainability-Category.html) Digital use case in production
- **›** [2226® A building concept fit for the future](https://www.wienerberger.com/en/media/press-releases/2023/20231127-2226-ein-Gebaudekonzept-mit-Zukunft-Technology-made-in-Austria.html) Technology made in Austria
- **›** [From hydrogen to biogas](https://www.wienerberger.com/en/stories/2022/20221130-From-Hydrogen-to-Biogas-Transporting-Renewable-Energies.html) Transportation of renewable energy sources

*1) A Net Zero Building is a highly energy-efficient building. The total amount of energy used by the building on an annual basis is equal to the amount of renewable energy created on site.*

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# **Sustainability Program 2020–2023 Target and Performance on Climate Action**

The building sector accounts for more than one third of worldwide energy consumption and almost 40% of CO₂ emissions. Wienerberger product and system solutions have a long useful life of over 100 years and help to make buildings climate-neutral. With our building and infrastructure systems, we provide long-term solutions for the adaptation to climate change. Moreover, we are consistently pursuing the target of reducing our own greenhouse gas emissions. This is how we support the European Green Deal and set the course for the future.

### **Climate Action**

Apart from the long-term target of becoming climate-neutral by 2050, Wienerberger has also set itself short-term targets as milestones along the way. Our contribution to climate protection comprises a wide range of measures: the enhancement of our production and energy efficiency, the resource optimization of our product and system solutions, the decarbonization of raw materials, and the switch to climate-neutral or lowemission energy sources. At the same time, we are developing new technologies to further reduce CO2 emissions in our production.

**Target 2023**

**15%**

**less CO₂ emissions (Scope 1 and 2) by 2023 compared to 2020¹**

**Achievement 2023**

**15.6%**

**less CO₂ emissions (Scope 1 and 2) compared to 2020¹**

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# **Target 2020-2023 Success Factors, Challenges, and Lessons Learned**

# **Success factors**

wienerberger continuously invests in new production technologies and the optimization of its processes in order to reduce its CO2 emissions. The company’s aim is not only to further develop technologies, but also to completely realign some of its production processes in order to reduce greenhouse gas emissions, while maintaining product quality at the same level.

wienerberger is equally successful in reducing its CO2 emissions (Scope 1) originating from clay, the raw material used in ceramic production. wienerberger meets this target by optimizing its raw material formulations and relying on smart product design to use less resources (dematerialization). Through these measures, wienerberger ensures that the properties of its products is maintained at the desired level or even enhanced.

By the end of 2023, wienerberger succeeded in reducing its Scope 2 emissions to net-zero by converting all its production plants in Europe and India to green electricity.

# **Challenges**

The difficult market situation in 2023, which was due to weakening demand in new build, renovation, and infrastructure, posed a challenge for the company in its efforts to enhance efficiency in production. The goal was to further reduce specific CO2 emissions (Scope 1 and Scope 2, measured on the basis of the volume of products ready for sale), despite a lower level of capacity utilization.

# **Lessons learned**

Regardless of challenging economic conditions, wienerberger consistently implemented the aforementioned activities (see als[o pages 89-90](#page-88-0)) and succeeded in reducing its Scope 1 and 2 emissions by 15% relative to the specific emissions recorded in 2020, thus achieving the target set for the end of 2023.

The topic of decarbonization is firmly anchored at wienerberger in all country organizations and product groups. The steps taken toward this goal include, in particular, the integration of decarbonization targets into the variable component of management remuneration (see 2023 Remuneration Report) and continuous communication on the subject of climate protection. A shared understanding helps to advance decarbonization by joining forces at all levels − from procurement to production to product development.

In 2023, wienerberger took the next step and further developed its structures and processes for recording its Scope 3 emissions, identified the three most significant categories, and set itself an ambitious target for reducing Scope 3 emissions. The relevant key figures have been published for the first time in the Sustainability Report 2023 (see pages [95-96](#page-94-0), [128](#page-127-0)).

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# <span id="page-88-0"></span>**Additional information**

wienerberger is making every effort to actively contribute toward reducing the global volume of CO2 emissions. To this end, we have established a comprehensive roadmap for decarbonization. Since 2023, the reduction of Scope 3 emissions has been included in this roadmap.

The largest percentage of direct CO2 emissions (Scope 1) is accounted for by our ceramic production. wienerberger will therefore continue to implement comprehensive measures aimed at reducing specific CO2 emissions in this particular area. In addition, wienerberger takes targeted measures to reduce Scope 2 and Scope 3 CO₂ emissions. Examples of wienerberger's climate protection measures are presented below:

# Our pathway toward climate neutrality by 2050

wienerberger is committed to the European Union's long-term goal and the long-term strategy of the United States of climate neutrality by 2050. The company's medium-term goal is to reduce its specific CO₂ emissions by 40% by 2030 compared to 2020. This is to be achieved through targeted programs and measures.

### C L I M AT E P R OT E C T I O N M E A S U R E S

- Enhancement of production and energy efficiency: Energy efficiency measures contribute toward reducing specific CO2 emissions in production. This is achieved by employing novel production technologies (see below), among other measures.
- Dematerialization and raw material efficiency: Raw material input is to be reduced, while product quality and product properties remain unchanged. In this way, CO2 emissions from raw materials and the consumption of energy sources are avoided.
- Decarbonization of raw material mixes: Formulations are modified in favor of the use of low-emission or climate-neutral raw materials, while keeping product quality and product properties unchanged (if possible).
- Conversion to climate-neutral energy sources: Possibilities of using alternative energy generation systems and/or sustainable energy sources are being evaluated at various production sites.
- New production technologies: Further R&D projects are being implemented to explore new technologies for kilns, dryers, and heat pumps, as well as raw material preparation.
- Reduction of our Scope 3 emissions: Use of secondary raw materials and carefully selected packaging materials; use of efficient logistics and environment-friendly distribution methods; efficient use of and conversion to climate-neutral energy sources to reduce greenhouse gas emissions resulting from the extraction, generation, and distribution of energy sources purchased by wienerberger.

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Image /page/89/Figure/2 description: The image shows Wienerberger's path to carbon neutrality by 2050 for scope 1 and scope 2 emissions. The graph shows the target for 2023 is -15%, the target for 2030 is -40%, and the target for 2050 is -100%. The graph also shows the following five steps: 1. Switch to green energy a) for mechanical use (green electricity) b) for thermal use (green electricity, green gases), 2. Raw materials Decarbonization of recipes, 3. Efficiency improvement Continuous improvement of production including dematerialization and optimization of the product and plant portfolio, 4. New technology Major energy efficiency improvement, 5. Carbon capture for remaining CO2 emissions.

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# <span id="page-90-0"></span>**Climate protection in our production Scope 1 and Scope 2 emissions**

The classification of greenhouse gas emissions is based on scopes, which are defined in the Greenhouse Gas Protocol Standard. This is one of the most widely used standards for the recording and communication of greenhouse gas emissions of companies and the public sector.

- **›** Scope 1 emissions are direct greenhouse gas emissions occurring in the company itself.
- **›** Scope 2 emissions are indirect greenhouse gas emissions from purchased energy.

| Index of specific direct (Scope 1) and<br>indirect (Scope 2) CO2 emissions 1) 2) |      |      |      |                                     |
|----------------------------------------------------------------------------------|------|------|------|-------------------------------------|
| in %, based on kg CO2/quantity of products ready for sale (2020 = 100%)          | 2021 | 2022 | 2023 | Chg. vs. Baseline<br>year 2020 in % |
| Europe West                                                                      | 92.6 | 89.8 | 85.7 | -14.3                               |
| Europe East                                                                      | 89.9 | 80.6 | 72.7 | -27.3                               |
| North America                                                                    | 96.1 | 94.8 | 99.9 | -0.1                                |
| wienerberger                                                                     | 92.2 | 87.0 | 84.4 | -15.6                               |

**Specific direct (Scope 1) and indirect (Scope 2) CO₂ emissions**

*1) The calculation excluded CO2 emissions from biogenic input materials. // 2) For two companies newly acquired in 2023, the indicators are not included for the 2023 reporting year. // The calculation of indirect CO2 emissions from purchased electricity is based on the current CO2 emission factors of Group Procurement. // For all non-financial indicators, the rates of change compared to previous reporting periods are calculated on the basis of non-rounded values. Electronic data processing may result in rounding differences.*

By the end of 2023, wienerberger succeeded in significantly reducing the total of its specific direct (Scope 1) and indirect CO2 emissions (Scope 2) by 15.6% compared to the 2020 baseline. The company not only attained but outperformed the ambitious target it had set itself in the Sustainability Program 2020-2023, namely to reduce its specific CO2 emissions (Scope 1 and 2) by 15% compared to 2020. This success was due to wienerberger's comprehensive programs and activities aimed at the decarbonization of production processes (see pages [89-90\)](#page-88-0).

The result is all the more impressive as the market situation in 2023 led to notably lower capacity utilization than in 2020. Plants working at a lower level of capacity use comparatively more energy relative to the volume of products ready for sale. This so-called capacity curve has an impact on specific energy efficiency and specific emission reductions, as both relate to the amount of products ready for sale. Despite these challenging factors, wienerberger surpassed the decarbonization target set for 2023 thanks to consistent decarbonization measures.

Specific CO2 emissions are calculated on the basis of absolute CO2 emissions (excluding CO2 from biogenic input material) in kilograms relative to the quantity of products ready for sale (kg CO2/quantity of products ready for sale in tons, m<sup>2</sup>, or TNF). See also explanations on the method of index calculation for specific indicators on [page 127](#page-126-0).

In the following, we report in detail on the development of wienerberger's specific direct (Scope 1) and indirect CO2 emissions (Scope 2).

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### Specific direct CO₂ emissions from primary energy sources and raw materials (Scope 1)

|               | Index of specific direct CO₂ emissions (Scope 1)1) 2) 3)<br>in %, based on kg CO₂/quantity of products ready for sale (2020 = 100%) | 2021 | 2022 | 2023  | Chg. vs. Baseline year 2020 in % |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------|------|------|-------|----------------------------------|
| Europe West   |                                                                                                                                     | 98.9 | 95.7 | 91.1  | -9                               |
| Europe East   |                                                                                                                                     | 94.2 | 89.6 | 88.9  | -11                              |
| North America |                                                                                                                                     | 96.7 | 95.1 | 102.2 | +2                               |
| wienerberger  |                                                                                                                                     | 96.9 | 93.5 | 92.9  | -7                               |

*1) Direct specific CO2 emissions (Scope 1) refer to CO2 emissions from raw materials (in ceramic production) as well as the fuel emissions of the entire wienerberger. The calculation did not include CO2 emissions from biogenic input materials. // 2) For two companies newly acquired in 2023, the indicators are not included for the 2023 reporting year. // 3) Limited comparabil ity to prior year due to scope and calculation methodology adaptions. // For all non-financial indicators, the rates of change compared to previous reporting periods are calculated on the basis of non-rounded values. Electronic data processing may result in rounding differences.*

In 2023, wienerberger succeeded in reducing its specific CO2 emissions from primary energy sources and raw materials (excluding biogenic input material) by more than 7% compared to the 2020 baseline.

Ceramic production accounts for the highest share in direct CO2 emissions (Scope 1). The reduction in direct CO2 emissions was therefore largely driven by this production segment. The main factors contributing to the reduction in direct CO2 emissions (Scope 1) include the following:

- **›** Reduction of process emissions through the decarbonization of raw material mixes
- **›** Dematerialization and raw material efficiency
- **›** Conversion to climate-neutral thermal energy sources
- **›** New production technologies, including a highly efficient, novel kiln technology based on green electricity, or digital solutions for the optimization of production processes
- **›** Minimization of energy consumption through enhanced production and energy efficiency, e.g. by means of heat pumps for higher energy efficiency in the drying process.

Given the current market situation in 2023, with plants working at a lower level of capacity utilization, the enhancement of production and energy efficiency proved to be more difficult. Nevertheless, the consistent pursuit of the measures described above enabled wienerberger to achieve a notable reduction of its specific direct CO2 emissions (Scope 1) in Europe.

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### Specific indirect CO2 emissions from electricity (Scope 2)

| Index of specific indirect CO₂ emissions (Scope 2) 1) 2) 3)<br>in %, based on kg CO₂/quantity of products ready for sale (2020 = 100%) | 2021 | 2022 | 2023 | Chg. vs. Baseline<br>year 2020 in % |
|----------------------------------------------------------------------------------------------------------------------------------------|------|------|------|-------------------------------------|
| Europe West                                                                                                                            | 3.0  | 3.6  | 0.0  | -100                                |
| Europe East                                                                                                                            | 68.3 | 32.4 | 0.0  | -100                                |
| North America                                                                                                                          | 93.5 | 93.6 | 90.4 | -10                                 |
| wienerberger                                                                                                                           | 59.9 | 41.1 | 28.6 | -71                                 |

*1) The calculation of specific indirect CO2 emissions from purchased electricity is based on the current CO2 emission factors of Group Procurement. // 2) For two companies newly acquired in 2023, the indicators are not included for the 2023 reporting year. // 3) Limited comparability to prior year due to scope and calculation methodology adaptions. // For all non-financial indicators, the rates of change vs. previous periods are calculated on the basis of non-rounded values. Electronic data processing may result in rounding differences.*

In 2023, wienerberger succeeded in reducing its specific indirect CO2 emissions from purchased electricity (Scope 2) by an impressive 71% compared to the 2020 baseline. This reduction was largely attributable to the conversion to climate-neutral electricity. wienerberger consistently reduced its indirect CO2 emissions (Scope 2) to net zero at all its European production sites and in India.

This significant reduction was achieved through Power Purchase Agreement (PPA) projects, the purchase of green electricity certified pursuant to the Renewable Energy Directive of the EU, and the generation of green electricity from company-owned facilities (e.g. solar panels). In the years to come, the conversion to climate-neutral electricity will also be advanced in North America.

### **Absolute direct CO2 emissions (Scope 1) and indirect (Scope 2) CO2 emissions**

| Absolute direct (Scope 1) and<br>indirect (Scope 2) CO₂ emissions 1) 2)<br>in kilotons | 2021    | 2022    | 2023    | Chg. vs. Baseline<br>year 2020 in % |
|----------------------------------------------------------------------------------------|---------|---------|---------|-------------------------------------|
| Europe West                                                                            | 1,196.7 | 1,204.6 | 850.3   | -29                                 |
| Europe East                                                                            | 1,274.8 | 1,254.6 | 683.9   | -47                                 |
| North America 3)                                                                       | 187.7   | 463.7   | 453.8   | +161                                |
| wienerberger                                                                           | 2,659.2 | 2,922.9 | 1,988.0 | -32                                 |

Direct CO2 emissions (Scope 1): ETS and non-ETS. ETS source: EU Transaction Log (EUTL). Non-ETS: Calculation in accordance with national rules or on the basis of EU standard emission factors. For plants in the USA CO2 emissions from the production process are also reported. Including CO2 emissions from biogenic input material. Quantities from wienerberger's CO2 monitoring corresponding to national rules. The calculation of indirect CO2 emissions from purchased electricity is based on the current CO2 emission factors of Group Procurement. // 2) For two companies newly acquired in 2023, the indicators are not included in the 2023 reporting year. // 3) The development of absolute CO2 emissions compared to the base year 2020 *was influenced by an acquisition, included in 2022. // For all non-financial indicators, the rates of change vs. previous periods are calculated on the basis of non-rounded values. Electronic data processing may result in rounding differences.*

In 2023, absolute CO2 emissions (Scope 1 and Scope 2, including CO2 from biogenic input material) amounted to 1,988 kilotons, down by 32% from the 2020 baseline value. On the one hand, the development of absolute CO2 emissions was influenced by lower quantities produced in 2023 versus the 2020 baseline year. On the other hand, thanks to our initiatives and projects (see [page 89-90](#page-88-0)) aimed at reducing direct and

indirect CO2 emissions (Scope 1 and Scope 2), absolute CO2 emissions declined more strongly (-32%) than wienerberger's absolute energy consumption (-17%) compared to the 2020 baseline. Further details on the development of absolute CO2 emissions (Scope 1 and Scope 2) are contained in the following sections.

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### Absolute direct CO2 emissions from primary energy sources and raw materials (Scope 1)

| Absolute direct CO₂ emissions from primary energy sources and<br>raw materials (Scope 1) 1) 2)<br>in kilotons | 2021    | 2022    | 2023    | Chg. vs. Baseline<br>year 2020 in % |
|---------------------------------------------------------------------------------------------------------------|---------|---------|---------|-------------------------------------|
| Europe West                                                                                                   | 1,194.2 | 1,201.6 | 850.3   | –24                                 |
| Europe East                                                                                                   | 1,147.2 | 1,189.7 | 683.9   | –38                                 |
| North America 3)                                                                                              | 142.1   | 376.4   | 375.2   | +187                                |
| wienerberger                                                                                                  | 2,483.5 | 2,767.7 | 1,909.4 | –26                                 |

*1) ETS and non-ETS. ETS source: EU Transaction Log (EUTL). Non-ETS: Calculation in accordance with national rules or on the basis of EU standard emission factors. For plants in the*  USA CO2 emissions from the production process are also reported. Including CO2 emissions from biogenic input material. Quantities from wienerberger's CO2 monitoring corresponding to *national rules. // 2) For two companies newly acquired in 2023, where the necessary data collection structures for non-financial indicators are not yet in place or have to be optimized, the indicators are not included in the 2023 reporting year. // 3) The development of absolute CO2 emissions compared to the base year 2020 was influenced by an acquisition, included in 2022. // For all non-financial indicators, the rates of change vs. previous periods are calculated on the basis of non-rounded values. Electronic data processing may result in rounding differences.*

The development of wienerberger's absolute direct CO2 emissions in 2023 was strongly influenced by the notably lower quantities produced than in 2020 and the comprehensive measures taken to enhance energy efficiency and reduce CO2 emissions.

Direct CO2 emissions (Scope 1) result from the combustion of fossil fuels, the release of CO2 from carbonates in the raw material, and the combustion of organic components in the raw materials used in ceramic production (process emissions).

Across the group, the absolute volume of CO2 emissions in kilotons (= 1,000 tons) is recorded and calculated in accordance with the calculation method of the European Union Emissions Trading System (EU ETS system). The source is the EU Transaction Log (EUTL). We record and report the direct CO2 emissions of all wienerberger plants, including those not covered and regulated by the EU ETS. The direct CO2 emissions of all wienerberger product groups are reported.

### Absolute indirect CO2 emissions from electricity (Scope 2)

| Absolute indirect CO₂ emissions from electricity (Scope 2) 1)<br>in kilotons | 2021  | 2022  | 2023 | Chg. vs. base year<br>2020 in % |
|------------------------------------------------------------------------------|-------|-------|------|---------------------------------|
| Europe West                                                                  | 2.5   | 3.0   | 0.0  | -100                            |
| Europe East                                                                  | 127.6 | 64.8  | 0.0  | -100                            |
| North America 2)                                                             | 45.6  | 87.3  | 78.6 | +82                             |
| wienerberger                                                                 | 175.6 | 155.2 | 78.6 | -77                             |

*1) For two companies newly acquired in 2023, the indicators are not included in the 2023 reporting year. // 2) The development of absolute CO2 emissions compared to the base year 2020 was influenced by an acquisition, included in 2022. // For all non-financial indicators, the rates of change vs. previous periods are calculated on the basis of non-rounded values. Electronic data processing may result in rounding differences.*

The reduction of wienerberger's absolute indirect CO2 emissions by 77% was substantially driven by the conversion to climate-neutral electricity.

The notably lower production volumes recorded in 2023, compared to 2020, also contributed to the reduction of absolute indirect CO2 emissions from electricity.

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## <span id="page-94-0"></span>**Scope 3 emissions**

Scope 3 emissions refer to all indirect CO2 emissions (other than Scope 2) resulting from a company's business activities along its value chain, the sources of which cannot be controlled by the company itself. The GHG Protocol subdivides Scope 3 emissions into 15 different categories relating to business activities common to many organizations.

wienerberger systematically identified its significant Scope 3 categories. The analysis was performed by representatives of several departments, including Corporate Procurement, Operational Excellence, Group Organization Development & HR, Engineering, and Group Reporting & Cotrolling; the process was supported by an external partner.

In a first step, wienerberger analyzed the relevance of all 15 categories on the basis of its business activities. Four of the 15 categories proved to be not applicable and therefore irrelevant. Of the remaining eleven categories, possible data sources were identified and the necessary data collection structures implemented. As a result, wienerberger was able to collect data for the eleven applicable categories in accordance with the Greenhouse Gas Protocol (GHGP) and analyze the relevance of the individual Scope 3 categories.

The analysis of the eleven relevant categories showed that three of them are particularly significant for wienerberger. Detailed information on the data collection and calculation methods used for the three significant Scope 3 categories is presented on [page 128](#page-127-0). In 2023, wienerberger recorded the total of these three significant Scope 3 categories in the amount of 2,244.6 kilotons CO2.

Among other factors, the results of this analysis served as a basis for the identification of the climate targets set out in the wienerberger Sustainability Program 2026 (see [pages 100-](#page-99-0) [101\)](#page-99-0).

wienerberger currently reports its Scope 3 emissions for the period 2023 on a voluntary basis. In 2024, we will present additional key figures on our Sustainability Program 2023-2026, including our target and performance for reducing the Scope 3 emissions. The data for the 2022 reporting year, being the baseline for our performance calculation, will be disclosed as part of the announcement of our 2024 annual report adjusted respectively included for Terreal and other acquisitions.

### **Significant Scope 3 categories**

In the course of the analytical process described above, the following Scope 3 categories were identified as being particularly significant for wienerberger:

Category 3.1 Procured goods and services: This category comprises all emissions resulting from the extraction, production, and transportation (from cradle to gate) procured by wienerberger in the reporting year and not covered in Scope 2 or in Scope 3 categories 2 to 8.

The CO2 emissions of this category (3.1.) account for more than half of wienerberger's Scope 3 emissions. As the company's most significant category of Scope 3 emissions, it is at the focus of our reduction targets.

In 2023, wienerberger recorded Scope 3 emissions of category 3.1 in the amount of 1,570.9 kilotons CO2 (about 70% of all 3 significant Scope 3 categories).

Measures taken by wienerberger to reduce Scope 3 emissions of this category include the following:

- **›** We use secondary raw materials and carefully select our packaging materials.
- **›** We proactively support climate protection measures taken by our suppliers.
- **›** We continuously optimize our procurement management and plan ahead.

Category 3.3 Energy- and fuel-related activities: This category comprises greenhouse gases resulting from the extraction, generation, and distribution of electricity, natural gas, and other fuels purchased by wienerberger. The category does not comprise emissions from the combustion of fuels or from electricity consumed by wienerberger, as such emissions are included in Scope 1 or Scope 2<sup>1</sup> and recorded accordingly.

In 2023, wienerberger recorded greenhouse gas emissions of category 3.3 in the amount of 293.6 kilotons CO2 (about 13 % of all 3 significant Scope 3 categories). On account of the progress made in energy efficiency and the decarbonization of production (see [pages 89-90](#page-88-0)), wienerberger is also reducing its Scope 3 emissions.

*<sup>1)</sup> Scope 1 comprises emissions from the combustion of fuels from sources owned or controlled by the reporting company. Scope 2 comprises emissions from the combustion of fuels for the generation of electricity, steam, heat, and cooling that are purchased and used by the reporting company.*

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![image.png](https://s3.amazonaws.com/moonup.docs.staging/75a9999a-699a-4197-899a-99999a999999/image.png)

Category 3.9 Downstream transportation and distribution (from our plants to customers): This category includes greenhouse gas emissions resulting from the transportation and distribution of products sold by wienerberger. This includes transportation by road, rail, water, or air, depending on the logistics and the transportation methods used.

In 2023, wienerberger recorded greenhouse gas emissions of category 3.9 in the amount of 380.2 kilotons CO2 (about 17% of all 3 significant Scope 3 categories).

# ABSOLUTE CO₂e EMISSIONS\* SCOPE 1, 2, AND 3 IN 2023

Measures taken by wienerberger to reduce Scope 3 emissions of this category include:

- **›** Efficient logistic route planning
- **›** Environment-friendly distribution methods

wienerberger will intensively implement measures to reduce its Scope 3 emissions and report on success factors, challenges, and lessons learned.

Image /page/95/Figure/10 description: The image shows a diagram of the scope 1, 2, and 3 emissions for wienerberger. Scope 1 emissions (direct) are 1,909.4 kt CO2e and include production, release of CO2 during the calcination of lime/dolomite, combustion of organic components of raw materials in ceramic production, combustion of fossil fuels, extraction from own clay reserves, and own vehicle fleet. Scope 2 emissions (indirect) are 78.6 kt CO2e and include generation of purchased energy. Scope 3 emissions (upstream) are 1,864.5 kt CO2e and include purchased goods & services and energy- and fuel-related activities. Scope 3 emissions (downstream) are 380.2 kt CO2e and include transport & distribution. The diagram is divided into upstream activities, wienerberger, and downstream activities.

*\* Greenhouse gases such as methane, nitrous oxide, or CFCs (chlorofluorocarbons) do not matter in Wienerberger's production. Absolute direct CO2 emissions (Scope 1) from our production processes are therefore identical with carbon dioxide equivalents: Indirect CO2 emissions (Scope 2) from electricity are recorded as CO2e (calculation according to market-based method). The absolute CO2 emissions or the corresponding CO2 indicators communicated in our reporting on climate protection always refer to emissions of carbon dioxide equivalents (CO2e). \*\* The GHG Protocol subdivides Scope 3 emissions into 15 different categories. wienerberger systematically identified its significant Scope 3 categories in 2022. The analysis of the relevant categories showed that three of them are particularly significant for wienerberger. Data on these categories are published within this 2023 Sustainability Report for the first time: • Category 3.1 Procured goods and services; • Category 3.3 Energy- and fuel-related activities; • Category 3.9 Downstream transportation and distribution.*

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# **Quality and environmental management systems**

Quality management systems (QMS) have been installed at all our plants, many of them certified according to ISO 9001. Environmentally relevant aspects have been integrated into these quality management systems. Meanwhile, about 50% of all production sites have been certified according to ISO 14001 Environmental Management Systems or are in the process of certification.

All ceramic pipe production sites and four plastic pipe production sites in Europe, as well as all sites of Wienerberger Ltd in the United Kingdom, have been certified according to (DIN EN) ISO 50001:2011 Energy Management.

## **Input of energy**

Input of energy sources in our production processes

The input and use of energy sources in our production processes vary greatly, depending on the production segment.

We distinguish the following fields of production:

**›** Ceramic production (clay blocks, roof tiles, facing bricks, and pavers, as well as ceramic pipes): Mainly thermal energy for the drying process and to heat the tunnel kilns for firing. Electrical energy is used for raw material mixing and preparation, extrusion, grinding, and transportation.

Ongoing optimization programs, such as the Plant Improvement Program (PIP+) in the brick segment and the Production Excellence Program (PEP) in the concrete paver segment, are primarily aimed at sustainably reducing resource consumption and costs through improvements of production processes. In the plastic pipe segment, we promote the Design for Lean Six Sigma (DFSS) management approach in order to implement quality improvements and process optimizations.

- **›** Production of plastic pipes: Mainly for the operation of plant and equipment to heat plastic granulates in the extruder and shape the material mix by means of a die.
- **›** Production of concrete and calcium silicate products in North America: Mainly for heat treatment of products under high pressure for autoclaving.
- **›** Production of concrete pavers: Mainly for the operation of plant and equipment for mixing, shaping, drying, and surface treatment (washing, grinding, blasting, or coating).

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### **Specific energy consumption**

| Index of specific energy consumption 1) 2)<br>in %, based on kWh/quantity of products ready for sale (2020 = 100 %) | 2021 | 2022  | 2023  | Chg. vs. Baseline<br>year 2020 in % |
|---------------------------------------------------------------------------------------------------------------------|------|-------|-------|-------------------------------------|
| Europe West                                                                                                         | 98.7 | 97.4  | 97.5  | -2                                  |
| Europe East                                                                                                         | 99.9 | 100.9 | 103.6 | +4                                  |
| North America                                                                                                       | 96.2 | 92.7  | 96.4  | -4                                  |
| wienerberger                                                                                                        | 98.5 | 97.4  | 98.8  | -1                                  |

*1) Total energy consumption includes energy consumed in production, but excludes administration (except in a few individual cases where separate invoicing is not possible). // 2) For two companies newly acquired in 2023, where the necessary data collection structures for non-financial indicators are not yet in place or have to be optimized, the indicators are not included in the 2023 reporting year. // For all non-financial indicators, the rates of change vs. previous periods are calculated on the basis of non-rounded values. Electronic data processing may result in rounding differences.*

For wienerberger, enhancing production and energy efficiency is a crucial climate-protection measure. Our short-term climate-protection target (minus 15% by the end of 2023) refers to the 2020 baseline year. We therefore present the changes in our absolute energy consumption relative to the 2020 baseline. In 2023, wienerberger's index of specific energy consumption was 1.2% below that of the 2020 baseline. This is attributable to the energy efficiency projects implemented by wienerberger in 2023, as well as the lower production volume compared to 2020.

For specific energy consumption, as shown in the above table, absolute energy consumption in kWh, relative to the quantity of products ready for sale (in tons, m², or TNF), is calculated versus the 2020 baseline (as an index in %, based on kWh/quantity of products ready for sale; 2020 = 100%). See also methods of index calculation for specific indicators on [page 127.](#page-126-0)

While wienerberger's specific energy consumption in 2023 was reduced by 1.2% compared to the 2020 baseline year, specific CO2 emission dropped even more sharply by 15.6% over the same period of time (see table on [page 91\)](#page-90-0). This difference is due to the fact that the enhancement of energy efficiency is only one of numerous measures taken by wienerberger with a view to decarbonization.

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### **Absolute energy consumption**

| Consumption of energy sources 1) 2)<br>in gigawatt-hours             | 2021 4) | 2022    | 2023    | Chg. vs. Baseline<br>year 2020 in % |
|----------------------------------------------------------------------|---------|---------|---------|-------------------------------------|
| Natural gas                                                          | 8,119.1 | 8,205.7 | 6,245.4 | -17                                 |
| Total of other fossil energy sources 3)                              | 65.7    | 67.0    | 58.2    | -19                                 |
| Electricity                                                          | 1,204.8 | 1,210.2 | 932.6   | -19                                 |
| wienerberger                                                         | 9,389.5 | 9,482.9 | 7,236.2 | -17                                 |
| Percentage of renewable energy in total electricity consumption in % | 74%     | 63%     | 86%     | +47                                 |

*1) Total energy consumption includes energy consumed in production, but excludes administration (except in a few individual cases where separate invoicing is not possible). // 2) For two companies newly acquired in 2023, where the necessary data collection structures for non-financial indicators are not yet in place or have to be optimized, the indicators are not included in the 2023 reporting year. // 3) Coal, fuel oil, and LNG // 4) Values of 2021 adapted due to changes in the consolidation scope. // For all non-financial indicators, the rates of change vs. previous periods are calculated on the basis of non-rounded values. Electronic data processing may result in rounding differences.*

In 2023, wienerberger's absolute total energy consumption declined by 17% compared to the 2020 baseline. This is primarily due to the fact that the quantities produced were significantly lower in 2023 than in 2020, as well as to energy-enhancing measures in production (see [page 89\)](#page-88-0).

wienerberger is making continuous efforts to convert its production processes to low-emission sources of energy. The substitution of high-emission energy sources is therefore a matter of high priority for us. In 2023, the consumption of coal, fuel oil, and liquefied natural gas (LNG) dropped by a total of 19% compared to 2020. As these sources of energy only meet a very small part of wienerberger's total energy demand, their consumption is reported as an aggregate figure.

In 2023, the share of renewable energy sources in wienerberger's consumption of electricity (in kWh) rose to 86%. We do not record the consumption of renewable thermal energy sources, as the amounts so far used in our production processes are negligible. Data on energy sold is equally irrelevant and therefore not reported.

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**wienerberger**

# <span id="page-99-0"></span>**Sustainability Program 2023–2026 Environmental Targets Decarbonization and Energy Mix, Revenue from products supporting Net Zero Buildings**

At wienerberger, sustainability is part of who we are. As we continue to innovate and improve our impact on the planet and on people, we are proud to introduce our new environment targets under the wienerberger Sustainability Program 2023-2026. This program is a vital step on our journey towards achieving climate neutrality by 2050 and aligning with the sustainability targets of the European Green Deal.

### **Decarbonization and Energy Mix**

Decarbonization involves reducing carbon emissions in production and transport as well as transitioning to cleaner, low-carbon energy sources. In the next three years, we aim to reduce our CO₂ emissions further, and have split our ambitions into three areas:

The reduction target of 25% in scope 1 & 2 emissions by 2026 compared to the base year 2020 is a solid basis for achieving our vision to be climate neutral in 2050.

We will reduce our own CO₂ footprint through more energyefficient processes, an increased share of green energy and the use of secondary raw materials in our production.Investments in innovative electrical kilns, better suited for green energy, and efficient digital printing are examples of the measures we will undertake. Furthermore, we will develop and introduce innovative products such as brick-slips, which deliver lower impact at our end, in transport, on the construction site and for the end user, as they need less space and allow more room for insulation.

**25% reduction in scope 1 & 2 CO₂ emissions** 

**(2020 - 2026)1) 10% reduction in scope 3 CO₂ emissions (2022 - 2026)** 

*1) Based on product-group-specific KPIs; all CO2 indicators refer to carbon dioxide equivalents (CO2e).*

{100}------------------------------------------------

<span id="page-100-0"></span>Scope 3 reporting focuses on three most significant categories for wienerberger, namely the emissions from purchased goods and services, energy-related emissions, and transport from our production sites to the customers. The reduction will be achieved by focusing on suppliers with lower emissions on raw materials. wienerberger's transport efficiency per ton delivered is to be improved by using vehicles with lower emissions. Our energy-related emissions will be reduced through improved efficiency in our plants and by producing our own renewable electricity.

The long-term development is strongly correlated with the usage of renewable energy resources. In the short-term, maximizing the sourcing of green electricity and using biogas in regions where this is available will increase the usage of renewable energy in our own production. The centrally organized energy procurement and engineering organization supports and ensures the efficient transition.

# **Revenue from products1) supporting Net Zero Buildings**

The building sector is responsible for approximately 39% of global energy and process-related CO₂ emissions. Energy management and innovative products that support the construction, renovation and operation of Net Zero Buildings are hence a key lever in decarbonization efforts worldwide. Our target of 75% of total revenue coming from building products contributing to Net Zero Buildings is a very strong strategic pillar. The biggest impact wienerberger can have on the worldwide reduction of CO₂ emissions lies in supporting the design and renovation of buildings with a view to becoming net zero. Driving the development, growth and availability of these products will be essential for the building sector and for Europe's ambition to become CO₂ neutral by 2050.

The target encompasses those product categories which support energy-efficient buildings, such as: systems for roofs, outer walls including façades, heating, cooling and solar power generation.

**15%**

**of renewable energy used in own operations (2023 - 2026) 75%**

**of total revenue from building products contributing to Net Zero Buildings1)**

*1) These are products that:* 

*- Meet the substantial contribution to climate change mitigation criteria (U-value threshold), part of the technical screening criteria, under the EU Taxonomy Regulation 2020/852 economic activity 3.5. Manufacture of energy efficiency equipment for buildings; or*

*<sup>-</sup> Contribute to lower energy consumption within the buildings, even if not yet covered by the Taxonomy Regulation (low-temperature cooling and heating systems); or - Contribute to energy consumption through renewable energy in the buildings (photovoltaic (PV)); or*

*<sup>-</sup> Contribute to a lower embodied energy footprint of the building (products with extremely low CO2 emissions: products with almost zero emissions in the production phase (at least 80% lower CO2 emissions in production compared to 2020).*

{101}------------------------------------------------

<span id="page-101-0"></span>Image /page/101/Picture/2 description: The image shows a logo for "Water Management". On the left is a green circle containing a white outline of a hand with a water droplet above it. To the right of the circle is the text "Water Management" in a bold, green font.

### **Important for the planet …**

At the beginning of this decade, two billion people – more than 40% of the world's population – had no access to safe drinking water and 3.6 billion people had no access to safely managed sanitation, according to the World Bank.<sup>1</sup> Water-related disasters accounted for 70% of all deaths due to natural catastrophes.<sup>2</sup> The UN Sustainable Development Goals (SDGs) relating to water and sanitation stipulate that by 2030 universal and equitable access to safe and affordable drinking water and access to adequate sanitation and hygiene is to be provided for all. Moreover, the pollution of water resources is to be reduced and water is to be used much more efficiently than at present.

In many countries, policy-makers and legislators have long since defined requirements to be met by industrial operators regarding resource-saving usage of water, for example in the Industrial Emissions Directive of the EU (IED).<sup>3</sup> One of the objectives of the 2021 EU Action Plan for "Pollution-free Air, Water and Soil", which is part of the European Green Deal, is to improve water quality and specifically to reduce the amount of microplastics released into the environment by 30% by 2030.4 At the same time, the reuse of water is to be promoted.

# WATER MANAGEMENT

- **›** [Energy and Water:](https://www.wienerberger.com/en/stories/2024/20240117-Energy-and-Water-Sustainable-Solutions-for-Tomorrow.html) [Sustainable Solutions for Tomorrow](https://www.wienerberger.com/en/stories/2024/20240117-Energy-and-Water-Sustainable-Solutions-for-Tomorrow.html)
- **›** [Farming in a Changing Climate:](https://www.wienerberger.com/en/stories/2022/20220803-farming-in-a-changing-climate-every-drop-counts.html) [Every Drop Counts](https://www.wienerberger.com/en/stories/2022/20220803-farming-in-a-changing-climate-every-drop-counts.html)
- **›** [Smart Rainwater Management](https://www.wienerberger.com/en/stories/2021/202103-smart-rainwater-management.html)

Image /page/101/Figure/11 description: The image shows four icons representing Sustainable Development Goals (SDGs). The first icon, in the upper left, is for "Good Health and Well-Being" (SDG 3). It features a white line graph with a heart symbol on a green background. The second icon, in the upper right, is for "Clean Water and Sanitation" (SDG 6). It shows a white glass with a water drop on a blue background. The third icon, in the lower left, is for "Industry, Innovation and Infrastructure" (SDG 9). It depicts three white stacked cubes on an orange background. The fourth icon, in the lower right, is for "Climate Action" (SDG 13). It features a white eye looking at the earth on a green background.

In 2019, the US Environmental Protection Agency developed the National Water Reuse Action Plan in order to address the issue of water scarcity.

Sustainable water management also has a positive impact on other environment-related issues, such as biodiversity, the circular economy, and above all climate change.<sup>5</sup> The increasing frequency of extreme weather events attributable to climate change has a major influence on the availability and quality of water, especially in urban areas and for agriculture. The effects of climate change on the entire water cycle jeopardize sustainable development, biodiversity, and people's access to water and sanitary facilities. H I G H L I G H T S

*3) Industrial Emissions Directive 2010/75/E (Integrated Pollution Prevention and Control) and the associated BREFs (Best Available Techniques (BAT) Reference Document), such as for the ceramic processing industry [https://eippcb.jrc.ec.europa.eu/sites/default/files/2023-08/CER\\_BREF\\_Draft\\_1\\_%20black%20for%20web.pdf](https://eippcb.jrc.ec.europa.eu/sites/default/files/2023-08/CER_BREF_Draft_1_%20black%20for%20web.pdf)*

*5) unwater.org*

*<sup>1)</sup> <https://www.worldbank.org/en/topic/watersupply>*

*<sup>2)</sup> [https://www.worldbank.org/en/topic/waterresourcesmanagemen](https://www.worldbank.org/en/topic/waterresourcesmanagement)t*

*<sup>4)</sup> [https://eur-lex.europa.eu/resource.html?uri=cellar:a1c34a56-b314-11eb-8aca-01aa75ed71a1.0003.02/DOC\\_1&format=PDF](https://eur-lex.europa.eu/resource.html?uri=cellar:a1c34a56-b314-11eb-8aca-01aa75ed71a1.0003.02/DOC_1&format=PDF)*

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# <span id="page-102-0"></span>**… and important for wienerberger especially in connection with climate action**

For wienerberger, responsible water management across the entire value chain is the logical consequence of the aspects referred to above. wienerberger makes every effort to use water sparingly in its production operations and provides a wide variety of products and systems for responsible, solution-oriented, and climate-resilient water management.

This includes solutions for the harvesting, storage, and infiltration or reuse of rainwater. The harvested water can be used for both sanitation and irrigation. With its innovative water management solutions, wienerberger makes a valuable contribution to the efficient usage of rainwater and the stabilization of the groundwater level. Moreover, smart new technologies and innovative products also help to reduce water consumption in water-intensive applications, such as agriculture.

At wienerberger, we design innovative solutions for new build, renovation, and infrastructure that are not only efficient and affordable, but make valuable contributions to sustainability, especially in the field of water and energy management. By using highly advanced technologies and state-of-the-art building materials, we ensure that our solutions meet the highest possible quality and environmental standards. This is how we create a better world for future generations.

Heimo Scheuch CEO Wienerberger AG

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# **Water management in our own production**

Aware of the need to alleviate the problem of water scarcity, wienerberger takes utmost care to reduce the usage of water in its own production operations. To this end, wienerberger focuses on responsible and careful water management, which includes running water in closed cycles.

Innovations introduced in wienerberger's own production operations include digital water management systems for online monitoring and control of the circulation of water in the production plants.

Sensors provide information on the current quality, volume, and temperature of the water or the condition of filters installed in the plant. In this way, wienerberger is able to ensure a sparing use of water in its own production operations.

Alongside its efforts to use water as sparingly as possible in its own production plants by running it in closed cycles, wienerberger draws water from its own sources, thus minimizing energy input for the treatment and transportation of water.

Water from sources other than public networks (e.g. water from rivers, lakes, and, in Scandinavia, the sea) is primarily used for cooling in wienerberger's plastic pipe production plants and subsequently returned to the environment in conformity with the local legal provisions.

In 2023, wienerberger's specific water consumption increased by 18.3% compared to 2022. This is primarily due to the product mix (quantity ratio of the product types manufactured) and the mix of production plants, as well as the fact that the generally lower production volume in 2023 has led to a predominance of production in the summer months and thus dry weather periods. Water usage per volume of products ready for sale therefore increased. wienerberger will make every effort to further advance its measures aimed at a sparing use of water (see [page 106\)](#page-105-0).

| Specific water use                   |       |       |       |           |
|--------------------------------------|-------|-------|-------|-----------|
| in m³/ton of products ready for sale | 2021  | 2022  | 2023  | Chg. in % |
| wienerberger                         | 0.243 | 0.226 | 0.267 | +18       |

# **Products and systems for solution-oriented, climate-resilient water management**

wienerberger is not only a supplier of pipes and pipelines, but also a provider of in-house solutions and a partner to infrastructure operators and agriculture. Providing integrated solutions for energy and water management is one of the company's priorities. Utmost care is taken to meet the needs of wienerberger's target groups and supply them with tailor-made solutions that are fit for the future. The company's target groups include operators of infrastructure networks as well as designers of infrastructure, buildings, and building services and facilities. The wienerberger team cooperates closely with municipal water and wastewater utilities and building engineers.

Examples of wienerberger's product and system solutions for responsible, solution-oriented, and climate-resilient water management are presented in the following.

### **Sensor technology for optimal water and wastewater management**

Digitalization opens up new possibilities for safe and sustainable infrastructure, such as industrial and potable water networks. Operators of older networks and smaller municipal utilities often do not have sufficient operational data and adequate software solutions for the efficient monitoring and control of their systems. wienerberger has designed an exemplary allin-one solution by combining water management with digital control systems and smart algorithms for self-optimizing network operation. wienerberger thus enables the decentralized installation of additional metering points within the network. By means of sensors, deviations from normal values regarding pressure, throughput, temperature, electric conductivity, pH value, and water turbidity are detected early so that corrective measures can be taken as quickly as possible.

{104}------------------------------------------------

Smart monitoring also helps to anticipate potential problems, such as the breakdown of pumps. Predictive maintenance enables operators to prevent system failures and optimize maintenance costs. With our smart pumping stations, we support private customers with data management services for smart, network-based pumps. These pumps receive, monitor, and process meteorological data and trigger flood alarms. Private households can thus be supplied with relevant additional information for their water and wastewater management.

### **Water-saving irrigation systems for agriculture**

Increasingly unpredictable weather conditions present an added challenge for agriculture. While periods of drought now tend to last longer, precipitation during the vegetation period is scarce and spread out unevenly over the year. To secure crop yields and a high quality of agricultural produce, more and more farmers are deciding to invest in irrigation systems, even in regions that previously did not require irrigation.

Being aware of these changes, wienerberger has developed water-saving solutions for irrigation, including products and services aimed at reducing water consumption and water losses, such as wastewater treatment systems, micro-irrigation, and the reuse of rainwater. Currently, wienerberger is engaged in research on how to efficiently combine these technologies and adapt them to the needs of agriculture at a reasonable cost. For example, all-in solutions for the drainage of fields, the harvesting of rainwater, and the reuse of water in combination with water-saving precision irrigation methods are now available.

Drip irrigation systems are a concrete example of how to minimize water consumption in agriculture. As water is delivered directly to the plant's root zone, additional water losses through evaporation are avoided. Modern monitoring and control systems ensure precise metering of the precious resource. After harvesting, the irrigation system is dismantled, cleaned, and reused: a perfect example of circularity.

### **Rainwater management systems**

The management of floods and droughts has become an indispensable part of urban and infrastructure development. For more than a decade, wienerberger has been designing tailor-made rainwater management solutions that have proven their worth as flood protections in urban areas. Recently, wienerberger has seen a massive increase in demand for these rainwater management systems. Such systems support the efforts undertaken by cities and communities in Europe to become climate-resilient through adaptation and risk mitigation. In their flood-control measures, flood-prone communities rely on Raineo®, wienerberger's proven stormwater management system, in combination with green and blue infrastructure, such as green spaces and reservoirs.

### **Irrigation and drainage systems for green spaces**

In urban areas, in particular, green spaces contribute to a pleasant micro-climate. wienerberger supplies irrigation and drainage systems for green façades and roofs. Our system solutions greatly facilitate the harvesting, storage, and filtering of water that can then be used for irrigation. Smart sensor-based technologies are available to optimize and maintain the water level.

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# <span id="page-105-0"></span>**Sustainability Program 2023–2026 Environmental Targets Water Management**

Water management encompasses a range of practices and strategies to efficiently and responsibly use water resources. As climate change necessitates better management of water as an ever more precious resource, we set out to harvest, retain and save 35 million m<sup>3</sup> of water through our products in the period up to 2026. This includes reusing water for various appliances or lowering the water consumption in agriculture. In addition, we commit ourselves to reducing water consumption in our own production operations by 15%.

The European policies on water management request companies to preserve and restore water. Due to climate change, longer periods of drought are causing heat stress in cities and lowering the output of our agricultural sectors. By using less water in its own production plants, wienerberger alleviates the impact of such events and contributes to this goal. More importantly, we provide solutions for harvesting, reusing, and saving water in vast and increasing quantities.

In terms of the products and services wienerberger provides to the infrastructure market, the share of water management applications is growing. The water management solutions we provide ensure harvesting of water for groundwater retention or allow it to be reused for various applications. Thanks to new smart technologies and innovative products, water consumption in water-intensive applications like agriculture can be lowered. Increased sales of these applications and innovations leads to a significant increase of water saved, and will result in an impressive 35 million m<sup>3</sup> of water harvested, retained, and saved through our products.

Our second ambitious water management target is to reduce water consumption in our own production operations by 15%. We already have best practice in place which serves as an example for target realization. The implementation of this target allows wienerberger to showcase water management solutions we are developing. In this location rainwater is filtered and used to irrigate green façades.

**35**

**million m3 of water harvested, retained, and saved through our products in infrastructure and agriculture (2023 - 2026)**

**15% reduction of water consumption in own operations (2023 - 2026)**

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# <span id="page-106-0"></span>**Circular Economy & Resource Use**

# **Important for the planet …**

The purpose of the circular economy is to save natural resources. It is a prerequisite for achieving climate neutrality by 2050 and protecting biodiversity. Half of total greenhouse gases and more than 90% of biodiversity loss, as well as water stress, are attributable to the extraction and processing of resources.1 Hence, the objective is to reduce demand for resources, foster the reuse of products, and, if the corresponding potential for reuse has been exhausted, recycle used products or materials. The key aspects are outlined in the following:

Resource conservation: The principles of the circular economy (waste hierarchy) are focused on reducing the use of primary raw materials (waste avoidance), the reuse of products and materials, and their re-manufacturing or high-quality recycling (recovery and use of raw materials contained in used products for the manufacturing of new products). The resultant reduction in resource consumption substantially contributes toward reducing the pressure on the environment.

Waste avoidance: Designing durable products that can be either repaired or recycled is an essential prerequisite for the reduction of waste volumes in general. This applies in particular for reducing the amount of waste that cannot be recycled but is suited for energy recovery (waste-to-energy) or, will end up on landfills. Products designed with these principles in mind help to reduce environmental pollution and the greenhouse gas emissions associated with waste disposal.

Energy-saving measures: The recovery of secondary raw materials often requires less energy than the extraction and processing of primary resources. It also contributes to the reduction of greenhouse gas emissions.

Image /page/106/Picture/8 description: The image shows three Sustainable Development Goals (SDGs). The first SDG is number 8, which stands for "Decent Work and Economic Growth". The background color is maroon, and there is a white graphic of a bar graph with an arrow pointing upwards. The second SDG is number 9, which stands for "Industry, Innovation, and Infrastructure". The background color is orange, and there is a white graphic of three stacked cubes. The third SDG is number 12, which stands for "Responsible Consumption and Production". The background color is gold, and there is a white graphic of an infinity symbol with an arrow pointing in a circle.

Circular products are to become the norm in the European Union. The Circular Economy Action Plan is one of the main building blocks of the European Green Deal. In particular, it provides for initiatives aimed at making products suitable for a climate-neutral, resource-efficient economy geared toward circularity. Among other objectives, the durability, reusability, upgradability, and repairability of products is to be improved and the energy and resource efficiency of products is to be enhanced. Moreover, the amount of recycled content in products is to be increased, while ensuring their performance and safety. Remanufacturing and high-quality recycling of products is to be enabled. Finally, demand for secondary raw materials is to be stimulated.

In the United States, the most important legal provisions on waste management are contained in the Resource Conservation and Recovery Act (RCRA), which is largely implemented by the U.S. Environmental Protection Agency (EPA). On November 15, 2021, the "America Recycles Day", the EPA presented its national recycling strategy. The strategy supports the national recycling target of increasing the recycling rate to 50% by 2030. The strategic objectives include the strengthening of secondary materials markets, increased collection, improvement of the materials management infrastructure, reduced contamination in the recycled materials stream, and enhanced policies to support recycling.<sup>2</sup> The measures to be taken include efforts to increase demand for recycled materials through government policies, programs, initiatives and incentives (A4), and increased consideration of recoverability and sustainability in the design of new products (B4).3

*1) https://ec.europa.eu/commission/presscorner/detail/de/ip\_20\_420*

*2) https://www.epa.gov/circulareconomy/national-recycling-strategy*

*3) EPA: National Recycling Strategy: Part One of a Series on Building a Circular Economy for All. Executive Summary, November 2021 https://www.epa.gov/system/files/documents/2021-11/national-recycling-strategy-executive-summary.pdf*

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# <span id="page-107-0"></span>**… and important for wienerberger**

wienerberger supports the European Green Deal and the RCRA in the United States, as well as the related objectives and measures to promote the circular economy. We regard the transition to an increasingly circular economy as an opportunity that comes with many advantages, such as reduced pressure on the environment, greater security of raw material supply, enhanced competitiveness, and stimulation of innovations.1

This proposition, including specific targets, is firmly rooted in the wienerberger Sustainability Programs for 2020–2023 and 2023–2026 (see pages [109](#page-108-0) and [114-115](#page-113-0)). When designing new product and system solutions, wienerberger ensures that they are either reusable or recyclable. In doing so, we are contributing to one of the thematic priorities of the European Green Deal by providing reusable, durable, and repairable products.

The durability of products is also a very important factor with regard to resource efficiency. wienerberger's building and infrastructure solutions have an extremely long service life of at least 100 years.

### H I G H L I G H T S CIRCULAR ECONOMY AND RESOURCE USE

- **›** [Plastic Recycling: The Circular Economy](https://www.wienerberger.com/en/stories/2021/20210331-plastic-recycling-the-circular-economy-in-practice.html) [in Practice](https://www.wienerberger.com/en/stories/2021/20210331-plastic-recycling-the-circular-economy-in-practice.html)
- **›** [Urban mining: Recycling Bricks for a](https://www.wienerberger.com/en/stories/2022/20220425-urban-mining.html) [Circular Economy](https://www.wienerberger.com/en/stories/2022/20220425-urban-mining.html)
- **›** [wienerberger's Top 10 Arguments](https://www.wienerberger.com/en/stories/2021/202103-top-10-arguments-for-circular-economy.html) [for a Circular Economy and Resource Efficiency](https://www.wienerberger.com/en/stories/2021/202103-top-10-arguments-for-circular-economy.html)

Reusability as an extra benefit of our durable products is an essential aspect of innovation. This is how we are able to substantially prolong the useful life of our products. For each product group, we develop criteria to be taken into account in the design of new products.

Mark van Loon Senior Vice President Corporate Sustainability & Innovation

*1) https://www.europarl.europa.eu/news/en/headlines/economy/20151201STO05603/circular-economy-definition-importance-and-benefits*

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# <span id="page-108-0"></span>**Sustainability Program 2020–2023 Target and Performance on Circular Economy**

The circular economy is a central pillar of wienerberger's Sustainability Program 2023: With a view to the efficient use of resources and the reuse of valuable substances, all new wienerberger products are to be 100% reusable or recyclable by end of 2023 at the latest. This is our way of ensuring the long-term availability of raw materials. At the same time, we are continuously increasing the share of secondary or recycled raw materials used in production.

### **Circular Economy**

The reusability of our products is an essential aspect of innovation at Wienerberger. This is how we achieve a substantial prolongation of our products' useful life. For each product group, we develop criteria to be taken into account in the design of new products.

# **Achievement 2023**

**99.3% of new products designed to be reusable or recyclable**

**Target 2023**

**100%**

**of new products designed to be reusable or recyclable**

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# **Target 2020–2023 Success Factors, Challenges, Lessons Learned**

# **Success factors**

wienerberger is continuously developing new concepts for product and system solutions in which entire elements of buildings and infrastructure can easily be dismantled and reused. Alongside the durability of our product and system solutions, these aspects represent a significant contribution to resource conservation. On its path to becoming a full-range system provider, wienerberger relies on smart prefabricated system solutions enabling a reduction in resource consumption during installation.

The reuse of roof tiles and pavers, which has been practiced for quite some time, is an excellent practical example. Moreover, wienerberger successfully markets a reusable facing brick (ClickBrick). Integrated into the façade structure without mortar, it can easily be dismantled and reused.

All ceramic pipes and fittings produced by wienerberger, as well as a product family of concrete pavers, have been successfully certified according to the Cradle to Cradle® concept and are re-certified at regular intervals. In this process, the certified products are comprehensively assessed in terms of raw materials, production and use, including dismantling, removal, and reuse.

# **Challenges**

wienerberger analyzed the reusability and recyclability of its products in the individual product groups in order to align the development of new products with this target. Hybrid or compound products constitute the greatest challenge to be addressed in this context. Although such products only account for a small part of the group-wide product portfolio, considerable efforts are being made to facilitate the separability of the materials they contain.

## **Lessons learned**

The reusability of our products is an essential aspect of innovation, as it substantially prolongs their useful life. Training programs on the design of reusable or recyclable products have been introduced to advance the processes described above.

Resource conservation in sourcing and production and, in particular, the reusability and recyclability of wienerberger product and system solutions, have a positive impact on their ecological footprint. By providing product and system solutions with a long service life, wienerberger enables its stakeholders, including architects and designers, investors, real-estate developers, and local authorities to erect buildings and implement infrastructure projects in line with the principles of the circular economy and with a satisfactory environmental performance. This adds sustainable value to the projects of our stakeholders and makes them fit to meet future requirements, such as those of the European Green Deal, as well as the US Resource Conservation and Recovery Act and the related legal provisions. In 2023, for instance, a resource management policy was implemented in wienerberger's North America region. The policy specifies how to introduce closed-cycle systems in the plants and how to recycle or reuse products and materials in order to minimize waste and reduce the consumption of virgin resources.

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# <span id="page-110-0"></span>**Additional information**

## **Use of secondary raw materials**

From the viewpoint of resource efficiency, the recovery and reuse of waste products and the use of secondary raw materials, alongside the reusability of products, are matters of high priority for wienerberger. By using secondary raw materials, wienerberger contributes toward reducing waste, saving primary resources, and ensuring their availability for future generations. The proportion of secondary raw materials used in production at wienerberger was more than 7% in 2023 and thus remained almost unchanged compared to the previous year.

In ceramic production, residual material from our own plants can easily be recycled into the production process on account of its high degree of purity. Secondary raw materials from external sources are also used as a substitute for primary raw materials, and urban mining can become increasingly important in this context. In order to obtain secondary raw materials of adequate quality, construction debris first needs to be carefully sorted and processed.

In plastic pipe production,wienerberger has introduced several pipe system solutions based on 100% of secondary materials. In this case, special attention is paid to the quality of the secondary raw materials used. The identification, classification, and continuous monitoring of suppliers of secondary plastic materials are therefore particularly important aspects of sourcing. According to the law, the use of external secondary raw materials is only permitted for pressure-less pipes (e.g. for wastewater, rainwater, electric conduits), but not for pipes used under pressure, such as those for potable water.

wienerberger is working on pipe systems in which the percentage of plastics is reduced through the use of mineral aggregates. Moreover, we are also using bio-based raw materials from renewable sources, such as waste fat/waste cooking oil or forestry biomass. This helps to reduce the amount of fossil raw materials and save CO2 emissions (Scope 3).

In 2023, wienerberger again participated in the revision of various European standards, the objective being to enable the use of secondary raw materials in larger amounts in plastic pipe production.

wienerberger currently holds the chair of the "Environmental Footprint" working group of TEPPFA (The European Plastic Pipes and Fittings Association). This working group is dealing with relevant topics, such as emission data sets for plastic materials, environmental product declarations (EPDs), and issues of European chemical legislation (REACH).

Within the framework of the Circular Plastics Alliance<sup>1</sup> we support all efforts to increase the amount of secondary raw materials used in products and packaging in Europe to at least 10 million tons per year by 2025.

An increasing amount of packaging materials used by wienerberger are made from secondary instead of primary raw materials. We are constantly piloting the use of climate-friendly, recyclable materials for packaging, not least in response to our customers' expectations. Besides reducing the amount of packaging material overall, wienerberger has begun to use plastic film containing a certain amount of recycled plastics.

### **Avoidance of hazardous substances**

We take pains to ensure that hazardous substances are avoided or, should that be impossible, substituted by other, less harmful substances. It goes without saying that wienerberger complies with all legal requirements at European, national and regional level regarding the avoidance and substitution of hazardous substances. Compliance with all legal provisions is regularly monitored. If necessary, corrective or remedial measures are taken without delay.

As required by an internal policy, uniform practices for the avoidance of hazardous substances apply at all our ceramic production sites in Europe. The policy provides for a strict classification of all substances used and contains binding instructions for the workforce regarding the use of secondary raw materials and the avoidance of hazardous substances at the production sites. Compliance with all provisions is verified on the basis of the annual raw material report. Our policy on the use of secondary raw materials and the avoidance of hazardous materials specifies the format and the content of the annual raw material report, including the results of chemical analysis, which is to be prepared by the country organizations. It also indicates the release and approval processes to be followed and documented in writing.

*1) https://ec.europa.eu/docsroom/documents/36361/attachments/1/translations/en/renditions/native*

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# **Dematerialization – Reduced raw material input for products of equal quality**

To achieve an enhanced level of resource efficiency, wienerberger reduces the raw material input (dematerialization) wherever it is economically justifiable and technically feasible to achieve the required product quality. The LESS series of facing bricks produced in Denmark is an example of this approach. Owing to the reduced material input, bricks of the LESS series weigh roughly 10% less than comparable bricks and are therefore easier to handle, while their compressive strength remains unchanged. This means that LESS facing bricks can be used for the same types of structures as conventional bricks.

Among other methods, wienerberger performed computer simulations based on mathematical models to calculate the properties of bricks, brick walls, and systems with a view to making them even more efficient. The simulations instantly show which parameters need to be changed to obtain the desired effect. By means of this method, wienerberger optimizes the physical properties of its brick products. Properties such as strength, thermal insulation, and noise insulation can be adjusted to the requirements of specific applications, while raw material input and weight are kept as low as possible.

# **Waste management in production**

Optimizing wienerberger's closed resource cycle requires not only measures aimed at reducing production waste, but also a reduction of the scrap rate. Wherever possible, production waste (e.g. burnt brick waste, non-coated plastic waste) is fed back into the production process. Production waste that cannot be reused or recycled internally is disposed of externally by certified waste management companies using state-of-the-art methods, or landfilled if other methods of disposal are ruled out.

At all our plants, the optimization measures taken within the framework of our quality management system take environmentally relevant aspects into account. About 50% of wienerberger's production sites have been certified according to ISO 14001 or are in the process of certification.

Ongoing optimization programs at wienerberger, such as the Plant Improvement Program (PIP+) in brick production and the Production Excellence Program (PEP) in the concrete paver segment, are primarily aimed at achieving sustainable resource and cost savings through improved production processes. Within the framework of PIP+, for example, the scrap rate in brick production is checked regularly and, where necessary, appropriate measures are taken to reduce it.

In the plastic pipe segment we apply the Lean methodology and the Design for Lean Six Sigma management approach in order to achieve quality improvements and drive process optimization. Both methods are aimed at reducing raw material input and the scrap rate, while increasing productivity at the same time. As a signatory to Operation Clean Sweep®, we ensure that no losses of plastic granulate occur during the production process. By the end of 2023, Operation Clean Sweep® has been implemented in roughly 92% of our plastic pipe production plants in Europe.

- **›** To determine the potential for future waste reduction measures, we performed a detailed waste assessment at an example plant.
- **›** Based on a typical plant structure, we determined the main criteria and the organizational setup required to facilitate future waste reduction initiatives.

{112}------------------------------------------------

In 2023, the total volume of waste generated by wienerberger amounted to 95,336 tons, down by 10% from the previous year's level. This is due to the lower production volume in 2023. However, waste was generated through major conversion projects and the demolition of sites no longer in operation. In particular, the absolute volume of non-hazardous landfilled waste was reduced by more than 12% (from 33,064 tons to 21,031 tons). Its relative share in the total volume of waste

also declined from 31% in the previous year to 22% in 2023. At the same time, the share of non-hazardous recyclable waste increased from 67% (71,071 tons in 2022) to 76% (72,515 tons). The share of hazardous waste rose from 1.5% in the previous year to 2% in 2023 as a result of conversion and demolition projects. wienerberger will continue its targeted efforts to further reduce the volume of waste, see [pages 114-115](#page-113-0).

### **Waste generation** in tons

Image /page/112/Figure/5 description: This image is a horizontal bar chart that shows the amount of waste generated in 2021, 2022, and 2023. The x-axis shows the amount of waste in units of 30,000, and the y-axis shows the year. The waste is broken down into three categories: non-hazardous recyclable, non-hazardous landfilled, and hazardous. In 2021, the total waste generated was 126,666. In 2022, the total waste generated was 105,768. In 2023, the total waste generated was 95,336.

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# <span id="page-113-0"></span>**Sustainability Program 2023–2026 Environmental Targets Circularity and Waste Management**

Circularity refers to creating a closed-loop system where products and materials are recycled, reused, or repurposed to minimize waste and reduce the consumption of new resources. Durability is a leading circular principle as it directly addresses the issue of resource consumption and waste generation. wienerberger has highly durable products, lasting for over 100 years. Our ongoing commitment to circularity involves designing products and processes that minimize waste and maximize the efficient use of resources. To this end, we aim to increase the share among all sold products to over 80% for highly durable products and to over 90% for recyclable and/or reusable products.

# **Circularity**

The main goal in a circular economy is to minimize the extraction of raw materials and the generation of waste by promoting the reuse, repair, and recycling of products and materials. Durability plays a pivotal role in shifting from the traditional linear economy, where products are disposed of after a short lifespan, to a more sustainable circular economy that prioritizes resource efficiency, waste reduction, and environmental protection. Furthermore, durability is a leading circular principle according to the Corporate Sustainability Reporting Directive as it directly addresses the issue of resource consumption and waste generation. wienerberger has highly durable products, lasting for over 100 years. This is reflected in our strategy as an essential and unique target.

**>80%**

**of sales from highly durable products (> 100 years)**

{114}------------------------------------------------

In our previous Sustainability Program 2020-2023 we focused on introducing products which are reusable and recyclable. Building on this achievement we are now able to report on the total sales of reusable and recyclable products within the new program. It is vital that we focus on developing innovative reusable products like roof tiles and click-bricks to ensure our sustainable growth.

## **Waste Management**

Waste management focuses on how we handle and dispose of the waste generated by our operations. Our approach to waste management includes reducing waste production, promoting recycling and reuse, and ensuring proper disposal of waste materials to minimize environmental impact. For our sustainability program 2026 we commit to a 15% reduction of waste at our production sites to complement our efforts towards circularity.

wienerberger is reporting already three categories of waste. The typical production waste in ceramic and plastic materials is already re-used in own production sites. We have set a new reduction target which focuses also on generic categories of waste. We already have a best practice in place which serves as an example for target realization.

**>90%**

**of products sold are recyclable and/or reusable (2023 - 2026)**

**15%**

**reduction of waste in own operations (2023 - 2026)**

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<span id="page-115-0"></span>Image /page/115/Picture/2 description: The image shows the word "Biodiversity" in a dark green sans-serif font. To the left of the word is a circular green icon containing three stylized trees in white outline.

### **It is important for the planet …**

Biodiversity, the variety of life forms on Earth, plays a crucial role in maintaining the health of our planet and ensuring the well-being of humanity. It underpins food security, supports ecosystems, and contributes to climate regulation. Over the past 40 years, the world has seen an unprecedented loss of biodiversity. The frequency of extreme environmental events is increasing as a result of climate change, which is one of the main drivers of this loss. At the COP15 UN Biodiversity Conference in Montreal (Dec. 2022), the Global Biodiversity Framework was agreed upon. This framework sets targets towards the "Global Goal for Nature": "Zero Net Loss of Nature from 2020, Net Positive by 2030, and Full Recovery by 2050".

Only by achieving this, together with financial institutions, NGOs, governments, and businesses, can we secure a sustainable future now and for the next generations. Additionally, the importance of biodiversity resonates with several United Nations Sustainable Development Goals (SDGs), like Life on Land (SDG 15), Climate Action (SDG13), Clean Water (SDG 6), and Good Health and Well-Being (SDG 3). Preserving biodiversity and sustainably managing nature is not just an environmental imperative but a key driver for achieving a harmonious and sustainable global future.

Image /page/115/Figure/6 description: The image shows five Sustainable Development Goals (SDGs) icons. The first icon, in green, represents SDG 3: Good Health and Well-being, and features a white heartbeat line with a heart. The second icon, in blue, represents SDG 6: Clean Water and Sanitation, and features a white glass of water with a water droplet and an arrow pointing downwards. The third icon, in orange, represents SDG 12: Responsible Consumption and Production, and features a white infinity symbol with an arrow. The fourth icon, in dark green, represents SDG 13: Climate Action, and features a white eye with the Earth inside. The fifth icon, in green, represents SDG 15: Life on Land, and features a white tree, three birds, and two horizontal lines.

### **… and important to wienerberger**

At wienerberger, biodiversity has been embedded in our history by restoring our clay pits to their natural state as far as possible. Recultivation generally happens alongside the ongoing operations, providing a mosaic of different habitats, such as pioneer grasslands and wetland vegetation. Avoiding hazardous substances (compliance with legal provisions and requirements is continuously monitored), not contaminating the soil and groundwater and establishing a recultivation plan guarantees the responsible and sustainable sourcing of our raw materials. However, the awareness that our activities are not limited to our clay pits led us to develop a parallel strategy to integrate biodiversity into our urban production locations as well.

wienerberger initiated a unique and innovative worldwide program addressing urban biodiversity on its production sites through a structured and pragmatic process. By mapping the terrain and the current biodiversity status of each site, we developed a maximal potential for improvement focused on providing numerous high-quality habitats for plants and animals. The core goal was to improve nature while simultaneously enhancing the well-being of our colleagues.

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<span id="page-116-0"></span>The benefit of our action plans is that people can see the changes in their work location: by having a flower meadow where there was previously a manicured lawn, or by enjoying their lunch break outside, observing the birds and pollinators. Our Biodiversity Ambassadors play a crucial role in monitoring and mainstreaming biodiversity in each location, and they are the protagonists of our strategy.

Biodiversity and the environment have become an integral part of our values and decision-making process. wienerberger stands in alignment with key global sustainability initiatives, for instance the European Green Deal and the Global Goal for Nature, reinforcing our commitment to environmental responsibility. Additionally, by signing the Call to Action[1](#page-33-1) from the "Business for Nature" coalition we have underlined our active participation in a collaborative effort among businesses worldwide to advocate for and advance nature-positive solutions. Through these commitments, we aim to play an active role in fostering biodiversity, mitigating climate change, and promoting responsible business practices.

### H I G H L I G H T S BIODIVERSITY

- **›** [Biodiversity: wienerberger for nature positivity](https://www.wienerberger.com/en/stories/2023/20230522-Biodiversity-Wienerberger-for-nature-positivity.html)
- **›** [In Action: Biodiversity Ambassadors at](https://www.wienerberger.com/en/stories/2023/20230726-In-Action-Biodiversity-Ambassador-at-Wienerberger.html)  [wienerberger](https://www.wienerberger.com/en/stories/2023/20230726-In-Action-Biodiversity-Ambassador-at-Wienerberger.html)
- **›** [Strong engagement for Biodiversity](https://www.wienerberger.com/en/media/press-releases/2022/20220311-Wienerberger-joins-Business-for-Nature-Coalition.html)
- **›** [wienerberger Biodiversity Action Plan](https://www.wienerberger.com/content/dam/corp/corporate-website/downloads/sustainability/2022_Wienerberger_Biodiversity-Action-Plan_EN.pdf)

With our innovative and pragmatic approach and by empowering local employees, we are the first company to actively contribute to urban biodiversity on production sites worldwide. We are committed to integrating our solutions into a comprehensive biodiversity action plan where we harmonize industrial activities with ecological sustainability and well-being of the local community.

> *Rena De Mey Biodiversity Program Manager*

*<sup>1)</sup> https://www.businessfornature.org/make-it-mandatory-campaign*

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# <span id="page-117-0"></span>**Sustainability Program 2020–2023 Target and Performance on Biodiversity**

The protection and preservation of our environment is firmly embedded in wienerberger's awareness of its corporate mission: We foster biodiversity at our sites, use resources sparingly, and respect nature reserves. Over the past 40 years, the world has seen an unprecedented loss of biodiversity – a development we must counteract.

> **Target 2023 Biodiversity Action Plans for**

> > **1)**

**ALL 195**

**production sites in place**

### **Biodiversity**

We have set ourselves a clear goal: By 2023, implement a biodiversity action plan, based on the wienerberger Biodiversity Program, at all1) wienerberger production sites.

> **Achievement 2023 ALL 195 1)**

**production sites with implemented Biodiversity Action Plans**

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# **Target 2020-2023 Success Factors, Challenges, Lessons Learned**

### **Success factors**

The successful achievement of our 2023 target of having a Biodiversity Action Plan for our urban production sites came with several lessons learned and additional accomplishments along the way. Our success in promoting biodiversity is exemplified by the remarkable engagement of our biodiversity ambassadors and the community that was created, which surpassed expectations. Several biodiversity measures were implemented, with active

participation from our employees, their families, local stakeholders, and partners. A number of different people were inspired in the process and external partnerships were built. Additionally, the establishment of a Geographic Information System (GIS) was imperative for the achievement of our target. This GIS has also proven valuable for other purposes within our sustainability strategy, for instance for analyzing relevant information for governance purposes.

# ALL1) 195 BIODIVERSITY ACTION PLANS COMPLETED

Image /page/118/Figure/7 description: This image shows a map of the world with the number of Biodiversity Action Plans completed in each country. The United States has completed 28 plans, India has completed 1 plan, and many European countries have completed plans, including the United Kingdom (15), France (23), Germany (15), Spain (8), and Italy (4). Other countries with completed plans include Sweden (4), Finland (4), Poland (15), Czech Republic (13), Austria (8), Hungary (9), Romania (7), Bulgaria (3), Greece (3), and Turkey (1).

*1) As defined by the threshold: 1. locations larger than 1ha and at least 30 FTE; 2. with exception of a few newly acquired companies; 3. wienerberger ownership* 

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## **Challenges**

Operating in various countries also presents its own set of challenges. Biodiversity is not uniform across different areas, meaning that adaptations and local knowledge are necessary. Having a baseline established by specialists requires collaboration with various partners across diverse regions and geographic zones. At the same time, species found in urban environments are similar across regions, making the developed internal

biodiversity catalogue robust and pragmatic for urban locations. The production sites impact their surroundings in different ways, however negative impacts are often mitigated through nature-based solutions, such as ecological noise barriers. The lack of space for creating biodiversity elements is sometimes a constraint: nonetheless, efforts are made to increase connectivity of green elements by following the pragmatic steps set out in our action plans, ultimately optimizing the available area to its fullest biodiversity potential.

# BIODIVERSITY ACTION PLANS IN SIX STEPS

Image /page/119/Figure/6 description: The image shows six green circles arranged in a semi-circle. Each circle contains a number and a short description. The first circle, labeled "1", says "Mapping out the terrain elements". The second circle, labeled "2", says "Outlining the existing green infrastructure". The third circle, labeled "3", says "Drafting the maximal biodiversity potential". The fourth circle, labeled "4", says "Getting the feasible biodiversity action plan approved". The fifth circle, labeled "5", says "Starting with the implementation". The sixth circle, labeled "6", says "Monitoring the effectiveness".

## **Lessons learned**

Some valuable lessons have emerged from our journey. Our ambassadors were trained how to monitor biodiversity through the identification of birds, butterflies, and bees. By following a pre-defined route three times per year, they can monitor progress in terms of the distribution of these animals. The impact of drier periods and seasonal changes can be observed through this method, resulting in a more reliable outcome. Adaptation of biodiversity actions to site-specific conditions is crucial, as is prioritization of measures that efficiently ensure a long-term

positive impact. Maintenance during post-implementation is also required, which led to the development of an additional internal catalogue of measures specifically for maintenance. Lastly, communication has proven to be a keystone, emphasizing the importance of involving local management. Colleagues from different professional backgrounds were willing to share local knowledge with others, providing for a rich exchange within and outside the community. This sharing of best practices creates the basis for reaching our corporate sustainability targets.

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# **Additional Information**

Awareness of our impact on the environment is one of the key indicators for evaluating our company and its processes. wienerberger products, production processes, and raw materials have an impact on living and non-living natural systems. Making sure we are aware of our impacts on our surroundings is one of the critical indicators when evaluating our business and its processes.

In a first step, wienerberger addresses the direct impacts of its activities and, at the same time, gathers information on the indirect impacts along its value chain. wienerberger developed a comprehensive strategy to mitigate its impacts and improve the quality of biodiversity at its production sites. This strategy includes measures based on the wienerberger Biodiversity Catalogue. These include the creation of spaces for foraging, hiding, or nesting as well as efforts to minimize sealed surfaces. Existing non-sealed surfaces are upgraded, for instance by converting lawns into wildflower meadows. Additionally, we reduce light and noise pollution by shutting off lights at night, installing timers, and setting up ecological noise barriers. If necessary, similar measures aimed at reducing noise pollution are taken at clay extraction sites. While greenhouse gas emissions from clay pits are minimal, every effort is made to reduce dust emissions. Given the intermittent operation of clay pits, other impacts are of a temporary nature.

Given the impact of our production sites and quarries on the landscape, the location of all our operational sites in terms of their proximity to protected areas is one of the criteria for assessing these impacts. 15 out of 216 production sites have overlaps with Natura 2000 protected areas, primarily showing an area overlap of less than 5%. The proportion of production sites overlapping with Ramsar protected areas is below 2%. A minor percentage, i.e. less than 10%, of quarries have limited overlaps with Natura 2000 protected areas, while none intersect with Ramsar protected areas. Where necessary, measures are in place to mitigate negative effects based on the impacts described by an environmental impact assessment or similar investigation. Quarry sites are not permanent elements and measures can occur before, during, and after quarrying.

Examples of this are ecological noise barriers, creating habitats for pioneer fauna species, and, of course, our biodiversity action plans on the production sites, which improve the area for people as well as biodiversity. After quarrying, the areas are restored to their natural state as far as possible. More than half of our quarries are destined to become natural spaces, or agriculture in combination with nature. When installing green elements on production sites or quarries, native species are used as much as possible and invasive species are avoided and actively combatted where feasible. By involving our local biodiversity ambassadors on site and nature and social organisations in the neighbourhood, local knowledge and local products are embedded in our plans to achieve the best possible connection with the local ecosystem. These actions are fully supported by the management at wienerberger.

The sites where our raw materials are extracted, our production plants, and also our products are evaluated in terms of their impacts.

We actively strive to market products that make a positive contribution to biodiversity and ecosystems (habitats), as seen in our eco-products range (see Nature Positive journey, Eco-habitat products and solutions[1](#page-33-1)).

# **wienerberger's actions to foster biodiversity**

wienerberger takes measures to foster biodiversity in its various areas of operation. Some species routinely use active quarries in which to breed, and this is considered during quarrying operations. As an example, excavations are interrupted at the Göllersdorf quarry in Austria from May until the end of July on the areas where the European bee-eater breeds. At the same time, ponds are left undisturbed in the quarry in Feltre, near the Italian Alps, during the breeding season of the yellow-bellied toad.

Renaturalized quarries also represent a great opportunity for promoting biodiversity. In Bad Neustadt, Germany, a biotope for the natterjack toad was created in the old quarry, with ponds and grassland areas.

*1) https://www.wienerberger.com/content/dam/corp/corporate-website/downloads/sustainability/2023/2023\_wienerberger\_Nature\_Positive\_Journey\_EN.pdf*

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Closed quarries are also great opportunities to create new bodies of water, like the lakes in Békécsaba, Hungary and in Dobre, Poland. Actions on production sites include the establishment of more than 25 insect hotels, ensuring successful nesting and breeding for several species of insects and pollinators (reference to graph below "Measures on a Fictive wienerberger Production Site").

At the Kartoszyno Pipelife plant, a 120 m<sup>2</sup> green wall is being installed with carefully selected plants suited to the local climate, creating a pleasant microclimate and serving as a habitat for insects and birds. The well-being of the local employees is also an important factor that drives such actions. In Sibiu, Romania, the local lake has been cleaned, many trees have been planted and the place has become a much-loved relaxation zone for employees.

# MEASURES ON A FICTIVE WIENERBERGER PRODUCTION SITE

Image /page/121/Figure/5 description: The image shows an illustration of a sustainable industrial site. The illustration includes labels and icons indicating various ecological features and their benefits. The labels include: "Birds", "Bats", "Other mammals", "Amphibians and reptiles", "Butterflies and bees", "Other insects", "Pond + water infiltration", "Climbing plants along fencing", "Orchard + fruit harvest", "Dead branch hedge", "Nest boxes/insect hotel", "Single trees/tree lane + cooling effect + shade", "Flowering/perennial plants in borders + aesthetics", and "Green roofs and façades + cooling effect + higher efficiency of solar collectors due to cooler environment".

*This infographic shows measures on a fictive production site. For every measure, the infographic shows which fauna groups benefit most. Furthermore, examples of co-benefits are shown (e.g. water infiltration, fruit harvest, cooling effect, aesthetics).*

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# <span id="page-122-0"></span>**Sustainability Program 2023–2026 Environmental Targets Biodiversity**

Biodiversity encompasses the variety and variability of all life on Earth, including ecosystems, species, and genetic diversity. Our efforts to preserve biodiversity involve actions to protect natural habitats, support local flora and fauna, and ensure that our operations do not negatively impact the delicate balance of ecosystems. At all1) of wienerberger's production sites, biodiversity plans will be implemented to achieve a 10% improvement of fauna in the next three years. This will be complemented by the training of 400 biodiversity ambassadors uniquely equipped to measure indicators for a healthy fauna, as well as the planting of 100,000 trees in the period up to 2026.

**10%**

**improvement of fauna resulting from the biodiversity plans implemented for all1) production plants (2023 - 2026)**

Biodiversity encompasses the variety and variability of all life on Earth, including ecosystems, species, and genetic diversity. Our efforts to preserve biodiversity involve actions to protect natural habitats, support local flora and fauna, and ensure that our operations do not negatively impact the delicate balance of ecosystems. At all1) of wienerberger's production sites, biodiversity plans will be implemented to achieve a 10% improvement of fauna in the next three years. This will be complemented by the training of 400 biodiversity ambassadors uniquely equipped to measure indicators for a healthy fauna, as well as the planting of 100,000 trees in the period up to 2026.

We have set ourselves the target of training 400 ambassadors in the period up to 2026. Biodiversity ambassadors can monitor fauna species such as birds, bees, and butterflies, which are indicators of good biodiversity in urban habitats and can have a positive effect on the production site and its surroundings.

wienerberger is a supporter of the Global Biodiversity Framework and promotes the global goal of halting and reversing nature loss by 2030 and achieving full nature recovery by 2050. In this spirit, wienerberger is on a journey towards becoming nature positive. Planting trees is part of a powerful nature-positive strategy because of the benefits for ecosystems that trees provide. Trees provide habitats for several species, they sequester carbon, restore degraded soil & water resources, and enhance the well-being of communities.

# **400**

**biodiversity ambassadors trained (2020 - 2026)**

**100,000** 

**trees planted, equivalent to one tree per employee per year (2022 - 2026)**

*1) As defined by the threshold: 1. locations larger than 1ha and at least 30 FTE; 2. with exception of a few newly acquired companies; 3. wienerberger ownership*

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ienerberger

# <span id="page-123-0"></span>**Non-Financial Reporting**

In combination with the wienerberger sustainability program, our sustainability reports are an important management tool.

The non-financial reports of wienerberger focus on the environmental, social, and governance aspects of our activities, on the corresponding management approaches, and on our innovations.

Image /page/123/Picture/5 description: The image shows three icons in green. The first icon is a large gear with five spokes. The second icon is a smaller gear with no spokes. The third icon is a lightbulb with rays emanating from the top.

Methodology [for Non-Financial](#page-124-0) Reporting 125

Image /page/123/Picture/7 description: The image shows a line drawing of a person pointing to a diagram of the Earth. The Earth is depicted with continents and surrounded by arrows indicating a circular process. A sun is shown to the left of the Earth, and a cloud with rain is shown above the Earth. The diagram is enclosed in a rounded rectangle.

[TCFD Report](#page-129-0) 130

[Auditor's report](#page-173-0) 174

Image /page/123/Figure/19 description: The image shows a family tree diagram. The diagram consists of squares representing males and circles representing females. The diagram shows two parents at the top, connected to two sets of parents, who are in turn connected to a set of three children.

[Taxonomy](#page-143-0) 144

Image /page/123/Picture/11 description: The image shows a line drawing of a bar graph with an upward trending arrow. The bar graph has three bars of increasing height from left to right. The arrow starts above the first bar and points upwards and to the right, ending above the third bar.

Comprehensive over[view of Non-Financial](#page-148-0) indicators 2023 149

Image /page/123/Picture/13 description: The image shows a green line drawing of four people sitting at a table. In the center of the table is a check mark inside of a square.

[Confirmation by the](#page-172-0) Managing Board 173

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# [GRI Content Index](#page-166-0)

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# <span id="page-124-0"></span>**Method of Non-Financial Reporting**

In its sustainability reports wienerberger discloses how the company meets its ecological, social, and societal responsibility. Therefore, sustainability reports are a valuable source of information for wienerberger's stakeholder groups. For wienerberger itself, the sustainability report is an important instrument for the company's success, especially in combination with the wienerberger Sustainability Programs 2020-2023 and, subsequently, 2023-2026 (see [page 41](#page-40-0)).

The 2023 Sustainability Report is an integrated part of this 2023 Annual Report published on March 25, 2024. The non-financial information contained therein covers the company's activities in the 2023 business year, i.e. the period from 01/01/2023 to 31/12/2023. Additionally, the indicators presented in the report also cover the years 2021 and 2022 and thus reflect a three-year trend. Further information on wienerberger's economic performance, organizational profile, and corporate governance is also contained in this 2023 Annual Report.

Since 2010, wienerberger has published annual sustainability reports containing essential non-financial indicators and qualitative information. The reports focus on the ecological, social, and governance aspects of our activities, the corresponding management approaches, and our innovations. The most recent wienerberger sustainability report 2022 was published on March 27, 2023, as the non-financial part of the 2022 Annual Report.

wienerberger's sustainability/non-financial reports are prepared by the Corporate Sustainability & Innovation Department in consultation with representatives of senior management and specialized departments and are released by the Managing Board of Wienerberger AG.

# **Reporting standards and legal framework**

**GRI**

All wienerberger sustainability reports meet the requirements of the Global Reporting Initiative (GRI). This 2023 Sustainability Report was prepared in accordance with the GRI standards for the time period from January 1, 2023 to December 31, 2023.

### **Austrian Sustainability and Diversity Improvement Act / NFRD / CSRD**

The preparation of the wienerberger sustainability reports is governed by the Austrian Sustainability and Diversity Improvement Act, by which the Non-Financial Reporting Directive (NFRD) of the EU was transposed into Austrian law. Meanwhile, the latter has been replaced by the Corporate Sustainability Reporting Directive (CSRD), which has been in force since 05/01/2023. However, the provisions introduced by the NFRD remain in effect until the new rules of the CSRD are to be applied. wienerberger will therefore apply the new rules for the first time in its 2024 report, which is to be published in 2025.

### **The materiality aspect**

The topics dealt with in this 2023 Sustainability Report are based on the materiality analysis performed in 2020, the resultant Sustainability Program 2020-2023, and the Sustainability Program 2023-2026 (see [page 41\)](#page-40-0). Additionally, the report provides information on other topics perceived as relevant by wienerberger's stakeholders against the backdrop of global developments and worldwide challenges. The topic of water management (see [page 103](#page-102-0)) is a case in point.

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# <span id="page-125-0"></span>WIENERBERGER MATERIALITY ANALYSIS 2020

Image /page/125/Figure/3 description: This image is a scatter plot that shows the relevance to stakeholders versus the impacts of wienerberger's business activity. The x-axis is labeled "Impacts of wienerberger's business activity" and ranges from 1 to 5. The y-axis is labeled "Relevance to Stakeholders" and ranges from 1 to 5. There are five data points on the plot, each represented by a circle. The size of the circle represents relevance to business. The data points are: Business Ethics & Social Impacts at approximately (2, 2.2), Biodiversity & Environment at approximately (2.3, 3), Employees at approximately (3.2, 2.3), Circular Economy at approximately (3.7, 3.5), and Climate & Energy at approximately (4.2, 4.2).

- **Climate & Energy**
- **›** Reduction of carbon emissions in production
- **›** Reduction of energy use and carbon emissions in resource extraction and raw material production (e.g. cement, plastics)
- **›** Energy efficiency through the use of products or solutions
- **›** Energy efficiency (e.g. heat recovery) in production
- **›** Share of renewable energies in energy use in production
- **›** Adaptation to climate change through the effects of products on micro-climate and ground water (paving systems), water storage for dry periods, or discharge of heavy rain (sewage systems)

### **Circular Economy**

- **›** Long product lifetime and long-term value of products
- **›** Share of secondary raw materials in material input in production
- **›** Design of products and systems for improved reusability or recyclability
- **›** Use of renewable raw materials in production
- **›** Separability and recyclability of materials at the products' end-of-life
- **›** Reduction of waste from production

### **Employees**

- **›** Safety and health of wienerberger's employees
- **›** Job stability and job creation
- **›** Access to skills development, training and apprenticeships, and opportunities for career advancement
- **›** Diversity and equal opportunities, regardless of gender, culture, language, religion, age etc.

### **Biodiversity & Environment**

- **›** Avoidance and control of hazardous substances in raw materials, aggregates, and additives
- **›** Nature conservation at extraction sites
- **›** Contribution of products to biodiversity (e.g. green roofs, walls, and paving solutions)

### **Business Ethics & Social Impacts**

- **›** Compliance and anti-corruption
- **›** Ethical conduct of suppliers
- **›** Human rights and working conditions in the supply chain
- **›** Safety and health in supply chain, in construction & demolition
- **›** Healthy indoor climate due to good air quality in buildings
- **›** Affordability of building materials and solutions
- **›** Product and system design supporting ease of installation

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# <span id="page-126-0"></span>**Data management & consolidation**

Non-Financial Group Reporting has been established as a central data management tool for the consolidation of all non-financial indicators. The latter serve as a basis for strategic decisions to be taken at group level and in the wienerberger regions.

Sustainability reporting follows the scope of consolidation of wienerberger, which is described in detail in the Notes to the 2023 Annual Report, starting on [page 296](#page-295-0). In terms of substance, the scope of consolidation comprises the fully consolidated subsidiaries operating in wienerberger's product segments.

We report on our activities and developments in accordance with the new regional corporate structure, which is composed of Region Europe West, Region Europe East, and North America. Details on the new corporate structure are described in the chapter "wienerberger at a Glance", starting on [page 33.](#page-13-0) The indicators relating to "Holding & Others" are allocated to and reported by the three aforementioned regions on a pro-rata basis. The clay block production site in India is part of Region Europe East.

The non-financial indicators of the four companies newly acquired in 2022, where the structures required for the collection of non-financial data had to be implemented or optimized in 2022, are included in the non-financial indicators for 2023 presented in this report. They are allocated to the following countries and/or regions: Region Europe West (Belgium, Ireland and Great Britain), North America (USA and Canada).

For two of four companies newly acquired in 2023 (see [page](#page-206-0)  [207](#page-206-0) of the 2023 Management Report), where the data collection structures for emission indicators are yet to be implemented or optimized, emission and energy indicators are not included for the 2023 reporting year (except for indicators relating to the Taxonomy Regulation). All other non-financial indicators of the four acquisitions are included in the 2023 Sustainability Report. The acquisitions have been allocated to the following countries and/or region: Region Europe West (Germany, Denmark, Sweden). wienerberger is currently implementing or optimizing the necessary data collection structures, the objective being to include the non-financial indicators of the aforementioned sites as of the 2024 reporting year.

The comparability of data tables with the data tables published in the previous year is limited due to adjustments to the scope of consolidation and the calculation method. The comparability of these data in three-years-trend is given. The comparability of this data in the three-year trend is given. Further deviations of individual indicators from the reporting scope are mentioned wherever they occur.

# **Data collection**

### **Controlling systems and data collection**

Effective controlling systems have been installed in all fields of production of wienerberger. The primary function of these systems is to record production-related data that are required for the steering of the company and facilitate the internal benchmarking of individual plants against one another. The actual energy and emission values from 01/01/2023 up to and including 31/12/2023 were used for the 2023 report.

### **Method of index calculation for specific indicators**

The production volume is a measured value that exclusively comprises products ready for sale. It is recorded for the calculation of the specific indicators (energy input, CO2 emissions).

For the purpose of index calculation, wienerberger uses not only production volumes in tons, but also other relevant units of production quantities. These are also of relevance for the establishment of eco-balances of buildings and are applied as follows:

- **›** Square meters (m²) for roof tiles, facing bricks, and pavers, as well as calcium silicate products
- **›** Thousand normal formats (TNF) for clay blocks
- **›** Tons (t) for plastic pipes, ceramic pipes, and other concrete products

These indicators, in particular, reflect our efforts to improve resource efficiency through the dematerialization of products and system solutions without any trade-off in terms of product quality and product properties.

We report the specific values as an index in % relative to the defined baseline year, the values of which are set at 100%.

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<span id="page-127-0"></span>The index-linked specific indicators, such as energy input or CO2 emissions relative to the amount of products ready for sale, reflect the development of the individual product groups over time. The index-linked specific energy input is indicated in % based on kWh/quantity of products ready for sale (2020 = 100%). Index-linked specific CO2 emissions are indicated in % based on kg CO2/quantity of products ready for sales (2020 = 100%).

# **Details of and definitions used in climate-related reporting**

### **CO₂ and CO₂e**

Flue gas analyses performed regularly in our plants have shown that among the greenhouse gases regulated by the Kyoto Protocol\*[1](#page-33-1), CO2 is the only one of relevance to wienerberger. In its climate protection efforts, wienerberger therefore focuses on decarbonization (reduction of CO2 emissions) along its value chain (see [pages 86-101\)](#page-85-0).

Therefore, wienerberger reports its direct greenhouse gas emissions (Greenhouse Gas Protocol, Scope 1) in tons of CO2, which in this case is identical with tons of CO2 equivalents. Indirect greenhouse gas emissions (Scope 2) from electricity are recorded and reported as CO2 equivalents or CO2e (calculation according to market-based method2 ). Indirect greenhouse gas emissions from Scope 3 are also recorded and reported as CO2e.

The absolute CO2 emissions or the corresponding CO2 indicators presented in our reporting on climate protection therefore always refer to emissions of carbon dioxide equivalents (CO2e).

### **Global Warming Potential (GWP)**

By definition, CO2 has a GWP of 1, regardless of the period of time considered, as it is the gas used as a reference 3. For wienerberger, with CO2 being the only relevant greenhouse gas, indicators relating to CO2 equal CO2e.

### **Collection of Scope 3 emission data**

wienerberger calculates and reports Scope 3 emission in accordance with the principles of the GHG Protocol (GHGP) Corporate Standard, the Corporate Value Chain (Scope 3) Accounting and Reporting Standard, and the Scope 3 Calculation Guidance. wienerberger's methods of calculating and reporting Scope 3 emissions are based on five core principles: relevance, completeness, consistency, transparency, and accuracy.

### Data sources

For the three significant Scope 3 categories (see description of the analysis on [page 95\)](#page-94-0), wienerberger developed calculation methods based on internally available activity data, on the one hand, and external databases providing relevant emission factors for the conversion of activity data into CO2-equivalent emissions, on the other hand.

### Calculation method for the three significant Scope 3 categories

- **›** 3.1. Procured goods and services: The method of calculating emissions from procurement activities is based on the quantities of raw materials procured and the expenditure for traded goods. These are calculated by means of emission factors obtained from data platforms such as ecoinvent (for volumes of raw material and packaging material) and exiobase (for expenditure for traded goods).
- **›** 3.3. Energy- and fuel-related activities: Emissions from energy- and fuel-related activities are calculated on the basis of the consumption of individual energy sources. The amounts consumed are calculated on the basis of emission factors obtained from data platforms such as ecoinvent (for electricity) and Defra4 (for all other energy sources).
- **›** 3.9. Downstream transport and distribution: To calculate emissions from downstream transport, data on distance and weight are obtained from the delivery notes for the products sold. Additionally, the method of the GLEC framework5 is used.

*<sup>1)</sup> Greenhouse gases such as methane, nitrous oxide, or chlorofluorocarbons (CFCs) are irrelevant in wienerberger's production.*

*<sup>2)</sup> Use of emission factors of the electricity supplier or an individual electricity product.*

*<sup>3)</sup> [https://www.ghgprotocol.org/sites/default/files/ghgp/Global-Warming-Potential-Values%20%28Feb%2016%202016%29\\_1.pdf](https://www.ghgprotocol.org/sites/default/files/ghgp/Global-Warming-Potential-Values%20%28Feb%2016%202016%29_1.pdf) 4) <https://www.gov.uk/government/publications/greenhouse-gas-reporting-conversion-factors-2023>*

*<sup>5)</sup> Global Logistics Emissions Council (GLEC). The GLEC framework is a globally recognized method for the harmonized calculation and reporting of the logistics greenhouse gas footprint.*

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### **Energy**

Information provided on the use of energy sources is based on actual group-wide consumption values. Data on absolute and specific energy consumption, relative to the quantities of products ready for sale, are converted into a unit harmonized across the group on the basis of consumption values.

We do not record the consumption of renewable thermal energy, as the amounts used in our production processes have been negligible so far. Data on energy sold is equally irrelevant and therefore not reported.

### **Compliance with TCFD recommendations**

As a leading provider of building material and infrastructure solutions, we demonstrate our good corporate governance culture by complying not only with the information requirements pursuant to the Austrian Sustainability and Diversity Improvement Act, but also with the recommendations of the "Task Force on Climate-related Financial Disclosures" (TCFD recommendations). By following the TCFD recommendations, we voluntarily commit to ensuring the transparent disclosure of climate-related opportunities and risks. wienerberger is aware of the importance of such information for our investors and other stakeholders.

wienerberger will continuously improve the disclosure of its climate-related information and actively solicit feedback. An overview of climate-related information provided by wienerberger in accordance with the TCFD recommendations, i.e. the TCFD Content Index, with references to the corresponding pages is provided on [page 142.](#page-141-0)

### **Disclosure of climate-related information within the framework of the "Carbon Disclosure Project" (CDP)**

The Carbon Disclosure Project (CDP) is a global non-profit organization that operates the world's largest platform for the disclosure of environmental and climate-related information. wienerberger reported to the platform for the second time in 2023 and again scored a B rating (Management band). This score confirms that wienerberger is taking coordinated climate-related measures and ensuring good climate management. By disclosing information on the topic of climate change within the framework of the CDP questionnaire, wienerberger again demonstrated its willingness to respond to the growing demand for transparency in environmental matters expressed by our investors, our customers, and political decision-makers.

### **External audit**

Most of the data presented in this report are based on internal analyses. This non-financial report was validated by an independent external auditor. For the 2023 reporting year, the quality of reporting and its accordance with the requirements of the Austrian Sustainability and Diversity Improvement Act (Nachhaltigkeits- und Diversitätsverbesserungsgesetz – NaDiVeG), the GRI standards, the Sustainability-Linked Finance Frameworks, and the Taxonomy Regulation1 were verified.

The selection of the independent external auditor for the validation of the Sustainability Report was discussed and approved by the Supervisory Board with input from the Managing Board. The auditor was contracted by the wienerberger Managing Board.

*1) Taxonomy Regulation (EU) 2020/852 – Regulation (EU) 2020/852 of the European Parliament and of the Council on the establishment of a framework to facilitate sustainable investment and amending Regulation (EU) 2019/2088*

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# <span id="page-129-0"></span>**TCFD Report**

# **Introduction**

Since 2020, wienerberger has supported the recommendations of the Task Force on Climate-related Financial Disclosures1 (TCFD) established by the Financial Stability Board (FSB) of the G20 group of countries. By applying the TCFD recommendations, we voluntarily commit to a transparent presentation of climate-related opportunities and risks. wienerberger is aware of the importance of such information for our investors and other stakeholders. We therefore continuously improve the presentation of our climate-related information.

In this way, we ensure transparency and the implementation of measures pertaining to climate-related opportunities and risks on the path toward a low-carbon economy by 2050. The identified climate-related opportunities are part of our corporate strategy. They were integrated into our Sustainability Program 2023 and are being further elaborated in the Sustainability Program 2026. Moreover, the identification, assessment, and effective management of climate risks have been included in our risk management process.

The relevance of the information presented remained unchanged in 2023. Already in 2022, wienerberger broadened the scope of its TCFD reporting in order to describe the resilience of the corporate strategy on the basis of various climate-related scenarios. In particular, the scenario of compliance with the Paris Climate Agreement, which provides that the global temperature increase be limited to less than 2°C above pre-industrial levels by the end of the century, was dealt with in a scientifically well-founded manner. The scenarios introduced are still up to date and continued to be scientifically relevant in 2023.

A clear overview of the climate-related information disclosed in accordance with the TCFD recommendations is presented on [page 142](#page-141-0) in the TCFD Content Index, complete with references to the respective pages.

# **Step by step: Integration of the TCFD recommendations**

We are integrating the TCFD recommendations step by step, given that this is an ongoing process rather than a mere as-is analysis. We are continuously enhancing our TCFD disclosures in order to keep pace with the development of our business activity and the progress being made in climate science.

In accordance with the monitoring horizons described in the chapter "Risk Management and Internal Control System" (Management Report starting on [page 218](#page-217-0)), all risks were assessed over the short term (up to one year), medium term (one to five years) and long term (five to 25 years).

In line with management expectations, all opportunities were assessed over the short term (up to five years), medium term (up to ten years) and long term (up to 25 years) and defined in accordance with the annual planning process.

# **Climate-related opportunities by product group**

In 2023, wienerberger reaffirmed the analysis and assessment of climate-related transition opportunities arising from the company's products and solutions on the path toward a low-carbon economy by 2050 as a strategic priority.

The table on [pages 131-133](#page-130-0) provides an overview of the climate-related opportunities, broken down by product group and their impacts on the business activity, strategy, and financial planning of the company. The magnitude of the positive financial impact is classified as high (above € 50 million), medium (between € 20 and 50 million) or low (below € 20 million). The opportunities were re-evaluated in 2023.

*1) Overview of TCFD recommendations: <https://www.fsb-tcfd.org/recommendations/>*

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# <span id="page-130-0"></span>**wienerberger's climate-related opportunities and impact on the organization's businesses, strategy, and financial planning**

| Product<br>Category          | Time<br>Horizon 1 | Contribution to<br>Climate Strategy                    | Opportunity                                                                                                                                                                                                                                                                                                                         | Magnitude<br>of Financial<br>Impacts 2 | Financial Impacts                                                                                                                                                                              |
|------------------------------|-------------------|--------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Walls                        | Long-term         | Solutions that con<br>tribute to climate<br>adaptation | Development of monolithic exterior<br>wall solutions which make homes<br>naturally climate resilient. The inno<br>vative clay blocks with integrated<br>insulation material combine high<br>thermal insulation with natural<br>resilience, maintaining high techni<br>cal performance levels over a long<br>lifetime (> 100 years). | High                                   | Increased revenue through<br>solutions contributing to<br>climate change adaptation<br>needs.                                                                                                  |
| Walls                        | Medium<br>term    | Products that<br>support Net Zero<br>Buildings3        | Development of low carbon build<br>ing products with high thermal<br>insulation properties and high<br>thermal storage capacity. Support<br>ing energy efficiency in winter and<br>summer and reducing embodied<br>carbon in buildings.                                                                                             | High                                   | Increased revenue through<br>demand for energy efficient<br>products from low-emission<br>production; reduced direct<br>costs through efficiency gains.                                        |
| Walls                        | Medium<br>term    | Resource efficiency                                    | Development of resilient, long<br>lasting building products reducing<br>the overall life cycle emissions and<br>resource use (building lifetime<br>>100 years).                                                                                                                                                                     | High                                   | Increased revenue from<br>products contributing to<br>circular economy; reduced<br>direct costs through efficiency<br>gains.                                                                   |
| Walls                        | Medium<br>term    | Resource efficiency                                    | Increase the share of secondary<br>raw materials in production and<br>develop products and systems<br>which are designed for reuse and<br>easy recycling.                                                                                                                                                                           | High                                   | Increased revenue from pro<br>ducts contributing to circular<br>economy; reduced cost of<br>abatement/carbon tax.                                                                              |
| Roof                         | Medium<br>term    | Solutions that con<br>tribute to climate<br>adaptation | Renovation of roofs with roof solu<br>tions with high thermal insulation<br>properties.                                                                                                                                                                                                                                             | High                                   | Increased revenue through<br>solutions contributing to<br>climate change adaptation<br>needs and circular economy.                                                                             |
| Roof                         | Medium<br>term    | Resource efficiency                                    | Collection of circular roof products<br>which are reusable and recyclable.                                                                                                                                                                                                                                                          | Medium                                 | Increased revenue from pro<br>ducts contributing to circular<br>economy; reduced cost of<br>abatement/carbon tax.                                                                              |
| Roof                         | Medium<br>term    | Solutions that<br>support Net Zero<br>Buildings3       | Solar-panel integrated roof solu<br>tions (e.g., Wevolt X-tile and X-Roof,<br>Alegra 10 Wevolt solar roof tiles).                                                                                                                                                                                                                   | Medium                                 | Increased revenue due to<br>shifting consumer demand for<br>energy efficient production.                                                                                                       |
| Product<br>Category          | Time<br>Horizon 1 | Contribution to<br>Climate Strategy                    | Opportunity                                                                                                                                                                                                                                                                                                                         | Magnitude<br>of Financial<br>Impacts 2 | Financial Impacts                                                                                                                                                                              |
| Roof                         | Medium<br>term    | Solutions that con<br>tribute to climate<br>adaptation | Roof tile models with improved<br>solar reflection that contribute to a<br>lower ambient temperature.                                                                                                                                                                                                                               | Medium                                 | Increased revenue through<br>new solutions contributing<br>to climate change adaptation<br>needs.                                                                                              |
| Façade                       | Medium<br>term    | Resource efficiency                                    | Use of secondary raw materials<br>(fired clay) in the production of<br>facing bricks.                                                                                                                                                                                                                                               | Medium                                 | Increased revenue through<br>new solutions contributing<br>to climate change adaptation<br>needs; lower operating costs<br>through efficiency improve<br>ments.                                |
| Façade                       | Short-term        | Solutions that<br>support Net Zero<br>Buildings3       | Development of thinner/demate<br>rialized façade solutions with high<br>thermal insulation properties (e.g.,<br>Eco-brick and brick slips) made of<br>natural clay building materials.                                                                                                                                              | Medium                                 | Increased revenue through<br>demand for solutions from<br>low-emission production;<br>reduced direct costs through<br>efficiency gains.                                                        |
| Façade and<br>clay pavers    | Short-term        | Resource efficiency                                    | Reduction of raw material input in<br>production.                                                                                                                                                                                                                                                                                   | High                                   | Increased revenue due to<br>shifting consumer demand<br>for products from energy-effi<br>cient production.                                                                                     |
| Plastic and<br>ceramic pipes | Long-term         | Resource efficiency                                    | Use of secondary materials in<br>production.                                                                                                                                                                                                                                                                                        | High                                   | Increased revenue through<br>demand for products from<br>low-emission production;<br>reduced direct costs through<br>efficiency gains.                                                         |
| Plastic pipes                | Long-term         | Products that con<br>tribute to energy<br>transition   | Development of safe and cost-effi<br>cient non-fossil gas transportation<br>systems (e.g., SoluForce pipeline<br>systems for hydrogen and biogas).                                                                                                                                                                                  | Medium                                 | Increased revenue through<br>new solutions to adaptation<br>needs; reduced direct costs<br>through efficiency gains.                                                                           |
| Plastic pipes                | Medium<br>term    | Solutions that<br>support Net Zero<br>Buildings3       | Development of inhouse floor heat<br>ing, heat pumps, hot/cold systems,<br>and geothermal solutions.                                                                                                                                                                                                                                | High                                   | Increased revenue through<br>demand for solutions from<br>low-emission production;<br>reduced direct costs through<br>efficiency gains.                                                        |
| Plastic pipes                | Medium<br>term    | Products that con<br>tribute to climate<br>adaptation  | Development of water storage,<br>stormwater management, and<br>water reuse systems for flood/<br>drought mitigation (e.g., Raineo<br>system and roto moulded tanks).                                                                                                                                                                | High                                   | Increased revenue through<br>new solutions contributing<br>to climate change adaptation<br>needs.                                                                                              |
| Plastic pipes                | Medium<br>term    | Products that con<br>tribute to climate<br>adaptation  | Development of agricultural irriga<br>tion systems (e.g., irrigation pipes<br>with precision drippers) for markets<br>where drought management is<br>important due to limited water<br>resources.                                                                                                                                   | Medium                                 | Increased revenue through<br>new solutions contributing<br>to climate change adaptation<br>needs.                                                                                              |
| Product<br>Category          | Time<br>Horizon1  | Contribution to<br>Climate Strategy                    | Opportunity                                                                                                                                                                                                                                                                                                                         | Magnitude<br>of Financial<br>Impacts2  | Financial Impacts                                                                                                                                                                              |
| Plastic pipes                | Medium-<br>term   | Products that con-<br>tribute to energy<br>transition  | Development of safe underground<br>electricity transport and cable<br>protection solutions (e.g., pipes and<br>fittings for horizontal drilling).                                                                                                                                                                                   | High                                   | Increased revenue through<br>demand for products from<br>low-emission production;<br>reduced direct costs through<br>efficiency gains.                                                         |
| Plastic pipes                | Medium-<br>term   | Products that con-<br>tribute to climate<br>adaptation | Development of smart water sen-<br>sors and leak detectors to enhance<br>the efficiency of water distribution.                                                                                                                                                                                                                      | Medium                                 | Increased revenue through<br>new solutions contributing<br>to climate change adaptation<br>needs.                                                                                              |
| Concrete<br>pavers           | Long-term         | Resource efficiency                                    | Substitution of gravel and sand<br>with secondary aggregates (own<br>production scrap).                                                                                                                                                                                                                                             | Medium                                 | Reduced direct costs through<br>efficiency gains.                                                                                                                                              |
| Concrete<br>pavers           | Long-term         | Resource efficiency                                    | Development of products that en-<br>able the substitution of cement with<br>alternative binder materials and<br>ensure improved product design.                                                                                                                                                                                     | Medium                                 | Reduced direct costs through<br>efficiency gains.                                                                                                                                              |
| Concrete and<br>clay pavers  | Short-term        | Products that con-<br>tribute to climate<br>adaptation | Development of paving made of<br>permeable concrete and clay surfa-<br>ces (e.g., concrete pavers Eco-line).                                                                                                                                                                                                                        | Medium                                 | Increased revenue through<br>new solutions contributing<br>to climate change adaptation<br>needs and increased revenue<br>due to shifting consumer<br>demand for energy efficient<br>products. |

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*1) Time Horizon*

*› Short term – up to five years* 

*› Medium term – up to ten years › Long term – up to 25 years*

- Long term - up to 25 years

*2) Magnitude of Financial Impacts*

*› Low – below € 20 million* 

*› Medium – between € 20 and 50 million › High – above € 50 million*

*3) These are products/solutions that:* 

*› Meet the substantial contribution to climate change mitigation criteria (keeping the U-value), part of the technical screening criteria, under the EU Taxonomy Regulation 2020/852 economic activity 3.5. Manufacture of energy efficiency equipment for buildings; or*

*› Contribute to a lower energy consumption within the buildings, even if not yet covered by the Taxonomy Regulation (Low temperature cooling and heating systems); or*

*› Contribute to energy consumption through renewable energy in the buildings (Photovoltaic (PV)); or*

*› Contribute to a lower embodied energy of the building (Products with extremely low CO2 emission: Products with almost zero-emission in the production phase (at least 80% lower CO2 emission in production compared to 2020)).*

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# **TCFD – Climate scenario analysis**

Building on the 2021 baseline assessment, wienerberger performed a scenario analysis of the material opportunities and risks in cooperation with an external climate consultant. This procedure validates our previous work and is aligned with the next step toward the integration of the TCFD recommendations into our reporting. It strengthens the resilience of our approach and facilitates the strategic integration of climate change into the corporate strategy and risk management. It does not include the financial impacts for wienerberger, as these cannot yet be specified to a sufficient degree of probability. The assessment relies on assumptions that may or may not materialize, and on scenarios that may be impacted by additional factors not taken into account in the assumptions. This process was jointly monitored by the Managing Board and the Supervisory Board.

The scenario analysis was performed on the basis of two global warming scenarios, which considered the uncertainty of future climate changes and examined the resilience of the company under the assumption of different future development scenarios.

- **›** "High-mitigation scenario" of the transition opportunities and risks, i.e. the scenario of sustainable development1 based on the implementation of the Paris Climate Agreement
- **›** "No-mitigation scenario" of the physical opportunities and risks, i.e. the scenario of the representative concentration pathway (RCP) 8.5 analyzing a world with a 4°C temperature increase

The "high-mitigation scenario" assumes compliance with the Paris Climate Agreement, whereas the "no-mitigation scenario" reflects the situation without any measures taken against climate change. These scenarios are recognized as best practice by industry and the scientific community in an effort to understand the climate-related impacts on the economy. A brief explanation of the scenarios and the reasons why we decided to explore them are contained in the table on [page 135.](#page-134-0) Scientific data and specialist literature were used to check the results of the analysis and validate the data.

This chapter provides a brief summary of the results of a qualitative assessment of the climate-related opportunities and risks within the framework of the scenario analysis. It covers the following topics:

- **›** Goal of the scenario analysis
- **›** Identification and assessment of climate-related opportunities and risks
- **›** Climate scenarios: selection and assessment
- **›** Results derived from the "high-mitigation scenario"
- **›** Results derived from the "no-mitigation scenario"
- **›** Case studies on physical opportunities and risks
- **›** Summary and outlook

### **Goal of the scenario analysis**

- **›** To analyze the most material transition and physical opportunities and risks (for a complete list, see [pages 285-292](#page-284-0) of the Risk Report)
- **›** To evaluate the business under different future scenarios based on different assumptions of global warming

### **Identification and assessment of climate-related opportunities and risks**

- **›** Governance in place In the first phase of the scenario analysis, the Corporate Sustainability & Innovation Department informed the Managing Board, the members of the Sustainability and Innovation Committee, as well as senior management, and involved them in the process. The project received their full support.
- **›** Baseline assessment In the second phase, workshops with important internal stakeholders along the value chain were organized in order to establish a long list of climate-related opportunities and risks. 19 priority topics were short-listed for further assessment.
- **›** Scenario analysis In the last phase, a scenario analysis based on best climate-science practices was performed, focusing on the short-listed items. The climate future was analyzed for two relevant time horizons: medium term up to 2030, and long term up to 2050.

*1) Sustainable Development Scenario*

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### <span id="page-134-0"></span>**Selection of climate scenarios**

High-mitigation scenario: Sustainable Development Scenario (SDS), a Paris Agreement-aligned scenario, provided by the International Energy Agency (IEA), which analyses a world with a global temperature increase well below 2°C

Description of scenario: This scenario illustrates the connections and dependencies across technologies, policies, geographies, and economic outcomes as the world strives toward a global warming goal of well below 2°C. It considers any existing or announced policies that are instrumental to the achievement of the Paris Agreement's ambitions (considering socio-economic aspects). By 2100, this 'well below 2°C scenario' results in an increase in global temperatures limited to 1.6°C above pre-industrial levels.

Reason for inclusion: One of the most well-known and widely used transition scenarios for conducting TCFD-aligned risk assessments. This scenario maps out a pathway to effective climate mitigation in line with the Paris Agreement's goal of limiting global warming to well below 2°C, while also taking into consideration other Sustainable Development Goals (SDGs) such as global health or easy access to energy.1

*1) The IEA SDS assumes full implementation of SDG 7* – *Universal access to affordable and modern energy, SDG 13* – *Tackling climate change, and partial implementation of SDGs 3 and 11* – *Reducing impacts of air pollution.*

No-mitigation scenario: Representative Concentration Pathway (RCP) 8.5 provided by the Intergovernmental Panel on Climate
Change (IPCC)<sup>2</sup> for their “Fifth Assessment Report”, which analyses the 4°C world

Description of scenario: This scenario represents the most 'extreme' scenario from a physical climate change perspective, assuming a future where almost no mitigation action is taken and emissions continue to rise at the current rate, and where global mean temperature increases by 4ºC by the end of the century relative to the pre-industrial period.

Reason for inclusion: Depicts a state-of-the-art scenario that is used by the IPCC. It aligns with TCFD recommendations by representing one extreme future pathway of the full spectrum of potential pathways.

*2) The Intergovernmental Panel on Climate Change (IPCC) is the United Nations' body for assessing the science related to climate change.*

### W I E N E R B E R G E R ' S C O M M I T M E N T TO T H E U N S D G S

The United Nations Agenda 2030 for Sustainable Development comprises 17 Sustainable Development Goals (SDGs). Within the framework of the 2020 materiality analysis, the direct and indirect impacts of Wienerberger on the SDGs were evaluated along the entire value chain. A detailed analysis can be found on page 61 of the Sustainability Report 2022.

### R E P R E S E N TAT I V E C O N C E N T R AT I O N PATHWAYS

IPCC outlines four Representative Concentration Pathways (RCPs) which describe different climate futures considered possible depending on the volume of GHG emitted to 2100. The four pathways are RCP 8.5, RCP 6.0, RCP 4.5, and RCP 2.6, which are consistent with certain socio-economic assumptions. Wienerberger analysed RCP 8.5, also known as the "no-mitigation scenario".

**Physical risks**

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### **Results derived from the "high-mitigation scenario"**

Significant opportunities arise for wienerberger as well as its shareholders and stakeholders from a sustainable development scenario in line with the goals of the Paris Agreement.

Opportunities associated with climate-related regulations for the building sector, as shown in the table on [page 137](#page-136-0), are relevant examples.

The existing building stock accounts for approximately 39% of global energy- and process-related CO2 emissions. The total includes emissions from the operation and maintenance of buildings accounting for about 28% and energy for building materials and construction work for the remaining 11%. Given the major influence of the building sector on global greenhouse gas emissions, the legislative activity of the European Commission focuses on regulations driving the move from nearly

zero-energy buildings to net-zero emission buildings by 2030. wienerberger's innovative solutions and technologies for the building sector play an important role in the design, construction, and operation of Net Zero Buildings. Promotion of the development and increased availability of such products is crucial for the building sector and for the achievement of Europe's target of becoming CO2-neutral by 2050. As a provider of smart solutions for the entire building envelope and for innovative infrastructure, wienerberger is perfectly positioned to meet this demand.

The objective set out in our Sustainability Program 2023- 2026, which is to generate 75% of total revenues with building products contributing to the construction of Net Zero Building, constitutes a very strong strategic pillar. It comprises all product categories supporting energy-efficient buildings, such as systems for roofs, exterior walls including façades, and for heating, cooling, and solar energy generation (see [page 101\)](#page-100-0).

| TCFD transition categories:                                    | Geography:1                          | Assessed time horizons:                    |
|----------------------------------------------------------------|--------------------------------------|--------------------------------------------|
| › Policy and legal<br>› Technology<br>› Market<br>› Reputation | › European Union2<br>› North America | › Medium-term (2030)<br>› Long-term (2050) |

*1) The scope covers the whole value chain in the geographical locations.*

*2) The assessment largely focussed on the European Union excl. Great Britain. However, the assessment for 'talent attraction' was based on the whole of Europe.*

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# <span id="page-136-0"></span>10 KEY TRANSITION OPPORTUNITIES AND RISKS UNDER THE SUSTAINABLE DEVELOPMENT "HIGH MITIGATION" SCENARIO (WELL-BELOW 2°C WORLD1))

| TCFD<br>Category | Topic                                              | Geography | Potential impact                                   | 2030 | 2050 |
|------------------|----------------------------------------------------|-----------|----------------------------------------------------|------|------|
| Reputation       | Opportunities for talent attraction (O)            | EU        | Improved image due to sustainable<br>products      |      |      |
| Policy           | Climate regulation on the building<br>sector (O)   | EU/NA     | Increase in demand for products                    |      |      |
|                  | EU regulations on materials and<br>circularity (R) | EU        | Increase in operating costs due to<br>regulation   |      |      |
|                  | Climate regulation on energy<br>production (R)     | EU        | Increase in operating costs due to<br>regulation   |      |      |
|                  | Carbon pricing regulation in the EU (R)            | EU        | Increase in operating costs due to<br>regulation   |      |      |
| Market           | Solar energy systems (O)                           | EU/NA     | Increase in demand for products                    |      |      |
|                  | Prices for green energy (R)                        | EU/NA     | Increase in operating costs due to<br>input prices |      |      |
|                  | Supply of recycled plastics (R)                    | EU/NA     | Increased costs due to limited supply              |      |      |
| Technology       | Supply of low-carbon energy sources (R)            | EU/NA     | Inability to meet customer/investor<br>demands     |      |      |
|                  | Supply of low-carbon logistics<br>providers (R)    | EU/NA     | Inability to meet customer/investor<br>demands     |      |      |

**(R)** Risk

**(O)** Opportunity

moderate risk high risk very high risk

low opportunity moderate opportunity high opportunity very high opportunity

N. / S. / E. / W. / C. EU = Northern / Southern / Eastern / Western / Central Europe; NA = North America *Note: The assessment largely focussed on the European Union. The assessment on the opportunities for talent attraction is at Europe-level. 1) Global temperature increase well-below 2°C*

Risk rating: The risk ratings depend on how the relevant risk indicators change over time. The rating of a risk as "low" or "high" depends on the risk assessments used in scientific literature. It is important to note that the risk rating has no direct financial impact, but is intended to show whether opportunities or risks will be greater or smaller1 in 2030 and 2050 compared to 2022.

Example: The risk of carbon pricing will increase in the sustainable development scenario and is therefore shown as a high risk. However, wienerberger has already taken this risk into account by setting ambitious decarbonization targets for 2026 and through its commitment to become CO2-neutral by 2050.

*1) Defined as the strength of the climate signal (e.g. opportunities arising from climate-related regulations for the building sector)*

*Note: Ratings for the physical risk assessment are not reflective of the financial impact on wienerberger. The scores serve as a reference point for managing these future risks. In this sense, any given opportunity and risk rating allows wienerberger to understand any upcoming change in risk profile and respond accordingly. The analysed risks are an integral part of our current risk management processes.*

{137}------------------------------------------------

Data used: More than 60 scientific publications and additional 70 non-academic publications, including publications by international organizations, such as the International Energy Agency and the European Commission, as well as models such as the 2021 World Energy Model and information provided by the U.S. Department of Energy, were reviewed to assess climate-related changes at our production sites. The GPS coordinates of the wienerberger sites were used as a basis for the analysis.

### **Results derived from the "no-mitigation scenario"**

The scenario of the representative concentration pathway (RCP) 8.5 for physical opportunities and risks1, also called the "no-mitigation scenario", analyzes a world where average temperatures have increased by 4°C and the physical impacts are likely to be most severe, given a less ambitious climate policy.

According to the most recent Assessment Report of the Intergovernmental Panel on Climate Change2, extreme weather conditions, such as heat waves and floods, will be more frequent and more intense as a consequence of climate change. Given the negative impacts on people and the environment, adaptations to long-term climate change are absolutely necessary.

As a leading provider of innovative infrastructure systems and customized all-in solutions, wienerberger enables municipalities and local authorities to cope with extreme weather phenomena. By developing climate-resilient system solutions for buildings and infrastructure, wienerberger supports the targets of the European Green Deal to be achieved by 2050.

All over the world, climate change is resulting in an increasing frequency of weather events such as heat waves and heavy rainstorms, which pose new challenges for urban areas. Over the past ten years, wienerberger has strategically repositioned itself as a partner for cities and local communities providing innovative, sustainable, and digital system solutions for more resilient buildings and infrastructures. The company helps authorities to counter extreme weather events, adapt to changing climatic conditions , and carry out long-term transformations.

wienerberger's energy-efficient building solutions contribute toward reducing the burden on the environment. The long service life and the thermal insulation capacity of clay wall systems diminish environmental impacts, and monolithic brick walls are capable of withstanding environmental influences. As a leading roof tile producer, the company opts for light colors to minimize overheating. For flat roofs, wienerberger markets a CO2-neutral sealing membrane made from recycled plastics (Leadax Roov). Efficient rainwater management is facilitated by the company's rainline system for roof drainage and the Raineo® system, which allows to harvest and store water underground to prevent flooding.

wienerberger is well positioned in the RCP 8.5 scenario. The risks covered in the scenario are being managed within the company's risk management system, while opportunities are being turned into strategic advantages and systematically enhanced in the sustainability program.

| TCFD physical categories: | Geography:3                                                                                                                                 | Assessed time horizons:                    |
|---------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------|
| › Acute<br>› Chronic      | › Central Europe<br>› Southern Europe<br>› Northern Europe (incl. Great Britain)<br>› Western Europe<br>› Eastern Europe<br>› North America | › Medium-term (2030)<br>› Long-term (2050) |

*3) Where applicable, physical risks are assessed on location level based on GPS coordinates.*

*<sup>1)</sup> As far as possible, physical risks are assessed at site level on the basis of GPS coordinates.*

*<sup>2)</sup> Extreme weather events in a changing climate: [https://www.ipcc.ch/report/ar6/wg1/downloads/report/IPCC\\_AR6\\_WGI\\_Chapter11.pdf](https://www.ipcc.ch/report/ar6/wg1/downloads/report/IPCC_AR6_WGI_Chapter11.pdf)*

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00\_05\_E

# 9 KEY PHYSICAL OPPORTUNITIES AND RISKS UNDER THE RCP 8.5<sup>1)</sup> “NO MITIGATION” SCENARIO (4°C WORLD2))

| TCFD<br>Category | Topic                                                                                                                                                                     | Geography                               | Potential impact                                                                     | 2030 | 2050 |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------|--------------------------------------------------------------------------------------|------|------|
| Acute            | Heavy precipitation (O)                                                                                                                                                   | C./N./W./E. EU<br>S. EU                 | Increased demand for products                                                        |      |      |
|                  | Tropical cyclones (O/R)                                                                                                                                                   | NA                                      | Increased demand for products<br>Damage to assets and products                       |      |      |
|                  | Heatwaves (R)                                                                                                                                                             | NA, S./E. EU<br>C. EU<br>N. EU<br>W. EU | Decrease in productivity and talent attraction                                       |      |      |
|                  | Riverine flooding (R)                                                                                                                                                     | EU/NA                                   | Damage to assets and supply chain disruption                                         |      |      |
|                  | Wildfire (R)                                                                                                                                                              | NA<br>S./E. EU                          | Supply chain disruptions                                                             |      |      |
|                  | Wind gust (R)                                                                                                                                                             | C. EU                                   | Damage of equipment and stocks                                                       |      |      |
| Chronic          | Water scarcity (O)                                                                                                                                                        | C.EU<br>S.EU<br>N./W. EU<br>E. EU       | Increased demand for products                                                        |      |      |
|                  | Seasonality changes<br>in temperature (O/R)                                                                                                                               | S./E. EU<br>W. EU<br>C. EU<br>N. EU     | Increased demand for products;<br>shorter winter seasons<br>Supply chain disruptions |      |      |
|                  | River streamflow<br>(Rhine) (R)                                                                                                                                           | C. EU                                   | Supply chain disruptions                                                             |      |      |
|                  |                                                                                                                                                                           |                                         |                                                                                      |      |      |
|                  | uncertain       low risk       low opportunity       moderate risk       moderate opportunity       (R) Risk       high risk       high opportunity       (O) Opportunity |                                         |                                                                                      |      |      |

N. / S. / E. / W. / C. EU = Northern / Southern / Eastern / Western / Central Europe; NA = North America

*1) RCP = Representative Concentration Pathway 8.5 // 2) Global temperature increase 4°C*

very high risk

very high opportunity

{139}------------------------------------------------

Risk rating: The risk ratings depend on changes of relevant indicators based on assessments frequently used in scientific literature. It is important to note that the risk rating has no direct financial impact, but is intended to show whether opportunities or risks will be greater or smaller1 in 2030 and 2050 compared to 20222.

Example: According to the RCP 8.3 scenario, heat waves will be more frequent and more intense in the future and are therefore shown as a very high risk, although wienerberger is taking this risk into account through climate protection measures.

Data used: Scientific assessment of physical opportunities and risks based on climate expert judgements, records of environmental hazards, and internal stakeholder feedback. The assessment is based on the CMIP3 climate model and data sets such as NASA-NEX GDDP4, WRI Aqueduct Floods Hazard Maps5, and WRI Aqueduct Global Maps 3.06. The analysis was based on the GPS coordinates of the wienerberger sites.

### **Case studies on physical opportunities and risks**

In this section, two examples relevant to wienerberger are presented (see [page 141\)](#page-140-0):

- **›** Opportunity: Growing demand for products to cope with water shortage resulting from droughts
- **›** Risk: Heat waves and their impacts on production sites

### **Summary and outlook**

In 2022 wienerberger conducted a climate scenario analysis, which remained relevant in 2023. The results of the analysis confirmed the significance of the sustainability program for 2023 and were reflected in the development of the new sustainability program for 2026.

In view of the provisions of the CSRD to be applied in the future, wienerberger will further enhance the transparency of its climate-related information. This will contribute toward strengthening the company's sustainability reporting and ensuring a comprehensive presentation of wienerberger's climate-related activities and achievements in line with the latest regulatory standards.

In the short term, the analysis has no impact on the company's cash flow projections. Work done to date has focused on material opportunities and risks for wienerberger's business and their development over time under different climate scenarios. Future work will increasingly focus on quantifying these risks and understanding their financial impacts under different scenarios.

*1) Defined as the strength of the climate signal (e.g. opportunities arising from climate-related regulations for the building sector)*

*Note: Ratings of the physical risk do not reflect the financial impact on wienerberger. The scores are to serve as reference points for the management of these future risks. Every rating of a risk or opportunity therefore enables wienerberger to better understand future changes of the risk profile and react accordingly. The risks thus analyzed are being integrated into the current risk management processes.*

*2) Whenever data for 2022 were not available, another reference year was used. If sufficient data were not available for a particular climate hazard, the risk was not rated (e.g. tropical cyclones). Note: Ratings of the transition risk do not reflect the financial impact on wienerberger. The scores serve as reference points for the management of these future risks. Every rating of a risk therefore enables wienerberger to better understand changes of the risk profile and react accordingly. The risks thus analyzed are* 

*3) Coupled Model Intercomparison Project 5 – Supports standardized model simulations of future climate change: [pcmdi.llnl.gov](https://pcmdi.llnl.gov/) 4) NASA Earth Exchange Global Daily Downscaled Climate Projections (NASA-NEX GDDP) – Data set for temperature- and precipitation-based climate indicators, such as annual maximum temperatures, number of hot days, consecutive dry days, annual precipitation, etc.: [www.nccs.nasa.gov](https://www.nccs.nasa.gov/)*

*5) World Resources Institute's Aqueduct Floods Hazard Maps – Data set for global flood levels in meters in river and coastal areas and for several return periods: [www.wri.org](https://www.wri.org/) 6) World Resources Institute's Aqueduct Global Maps 3.0 for water stress, seasonal variability, water supply, water demand: [www.wri.org](https://www.wri.org/)*

*being integrated into the current risk management processes.*

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<span id="page-140-0"></span>00\_04\_E

# CASE STUDY ON SELECTED PHYSICAL OPPORTUNITIES AND RISKS UNDER THE RCP 8.51) "NO MITIGATION" SCENARIO (4°C WORLD2))

| Event<br>Key data                        | Opportunity<br>from water scarcity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Risk<br>from heatwaves                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Opportunity /<br>risk rating (2030)      | High                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Very high                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Timeframe                                | Medium (2030) and long-term (2050)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Medium (2030) and long-term (2050)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| Locations in scope                       | Southern Europe                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | North America, Southern and Eastern Europe                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| Impacts                                  | • Products related to water storage<br>management and reuse systems<br>• Increased revenue from new solutions<br>to adaptation needs                                                                                                                                                                                                                                                                                                                                                                                                                                  | • Supply chains and sites, by impacting<br>production and working conditions<br>• An occupational risk for employees working in<br>production sites                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| Response /<br>mitigation actions         | • Innovative water storage<br>• Stormwater management<br>• Water reuse systems for flood and drought<br>mitigation (e.g. Raineo system and roto<br>moulded tanks)                                                                                                                                                                                                                                                                                                                                                                                                     | • Extra breaks<br>• Installation of climate cabins<br>• Refrigerated areas / water<br>• Rotation of shift patterns<br>• Wearing of cooling jackets<br>• Seasonal workwear and personal protective<br>equipment<br>• Automation                                                                                                                                                                                                                                                                                                                                                                                                         |
| Climate indicators                       | • Change in consecutive dry days<br>• Seasonal variability<br>• Annual precipitation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | • Change in annual tropical nights<br>• Change in annual hot days                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| Management response                      | Wienerberger recorded a significant increase in the<br>demand for rainwater management systems. The<br>Group enlarged its production capacity and upgraded<br>its system to a more sustainable version by using recy-<br>cled materials.<br><br>In addition, Wienerberger developed SmartHub, a<br>smart sensoring systems with advanced calculation<br>tools enabling efficient monitoring and control of<br>these rainwater management systems.<br><br>This combination enables further improvements of<br>the total cost of ownership of our systems to our users. | Wienerberger has introduced a structured Health an<br>Safety Working Temperature Guidance throughout a<br>countries to effectively support and manage extrem<br>or excessive temperatures.<br><br>The Group already has a number of short-term<br>mitigation actions in place to reduce heat stress at the<br>workplace.<br><br>In addition, Wienerberger will increase its investments<br>in sustainable cooling solutions, such as on-site cool<br>ing systems, to reduce the effect of heat stress on the<br>employees. The implementation of the biodiversity<br>action plans shall also increase the cooling capacit<br>on sites. |
| Perceived residual<br>opportunity / risk | High                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Moderate                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |

*1) RCP = Representative Concentration Pathway 8.5 // 2) Global temperature increase 4°C*

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Image /page/141/Picture/7 description: The image is a white background with a faint, stylized, white feather design in the center. The feather appears to be curved and flowing, with subtle gradations of white that create a sense of depth and movement. The overall effect is soft and ethereal.

# <span id="page-141-0"></span>WIENERBERGER TCFD CONTENT INDEX

## *Alignment with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)*

| Recommendation                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Our actions                                                                                                                                                                                                                                                                                                                       |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Governance                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                   |
| Disclosure of the company's governance pertaining to climate-related risks and opportunities                                                                                                    | a) Description of the Managing Board's responsibility for climate-related risks and opportunities<br><br>b) Description of the management's role in assessing and managing climate-related risks and opportunities                                                                                                                                                                                                                                          | ESG Governance Structure: pages 42-43<br>Governance Report: pages 184-187<br><br>ESG Governance Structure: pages 42-43<br>Governance Report: pages 184-187                                                                                                                                                                        |
| Strategy                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                   |
| Disclosure of actual and potential impacts of climate-related risks and opportunities on the company's business and its strategic and financial planning, provided such information is material | a) Description of climate-related risks and opportunities identified by the company over the short, medium, and long term<br><br>b) Description of the impact of climate-related risks and opportunities on the company's business, its strategy, and its financial planning<br><br>c) Description of the resilience of the corporate strategy, taking various climate-related scenarios into account, including a temperature increase of 2°C or less      | Climate Action: pages 86-101<br>Management Report: pages 195-222<br><br>Climate Action: pages 86-101<br><br>Climate Action: pages 86-101                                                                                                                                                                                          |
| Risk Management                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                   |
| Disclosure of processes applied by the company to identify, assess, and manage climate-related risks                                                                                            | a) Description of processes applied by the company to identify and assess climate-related risks<br><br>b) Description of processes applied by the company to manage climate-related risks<br><br>c) Description of the integration of processes applied by the company to identify, assess, and manage climate-related risks into the company's comprehensive risk management system                                                                        | Management Report: pages 195-222<br><br>Management Report: pages 195-222<br><br>Management Report: pages 195-222                                                                                                                                                                                                                  |
| Metrics and Targets                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                   |
| Disclosure of metrics and targets for the assessment and management of relevant climate-related risks and opportunities, provided such information is material                                  | a) Disclosure of metrics and targets for the assessment and management of relevant climate-related risks and opportunities, provided such information is material<br><br>b) Disclosure of greenhouse gas emissions Scope 1, Scope 2 and, if applicable, Scope 3, as well as the related risks<br><br>c) Description of the targets pursued by the company in the management of climate- related risks and opportunities and the degree of target attainment | Material Indicators of wienerberger: page 30<br>Climate Action: pages 86-101<br><br>Material Indicators of wienerberger: page 30<br>Climate Action: pages 86-101<br><br>Sustainability Program 2020-2023, Target and Performance: pages 86-101<br>Sustainability Program 2023-2026: pages 100-101<br>Climate Action: pages 86-101 |

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# <span id="page-142-0"></span>**Sustainability-linked Progress Report**

In 2023 wienerberger developed a sustainability-linked finance framework that allows wienerberger to raise capital through sustainability-linked bonds and loans. The framework defines Key Performance Indicators (KPIs) and Sustainability Performance Targets (SPTs).

wienerberger publishes annually a sustainability-linked progress report to ensure that investors and other stakeholders have updated and adequate information about wienerberger's performance of selected KPIs against its SPTs.

## **KPI 1: Scope 1 and 2 greenhouse gas emissions intensity**

Definition: Reduction of our scope 1 and 2 emission intensity as kg  $CO\_2$ /quantity of products ready for sale.

Calculation method: In accordance with the Greenhouse Gas Protocol, we report the specific values as an index in % relative to the defined baseline year, the values of which are set at 100%. The Index-linked specific CO2 emissions are indicated in % based on kg  $CO\_2$ /quantity of products ready for sale (2020 = 100%). The comparative periods are adjusted retrospectively in the event of changes to the scope of consolidation.

| KPI 1                                                                                                                                                       | Target<br>2026 | Base-<br>line<br>2020 | 2021  | 2022  | 2023  |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------|-----------------------|-------|-------|-------|
| Index of specific direct (scope 1) and indirect (scope 2) CO2 emissions in %, based on kg<br>CO2/quantity of products ready for sale (baseline year = 2020) | 75.0%          | 100.0%                | 92.2% | 87.0% | 84.4% |

# **KPI 2: Revenue from products supporting Net Zero Buildings**

Definition: Revenues coming from building products contributing to Net Zero Buildings, meaning revenues from products that:

- **›** Meet the substantial contribution to climate change mitigation criteria (U-value threshold), part of the technical screening criteria, under the EU Taxonomy Regulation 2020/852 economic activity 3.5. Manufacture of energy efficiency equipment for buildings; or
- **›** Contribute to a lower energy consumption within the buildings, even if not yet covered by the Taxonomy Regulation1; or
- **›** Contribute to energy consumption through renewable energy in the buildings2; or
- **›** Contribute to a lower embodied energy footprint of the building3.

Calculation method: Sales of building products fitting the definition of products contributing to net zero buildings divided by the total wienerberger Building Products Revenues.

| KPI 2                                                                                    | Target 2026 | Baseline 2020 | 2021 | 2022 | 2023 |
|------------------------------------------------------------------------------------------|-------------|---------------|------|------|------|
| Percentage of revenue from products supporting net zero buildings (baseline year = 2020) | 75%         | 69%           | 68%  | 70%  | 70%  |

As of 31 December 2023 wienerberger has one sustainability-linked bond outstanding:

|                                 | ISIN         | Coupon | Volume   | Term    | Due date     | Rating |
|---------------------------------|--------------|--------|----------|---------|--------------|--------|
| Sustainability-linked Bond 2023 | AT0000A37249 | 4.875% | € 350 mn | 5 years | October 2028 | Baa3   |

This report is subject to verification by the group auditor (see audit report on [page 174](#page-173-0)).

*1) Low temperature cooling and heating systems*

*2) Photovoltaic (PV) 3) Products with extremely low CO\_2 emission: Products with almost zero-emission in the production phase (at least 80% lower CO\_2 emission in production compared to 2020)* 

{143}------------------------------------------------

# <span id="page-143-0"></span>**Taxonomy**

## **Disclosures according to the EU Taxonomy Regulation**

### **Taxonomy Regulation**

The European Green Deal has set itself the goal of achieving climate neutrality in Europe. In order to achieve this, capital flows are to be directed towards sustainable investments. For this reason, the European Commission has created a legal framework to make the sustainability of economic activities more transparent and comparable. wienerberger welcomes this development and sees it as an important step towards placing sustainability at the heart of economic activity.

Regulation (EU) 2020/852 on the establishment of a framework to facilitate sustainable investment – the so-called Taxonomy Regulation – entered into force on July 12, 2020. The regulation introduced a common classification system for sustainable economic activities in the European Union.

Economic activities are taxonomy-aligned if they are covered by the Regulation. They are subsequently considered "environmentally sustainable" or taxonomy-aligned if they:

- **›** make a substantial contribution to the achievement of one or more of the six environmental objectives set out in the Taxonomy Regulation,
- **›** do not significantly harm any of the other environmental objectives, and
- **›** are carried out in compliance with the minimum social safeguards.

### **Taxonomy: Eligibility**

Three wienerberger product groups are covered by the Delegated Act (EU) 2021/2139 of June 4, 2021 in Chapter 3.5 "Manufacture of energy-efficient building equipment" and contribute to achieving the climate change mitigation target:

- **›** Key components for external wall systems with a U-value of less than or equal to 0,5 W/m²K (wall and façade product groups)
- **›** Key components for roof systems with a U-value of less than or equal to 0,3 W/m²K (roof product group)

Other activities of the wienerberger Group, such as the production of pipe solutions and pavers, are currently not covered by the Taxonomy Regulation. An extension of the scope is possible in the future.

In the area of capital expenditure (CAPEX), the following additional activities were identified as taxonomy-eligible investments:

- **›** 6.5: Transport by motorbikes, passenger cars and light commercial vehicles (i.e. company cars)
- **›** 7.3: Installation, maintenance and repair of energy efficiency equipment (i.e. insulation material in own used buildings)
- **›** 7.4: Installation, maintenance and repair of charging stations for electric vehicles in buildings and parking spaces attached to buildings (i.e. E-charging stations)
- **›** 7.6: Installation, maintenance and repair of renewable energy technologies (i.e. Photovoltaic, heat pumps)

### **Taxonomy: Alignment**

In order to evaluate whether an activity makes a significant contribution to the climate change mitigation target, compliance with the technical screening criteria was assessed for each taxonomy-eligible product group from wienerberger (wall, façade, roof). The U-value of a wall system can be determined on the basis of the thermal conductivity and the strength of the individual layers. For external wall systems, a U-value lower than 0.5 W/m²K is required by law in all countries in which wienerberger manufactures the relevant wall and façade products. Wall products that are not intended for use in external walls (e.g. sound insulation blocks for apartment partition walls) were classified as not taxonomy-aligned.

With the conduction of an international study, the proportion of roofs with thermal insulation material was determined in the area of roof systems in order to record the proportion of roof systems that meet the required U-value from the technical screening criteria. Roof systems without insulation materials are used in agricultural buildings, for example. These were not classified as taxonomy-aligned due to a lack of sufficient U-value.

{144}------------------------------------------------

![image](https://i.imgur.com/9999999.png)

The avoidance of significant adverse effects on other environmental objectives is shown in the following table:

| Other environmental objectives (2–6)                            | Do no significant harm                                                                                                                                                                                                                                                                                                                |
|-----------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Climate change adaptation                                       | A climate risk analysis was carried out at all production sites. The climate-related risks were<br>assessed according to the RCP 4.5 and RCP 8.5 scenarios (see TCFD chapter). Adaptation<br>solutions based on this were developed at plant level.                                                                                   |
| Sustainable use and protection of water and<br>marine resources | All production sites where taxonomy-eligible economic activities take place have assessed the<br>impact of production on their immediate environment and have water management plans in<br>place in accordance with local regulatory requirements.                                                                                    |
|                                                                 | The relevant activities were analyzed with regard to:                                                                                                                                                                                                                                                                                 |
|                                                                 | • Reuse of secondary raw materials;                                                                                                                                                                                                                                                                                                   |
|                                                                 | • Durability, Recyclability;                                                                                                                                                                                                                                                                                                          |
|                                                                 | • Waste management;                                                                                                                                                                                                                                                                                                                   |
|                                                                 | • Substances of concern and their traceability                                                                                                                                                                                                                                                                                        |
| Transition to a circular economy                                | wienerberger products are characterized above all by their high durability and service life (in<br>some cases over 100 years). Furthermore, guidelines on the use of secondary raw materials,<br>guidelines on additives and environmental product declarations ensure that this environmen-<br>tal goal is not significantly harmed. |
|                                                                 | Ceramic building materials are made from natural clay sediments containing clay minerals,<br>quartz and other minerals, especially silicates and calcium-magnesium carbonates.                                                                                                                                                        |
| Pollution prevention and control                                | The environmental impact of wienerberger's manufacturing processes is regularly reported<br>to the local authorities and monitored by (external) measurements.                                                                                                                                                                        |
| Protection and restoration of biodiversity                      | At production sites where taxonomy-eligible economic activities take place were analyzed<br>and assessed for their impact on their immediate environment. If required by the analysis,<br>biodiversity action plans were drawn up to ensure the protection of biodiversity and ecosys-<br>tems.                                       |

For the additionally identified taxonomy-eligible capital expenditure, the criteria for a significant contribution to the climate mitigation goal and the do not significantly harm criteria, if any, were also examined. The investments were classified as taxonomy-aligned.

Compliance with minimum social safeguards essentially relates to the areas of human and labor rights, corruption prevention, fair taxation and fair competition.

wienerberger has implemented processes and guidelines that ensure compliance with all minimum standards. There are no known violations of the minimum social safeguards.

{145}------------------------------------------------

e to taxonomy-aligned economic activities.

### Turnover-KPI

To determine the Turnover-KPI, the denominator is the external sales revenue reported in accordance with the IFRS consolidated financial statements (see [page 236](#page-236-0)). The numerator represents the revenue according to IFRS 15 attributable to taxonomy-aligned economic activities.

In the reporting year, 49.6% (2022: 40.3%) of revenue was taxonomy-aligned. The increase compared to the previous year can be attributed to the first-time taxonomy alignment of our activities in North America.

| Economic activities                                                                                                        | Code    | Absolute<br>Turnover | Propor-<br>tion of<br>Turnover | Substantial contribution criteria |                                      |                                  |             |                     | DNSH criteria (Do No Significant Harm)      |                                 |                                      |                                  |           |                     |                                             |                            |                      |                                    |                                             |
|----------------------------------------------------------------------------------------------------------------------------|---------|----------------------|--------------------------------|-----------------------------------|--------------------------------------|----------------------------------|-------------|---------------------|---------------------------------------------|---------------------------------|--------------------------------------|----------------------------------|-----------|---------------------|---------------------------------------------|----------------------------|----------------------|------------------------------------|---------------------------------------------|
|                                                                                                                            |         |                      |                                | Climate<br>change<br>mitigation   | Climate<br>change<br>adapta-<br>tion | Water and<br>marine<br>resources | Pollution   | Circular<br>economy | Bio-<br>diversity<br>and<br>ecosys-<br>tems | Climate<br>change<br>mitigation | Climate<br>change<br>adapta-<br>tion | Water and<br>marine<br>resources | Pollution | Circular<br>economy | Bio-<br>diversity<br>and<br>ecosys-<br>tems | Minimum<br>safe-<br>guards | Propor-<br>tion 2022 | Category<br>(enabling<br>activity) | Category<br>(transi-<br>tional<br>activity) |
|                                                                                                                            |         | in €<br>thousand     | %                              | J;N;N/EL 1)                       | J;N;N/EL 1)                          | J;N;N/EL 1)                      | J;N;N/EL 1) | J;N;N/EL 1)         | J;N;N/EL 1)                                 | Y/N 1)                          | Y/N 1)                               | Y/N 1)                           | Y/N 1)    | Y/N 1)              | Y/N 1)                                      | Y/N 1)                     | %                    | E                                  |                                             |
| A. Taxonomy-eligible activities                                                                                            |         |                      |                                |                                   |                                      |                                  |             |                     |                                             |                                 |                                      |                                  |           |                     |                                             |                            |                      |                                    |                                             |
| A.1. Environmentally sustainable activities (Taxono-<br>my-aligned)                                                        |         |                      |                                |                                   |                                      |                                  |             |                     |                                             |                                 |                                      |                                  |           |                     |                                             |                            |                      |                                    |                                             |
| Manufacture of energy-efficient equipment for buildings                                                                    | CCM 3.5 | 2,093,823            | 49.6%                          | J                                 | N                                    | N/EL                             | N/EL        | N/EL                | N/EL                                        | Y                               | Y                                    | Y                                | Y         | Y                   | Y                                           | Y                          | 40.3%                | E                                  |                                             |
| Turnover of environmentally sustainable activities<br>(Taxonomy-aligned) (A.1)                                             |         | 2,093,823            | 49.6%                          | 100%                              | 0%                                   | 0%                               | 0%          | 0%                  | 0%                                          | Y                               | Y                                    | Y                                | Y         | Y                   | Y                                           | Y                          | 40.3%                |                                    |                                             |
| thereof enabling activities                                                                                                |         | 2,093,823            | 49.6%                          | 100%                              | 0%                                   | 0%                               | 0%          | 0%                  | 0%                                          | Y                               | Y                                    | Y                                | Y         | Y                   | Y                                           | Y                          | 40.3%                | E                                  |                                             |
| thereof transitional activities                                                                                            |         | 0                    | 0.0%                           | 0%                                |                                      |                                  |             |                     |                                             |                                 |                                      |                                  |           |                     |                                             |                            | 0%                   |                                    |                                             |
| A.2 Taxonomy-eligible but not environmentally sustaina-<br>ble activities (not Taxonomy-aligned activities)                |         |                      |                                |                                   |                                      |                                  |             |                     |                                             |                                 |                                      |                                  |           |                     |                                             |                            |                      |                                    |                                             |
| Manufacture of energy-efficient equipment for buildings                                                                    | CCM 3.5 | 60,172               | 1.4%                           | J                                 | N                                    | N/EL                             | N/EL        | N/EL                | N/EL                                        |                                 |                                      |                                  |           |                     |                                             |                            | 11.7%                | E                                  |                                             |
| Turnover of Taxonomy-eligible but not environmentally<br>sustainable activities (not Taxonomy-aligned activities)<br>(A.2) |         | 60,172               | 1.4%                           | 100%                              | 0%                                   | 0%                               | 0%          | 0%                  | 0%                                          |                                 |                                      |                                  |           |                     |                                             |                            | 11.7%                |                                    |                                             |
| Total (A.1 + A.2)                                                                                                          |         | 2,153,995            | 51.0%                          | 100%                              | 0%                                   | 0%                               | 0%          | 0%                  | 0%                                          |                                 |                                      |                                  |           |                     |                                             |                            |                      |                                    |                                             |
| B. Taxonomy-non-eligible<br>activities                                                                                     |         |                      |                                |                                   |                                      |                                  |             |                     |                                             |                                 |                                      |                                  |           |                     |                                             |                            |                      |                                    |                                             |
| Turnover of Taxonomy-non-eligible<br>activities (B)                                                                        |         | 2,069,436            | 49.0%                          |                                   |                                      |                                  |             |                     |                                             |                                 |                                      |                                  |           |                     |                                             |                            |                      |                                    |                                             |
| Total (A + B)                                                                                                              |         | 4,223,431            | 100.0%                         |                                   |                                      |                                  |             |                     |                                             |                                 |                                      |                                  |           |                     |                                             |                            |                      |                                    |                                             |

{146}------------------------------------------------

tor (see addition to fixed assets on page 260). In the numer-
able investments were identified that lead to a reduction in the

### Capex-KPI

To determine the Capex-KPI, all additions to intangible assets and property, plant and equipment (excluding goodwill) including right-of-use assets from leases and additions to assets from company acquisitions are shown in the denominator (see addition to fixed assets on [page 260](#page-259-0)). In the numerator, investments in accordance with Art.1.1.2.2. (a) leg cit are included if they relate to assets or processes that are essential to carry out a taxonomy-aligned or eligible economic activity under this very activity. In addition, further sustainable investments were identified that lead to a reduction in the company's own greenhouse gas emissions. Care was taken to avoid double counting.

The taxonomy-aligned amount of 201,660 TEUR consists of additions to intangible and tangible assets of 155,053 TEUR and additions to right-of-use assets according IFRS 16 of 46,607 TEUR. The taxonomy-aligned CAPEX from newly acquired companies (M&A) amounted to 28 TEUR.

The taxonomy-aligned share of Capex in the reporting period reached 54.0% (2022: 36.7%)

|                                                                                                                                               |         |                   |                            |                                 |                                     | Substantial contribution criteria |             |                     |                                           |                                 | DNSH criteria (Do No Significant Harm) |                                  |           |                     |                                           |                           |                     |                                    |                                           |  |
|-----------------------------------------------------------------------------------------------------------------------------------------------|---------|-------------------|----------------------------|---------------------------------|-------------------------------------|-----------------------------------|-------------|---------------------|-------------------------------------------|---------------------------------|----------------------------------------|----------------------------------|-----------|---------------------|-------------------------------------------|---------------------------|---------------------|------------------------------------|-------------------------------------------|--|
| Economic activities                                                                                                                           | Code    | Absolute<br>CapEx | Propor<br>tion of<br>CapEx | Climate<br>change<br>mitigation | Climate<br>change<br>adapta<br>tion | Water and<br>marine<br>resources  | Pollution   | Circular<br>economy | Bio<br>diversity<br>and<br>ecosys<br>tems | Climate<br>change<br>mitigation | Climate<br>change<br>adapta<br>tion    | Water and<br>marine<br>resources | Pollution | Circular<br>economy | Bio<br>diversity<br>and<br>ecosys<br>tems | Minimum<br>safe<br>guards | Propor<br>tion 2022 | Category<br>(enabling<br>activity) | Category<br>(transi<br>tional<br>activity |  |
|                                                                                                                                               |         | in €<br>thousand  | %                          | J;N;N/EL 1)                     | J;N;N/EL 1)                         | J;N;N/EL 1)                       | J;N;N/EL 1) | J;N;N/EL 1)         | J;N;N/EL 1)                               | Y/N 1)                          | Y/N 1)                                 | Y/N 1)                           | Y/N 1)    | Y/N 1)              | Y/N 1)                                    | Y/N 1)                    | %                   | E                                  | T                                         |  |
| A. Taxonomy-eligible activities                                                                                                               |         |                   |                            |                                 |                                     |                                   |             |                     |                                           |                                 |                                        |                                  |           |                     |                                           |                           |                     |                                    |                                           |  |
| A.1. Environmentally sustainable activities (Taxono<br>my-aligned)                                                                            |         |                   |                            |                                 |                                     |                                   |             |                     |                                           |                                 |                                        |                                  |           |                     |                                           |                           |                     |                                    |                                           |  |
| Manufacture of energy-efficient equipment for buildings                                                                                       | CCM 3.5 | 194,015           | 52.8%                      | J                               | N                                   | N/EL                              | N/EL        | N/EL                | N/EL                                      | Y                               | Y                                      | Y                                | Y         | Y                   | Y                                         | Y                         | 36.7%               | E                                  |                                           |  |
| Transport by motorbikes, passenger cars and light commercial<br>vehicles                                                                      | CCM 6.5 | 835               | 0.2%                       | J                               | N                                   | N/EL                              | N/EL        | N/EL                | N/EL                                      | Y                               | Y                                      | Y                                | Y         | Y                   | Y                                         | Y                         | 0%                  |                                    |                                           |  |
| Installation, maintenance and repair of energy efficiency<br>equipment                                                                        | CCM 7.3 | 392               | 0.1%                       | J                               | N                                   | N/EL                              | N/EL        | N/EL                | N/EL                                      | Y                               | Y                                      | Y                                | Y         | Y                   | Y                                         | Y                         | 0%                  | E                                  |                                           |  |
| Installation, maintenance and repair of charging stations for<br>electric vehicles in buildings (and parking spaces attached to<br>buildings) | CCM 7.4 | 58                | 0.0%                       | J                               | N                                   | N/EL                              | N/EL        | N/EL                | N/EL                                      | Y                               | Y                                      | Y                                | Y         | Y                   | Y                                         | Y                         | 0%                  | E                                  |                                           |  |
| Installation, maintenance and repair of renewable energy<br>technologies                                                                      | CCM 7.6 | 3,103             | 0.8%                       | J                               | N                                   | N/EL                              | N/EL        | N/EL                | N/EL                                      | Y                               | Y                                      | Y                                | Y         | Y                   | Y                                         | Y                         | 0%                  | E                                  |                                           |  |
| CapEx of environmentally sustainable activities<br>(Taxonomy-aligned) (A.1)                                                                   |         | 198,403           | 54.0%                      | 100%                            | 0%                                  | 0%                                | 0%          | 0%                  | 0%                                        | Y                               | Y                                      | Y                                | Y         | Y                   | Y                                         | Y                         | 36.7%               | E                                  |                                           |  |
| thereof enabling activities                                                                                                                   |         | 197,568           | 53.8%                      | 100%                            | 0%                                  | 0%                                | 0%          | 0%                  | 0%                                        |                                 |                                        |                                  |           |                     |                                           |                           | 36.7%               | E                                  |                                           |  |
| thereof transitional activities                                                                                                               |         |                   | 0.0%                       | 0%                              |                                     |                                   |             |                     |                                           |                                 |                                        |                                  |           |                     |                                           |                           | 0%                  |                                    | T                                         |  |
| A.2 Taxonomy-eligible but not environmentally sustaina<br>ble activities (not Taxonomy-aligned activities)                                    |         |                   |                            |                                 |                                     |                                   |             |                     |                                           |                                 |                                        |                                  |           |                     |                                           |                           |                     |                                    |                                           |  |
| Manufacture of energy-efficient equipment for buildings                                                                                       | CCM 3.5 | 3,641             | 1.0%                       | J                               | N                                   | N/EL                              | N/EL        | N/EL                | N/EL                                      |                                 |                                        |                                  |           |                     |                                           |                           | 6.6%                |                                    |                                           |  |
| Transport by motorbikes, passenger cars and light commercial<br>vehicles                                                                      | CCM 6.5 | 10,319            | 2.8%                       | J                               | N                                   | N/EL                              | N/EL        | N/EL                | N/EL                                      |                                 |                                        |                                  |           |                     |                                           |                           | 0.0%                |                                    |                                           |  |
| CapEx of Taxonomy-eligible but not environmentally<br>sustainable activities (not Taxonomy-aligned activities)<br>(A.2)                       |         | 13,960            | 3.8%                       | 100%                            | 0%                                  | 0%                                | 0%          | 0%                  | 0%                                        |                                 |                                        |                                  |           |                     |                                           |                           | 6.6%                |                                    |                                           |  |
| Total (A.1 + A.2)                                                                                                                             |         | 212,363           | 57.8%                      | 100%                            | 0%                                  | 0%                                | 0%          | 0%                  | 0%                                        |                                 |                                        |                                  |           |                     |                                           |                           |                     |                                    |                                           |  |
| B. Taxonomy-non-eligible<br>activities                                                                                                        |         |                   |                            |                                 |                                     |                                   |             |                     |                                           |                                 |                                        |                                  |           |                     |                                           |                           |                     |                                    |                                           |  |
| CapEx of Taxonomy-non-eligible<br>activities (B)                                                                                              |         | 154,982           | 42.2%                      |                                 |                                     |                                   |             |                     |                                           |                                 |                                        |                                  |           |                     |                                           |                           |                     |                                    |                                           |  |
| Total (A + B)                                                                                                                                 |         | 367,345           | 100.0%                     |                                 |                                     |                                   |             |                     |                                           |                                 |                                        |                                  |           |                     |                                           |                           |                     |                                    |                                           |  |

{147}------------------------------------------------

ienerberger

### Opex-KPI

To determine the Opex-KPI, the denominator must contain the operating expenses associated with non-capitalized research and development costs, short-term leases and maintenance and repairs of fixed assets in accordance with the Taxonomy Regulation. The numerator contains those operating expenses that can be allocated directly or indirectly to taxonomy-aligned activities. At wienerberger, this primarily includes maintenance expenses.

In the 2023 financial year, 65.3% (2022: 53.2%) of operating expenses are attributable to taxonomy-aligned economic activities.

| Economic activities                                                                                                    | Code    | Absolute<br>OpEx<br>in €<br>thousand | Propor-<br>tion of<br>OpEx<br>% | Substantial contribution criteria              |                                                |                                                 |                          |                                    | DNSH criteria (Do No Significant Harm)    |                                           |                                            |                     |                               |                                             |                                 |                      |                                         |
|------------------------------------------------------------------------------------------------------------------------|---------|--------------------------------------|---------------------------------|------------------------------------------------|------------------------------------------------|-------------------------------------------------|--------------------------|------------------------------------|-------------------------------------------|-------------------------------------------|--------------------------------------------|---------------------|-------------------------------|---------------------------------------------|---------------------------------|----------------------|-----------------------------------------|
|                                                                                                                        |         |                                      |                                 | Climate<br>change<br>mitigation<br>J;N;N/EL 1) | Climate<br>change<br>adaptation<br>J;N;N/EL 1) | Water and<br>marine<br>resources<br>J;N;N/EL 1) | Pollution<br>J;N;N/EL 1) | Circular<br>economy<br>J;N;N/EL 1) | Climate<br>change<br>mitigation<br>Y/N 1) | Climate<br>change<br>adaptation<br>Y/N 1) | Water and<br>marine<br>resources<br>Y/N 1) | Pollution<br>Y/N 1) | Circular<br>economy<br>Y/N 1) | Biodiversity<br>and<br>ecosystems<br>Y/N 1) | Minimum<br>safeguards<br>Y/N 1) | Proportion 2022<br>% | Category<br>(enabling<br>activity)<br>E |
| A. Taxonomy-eligible activities                                                                                        |         |                                      |                                 |                                                |                                                |                                                 |                          |                                    |                                           |                                           |                                            |                     |                               |                                             |                                 |                      |                                         |
| A.1. Environmentally sustainable activities (Taxonomy-aligned)                                                         |         |                                      |                                 |                                                |                                                |                                                 |                          |                                    |                                           |                                           |                                            |                     |                               |                                             |                                 |                      |                                         |
| Manufacture of energy-efficient equipment for buildings                                                                | CCM 3.5 | 158,924                              | 65.3%                           | J                                              | N                                              | N/EL                                            | N/EL                     | N/EL                               | Y                                         | Y                                         | Y                                          | Y                   | Y                             | Y                                           | Y                               | 53.2%                | E                                       |
| OpEx of environmentally sustainable activities (Taxonomy-aligned) (A.1)                                                |         | 158,924                              | 65.3%                           | 100%                                           | 0%                                             | 0%                                              | 0%                       | 0%                                 | Y                                         | Y                                         | Y                                          | Y                   | Y                             | Y                                           | Y                               | 53.2%                |                                         |
| thereof enabling activities                                                                                            |         | 158,924                              | 65.3%                           | 100%                                           | 0%                                             | 0%                                              | 0%                       | 0%                                 | Y                                         | Y                                         | Y                                          | Y                   | Y                             | Y                                           | Y                               | 53.2%                | E                                       |
| thereof transitional activities                                                                                        |         | 0                                    | 0.0%                            | 0%                                             |                                                |                                                 |                          |                                    |                                           |                                           |                                            |                     |                               |                                             |                                 | 0%                   |                                         |
| A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)                 |         |                                      |                                 |                                                |                                                |                                                 |                          |                                    |                                           |                                           |                                            |                     |                               |                                             |                                 |                      |                                         |
| Manufacture of energy-efficient equipment for buildings                                                                | CCM 3.5 | 4,142                                | 1.7%                            | J                                              | N                                              | N/EL                                            | N/EL                     | N/EL                               |                                           |                                           |                                            |                     |                               |                                             |                                 | 17.0%                | E                                       |
| OpEx of Taxonomy-eligible but not environmentally<br>sustainable activities (not Taxonomy-aligned activities)<br>(A.2) |         | 4,142                                | 1.7%                            | 100%                                           | 0%                                             | 0%                                              | 0%                       | 0%                                 |                                           |                                           |                                            |                     |                               |                                             |                                 | 17.0%                |                                         |
| Total (A.1 + A.2)                                                                                                      |         | 163,066                              | 67.0%                           | 100%                                           | 0%                                             | 0%                                              | 0%                       | 0%                                 |                                           |                                           |                                            |                     |                               |                                             |                                 |                      |                                         |
| B. Taxonomy-non-eligible activities                                                                                    |         |                                      |                                 |                                                |                                                |                                                 |                          |                                    |                                           |                                           |                                            |                     |                               |                                             |                                 |                      |                                         |
| Turnover of Taxonomy-non-eligible<br>activities (B)                                                                    |         | 80,344                               | 33.0%                           |                                                |                                                |                                                 |                          |                                    |                                           |                                           |                                            |                     |                               |                                             |                                 |                      |                                         |
| Total (A + B)                                                                                                          |         | 243,410                              | 100.0%                          |                                                |                                                |                                                 |                          |                                    |                                           |                                           |                                            |                     |                               |                                             |                                 |                      |                                         |

{148}------------------------------------------------

# <span id="page-148-0"></span>**Comprehensive Overview of Non-Financial Indicators 2023**

### **Employees**

### **Diversity & Equal Opportunities**

| Share of women on the Managing Board |      |      |      |
|--------------------------------------|------|------|------|
| based on headcount                   | 2021 | 2022 | 2023 |
| Managing Board, headcount            | 4    | 4    | 4    |
| Thereof women                        | 1    | 1    | 1    |
| Share of women in %                  | 25   | 25   | 25   |

| Share of women on the Supervisory Board |      |      |      |
|-----------------------------------------|------|------|------|
| based on headcount                      | 2021 | 2022 | 2023 |
| Supervisory Board, headcount            | 10   | 11   | 10   |
| Thereof women                           | 4    | 3    | 4    |
| Share of women in %                     | 40   | 27   | 40   |

### **Share of women in senior management positions1)** based on headcount

Image /page/148/Figure/8 description: This image is a bar chart showing the percentage of women in a group over three years. The y-axis shows the years 2021, 2022, and 2023. The x-axis shows the percentage of women, ranging from 0 to 20. In 2021, the percentage of women was 15%. In 2022, the percentage of women was 15%. In 2023, the percentage of women was 16%.

*1) Exclusively employees directly employed by wienerberger. // All non-financial indicators are calculated on the basis of non-rounded values. Electronic data processing may result in rounding differences.*

{149}------------------------------------------------

### **Share of women in white-collar positions1)** based on headcount

Image /page/149/Figure/3 description: This image is a bar chart showing the percentage of women in 2021, 2022, and 2023. In 2021, the percentage of women was 33%. In 2022, the percentage of women was 34%. In 2023, the percentage of women was 34%.

*1) Exclusively employees directly employed by wienerberger. // Share of women in administration and sales (including marketing and inventories). // All non-financial indicators are calculated on the basis of non-rounded values. Electronic data processing may result in rounding differences.*

| Numbers and percentages of women<br>by function area 1) |           | 31.12.2021 | 31.12.2022 | 31.12.2023 | Chg. in % |
|---------------------------------------------------------|-----------|------------|------------|------------|-----------|
| Women                                                   | headcount | 2,560      | 2,991      | 3,122      | +4        |
| In production                                           | in %      | 5          | 6          | 7          | +3        |
| Administration                                          | in %      | 45         | 47         | 47         | +5        |
| Sales (including marketing and inventories)             | in %      | 27         | 28         | 29         | +5        |
| In white-collar positions (administration and sales) 2) | in %      | 33         | 34         | 34         | +5        |
| wienerberger                                            |           | 15         | 16         | 17         | +3        |

*1) All employees directly employed by wienerberger. // 2) All employees except in production. Sales including marketing and inventories // All non-financial indicators are calculated on the basis of non-rounded values. Electronic data processing may result in rounding differences.*

{150}------------------------------------------------

### **Employees by type of employment contract and gender1)** based on headcount

Image /page/150/Figure/3 description: This image is a bar chart comparing the number of men and women in different types of employment contracts in 2021, 2022, and 2023. The chart shows the number of men and women in full-time (permanent), part-time (permanent), and under-term contract positions. The chart also shows the total number of men and women in all types of employment contracts. According to the chart, in 2023, there are 16,666 full-time men and 814 part-time men, and 401 men under term contract. In 2022, there are 17,196 full-time men, 778 part-time men, and 508 men under term contract. In 2021, there are 15,368 full-time men, 695 part-time men, and 587 men under term contract. The total number of men and women in all types of employment contracts in 2023 is 17,881, in 2022 is 18,482, and in 2021 is 16,650.

*1) Exclusively employees directly employed by wienerberger. // All non-financial indicators are calculated on the basis of non-rounded values. Electronic data processing may result in rounding differences.*

### **Age structure of our employees1)** based on headcount

Image /page/150/Figure/6 description: The image is a horizontal bar chart that shows the distribution of age groups over three years: 2021, 2022, and 2023. The age groups are divided into '< 30 years', '30-49 years', and '≥ 50 years'. The x-axis represents the number of people, ranging from 0 to 20,000. In 2023, the total number of people is 17,480. In 2022, the total number of people is 17,974. In 2021, the total number of people is 16,063.

*1) Employees under permanent employment contracts. // All non-financial indicators are calculated on the basis of non-rounded values. Electronic data processing may result in rounding differences.*

{151}------------------------------------------------

### **Job Creation and Stability of Employment**

| Ø Employees by regions 1) | 2021   | 2022   | 2023   | Chg. in % |
|---------------------------|--------|--------|--------|-----------|
| Europe West               | 8,734  | 9,162  | 9,059  | –1        |
| Europe East               | 7,282  | 7,487  | 7,503  | +0        |
| North America             | 1,608  | 2,429  | 2,351  | –3        |
| wienerberger              | 17,624 | 19,078 | 18,913 | –1        |

*1) Agency and temporary workers are included from their first hour of work at wienerberger. // All non-financial indicators are calculated on the basis of non-rounded values. Electronic data processing may result in rounding differences.*

### **Employees by type of employment contract1)** based on headcount

Image /page/151/Figure/7 description: The image is a horizontal bar chart comparing the number of employees in different employment types across three years: 2021, 2022, and 2023. The chart displays three categories of employment: full-time, part-time, and under-term contract. In 2021, the total number of employees is 16,650. In 2022, the total number of employees is 18,482. In 2023, the total number of employees is 17,881. The x-axis ranges from 0 to 20,000, with increments of 5,000.

*1) Employees directly employed by wienerberger. // All non-financial indicators are calculated on the basis of non-rounded values. Electronic data processing may result in rounding differences.*

| Ø Employees by functional area 1)           |        |        |        |           |
|---------------------------------------------|--------|--------|--------|-----------|
| based on headcount                          | 2021   | 2022   | 2023   | Chg. in % |
| Production                                  | 10,393 | 11,626 | 10,858 | -7        |
| Administration                              | 1,971  | 2,063  | 2,191  | +6        |
| Sales (including marketing and inventories) | 4,286  | 4,793  | 4,832  | +1        |
| wienerberger                                | 16,650 | 18,482 | 17,881 | -3        |

*1) Employees directly employed by wienerberger // All non-financial indicators are calculated on the basis of non-rounded values. Electronic data processing may result in rounding differences.*

{152}------------------------------------------------

| ர |  | 11 |  |
|---|--|----|--|
|   |  |    |  |
|   |  |    |  |

| Employees with permanent employment contracts 1)<br>based on headcount | 2021   | 2022   | 2023   | Chg. in % |
|------------------------------------------------------------------------|--------|--------|--------|-----------|
| Europe West                                                            | 7,960  | 8,493  | 8,313  | -2        |
| Europe East                                                            | 6,854  | 7,115  | 7,041  | -1        |
| North America                                                          | 1,249  | 2,365  | 2,126  | -10       |
| wienerberger                                                           | 16,063 | 17,974 | 17,480 | -3        |

*1) Employees directly employed by wienerberger //All non-financial indicators are calculated on the basis of non-rounded values. Electronic data processing may result in rounding differences.*

| Employees under term contracts 1)<br>based on headcount | 2021 | 2022 | 2023 | Chg. in % |
|---------------------------------------------------------|------|------|------|-----------|
| Europe West                                             | 410  | 352  | 248  | -30       |
| Europe East                                             | 175  | 154  | 153  | -1        |
| North America                                           | 2    | 2    | 0    | -100      |
| wienerberger                                            | 587  | 508  | 401  | -21       |

*1) Employees directly employed by wienerberger. // All non-financial indicators are calculated on the basis of non-rounded values. Electronic data processing may result in rounding differences.*

| Employee turnover by regions 1)<br>in % | 2021 | 2022 | 2023 | Chg. in % |
|-----------------------------------------|------|------|------|-----------|
| Europe West                             | 12   | 13   | 12   | -11       |
| Europe East                             | 8    | 15   | 18   | +22       |
| wienerberger (excl. North America)      | 11   | 14   | 14   | +5        |
| North America 2)                        | 53   | 33   | 37   | +10       |

*1) Ratio of persons leaving wienerberger (termination by employee or employer or mutually agreed termination) to average number of employees (head-count) in permanent employment in the reporting year, excluding temporary and agency workers as well as workers under term contracts; persons retiring or on leave do not count as persons leaving the company. Total leavers reported in prior years for the group included Holding allocations for North America. // 2) Due to special national legal provisions the indicators are not comparable to those of other regions. // All non-financial indicators are calculated on the basis of non-rounded values. Electronic data processing may result in rounding differences.*

{153}------------------------------------------------

### **Employee turnover excluding North America1)** based on headcount

Image /page/153/Figure/4 description: The image is a bar chart that shows the number of employees leaving the company, of which due to restructuring, and the turnover ratio. The x-axis shows the number of employees, and the y-axis shows the year. In 2021, the number of employees leaving the company is 1,632, of which 102 are due to restructuring, and the turnover ratio is 11. In 2022, the number of employees leaving the company is 2,098, of which 82 are due to restructuring, and the turnover ratio is 14. In 2023, the number of employees leaving the company is 2,207, of which 479 are due to restructuring, and the turnover ratio is 14.

*1) Employees with permanent employment contracts. Total leavers reported in prior years for the group included Holding allocations for North America. // All non-financial indicators are calculated on the basis of non-rounded values. Electronic data processing may result in rounding differences.*

| Leaves not due to restructuring, broken down by gender (exclud-<br>ing North America) 1) |       |       |       |           |
|------------------------------------------------------------------------------------------|-------|-------|-------|-----------|
| based on headcount                                                                       | 2021  | 2022  | 2023  | Chg. in % |
| Men                                                                                      | 1,301 | 1,695 | 1,454 | -14       |
| Women                                                                                    | 229   | 321   | 280   | -13       |
| wienerberger (excl. North America)                                                       | 1,530 | 2,016 | 1,734 | -14       |

*1) Employees with permanent employment contracts. // All non-financial indicators are calculated on the basis of non-rounded values. Electronic data processing may result in rounding differences.*

| Leaves not due to restructuring, broken down by age group<br>(excluding North America) 1) |       |       |       |           |
|-------------------------------------------------------------------------------------------|-------|-------|-------|-----------|
| based on headcount                                                                        | 2021  | 2022  | 2023  | Chg. in % |
| < 30 years                                                                                | 328   | 476   | 366   | -23       |
| 30–49 years                                                                               | 787   | 1,046 | 928   | -11       |
| > 50 years                                                                                | 415   | 494   | 440   | -11       |
| wienerberger (excl. North America)                                                        | 1,530 | 2,016 | 1,734 | -14       |

*1) Employees with permanent employment contracts. // All non-financial indicators are calculated on the basis of non-rounded values. Electronic data processing may result in rounding differences.* 

{154}------------------------------------------------

|  | Image: arrow |
|--|--------------|
|  |              |

| Leaves not due to restructuring, broken down by functional area<br>(excluding North America) 1) |       |       |       |           |
|-------------------------------------------------------------------------------------------------|-------|-------|-------|-----------|
| based on headcount                                                                              | 2021  | 2022  | 2023  | Chg. in % |
| Production                                                                                      | 1,027 | 1,363 | 1,127 | -17       |
| Administration                                                                                  | 179   | 227   | 209   | -8        |
| Sales (including marketing and inventories)                                                     | 324   | 426   | 398   | -7        |
| wienerberger (excl. North America)                                                              | 1,530 | 2,016 | 1,734 | -14       |

*1) Employees with permanent employment contracts. // All non-financial indicators are calculated on the basis of non-rounded values. Electronic data processing may result in rounding differences.*

| New entrants by regions 1) |       |       |       |           |
|----------------------------|-------|-------|-------|-----------|
| based on headcount         | 2021  | 2022  | 2023  | Chg. in % |
| Europe West                | 1,041 | 1,164 | 908   | -22       |
| Europe East                | 1,083 | 1,390 | 776   | -44       |
| North America              | 592   | 734   | 860   | +17       |
| wienerberger               | 2,716 | 3,288 | 2,544 | -23       |

*1) Employees directly employed by wienerberger // All non-financial indicators are calculated on the basis of non-rounded values. Electronic data processing may result in rounding differences.*

### **Competence Development and Advancement of our Employees**

| Training hours per employee and year by regions 1) | 2021 | 2022 | 2023 | Chg. vs. base year<br>2020 in % |
|----------------------------------------------------|------|------|------|---------------------------------|
| Europe West                                        | 12.3 | 15.8 | 19.6 | +96                             |
| Europe East                                        | 14.4 | 19.8 | 24.3 | +104                            |
| North America                                      | 10.4 | 7.1  | 7.3  | +8                              |
| wienerberger                                       | 13.1 | 16.3 | 19.9 | +89                             |

*1) Internal and external initial and further training measures per employee (headcount). International training events are not included in this table. // Employees directly employed by wienerberger. // All non-financial indicators are calculated on the basis of non-rounded values. Electronic data processing may result in rounding differences.*

| Average training expenses per employee 1) |       |       |       |
|-------------------------------------------|-------|-------|-------|
| based on headcount, in Euro               | 2021  | 2022  | 2023  |
|                                           | 273.5 | 334.1 | 373.3 |

*1) Internal and external initial and further training measures per employee directly employed by wienerberger (headcount). International training hours are not included in this table. International training events are not included in this table. // Employees directly employed by wienerberger. // All non-financial indicators are calculated on the basis of non-rounded values. Electronic data processing may result in rounding differences.*

{155}------------------------------------------------

### **Occupational Safety and Health**

| Accident frequency by regions 1) 2) | 2021 | 2022 | 2023 | Chg. in % |
|-------------------------------------|------|------|------|-----------|
| Europe West                         | 5.9  | 5.2  | 4.4  | -16       |
| Europe East                         | 3.5  | 3.5  | 3.5  | +1        |
| North America                       | 1.0  | 1.9  | 1.0  | -48       |
| wienerberger                        | 4.4  | 4.1  | 3.6  | -14       |

*1) Number of lost time accidents (occupational accidents resulting in a loss of at least one working day) / number of hours worked x 1,000,000) // including temporary and agency workers (from their first hour of work at wienerberger) and employees under term contracts // 2) Within our policy, events (fatal - ,lost time -, medical intervention accidents) of acquired companies that have not finished the one-year integration process are not reported. // All non-financial indicators are calculated on the basis of non-rounded values. Electronic data processing may result in rounding differences.*

### **Types of injuries at wienerberger in 20231)**

Image /page/155/Figure/6 description: The image is a circular chart divided into 13 sections. The sections are numbered 1 through 8, and then 9-13. The sections are all the same color.

| 1  | Sprain, strain | 20% |
|----|----------------|-----|
| 2  | Fracture       | 17% |
| 3  | Cuts           | 16% |
| 4  | Other          | 14% |
| 5  | Bruising       | 10% |
| 6  | Crush          | 8%  |
| 7  | Swelling       | 6%  |
|    |                |     |
| 8  | Dislocation 3% |     |
| 9  | Burn 2%        |     |
| 10 | Eye injury 2%  |     |
| 11 | Amputation 1%  |     |
| 12 | Superficial 1% |     |
| 13 | Graze 1%       |     |

*1) Injuries resulting in a loss of at least one working day. // Based on the specific definitions of the individual business units.*

| Number of fatal occupational accidents | 2021 | 2022 | 2023 |
|----------------------------------------|------|------|------|
|                                        | 1    | 0    | 01)  |

*1) Within our policy, events (fatal - ,lost time -, medical intervention accidents) of acquired companies that have not finished the one-year integration process are not reported.* 

{156}------------------------------------------------

| Accident severity by regions 1) 2) | 2021  | 2022  | 2023  | Chg. in % |
|------------------------------------|-------|-------|-------|-----------|
| Europe West                        | 223.6 | 194.5 | 114.2 | -41       |
| Europe East                        | 168.9 | 169.2 | 118.1 | -30       |
| North America                      | 13.2  | 156.1 | 141.2 | -10       |
| wienerberger                       | 180.0 | 180.1 | 119.7 | -34       |

*1) Number of sick-leave days related to lost time accidents (occupational accidents resulting in a loss of at least one working day) / number of hours worked x 1,000,000 // including temporary and agency workers (from their first hour of work at wienerberger) and employees under term contracts. // 2) Within our policy, events (fatal - ,lost time -, medical intervention accidents) of acquired companies that have not finished the one-year integration process are not reported. // All non-financial indicators are calculated on the basis of non-rounded values. Electronic data processing may result in rounding differences.*

| Sick-leave days per employee by regions 1) | 2021 | 2022 | 2023 | Chg. in % |
|--------------------------------------------|------|------|------|-----------|
| Europe West                                | 12.3 | 13.7 | 8.1  | -41       |
| Europe East                                | 10.6 | 10.6 | 8.7  | -18       |
| wienerberger (excl. North America)         | 11.5 | 12.3 | 8.4  | -32       |
| North America 2)                           | 3.0  | 3.6  | 4.4  | +21       |

*1) Accident-related and non-accident-related sick-leave days. Agency and temporary workers are included in data on accident-related sick-leave days. Data on non-accident-related sick-leave days include all employees directly employed by wienerberger. // All non-financial indicators are calculated on the basis of non-rounded values. Electronic data processing may result in rounding differences. // 2) Due to special national legal provisions (regarding employees on sick leave) the indicators are not comparable to those of other regions and therefore reported separately.*

| Non-accident-related sick-leave days per employee<br>by regions 1) | 2021 | 2022 | 2023 | Chg. in % |
|--------------------------------------------------------------------|------|------|------|-----------|
| Europe West                                                        | 11.9 | 13.3 | 7.9  | -41       |
| Europe East                                                        | 10.3 | 10.3 | 8.4  | -18       |
| wienerberger Group, excluding North America                        | 11.2 | 12.0 | 8.1  | -32       |
| North America 2)                                                   | 3.0  | 3.4  | 4.1  | +20       |

*1) Data on non-accident-related sick-leave days include all employees directly employed by wienerberger. // All non-financial indicators were calculated on the basis of non-rounded values. Electronic data processing may result in round differences. // 2) Due to special national legal provisions (regarding employees on sick leave) the indicators are not comparable to those of other regions and therefore reported separately.*

{157}------------------------------------------------

# **ESG Governance**

| Corporate Governance at wienerberger |                          |      |      |      |
|--------------------------------------|--------------------------|------|------|------|
| Number within the Wienerberger Group |                          | 2021 | 2022 | 2023 |
| Number of incidents of corruption    | Number in reporting year | 0    | 0    | 0    |
| Number of anti- trust violations     | Number in reporting year | 0    | 0    | 0    |

# **Climate Action**

| Index of specific direct (Scope 1) and<br>indirect (Scope 2) CO2 emissions 1) 2) |       |       |      | Chg. vs. Baseline |
|----------------------------------------------------------------------------------|-------|-------|------|-------------------|
| in %, based on kg CO2/quantity of products ready for sale (2020 = 100%)          | 2021  | 2022  | 2023 | year 2020 in %    |
| Clay blocks                                                                      | 92.8  | 85.1  | 79.2 | –20.8             |
| Roof tiles (clay and concrete)                                                   | 94.3  | 90.0  | 83.4 | –16.6             |
| Facing bricks and clay pavers                                                    | 95.5  | 92.6  | 93.8 | –6.2              |
| Façade (calcium silicate products)                                               | 97.5  | 95.5  | 97.1 | –2.9              |
| Concrete pavers                                                                  | 89.5  | 0.0   | 0.0  | –100.0            |
| Concrete products                                                                | 145.5 | 136.2 | 98.5 | –1.5              |
| Plastic pipes                                                                    | 22.4  | 24.6  | 24.9 | –75.1             |
| Ceramic pipes                                                                    | 97.7  | 95.3  | 94.6 | –5.4              |
| Thereof Europe West                                                              | 92.6  | 89.8  | 85.7 | –14.3             |
| Thereof Europe East                                                              | 89.9  | 80.6  | 72.7 | –27.3             |
| Thereof North America                                                            | 96.1  | 94.8  | 99.9 | –0.1              |
| wienerberger                                                                     | 92.2  | 87.0  | 84.4 | –15.6             |

1) The calculation excluded CO2 emissions from biogenic input materials. // 2) For two companies newly acquired in 2023, where the necessary data collection structures for non-financial indicators are not yet in place or have to be optimized, the indicators are not included for the 2023 reporting year. // The calculation of indirect CO2 emissions from purchased electricity is based on the current CO2 emission factors of Group Procurement. // For all non-financial indicators, the rates of change compared to previous reporting periods are calculated on the basis of *non-rounded values. Electronic data processing may result in rounding differences.*

{158}------------------------------------------------

| 11<br>pille<br>11<br>1 |  |  |  |
|------------------------|--|--|--|
|                        |  |  |  |
|                        |  |  |  |
|                        |  |  |  |

| Index of specific direct CO₂ emissions (Scope 1) 1) 2) 3)               |      |       |       | Chg. vs. Baseline |
|-------------------------------------------------------------------------|------|-------|-------|-------------------|
| in %, based on kg CO₂/quantity of products ready for sale (2020 = 100%) | 2021 | 2022  | 2023  | year 2020 in %    |
| Clay blocks                                                             | 95.5 | 91.2  | 87.2  | –13               |
| Roof tiles (clay and concrete)                                          | 98.0 | 96.2  | 95.7  | –4                |
| Facing bricks and clay pavers                                           | 98.1 | 95.0  | 96.4  | –4                |
| Façade (calcium silicate products)                                      | 99.7 | 95.0  | 97.8  | –2                |
| Concrete pavers 4)                                                      | 0.0  | 0.0   | 0.0   | 0                 |
| Concrete products                                                       | 67.2 | 58.2  | 131.3 | +31               |
| Plastic pipes                                                           | 89.1 | 102.5 | 89.1  | –11               |
| Ceramic pipes                                                           | 97.7 | 95.3  | 94.6  | –5                |
| Thereof Europe West                                                     | 98.9 | 95.7  | 91.1  | –9                |
| Thereof Europe East                                                     | 94.2 | 89.6  | 88.9  | –11               |
| Thereof North America                                                   | 96.7 | 95.1  | 102.2 | +2                |
| wienerberger                                                            | 96.9 | 93.5  | 92.9  | –7                |

1) Direct specific CO2 emissions (Scope 1) refer to CO2 emissions from raw materials (in ceramic production) as well as the fuel emissions of wienerberger. The calculation did not include CO2 emissions from biogenic input materials. // 2) For two companies newly acquired in 2023, where the necessary data collection structures for non-financial indicators are not yet in place *or have to be optimized, the indicators are not included for the 2023 reporting year. // 3) Limited comparability to prior year due to scope and calculation methodology adaptions. // For*  all non-financial indicators, the rates of change compared to previous reporting periods are calculated on the basis of non-rounded values. Electronic data processing may result in rounding 
differences. // 4) As certain product groups do not generate Scope 1 emissions, the value remains unchanged compared to the previous year.

| Index of specific indirect CO₂ emissions (Scope 2) 1) 2) 3)<br>in %, based on kg CO₂/quantity of products ready for sale (2020 = 100%) | 2021  | 2022  | 2023 | Chg. vs. Baseline<br>year 2020 in % |
|----------------------------------------------------------------------------------------------------------------------------------------|-------|-------|------|-------------------------------------|
| Clay blocks                                                                                                                            | 66.2  | 25.0  | 0.0  | –100                                |
| Roof tiles (clay and concrete)                                                                                                         | 69.2  | 48.2  | 0.0  | –100                                |
| Facing bricks and clay pavers                                                                                                          | 71.7  | 70.1  | 69.9 | –30                                 |
| Façade (calcium silicate products)                                                                                                     | 90.1  | 97.0  | 94.3 | –6                                  |
| Concrete pavers                                                                                                                        | 89.5  | 0.0   | 0.0  | –100                                |
| Concrete products                                                                                                                      | 149.0 | 139.6 | 97.1 | –3                                  |
| Plastic pipes                                                                                                                          | 18.8  | 20.5  | 21.4 | –79                                 |
| Ceramic pipes 4)                                                                                                                       | 0.0   | 0.0   | 0.0  | –100                                |
| Thereof Europe West                                                                                                                    | 3.0   | 3.6   | 0.0  | –100                                |
| Thereof Europe East                                                                                                                    | 68.3  | 32.4  | 0.0  | –100                                |
| Thereof North America                                                                                                                  | 93.5  | 93.6  | 90.4 | –10                                 |
| wienerberger                                                                                                                           | 59.9  | 41.1  | 28.6 | –71                                 |

1) The calculation of specific indirect CO2 emissions from purchased electricity is based on the current CO2 emission factors of Group Procurement. // 2) For two companies newly acquired *in 2023, where the necessary data collection structures for non-financial indicators are not yet in place or have to be optimized, the indicators are not included in the 2023 reporting year. // 3) Limited comparability to prior year due to scope and calculation methodology adaptions. // For all non-financial indicators, the rates of change vs. previous periods are calculated on the basis of non-rounded values. Electronic data processing may result in rounding differences. // 4) As no Scope 2 emissions were generated through the production of ceramic pipes from 2020 to 2023, the values remain unchanged compared to the previous year.*

{159}------------------------------------------------

| 10   | 11 |
|------|----|
| 1111 | 11 |

| Absolute direct (Scope 1) and<br>indirect (Scope 2) CO₂ emissions 1) 2) |         |         |         | Chg. vs. Baseline |
|-------------------------------------------------------------------------|---------|---------|---------|-------------------|
| in kilotons                                                             | 2021    | 2022    | 2023    | year 2020 in %    |
| Clay blocks                                                             | 1,477.1 | 1,473.3 | 779.2   | -47               |
| Roof tiles (clay and concrete)                                          | 398.5   | 403.9   | 301.4   | -20               |
| Facing bricks and clay pavers                                           | 724.7   | 994.7   | 866.9   | +25               |
| Façade (calcium silicate products)                                      | 7.7     | 8.0     | 7.9     | +15               |
| Concrete pavers                                                         | 9.5     | 0.0     | 0.0     | -100              |
| Concrete products                                                       | 1.0     | 2.4     | 1.9     | +103              |
| Plastic pipes                                                           | 17.1    | 16.9    | 16.0    | -78               |
| Ceramic pipes                                                           | 23.5    | 23.7    | 14.8    | -29               |
| Thereof Europe West                                                     | 1,196.7 | 1,204.6 | 850.3   | -29               |
| Thereof Europe East                                                     | 1,274.8 | 1,254.6 | 683.9   | -47               |
| Thereof North America 3)                                                | 187.7   | 463.7   | 453.8   | +161              |
| wienerberger                                                            | 2,659.2 | 2,922.9 | 1,988.0 | -32               |

1) Direct CO2 emissions (Scope 1): ETS and non-ETS. ETS source: EU Transaction Log (EUTL). Non-ETS: Calculation in accordance with national rules or on the basis of EU standard emission factors. For plants in the USA CO2 emissions from the production process are also reported. Including CO2 emissions from biogenic input material. Quantities from wienerberger's CO2 monitoring corresponding to national rules. The calculation of indirect CO2 emissions from purchased electricity is based on the current CO2 emission factors of Group Procurement. *// 2) For two companies newly acquired in 2023, where the necessary data collection structures for non-financial indicators are not yet in place or have to be optimized, the indicators are not included in the 2023 reporting year. // 3) The development of absolute CO2 emissions compared to the base year 2020 was influenced by an acquisition, included in 2022. // For all non-financial indicators, the rates of change vs. previous periods are calculated on the basis of non-rounded values. Electronic data processing may result in rounding differences.*

|                                                                                                        | 2021    | 2022    | 2023    | Chg. vs. Baseline<br>year 2020 in % |
|--------------------------------------------------------------------------------------------------------|---------|---------|---------|-------------------------------------|
| Absolute direct CO2 emissions from primary energy sources and raw materials (Scope 1)1) 2) in kilotons |         |         |         |                                     |
| Clay blocks                                                                                            | 1,396.7 | 1,436.3 | 779.2   | -43                                 |
| Roof tiles (clay and concrete)                                                                         | 360.8   | 376.0   | 301.4   | -8                                  |
| Facing bricks and clay pavers                                                                          | 692.9   | 921.8   | 804.8   | +26                                 |
| Façade (calcium silicate products)                                                                     | 6.1     | 6.2     | 6.2     | +16                                 |
| Concrete pavers                                                                                        | 0.0     | 0.0     | 0.0     | 0                                   |
| Concrete products                                                                                      | 0.1     | 0.0     | 0.1     | +61                                 |
| Plastic pipes                                                                                          | 3.5     | 3.6     | 2.9     | -22                                 |
| Ceramic pipes                                                                                          | 23.5    | 23.7    | 14.8    | -29                                 |
| Thereof Europe West                                                                                    | 1,194.2 | 1,201.6 | 850.3   | -24                                 |
| Thereof Europe East                                                                                    | 1,147.2 | 1,189.7 | 683.9   | -38                                 |
| Thereof North America 3)                                                                               | 142.1   | 376.4   | 375.2   | +187                                |
| wienerberger                                                                                           | 2,483.5 | 2,767.6 | 1,909.4 | -26                                 |

*1) ETS and non-ETS. ETS source: EU Transaction Log (EUTL). Non-ETS: Calculation in accordance with national rules or on the basis of EU standard emission factors. For plants in the USA CO2 emissions from the production process are also reported. Including CO2 emissions from biogenic input material. Quantities from wienerberger's CO2 monitoring corresponding to national rules. // 2) For two companies newly acquired in 2023, where the necessary data collection structures for non-financial indicators are not yet in place or have to be optimized, the indicators are not included in the 2023 reporting year. // 3) The development of absolute CO2 emissions compared to the base year 2020 was influenced by an acquisition, included in 2022. // For all non-financial indicators, the rates of change vs. previous periods are calculated on the basis of non-rounded values. Electronic data processing may result in rounding differences.*

{160}------------------------------------------------

|  | S 1000 |
|--|--------|
|  | 10     |
|  |        |
|  |        |
|  |        |

| Absolute indirect CO2 emissions from electricity (Scope 2) 1)<br>in kilotons | 2021         | 2022         | 2023        | Chg. vs. base year<br>2020 in % |
|------------------------------------------------------------------------------|--------------|--------------|-------------|---------------------------------|
| Clay blocks                                                                  | 80.4         | 37.0         | 0.0         | -100                            |
| Roof tiles (clay and concrete)                                               | 37.7         | 27.9         | 0.0         | -100                            |
| Facing bricks and clay pavers                                                | 31.8         | 72.9         | 62.1        | +19                             |
| Façade (calcium silicate products)                                           | 1.6          | 1.8          | 1.7         | +12                             |
| Concrete pavers                                                              | 9.5          | 0.0          | 0.0         | -100                            |
| Concrete products                                                            | 1.0          | 2.3          | 1.8         | +106                            |
| Plastic pipes                                                                | 13.7         | 13.3         | 13.1        | -81                             |
| Ceramic pipes                                                                | 0.0          | 0.0          | 0.0         | 0                               |
| <b>Thereof Europe West</b>                                                   | <b>2.5</b>   | <b>3.0</b>   | <b>0.0</b>  | <b>-100</b>                     |
| <b>Thereof Europe East</b>                                                   | <b>127.6</b> | <b>64.8</b>  | <b>0.0</b>  | <b>-100</b>                     |
| <b>Thereof North America 2)</b>                                              | <b>45.6</b>  | <b>87.3</b>  | <b>78.6</b> | <b>+82</b>                      |
| <b>wienerberger</b>                                                          | <b>175.6</b> | <b>155.2</b> | <b>78.6</b> | <b>-77</b>                      |

*1) For two companies newly acquired in 2023, where the necessary data collection structures for non-financial indicators are not yet in place or have to be optimized, the indicators are not included in the 2023 reporting year. // 2) For two companies newly acquired in 2023, where the necessary data collection structures for non-financial indicators are not yet in place or have to be optimized, the indicators are not included in the 2023 reporting year. // 3) The development of absolute CO2 emissions compared to the base year 2020 was influenced by an acquisi tion, included in 2022. // For all non-financial indicators, the rates of change vs. previous periods are calculated on the basis of non-rounded values. Electronic data processing may result in rounding differences.*

| Index of specific energy consumption 1) 2)<br>in %, based on kWh/quantity of products ready for sale (2020 = 100 %) | 2021  | 2022  | 2023  | Chg. vs. Baseline<br>year 2020 in % |
|---------------------------------------------------------------------------------------------------------------------|-------|-------|-------|-------------------------------------|
| Clay blocks                                                                                                         | 100.6 | 101.2 | 107.1 | +7                                  |
| Roof tiles (clay and concrete)                                                                                      | 98.5  | 98.2  | 97.9  | –2                                  |
| Facing bricks and clay pavers                                                                                       | 97.4  | 94.7  | 96.3  | –4                                  |
| Façade (calcium silicate products)                                                                                  | 98.7  | 94.0  | 97.5  | –2                                  |
| Concrete pavers                                                                                                     | 100.5 | 90.8  | 88.9  | –11                                 |
| Concrete products                                                                                                   | 96.7  | 97.6  | 97.6  | –2                                  |
| Plastic pipes                                                                                                       | 98.1  | 103.1 | 100.7 | +1                                  |
| Ceramic pipes                                                                                                       | 93.4  | 89.9  | 79.4  | –21                                 |
| Thereof Europe West                                                                                                 | 98.7  | 97.4  | 97.5  | –2                                  |
| Thereof Europe East                                                                                                 | 99.9  | 100.9 | 103.6 | +4                                  |
| Thereof North America                                                                                               | 96.2  | 92.7  | 96.4  | –4                                  |
| wienerberger                                                                                                        | 98.5  | 97.4  | 98.8  | –1                                  |

*1) Total energy consumption includes energy consumed in production, but excludes administration (except in a few individual cases where separate invoicing is not possible). // 2) For two companies newly acquired in 2023, where the necessary data collection structures for non-financial indicators are not yet in place or have to be optimized, the indicators are not included in the 2023 reporting year. // For all non-financial indicators, the rates of change vs. previous periods are calculated on the basis of non-rounded values. Electronic data processing may result in rounding differences.*

{161}------------------------------------------------

|     | S |  |
|-----|---|--|
| min |   |  |
|     |   |  |

| Consumption of energy sources 1) 2)<br>in gigawatt-hours             | 2021 4) | 2022    | 2023    | Chg. vs. Baseline<br>year 2020 in % |
|----------------------------------------------------------------------|---------|---------|---------|-------------------------------------|
| Natural gas                                                          | 8,119.1 | 8,205.7 | 6,245.4 | -17                                 |
| Total of other fossil energy sources 3)                              | 65.7    | 67.0    | 58.2    | -19                                 |
| Electricity                                                          | 1,204.8 | 1,210.2 | 932.6   | -19                                 |
| wienerberger                                                         | 9,389.5 | 9,482.9 | 7,236.2 | -17                                 |
| Percentage of renewable energy in total electricity consumption in % | 74%     | 63%     | 86%     | +47                                 |

*1) Total energy consumption includes energy consumed in production, but excludes administration (except in a few individual cases where separate invoicing is not possible). // 2) For two companies newly acquired in 2023, where the necessary data collection structures for non-financial indicators are not yet in place or have to be optimized, the indicators are not included in the 2023 reporting year. // 3) Coal, fuel oil, and LNG // 4) Values of 2021 adapted due to changes in the consolidation scope. // For all non-financial indicators, the rates of change vs. previous periods are calculated on the basis of non-rounded values. Electronic data processing may result in rounding differences.*

### **Water Management**

| Specific water use<br>in m³/ton of products ready for sale | 2021  | 2022  | 2023  | Chg. in % |
|------------------------------------------------------------|-------|-------|-------|-----------|
| wienerberger                                               | 0.243 | 0.226 | 0.267 | +18       |

### **Circular Economy and Resource Use**

**Waste generation** in tons

Image /page/161/Figure/9 description: This image is a bar chart showing the amount of waste generated in 2020, 2021, and 2022. The x-axis shows the amount of waste in thousands of tons, and the y-axis shows the year. The bar chart shows the amount of non-hazardous recyclable waste, non-hazardous landfilled waste, and hazardous waste. In 2020, the total waste generated was 104,637. In 2021, the total waste generated was 126,666. In 2022, the total waste generated was 105,768.

{162}------------------------------------------------

# **Biodiversity**  ALL1) 195 BIODIVERSITY ACTION PLANS COMPLETED

Image /page/162/Figure/3 description: This image shows a map with the number of Biodiversity Action Plans completed in different regions. The United States has 28 plans, India has 1, the United Kingdom has 15, Spain has 8, France has 19, Germany has 23, Poland has 15, Italy has 13, Switzerland has 4, Austria has 8, Czech Republic has 9, Romania has 7, Bulgaria has 3, Greece has 1, Turkey has 1, Sweden has 3, Finland has 4, Estonia has 2, and Denmark has 4.

*1) As defined by the threshold: 1. locations larger than 1ha and at least 30 FTE; 2. with exception of a few newly acquired companies; 3. wienerberger ownership* 

{163}------------------------------------------------

### EU Taxonomy Regulation: Turnover-KPI

Image /page/163/Picture/6 description: This image shows a table with the columns "Biodiversity and ecosystems", "Minimum safeguards", "Proportion 2022", "Category (enabling activity)", and "Category (transitional activity)". The first row contains the labels Y/N 1), Y/N 1), %, E, and T. The second row is empty. The third row contains Y, Y, 40.3%, and E. The fourth row contains Y, Y, and 40.3%. The fifth row contains Y, Y, 40.3%, and E. The sixth row contains 0% and T. The seventh row contains 11.7% and E. The eighth row contains 11.7%.

| Economic activities                                                                                                        | Code    | Absolute<br>Turnover | Propor-<br>tion of<br>Turnover | Substantial contribution criteria |                                      |                                  |            |                     | DNSH criteria (Do No Significant Harm)      |                                 |                                      |                                  |           |                     |                                             |                            |                      |                                    |
|----------------------------------------------------------------------------------------------------------------------------|---------|----------------------|--------------------------------|-----------------------------------|--------------------------------------|----------------------------------|------------|---------------------|---------------------------------------------|---------------------------------|--------------------------------------|----------------------------------|-----------|---------------------|---------------------------------------------|----------------------------|----------------------|------------------------------------|
|                                                                                                                            |         |                      |                                | Climate<br>change<br>mitigation   | Climate<br>change<br>adapta-<br>tion | Water and<br>marine<br>resources | Pollution  | Circular<br>economy | Bio-<br>diversity<br>and<br>ecosys-<br>tems | Climate<br>change<br>mitigation | Climate<br>change<br>adapta-<br>tion | Water and<br>marine<br>resources | Pollution | Circular<br>economy | Bio-<br>diversity<br>and<br>ecosys-<br>tems | Minimum<br>safe-<br>guards | Propor-<br>tion 2022 | Category<br>(enabling<br>activity) |
|                                                                                                                            |         | in €<br>thousand     | %                              | J;N;N/EL1)                        | J;N;N/EL1)                           | J;N;N/EL1)                       | J;N;N/EL1) | J;N;N/EL1)          | J;N;N/EL1)                                  | Y/N1)                           | Y/N1)                                | Y/N1)                            | Y/N1)     | Y/N1)               | Y/N1)                                       | Y/N1)                      | %                    | E                                  |
| A. Taxonomy-eligible activities                                                                                            |         |                      |                                |                                   |                                      |                                  |            |                     |                                             |                                 |                                      |                                  |           |                     |                                             |                            |                      |                                    |
| A.1. Environmentally sustainable activities (Taxono-<br>my-aligned)                                                        |         |                      |                                |                                   |                                      |                                  |            |                     |                                             |                                 |                                      |                                  |           |                     |                                             |                            |                      |                                    |
| Manufacture of energy-efficient equipment for buildings                                                                    | CCM 3.5 | 2,093,823            | 49.6%                          | J                                 | N                                    | N/EL                             | N/EL       | N/EL                | N/EL                                        | Y                               | Y                                    | Y                                | Y         | Y                   | Y                                           | Y                          | 40.3%                | E                                  |
| Turnover of environmentally sustainable activities<br>(Taxonomy-aligned) (A.1)                                             |         | 2,093,823            | 49.6%                          | 100%                              | 0%                                   | 0%                               | 0%         | 0%                  | 0%                                          | Y                               | Y                                    | Y                                | Y         | Y                   | Y                                           | Y                          | 40.3%                |                                    |
| thereof enabling activities                                                                                                |         | 2,093,823            | 49.6%                          | 100%                              | 0%                                   | 0%                               | 0%         | 0%                  | 0%                                          | Y                               | Y                                    | Y                                | Y         | Y                   | Y                                           | Y                          | 40.3%                | E                                  |
| thereof transitional activities                                                                                            |         | 0                    | 0.0%                           | 0%                                |                                      |                                  |            |                     |                                             |                                 |                                      |                                  |           |                     |                                             |                            | 0%                   |                                    |
| A.2 Taxonomy-eligible but not environmentally sustaina-<br>ble activities (not Taxonomy-aligned activities)                |         |                      |                                |                                   |                                      |                                  |            |                     |                                             |                                 |                                      |                                  |           |                     |                                             |                            |                      |                                    |
| Manufacture of energy-efficient equipment for buildings                                                                    | CCM 3.5 | 60,172               | 1.4%                           | J                                 | N                                    | N/EL                             | N/EL       | N/EL                | N/EL                                        |                                 |                                      |                                  |           |                     |                                             |                            | 11.7%                | E                                  |
| Turnover of Taxonomy-eligible but not environmentally<br>sustainable activities (not Taxonomy-aligned activities)<br>(A.2) |         | 60,172               | 1.4%                           | 100%                              | 0%                                   | 0%                               | 0%         | 0%                  | 0%                                          | Y                               | Y                                    | Y                                | Y         | Y                   | Y                                           | Y                          | 11.7%                |                                    |
| Total (A.1 + A.2)                                                                                                          |         | 2,153,995            | 51.0%                          | 100%                              | 0%                                   | 0%                               | 0%         | 0%                  | 0%                                          | Y                               | Y                                    | Y                                | Y         | Y                   | Y                                           | Y                          |                      |                                    |
| B. Taxonomy-non-eligible<br>activities                                                                                     |         |                      |                                |                                   |                                      |                                  |            |                     |                                             |                                 |                                      |                                  |           |                     |                                             |                            |                      |                                    |
| Turnover of Taxonomy-non-eligible<br>activities (B)                                                                        |         | 2,069,436            | 49.0%                          |                                   |                                      |                                  |            |                     |                                             |                                 |                                      |                                  |           |                     |                                             |                            |                      |                                    |
| Total (A + B)                                                                                                              |         | 4,223,431            | 100.0%                         |                                   |                                      |                                  |            |                     |                                             |                                 |                                      |                                  |           |                     |                                             |                            |                      |                                    |

{164}------------------------------------------------

### EU Taxonomy Regulation: Capex-KPI

Image /page/164/Picture/6 description: The image shows a table with the following columns: diversity and ecosystems, minimum safeguards, proportion 2022, category (enabling activity), and category (transitional activity). The first row contains the column headers. The second row contains Y/N 1) in the first two columns, % in the third column, E in the fourth column, and T in the fifth column. The third row contains Y in the first two columns, 36.7% in the third column, and E in the fourth column. The fourth row contains Y in the first two columns and 0% in the third column. The fifth row contains Y in the first two columns and 0% and E in the third and fourth columns respectively. The sixth row contains Y in the first two columns and 0% and E in the third and fourth columns respectively. The seventh row contains Y in the first two columns and 0% and E in the third and fourth columns respectively. The eighth row contains Y in the first two columns and 36.7% and E in the third and fourth columns respectively. The ninth row contains 36.7% and E in the third and fourth columns respectively. The tenth row contains 0% and T in the third and fifth columns respectively. The eleventh row contains 6.6% in the third column. The twelfth row contains 0.0% in the third column.

|                                                                                                                                               |         |                   |                            |                                 |                                     | Substantial contribution criteria |             |                     |                                           |                                 |                                     | DNSH criteria (Do No Significant Harm) |           |                     |                                           |                           |                     |                                    |                                           |
|-----------------------------------------------------------------------------------------------------------------------------------------------|---------|-------------------|----------------------------|---------------------------------|-------------------------------------|-----------------------------------|-------------|---------------------|-------------------------------------------|---------------------------------|-------------------------------------|----------------------------------------|-----------|---------------------|-------------------------------------------|---------------------------|---------------------|------------------------------------|-------------------------------------------|
| Economic activities                                                                                                                           | Code    | Absolute<br>CapEx | Propor<br>tion of<br>CapEx | Climate<br>change<br>mitigation | Climate<br>change<br>adapta<br>tion | Water and<br>marine<br>resources  | Pollution   | Circular<br>economy | Bio<br>diversity<br>and<br>ecosys<br>tems | Climate<br>change<br>mitigation | Climate<br>change<br>adapta<br>tion | Water and<br>marine<br>resources       | Pollution | Circular<br>economy | Bio<br>diversity<br>and<br>ecosys<br>tems | Minimum<br>safe<br>guards | Propor<br>tion 2022 | Category<br>(enabling<br>activity) | Category<br>(transi<br>tional<br>activity |
|                                                                                                                                               |         | in €<br>thousand  | %                          | J;N;N/EL 1)                     | J;N;N/EL 1)                         | J;N;N/EL 1)                       | J;N;N/EL 1) | J;N;N/EL 1)         | J;N;N/EL 1)                               | Y/N 1)                          | Y/N 1)                              | Y/N 1)                                 | Y/N 1)    | Y/N 1)              | Y/N 1)                                    | Y/N 1)                    | %                   | E                                  | T                                         |
| A. Taxonomy-eligible activities                                                                                                               |         |                   |                            |                                 |                                     |                                   |             |                     |                                           |                                 |                                     |                                        |           |                     |                                           |                           |                     |                                    |                                           |
| A.1. Environmentally sustainable activities (Taxono-<br>my-aligned)                                                                           |         |                   |                            |                                 |                                     |                                   |             |                     |                                           |                                 |                                     |                                        |           |                     |                                           |                           |                     |                                    |                                           |
| Manufacture of energy-efficient equipment for buildings                                                                                       | CCM 3.5 | 194,015           | 52.8%                      | J                               | N                                   | N/EL                              | N/EL        | N/EL                | N/EL                                      | Y                               | Y                                   | Y                                      | Y         | Y                   | Y                                         | Y                         | 36.7%               | E                                  |                                           |
| Transport by motorbikes, passenger cars and light commercial<br>vehicles                                                                      | CCM 6.5 | 835               | 0.2%                       | J                               | N                                   | N/EL                              | N/EL        | N/EL                | N/EL                                      | Y                               | Y                                   | Y                                      | Y         | Y                   | Y                                         | Y                         | 0%                  |                                    |                                           |
| Installation, maintenance and repair of energy efficiency<br>equipment                                                                        | CCM 7.3 | 392               | 0.1%                       | J                               | N                                   | N/EL                              | N/EL        | N/EL                | N/EL                                      | Y                               | Y                                   | Y                                      | Y         | Y                   | Y                                         | Y                         | 0%                  | E                                  |                                           |
| Installation, maintenance and repair of charging stations for<br>electric vehicles in buildings (and parking spaces attached to<br>buildings) | CCM 7.4 | 58                | 0.0%                       | J                               | N                                   | N/EL                              | N/EL        | N/EL                | N/EL                                      | Y                               | Y                                   | Y                                      | Y         | Y                   | Y                                         | Y                         | 0%                  | E                                  |                                           |
| Installation, maintenance and repair of renewable energy<br>technologies                                                                      | CCM 7.6 | 3,103             | 0.8%                       | J                               | N                                   | N/EL                              | N/EL        | N/EL                | N/EL                                      | Y                               | Y                                   | Y                                      | Y         | Y                   | Y                                         | Y                         | 0%                  | E                                  |                                           |
| CapEx of environmentally sustainable activities<br>(Taxonomy-aligned) (A.1)                                                                   |         | 198,403           | 54.0%                      | 100%                            | 0%                                  | 0%                                | 0%          | 0%                  | 0%                                        | Y                               | Y                                   | Y                                      | Y         | Y                   | Y                                         | Y                         | 36.7%               | E                                  |                                           |
| thereof enabling activities                                                                                                                   |         | 197,568           | 53.8%                      | 100%                            | 0%                                  | 0%                                | 0%          | 0%                  | 0%                                        |                                 |                                     |                                        |           |                     |                                           |                           | 36.7%               | E                                  |                                           |
| thereof transitional activities                                                                                                               |         |                   | 0.0%                       | 0%                              |                                     |                                   |             |                     |                                           |                                 |                                     |                                        |           |                     |                                           |                           | 0%                  |                                    |                                           |
| A.2 Taxonomy-eligible but not environmentally sustaina-<br>ble activities (not Taxonomy-aligned activities)                                   |         |                   |                            |                                 |                                     |                                   |             |                     |                                           |                                 |                                     |                                        |           |                     |                                           |                           |                     |                                    |                                           |
| Manufacture of energy-efficient equipment for buildings                                                                                       | CCM 3.5 | 3,641             | 1.0%                       | J                               | N                                   | N/EL                              | N/EL        | N/EL                | N/EL                                      |                                 |                                     |                                        |           |                     |                                           |                           | 6.6%                |                                    |                                           |
| Transport by motorbikes, passenger cars and light commercial<br>vehicles                                                                      | CCM 6.5 | 10,319            | 2.8%                       | J                               | N                                   | N/EL                              | N/EL        | N/EL                | N/EL                                      |                                 |                                     |                                        |           |                     |                                           |                           | 0.0%                |                                    |                                           |
| CapEx of Taxonomy-eligible but not environmentally<br>sustainable activities (not Taxonomy-aligned activities)<br>(A.2)                       |         | 13,960            | 3.8%                       | 100%                            | 0%                                  | 0%                                | 0%          | 0%                  | 0%                                        |                                 |                                     |                                        |           |                     |                                           |                           | 6.6%                |                                    |                                           |
| Total (A.1 + A.2)                                                                                                                             |         | 212,363           | 57.8%                      | 100%                            | 0%                                  | 0%                                | 0%          | 0%                  | 0%                                        |                                 |                                     |                                        |           |                     |                                           |                           |                     |                                    |                                           |
| B. Taxonomy-non-eligible<br>activities                                                                                                        |         |                   |                            |                                 |                                     |                                   |             |                     |                                           |                                 |                                     |                                        |           |                     |                                           |                           |                     |                                    |                                           |
| CapEx of Taxonomy-non-eligible<br>activities (B)                                                                                              |         | 154,982           | 42.2%                      |                                 |                                     |                                   |             |                     |                                           |                                 |                                     |                                        |           |                     |                                           |                           |                     |                                    |                                           |
| Total (A + B)                                                                                                                                 |         | 367,345           | 100.0%                     |                                 |                                     |                                   |             |                     |                                           |                                 |                                     |                                        |           |                     |                                           |                           |                     |                                    |                                           |

{165}------------------------------------------------

### EU Taxonomy Regulation: Opex-KPI

Image /page/165/Picture/6 description: This image shows a table with the columns "Biodiversity and ecosystems", "Minimum safeguards", "Proportion 2022", "Category (enabling activity)", and "Category (transitional activity)". The first two columns have the sub-header "Y/N 1)" and the third column has the sub-header "%" . The first row of data contains "Y", "Y", "53.2%", and "E". The second row of data contains "Y", "Y", "53.2%". The third row of data contains "Y", "Y", "53.2%", and "E". The fourth row of data contains "0%" and "T". The fifth row of data contains "17.0%" and "E". The sixth row of data contains "17.0%".

|                                                                                                                        |         |                  |                           | Substantial contribution criteria |                                     |                                  |             | DNSH criteria (Do No Significant Harm) |                                           |                                 |                                     |                                  |           |                     |                                           |                           |                     |                                    |                                           |
|------------------------------------------------------------------------------------------------------------------------|---------|------------------|---------------------------|-----------------------------------|-------------------------------------|----------------------------------|-------------|----------------------------------------|-------------------------------------------|---------------------------------|-------------------------------------|----------------------------------|-----------|---------------------|-------------------------------------------|---------------------------|---------------------|------------------------------------|-------------------------------------------|
| Economic activities                                                                                                    | Code    | Absolute<br>OpEx | Propor<br>tion of<br>OpEx | Climate<br>change<br>mitigation   | Climate<br>change<br>adapta<br>tion | Water and<br>marine<br>resources | Pollution   | Circular<br>economy                    | Bio<br>diversity<br>and<br>ecosys<br>tems | Climate<br>change<br>mitigation | Climate<br>change<br>adapta<br>tion | Water and<br>marine<br>resources | Pollution | Circular<br>economy | Bio<br>diversity<br>and<br>ecosys<br>tems | Minimum<br>safe<br>guards | Propor<br>tion 2022 | Category<br>(enabling<br>activity) | Category<br>(transi<br>tional<br>activity |
|                                                                                                                        |         | in €<br>thousand | %                         | J;N;N/EL 1)                       | J;N;N/EL 1)                         | J;N;N/EL 1)                      | J;N;N/EL 1) | J;N;N/EL 1)                            | J;N;N/EL 1)                               | Y/N 1)                          | Y/N 1)                              | Y/N 1)                           | Y/N 1)    | Y/N 1)              | Y/N 1)                                    | Y/N 1)                    | %                   | E                                  | T                                         |
| A. Taxonomy-eligible activities                                                                                        |         |                  |                           |                                   |                                     |                                  |             |                                        |                                           |                                 |                                     |                                  |           |                     |                                           |                           |                     |                                    |                                           |
| A.1. Environmentally sustainable activities (Taxono<br>my-aligned)                                                     |         |                  |                           |                                   |                                     |                                  |             |                                        |                                           |                                 |                                     |                                  |           |                     |                                           |                           |                     |                                    |                                           |
| Manufacture of energy-efficient equipment for buildings                                                                | CCM 3.5 | 158,924          | 65.3%                     | J                                 | N                                   | N/EL                             | N/EL        | N/EL                                   | N/EL                                      | Y                               | Y                                   | Y                                | Y         | Y                   | Y                                         | Y                         | 53.2%               | E                                  |                                           |
| OpEx of environmentally sustainable activities (Taxono<br>my-aligned) (A.1)                                            |         | 158,924          | 65.3%                     | 100%                              | 0%                                  | 0%                               | 0%          | 0%                                     | 0%                                        | Y                               | Y                                   | Y                                | Y         | Y                   | Y                                         | Y                         | 53.2%               |                                    |                                           |
| thereof enabling activities                                                                                            |         | 158,924          | 65.3%                     | 100%                              | 0%                                  | 0%                               | 0%          | 0%                                     | 0%                                        | Y                               | Y                                   | Y                                | Y         | Y                   | Y                                         | Y                         | 53.2%               | E                                  |                                           |
| thereof transitional activities                                                                                        |         | 0                | 0.0%                      | 0%                                |                                     |                                  |             |                                        |                                           |                                 |                                     |                                  |           |                     |                                           |                           | 0%                  |                                    | T                                         |
| A.2 Taxonomy-eligible but not environmentally sustaina<br>ble activities (not Taxonomy-aligned activities)             |         |                  |                           |                                   |                                     |                                  |             |                                        |                                           |                                 |                                     |                                  |           |                     |                                           |                           |                     |                                    |                                           |
| Manufacture of energy-efficient equipment for buildings                                                                | CCM 3.5 | 4,142            | 1.7%                      | J                                 | N                                   | N/EL                             | N/EL        | N/EL                                   | N/EL                                      |                                 |                                     |                                  |           |                     |                                           |                           | 17.0%               | E                                  |                                           |
| OpEx of Taxonomy-eligible but not environmentally<br>sustainable activities (not Taxonomy-aligned activities)<br>(A.2) |         | 4,142            | 1.7%                      | 100%                              | 0%                                  | 0%                               | 0%          | 0%                                     | 0%                                        |                                 |                                     |                                  |           |                     |                                           |                           | 17.0%               |                                    |                                           |
| Total (A.1 + A.2)                                                                                                      |         | 163,066          | 67.0%                     | 100%                              | 0%                                  | 0%                               | 0%          | 0%                                     | 0%                                        |                                 |                                     |                                  |           |                     |                                           |                           |                     |                                    |                                           |
| B. Taxonomy-non-eligible activities                                                                                    |         |                  |                           |                                   |                                     |                                  |             |                                        |                                           |                                 |                                     |                                  |           |                     |                                           |                           |                     |                                    |                                           |
| Turnover of Taxonomy-non-eligible                                                                                      |         |                  |                           |                                   |                                     |                                  |             |                                        |                                           |                                 |                                     |                                  |           |                     |                                           |                           |                     |                                    |                                           |
| activities (B)                                                                                                         |         | 80,344           | 33.0%                     |                                   |                                     |                                  |             |                                        |                                           |                                 |                                     |                                  |           |                     |                                           |                           |                     |                                    |                                           |
| Total (A + B)                                                                                                          |         | 243,410          | 100.0%                    |                                   |                                     |                                  |             |                                        |                                           |                                 |                                     |                                  |           |                     |                                           |                           |                     |                                    |                                           |

{166}------------------------------------------------

# <span id="page-166-0"></span>**GRI Content Index**

### **Statement of use**

Wienerberger has reported in accordance with the GRI Standards for the period from 1 January 2023 to 31 December 2023.

| GRI | Disclosure | Page | Omissions, Explanation |
|-----|------------|------|------------------------|
|-----|------------|------|------------------------|

### **Universal Standards**

| GRI 1 | Foundation (2021)                                                              |                                                                        |
|-------|--------------------------------------------------------------------------------|------------------------------------------------------------------------|
| GRI 2 | General Disclosures (2021)                                                     |                                                                        |
|       | 1. The organization and its reporting practices                                |                                                                        |
| 2-1   | Organizational details                                                         | 30-41;<br>Imprint: 317                                                 |
| 2-2   | Entities included in the organization's<br>sustainability reporting            | 33-35; 125-129;<br>Consolidated Financial Statements: 296-300          |
| 2-3   | Reporting period, frequency and contact point                                  | 125-129;<br>Imprint: 317                                               |
| 2-4   | Restatements of information                                                    | 125-129                                                                |
| 2-5   | External assurance                                                             | 129; 174-175                                                           |
|       | 2. Activities and workers                                                      |                                                                        |
| 2-6   | Activities, value chain and other<br>business relationships                    | 30-55                                                                  |
| 2-7   | Employees                                                                      | 30; 33; 57-76; 149-157                                                 |
| 2-8   | Workers who are not employees                                                  | 57-76; 149-157                                                         |
|       | 3. Governance                                                                  |                                                                        |
| 2-9   | Governance structure and composition                                           | 42-44;<br>Corporate Governance Report: 178-187                         |
| 2-10  | Nomination and selection of the highest<br>governance body                     | Corporate Governance Report: 178-187                                   |
| 2-11  | Chair of the highest governance body                                           | Corporate Governance Report: 178-187                                   |
| 2-12  | Role of the highest governance body in<br>overseeing the management of impacts | CEO Letter: 3-5;<br>42-43; 50;<br>Corporate Governance Report: 184-187 |
| 2-13  | Delegation of responsibility for<br>managing impacts                           | 42-44                                                                  |
| 2-14  | Role of the highest governance body in<br>sustainability reporting             | 42-44                                                                  |
| 2-15  | Conflicts of interest                                                          | Corporate Governance Report: 183                                       |
| 2-16  | Communication of critical concerns                                             | 46-48                                                                  |
| 2-17  | Collective knowledge of the highest<br>governance body                         | 42-44;<br>Corporate Governance Report: 187-182                         |
| 2-18  | Evaluation of the performance of the<br>highest governance body                | Corporate Governance Report:<br>184-187; 191-193                       |
| 2-19  | Remuneration policies                                                          | 44;<br>wienerberger Remuneration Report 2023                           |

{167}------------------------------------------------

| 111111<br>1<br>11 |  |  |
|-------------------|--|--|
|                   |  |  |
|                   |  |  |
|                   |  |  |

| GRI  | Disclosure                                                                                                                      | Page                                                                  | Omissions, Explanation |
|------|---------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------|------------------------|
| 2-20 | Process to determine remuneration                                                                                               | 44;<br>wienerberger Remuneration Report 2023                          |                        |
| 2-21 | Annual total compensation ratio<br>(compensation of the CEO in relation to the<br>average compensation of a full-time employee) | wienerberger Remuneration Report 2023                                 |                        |
|      | 4. Strategies, policies and practices                                                                                           |                                                                       |                        |
| 2-22 | Statement on sustainable development<br>strategy                                                                                | CEO Letter: 3-5;<br>11; 33; 41-42                                     |                        |
| 2-23 | Policy commitments                                                                                                              | 41-55; 58; 75-76; 80; 84; 87; 100-101; 106;<br>109; 114-115; 118; 123 |                        |
| 2-24 | Embedding policy commitments                                                                                                    | 41-55; 126                                                            |                        |
| 2-25 | Processes to remediate negative impacts                                                                                         | 41-55; 126                                                            |                        |
| 2-26 | Mechanisms for seeking advice and<br>raising concerns                                                                           | 41-55                                                                 |                        |
| 2-27 | Compliance with laws and regulations                                                                                            | 41-55                                                                 |                        |
| 2-28 | Membership associations                                                                                                         | 111                                                                   |                        |
|      | 5. Stakeholder management                                                                                                       |                                                                       |                        |
| 2-29 | Approach to stakeholder engagement                                                                                              | 41; 50-51                                                             |                        |
| 2-30 | Collective bargaining agreements                                                                                                | 64-67                                                                 |                        |

| GRI 3 | Material Topics (2021)               |         |
|-------|--------------------------------------|---------|
| 3-1   | Process to determine material topics | 57-67   |
| 3-2   | List of material topics              | 41; 126 |

## **Topic Standards**

|       | GRI 201 Economic performance (2016)                                               |                                                                                                         |
|-------|-----------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|
| 3-3   | Management of material topics (2021)                                              | 30; 33; 41-42                                                                                           |
| 201-1 | Direct economic value generated and<br>distributed                                | Management Report: 195-222;<br>Corporate Financial Statements: 223-305                                  |
| 201-2 | Financial implications and other risks and<br>opportunities due to climate change | 45; 86-101; 130-142; 143-148;<br>Management Report: 218-222;<br>Corporate Financial Statements: 285-292 |
| 201-3 | Defined benefit plan obligations and other<br>retirement plans                    | Corporate Financial Statements: 223-305                                                                 |

{168}------------------------------------------------

**206-1** Legal actions for anti-competitive behavior, anti-trust, and monopoly practices

| 1 |  |  |
|---|--|--|
|   |  |  |
|   |  |  |
|   |  |  |
|   |  |  |
|   |  |  |
|   |  |  |
|   |  |  |
|   |  |  |
|   |  |  |
|   |  |  |

| GRI   | Disclosure                                                                  | Page                                                                                                    | Omissions, Explanation |
|-------|-----------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|------------------------|
|       | GRI 205 Anti-corruption (2016)                                              |                                                                                                         |                        |
| 3-3   | Management of material topics (2021)                                        | 41; 46-48; 53; 55; 126; 145; 158;<br>Management Report: 218-222                                         |                        |
| 205-1 | Operations assessed for<br>risks related to corruption                      | 46-48;<br>Management Report: 218-222;<br>Corporate Financial Statements: 296-300                        |                        |
| 205-2 | Communication and training about<br>anti-corruption policies and procedures | 46-48;<br>Management Report: 218-222                                                                    |                        |
| 205-3 | Confirmed incidents of corruption and<br>actions taken                      | 46-48; 158                                                                                              |                        |
|       | GRI 206 Anti-competitive Behavior (2016)                                    |                                                                                                         |                        |
| 3-3   | Management of material topics (2021)                                        | 41; 46-48; 53; 126; 145; 158;<br>Management Report: 218-222;<br>Corporate Financial Statements: 285-292 |                        |

|       | GRI 301 Materials (2016)             |                           |                                                                                                                                                                                                                                                                                                                                            |
|-------|--------------------------------------|---------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3-3   | Management of material topics (2021) | 41; 102-106; 107-115; 126 |                                                                                                                                                                                                                                                                                                                                            |
| 301-1 | Materials used by weight or volume   | 102-106; 107-115          | Due to the confidentiality of prod-<br>uct-formulations, a breakdown<br>of renewable and non-renewable<br>materials by weight or volume cannot<br>be disclosed at present. Renewable raw<br>materials are mainly used in ceramic<br>production, wherever technically<br>possible, as aggregates in the form of<br>secondary raw materials. |
| 301-2 | Recycled input materials used        | 111                       |                                                                                                                                                                                                                                                                                                                                            |

46-48; 145; 158

|       | GRI 302 Energy (2016)                                         |                   |
|-------|---------------------------------------------------------------|-------------------|
| 3-3   | Management of material topics (2021)                          | 41; 86-101; 126   |
| 302-1 | Energy consumption within the organization                    | 79-99             |
| 302-3 | Energy intensity                                              | 98                |
| 302-4 | Reduction of energy consumption                               | 86; 89-90; 97-101 |
| 302-5 | Reductions in energy requirements of products<br>and services | 86; 89-90; 97-101 |

{169}------------------------------------------------

| ர |  |  |
|---|--|--|
|   |  |  |

| GRI   | Disclosure                                                                                                                                      | Page             | Omissions, Explanation |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------|------------------|------------------------|
|       | GRI 304 Biodiversity(2016)                                                                                                                      |                  |                        |
| 3-3   | Management of material topics (2021)                                                                                                            | 41; 116-123; 126 |                        |
| 304-1 | Operational sites owned, leased, managed in,<br>or adjacent to, protected areas and areas of<br>high biodiversity value outside protected areas | 121              |                        |
| 304-2 | Significant impacts of activities, products and<br>services on biodiversity                                                                     | 116-123          |                        |
| 304-3 | Habitats protected or restored                                                                                                                  | 116-123          |                        |

|       | GRI 305 Emissions (2016)                                                           |                                   |                                                                                                                                                                                                                                                                                                                                                                                 |
|-------|------------------------------------------------------------------------------------|-----------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3-3   | Management of material topics (2021)                                               | 41; 86-101; 126; 130-142; 143-148 |                                                                                                                                                                                                                                                                                                                                                                                 |
| 305-1 | Direct (Scope 1) GHG emissions                                                     | 91-92; 93-94; 96                  |                                                                                                                                                                                                                                                                                                                                                                                 |
| 305-2 | Energy indirect (Scope 2) GHG emissions                                            | 91; 93-94; 96                     |                                                                                                                                                                                                                                                                                                                                                                                 |
| 305-3 | Other indirect (Scope 3) GHG emissions                                             | 95-96                             |                                                                                                                                                                                                                                                                                                                                                                                 |
| 305-4 | GHG emissions intensity                                                            | 91-93                             | The specific values are presented as<br>an index in % relative to the defined<br>reference year, the baseline being set<br>at 100%- The specific CO2 emissions in<br>% shown in the index are based on kg<br>CO₂/quantity of products ready for sale<br>(2020 = 100%)..                                                                                                         |
| 305-5 | Reduction of GHG emissions                                                         | 86-101                            |                                                                                                                                                                                                                                                                                                                                                                                 |
| 305-7 | Nitrogen oxides (NOx), sulfur oxides (SOx), and<br>other significant air emissions | 96; 128                           | The flue gas analyses carried out reg-<br>ularly at our plants have shown that of<br>the greenhouse gases mentioned (N₂O,<br>SF₆ etc.) CO₂ itself is the only relevant<br>one. wienerberger therefore reports<br>its direct greenhouse gas emissions<br>(Greenhouse Gas Protocol, Scope 1) in<br>tons of CO₂, which in this case is identi-<br>cal to tons of CO₂ equivalents.. |

| GRI 306 Waste (2020) |                                                        |                  |
|----------------------|--------------------------------------------------------|------------------|
| 3-3                  | Management of material topics (2021)                   | 41; 107-115; 126 |
| 306-1                | Waste generation and significant waste-related impacts | 107-115          |
| 306-2                | Management of significant waste-related impacts        | 107-115          |
| 306-3                | Waste generated                                        | 112-113          |
| 306-4                | Waste diverted from disposal                           | 112-113          |
| 306-5                | Waste directed to disposal                             | 112-113          |

{170}------------------------------------------------

| GRI     | Disclosure                                                                                                          | Page           | Omissions, Explanation                                                                                                                                                                                                                                                                                       |
|---------|---------------------------------------------------------------------------------------------------------------------|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| GRI 308 | Supplier Environmental Assessment (2016)                                                                            |                |                                                                                                                                                                                                                                                                                                              |
| 3-3     | Management of material topics (2021)                                                                                | 41; 50-53; 126 |                                                                                                                                                                                                                                                                                                              |
| 308-1   | New suppliers that were screened using<br>environmental criteria                                                    | 52-53          |                                                                                                                                                                                                                                                                                                              |
| 308-2   | Negative environmental impacts in the supply<br>chain and actions taken                                             | 52-53          | Complete GRI-compliant reporting is<br>not available at present                                                                                                                                                                                                                                              |
| GRI 401 | Employment (2016)                                                                                                   |                |                                                                                                                                                                                                                                                                                                              |
| 3-3     | Management of material topics (2021)                                                                                | 41; 57-76; 126 |                                                                                                                                                                                                                                                                                                              |
| 401-1   | New employee hires and employee turnover                                                                            | 64-67; 152-155 |                                                                                                                                                                                                                                                                                                              |
| GRI 403 | Occupational Health and Safety (2018)                                                                               |                |                                                                                                                                                                                                                                                                                                              |
| 3-3     | Management of material topics (2021)                                                                                | 41; 70-75; 126 |                                                                                                                                                                                                                                                                                                              |
| 403-1   | Occupational health and<br>safety management system                                                                 | 70-75          |                                                                                                                                                                                                                                                                                                              |
| 403-2   | Hazard identification, risk assessment, and<br>incident investigation                                               | 70-75          |                                                                                                                                                                                                                                                                                                              |
| 403-3   | Occupational health services                                                                                        | 70-75          |                                                                                                                                                                                                                                                                                                              |
| 403-4   | Worker participation, consultation, and com<br>munication on occupational health and safety                         | 70-75          |                                                                                                                                                                                                                                                                                                              |
| 403-5   | Worker training on occupational health and<br>safety                                                                | 70-75          |                                                                                                                                                                                                                                                                                                              |
| 403-6   | Promotion of worker health                                                                                          | 70-75          |                                                                                                                                                                                                                                                                                                              |
| 403-7   | Prevention and mitigation of occupational<br>health and safety impacts directly linked by<br>business relationships | 70-75          |                                                                                                                                                                                                                                                                                                              |
| 403-8   | Workers covered by an occupational health<br>and safety management system                                           | 70-75; 156-157 |                                                                                                                                                                                                                                                                                                              |
| 403-9   | Work-related injuries                                                                                               | 70-74; 156-157 | Due to the data collection structures in<br>place at wienerberger, differentiation<br>between employees and workers who<br>are not employees is currently not pro<br>vided for. For the time being, the only<br>information provided on high-conse<br>quence work-related injuries is the type<br>of injury. |

**GRI Disclosure Page Omissions, Explanation**

{171}------------------------------------------------

such as minority or vulnerable groups are not applicable for wienerberger.

| GRI                                            | Disclosure                                                                   | Page                                                           | Omissions, Explanation                                                                                                  |
|------------------------------------------------|------------------------------------------------------------------------------|----------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------|
| GRI 404 Training and Education (2016)          |                                                                              |                                                                |                                                                                                                         |
| 3-3                                            | Management of material topics (2021)                                         | 41; 57-60; 68-69; 75-76; 126                                   |                                                                                                                         |
| 404-1                                          | Average hours of training per year<br>per employee                           | 96; 155                                                        | GRI-compliant differentiation by gen-<br>der and employee category is currently<br>not available.                       |
| 404-2                                          | Programs for upgrading employee skills and<br>transition assistance programs | 57-60; 68-69; 75-76; 155                                       |                                                                                                                         |
| GRI 405 Diversity and Equal Opportunity (2016) |                                                                              |                                                                |                                                                                                                         |
| 3-3                                            | Management of material topics (2021)                                         | 41; 57-64; 75-76; 126;<br>Corporate Governance Report: 188-190 |                                                                                                                         |
| 405-1                                          | Diversity of governance bodies and employees                                 | 57-64; 75-76; 149-151                                          | Currently, differentiation of the man-<br>agement and control bodies by age<br>group is not available. Other indicators |

| GRI 406 Non-discrimination (2016) |                                                             |                                                            |
|-----------------------------------|-------------------------------------------------------------|------------------------------------------------------------|
| 3-3                               | Management of material topics (2021)                        | 41; 47; 57-64; 126<br>Corporate Governance Report: 188-190 |
| 406-1                             | Incidents of discrimination and corrective<br>actions taken | 47; 55; 60; 64                                             |

|       | GRI 413 Local Communities (2016)                                                          |                              |
|-------|-------------------------------------------------------------------------------------------|------------------------------|
| 3-3   | Management of material topics (2021)                                                      | 41; 50-51; 77-78; 79-84; 126 |
| 413-2 | Operations with significant actual and potential<br>negative impacts on local communities | 77-78                        |

| GRI 414 Supplier Social Assessment (2016)                                                                 |                                      |                                                                       |
|-----------------------------------------------------------------------------------------------------------|--------------------------------------|-----------------------------------------------------------------------|
| 3-3 Management of material topics (2021)                                                                  | 41; 46; 50-53; 126                   |                                                                       |
| 414-1 New suppliers that were screened using<br>social criteria                                           | 52-53                                |                                                                       |
| 414-2 Negative social impacts in the supply chain<br>and actions taken                                    | 52-53                                | Complete GRI-compliant reporting is<br>not yet available at present.. |
| GRI 416 Customer Health and Safety (2016)                                                                 |                                      |                                                                       |
| 3-3 Management of material topics (2021)                                                                  | 41; 44; 46; 49-51; 77-78; 79-84; 126 |                                                                       |
| 416-2 Incidents of non-compliance concerning the<br>health and safety impacts of products and<br>services | 50-51; 77-78                         | Complete GRI-compliant reporting is<br>not yet available at present.. |

{172}------------------------------------------------

# <span id="page-172-0"></span>**Confirmation by the Managing Board**

We herewith confirm to the best of our knowledge that this Report was compiled in conformity with the provisions of the Sustainability and Diversity Improvement Act (NaDiVeG) and contains all the information available on material non-financial matters.

Vienna, March 14th, 2023 The Managing Board of Wienerberger AG

*Heimo Scheuch Chairman of the Managing Board of Wienerberger AG CEO*

*Gerhard Hanke Member of the Managing Board of Wienerberger AG CFO*

*Solveig Menard-Galli Member of the Managing Board of Wienerberger AG COO East*

HHehman

*Harald Schwarzmayr Member of the Managing Board of Wienerberger AG COO West*

{173}------------------------------------------------

# <span id="page-173-0"></span>**Audit Report**

# **Courtesy Translation of the Audit Report of the Independent Assurance on Non-Financial Reporting\***

### **Introduction**

We have performed procedures to obtain limited assurance as to whether any matters have come to our attention that cause us to believe that the (consolidated) non-financial report as of December 31, 2023 has not been prepared, in all material respects, in accordance with the reporting criteria. The reporting criteria consist of the GRI Standards issued by the Global Sustainability Standards Board (GSSB) and the reporting requirements mentioned in §§ 243b and 267a UGB (NaDiVeG).

Furthermore, we have performed procedures to obtain limited assurance as to whether any matters have come to our attention that cause us to believe that the EU taxonomy information disclosed is not prepared, in all material respects, in accordance with Regulation (EU) 2020/852 (Taxonomy Regulation) and complementary Delegated Regulations (EU) 2021/2178 and (EU) 2021/2139.

### **Responsibility of the management**

The legal representatives of Wienerberger AG are responsible for the preparation of the report content in accordance with the reporting criteria and for the selection of the disclosures to be verified. The reporting criteria consist of the GRI Standards issued by the Global Sustainability Standards Board (GSSB) and the reporting requirements mentioned in §§ 243b and 267a UGB (NaDiVeG). Furthermore, they are responsible for reporting the disclosed information on the EU taxonomy in accordance with Regulation (EU) 2020/852 (Taxonomy Regulation) and complementary Delegated Regulations (EU) 2021/2178 and (EU) 2021/2139.

This responsibility of the management of the company includes the selection and application of appropriate methods for preparing the report, making assumptions and estimates of individual non-financial disclosures that are plausible under the given circumstances. The responsibility further includes the internal controls, which have been determined as necessary by the management to enable the preparation of a (consolidated) non-financial report that is free from misstatement, whether due to fraud or error.

### **Responsibility of the auditor**

Our responsibility is to express a limited assurance opinion as to whether any matters have come to our attention that cause us to believe that the (consolidated) non-financial report as of December 31, 2023 has not been prepared, in all material respects, in accordance with the reporting criteria. The reporting criteria consist of the GRI Standards issued by the Global Sustainability Standards Board (GSSB) and the reporting requirements mentioned in §§ 243b and 267a UGB (NaDiVeG).

Furthermore, it is our responsibility to express a limited assurance opinion as to whether any matters have come to our attention that cause us to believe that the EU taxonomy information disclosed is not prepared, in all material respects, in accordance with Regulation (EU) 2020/852 (Taxonomy Regulation) and complementary Delegated Regulations (EU) 2021/2178 and (EU) 2021/2139.

We conducted our engagement in accordance with the International Standard on Assurance Engagements ISAE 3000 (Revised), "Assurance Engagements Other Than Audits or Reviews of Historical Financial Information" issued by the International Auditing and Assurance Standards Board (IAASB) in order to obtain limited assurance on the subject matters.

ISAE 3000 (Revised) requires us to plan and perform the engagement in a way that enables us to obtain limited assurance that nothing has come to our attention that causes us to believe that the (consolidated) non-financial report has not, in any material aspect, been prepared in accordance with the GRI Standards and the reporting requirements mentioned in §§ 243b and 267a UGB (NaDiVeG), and that the disclosed information on the EU taxonomy has not been prepared in accordance with Regulation (EU) 2020/852 (Taxonomy Regulation) and complementary Delegated Regulations (EU) 2021/2178 and (EU) 2021/2139.

In a limited assurance engagement, the evidence-gathering procedures are more limited than in a reasonable assurance engagement and therefore, less assurance can be obtained. The choice of audit procedures lies in the due discretion of the auditor.

As part of our audit, we have performed, inter alia, the following audit procedures and other activities as far as they are relevant to the limited assurance engagement:

**›** Interview of the employees named by Wienerberger AG regarding the sustainability strategy, the sustainability principles and the sustainability management

{174}------------------------------------------------

Image /page/174/Picture/2 description: The image is a blurry, low-resolution photograph of what appears to be a white feather against a light gray or white background. The feather is positioned diagonally, with the tip pointing towards the upper left corner of the image. The background is mostly uniform in color, with some subtle variations in shading that suggest a textured surface. Due to the blurriness, the details of the feather's structure are not clearly visible.

- <span id="page-174-0"></span>**›** Interviews of employees of Wienerberger AG to assess the methods of data collection, data processing and internal controls
- **›** Matching the non-financial disclosures shown in the (consolidated) non-financial report with the documents provided
- **›** Conducting a media analysis
- **›** Review of the disclosed information according to §§ 243b and 267a UGB and GRI Standards
- **›** Review of the disclosed information on the EU taxonomy for compliance with Regulation (EU) 2020/852 (Taxonomy Regulation) and complementary Delegated Regulations (EU) 2021/2178 and (EU) 2021/2139
- **›** Verification of KPI 1 (Scope 1 and 2 greenhouse gas emissions intensity) and KPI 2 (Revenue from products supporting net zero buildings) in accordance with the Sustainability-Linked Finance Framework 2023 and the Sustainability-linked progress report

We believe that the audit evidence we have obtained is sufficient and appropriate to serve as a basis for our assessment.

The objective of our engagement is neither an audit of financial statements nor an auditor's review of financial statements. Likewise, neither the detection and clarification of criminal offences, such as embezzlement or other acts of breach of trust and administrative offenses, nor the assessment of the effectiveness and efficiency of the management is the object of our engagement.

### **Summarized Conclusion**

Based on our work and the evidence we have obtained, nothing has come to our attention that causes us to believe that the (consolidated) non-financial report of Wienerberger AG as of December 31, 2023, has not, in any material aspects, been prepared in accordance with GRI Standards. Furthermore, based on our work and the evidence we have obtained, nothing has come to our attention that causes us to believe that the reporting requirements of §§ 243b and 267a UGB (NaDiVeG) are not met by the (consolidated) non-financial report.

Additionally, based on our audit procedures and the evidence we have obtained, nothing has come to our attention that causes us to believe that the disclosed information on the EU taxonomy has not been prepared in accordance with Regulation (EU) 2020/852 (Taxonomy Regulation) and complementary Delegated Regulations (EU) 2021/2178 and (EU) 2021/2139.

### **Engagement approach**

The basis for this engagement are the "General Conditions of Contract for the Public Accounting Professions", as issued by the Chamber of Tax Advisers and Auditors in Austria (according to appendix). In accordance with chapter 7 of these terms and conditions, our liability shall be limited to intent and gross negligence. In cases of gross negligence, the maximum liability is limited to a maximum of five times the fee. This amount constitutes a total maximum liability cap, which may only be utilized once up to this maximum amount, even if there is more than one claimant or more than one claim has been asserted.

Vienna, March 14, 2024

*Deloitte Audit Wirtschaftsprüfungs GmbH*

Mag. Gerhard Marterbauer Mag. Alfred Ripka Wirtschaftsprüfer Wirtschaftsprüfer

Mag. Alfred Ripka
Wirtschaftsprüfer

**\*) Attention:** This letter has been translated from German to English for referencing purposes only. Please refer to the officially legally binding version as written and signed in German. Only the German version is the legally binding version.

{175}------------------------------------------------

# <span id="page-175-0"></span>CORPORATE GOVERNANCE REPORT

### **[177](#page-176-0)**

### **[Corporate Governance](#page-176-0)  [at wienerberger](#page-176-0)**

**177** [Commitment to the Austrian](#page-176-0)  [Corporate Governance Code](#page-176-0) 

### **[178](#page-177-0)**

### **[Members of the Managing](#page-177-0)  [Board](#page-177-0)**

### **[180](#page-179-0)**

### **[Members of the Supervisory](#page-179-0)  [Board](#page-179-0)**

**183** [Disclosures regarding the inde](#page-182-0)[pendence of the members of the](#page-182-0)  [Supervisory Board](#page-182-0)

### **[184](#page-183-0)**

### **[Mode of Operation of the](#page-183-0)  [Managing Board and the](#page-183-0)  [Supervisory Board](#page-183-0)**

- **184** [How the Managing Board works](#page-183-0)
- **184** [How the Supervisory Board and its](#page-183-0)  [committees work](#page-183-0)

### **[188](#page-187-0)**

### **[Success through Diversity](#page-187-0)**

- **189** [Diversity as an aspect to be con](#page-188-0)[sidered in Managing Board and](#page-188-0)  [Supervisory Board appointments](#page-188-0) **190** [Measures for the Advancement of](#page-189-0)
- [Women](#page-189-0)

### **[191](#page-190-0)**

### **[External Evaluation of](#page-190-0)  [Compliance with the](#page-190-0)  [Corporate Governance Code](#page-190-0)**

### **[192](#page-191-0)**

### **[Auditor's Report](#page-191-0)**

**192** [Report on the evaluation of](#page-191-0)  [Wienerberger AG's compliance with](#page-191-0) [the Austrian Corporate Governance](#page-191-0)  [Code in the financial year 2022](#page-191-0)

{176}------------------------------------------------

# <span id="page-176-0"></span>**Corporate Governance at wienerberger**

As a listed company with international operations, wienerberger is committed to the principles of responsible corporate governance aimed at the sustainable creation of added value. Transparency in reporting, the continuous further development of an efficient system of corporate control, corporate management aligned with the interests of our stakeholders, and cooperation in a spirit of mutual trust between the Managing Board and the Supervisory Board, as well as among our employees, provide the basis for the achievement of our corporate targets, which are all set in line with our Sustainability Program. This understanding of our role as a company is based on Austrian law, the Austrian Corporate Governance Code, the Articles of Association, the rules of procedure of the Boards of the company, and our internal policies.

# **Commitment to the Austrian Corporate Governance Code**

Since the entry into force of the Austrian Corporate Governance Code in 2002, wienerberger has committed itself, without reservation, to comply with the rules of the Code, as amended. The Code, which can be accessed on the internet at [www.corporate-governance.at](http://www.corporate-governance.at), provides a framework for the management and supervision of a company on the basis of international standards and is intended to ensure a high level of transparency for all stakeholders. Its guiding principles include the following:

- **›** Equal treatment of all shareholders
- **›** The highest possible level of transparency
- **›** Independence of the Supervisory Board
- **›** Open communication between the Supervisory Board and the Managing Board
- **›** Avoidance of conflicts of interest between the governing bodies of the company
- **›** Efficient monitoring by the Supervisory Board and the external auditor

This Corporate Governance Report is based on the most recent revision of the Code, dated January 2023. As in the previous year, wienerberger fully complied with all legal requirements (L Rules). Moreover, the C Rules ("Comply or Explain"), including the R Rules ("Recommendations"), which require no explanation in the case of non-compliance, were complied with in their entirety.

Image /page/176/Picture/13 description: The image shows a white document icon with a shield and checkmark on top of it, all within a white circle against a light gray background. The document has lines on it, suggesting it contains text. The shield with the checkmark is positioned in the lower right corner of the document, indicating security or verification.

{177}------------------------------------------------

# <span id="page-177-0"></span>**Members of the Managing Board**

Image /page/177/Picture/3 description: Four people are standing next to each other in front of a cityscape. From left to right, the first person is a man wearing a black suit jacket, a white shirt, and dark jeans. The second person is a man wearing a blue suit jacket, a blue and white checkered shirt, and khaki pants. The third person is a woman wearing a black suit jacket, a white patterned shirt, and khaki pants. The fourth person is a man wearing a tan jacket, a blue shirt, and blue jeans. The background shows a cityscape with buildings and a cloudy sky.

*F.l.t.r: Gerhard Hanke, Harald Schwarzmayr, Solveig Menard-Galli, Heimo Scheuch*

Image /page/177/Picture/5 description: This is a portrait of a man with short gray hair and glasses. He is wearing a tan jacket over a dark blue shirt. The background is blurred, but it appears to be an outdoor scene with a body of water and some hills in the distance. The image is cropped in a circle.

**HEIMO SCHEUCH CEO Wienerberger AG Chairman of the Managing Board** Born 1966

Appointed until 31/12/2025 Chairman since 01/08/2009 Member since 21/05/2001

### **Responsible for the strategic and operational development of wienerberger**

### **Group functions assigned:**

- › Corporate Development
- › Organizational Development & Human Resources
- › Sustainability & Innovation
- › New Digital Business
- › Investor Relations
- › Corporate Communications
- › Corporate Secretary
- › North America

### **External mandates:**

Chairman of the Supervisory Board of Wiener Börse AG Managing Director of ANC Anteilsverwaltung GmbH

{178}------------------------------------------------

Image /page/178/Picture/2 description: This is a headshot of a middle-aged man with short, light brown hair and fair skin. He is wearing a dark suit jacket over a white shirt. The background is blurred, but appears to be an outdoor scene with a light-colored sky. The image is cropped in a circular shape.

**GERHARD HANKE CFO Wienerberger AG** Born 1971

Appointed until 28/02/2027 Member since 01/03/2021

**Responsible for financial matters and performance management of wienerberger**

### **Group functions assigned:**

- › Accounting, Tax, Group Reporting & Business Support
- › Corporate Treasury
- › Procurement
- › IT & Cyber Security
- › Risk Management
- › Corporate Legal Services
- › Compliance
- › Internal Audit

### **External mandates:**

Managing Director of ANC Anteilsverwaltung GmbH

Image /page/178/Picture/17 description: This is a headshot of a woman with dark, wavy hair. She is wearing a white blouse with a decorative pin and a black blazer. She is smiling and looking directly at the camera. The background is blurred, but appears to be an outdoor scene with a light-colored sky.

**SOLVEIG MENARD-GALLI COO Europe East Wienerberger AG** Born 1969

Appointed until 31/05/2025 Member since 01/06/2019

### **Responsible for all wienerberger activities - building solutions and piping solutions - in Eastern Europe**

### **Group functions assigned:**

- › Strategy & Technology Building Solutions
- › Product Development Clay & Concrete
- › Operational Services (Health & Safety, Supply Chain Management, Lean Manufacturing, Industry 4.0)

### **External mandates:**

None

Image /page/178/Picture/27 description: This is a headshot of a middle-aged man with a bald head. He is wearing a blue blazer over a white and blue checkered shirt. The background is a blurry cityscape with a light blue sky.

**HARALD SCHWARZMAYR COO Europe West Wienerberger AG** Born 1969

Appointed until 30/06/2026 Member since 01/07/2020

**Responsible for all wienerberger activities - building solutions and piping solutions - in Western Europe**

### **Group function assigned:**

- › Strategy & Technology Piping Solutions
- › Product Development Piping Solutions
- › Commercial Services (Marketing & Sales, Digital Business Models)

**External mandates:**

None

{179}------------------------------------------------

# <span id="page-179-0"></span>**Members of the Supervisory Board**

Image /page/179/Picture/3 description: A group of seven people are standing in a line against a white background. From left to right, the first person is a man wearing a navy suit with a white shirt. The second person is a woman wearing a light pink top and white pants. The third person is a man wearing a black suit with a white shirt. The fourth person is a woman wearing a light blue blazer, a navy top, and navy pants. The fifth person is a man wearing a navy blazer, a white shirt, and khaki pants. The sixth person is a woman wearing a blue dress. The seventh person is a man wearing a navy suit with a white shirt. All of the people are facing forward and looking at the camera.

*F.l.t.r: Thomas Birtel, Effie K. Datson, David Davies, Katrien Beuls, Peter Steiner, Myriam Meyer, Marc Grynberg*

Image /page/179/Picture/5 description: This is a headshot of a man with short, gray hair and glasses. He is wearing a blue blazer over a white shirt. The background is a solid white color.

**PETER STEINER Chairman (since 01/01/2021)** Born 1959 Independent

Appointed until 157th AGM (2026) First elected: 14/06/2018

### **Mandates in listed companies:**

Member of the Board of Directors, Chairman of the Audit Committee, and Member of the Nomination Committee of Clariant AG Chairman of the Supervisory Board of Zeal Network SE

### **Other mandates:**

None

Image /page/179/Picture/12 description: This is a headshot of a woman with short blonde hair, wearing a blue v-neck shirt and silver square earrings. She is smiling and has fair skin. The background is a light gray color.

**MYRIAM MEYER Deputy Chairwoman** Born 1962 Independent

Appointed until 158th AGM (2027) First elected: 22/05/2015

### **Mandates in listed companies:**  None

None

### **Other mandates:**

Member of the Supervisory Board of KUKA AG Member of the Board of Directors of Bedag Informatik AG Member of the Board of Trustees of Swisscontact Member of the Industry Advisory Board of ETH Zurich/Dept. of Mechanical Engineering

{180}------------------------------------------------

[Sustainability Report](#page-28-0) | **[Corporate Governance Report](#page-175-0)** | [Management Report](#page-193-0) | [Consolidated Financial Statements](#page-222-0)

Image /page/180/Picture/2 description: This is a headshot of a woman with dark, curly hair. She is smiling and wearing a light blue blazer over a dark blue top. The background is a light gray.

**KATRIEN BEULS Member of the Supervisory Board** Born 1968 Independent

Appointed until 158th AGM (2027) First elected: 05/05/2023

### **Mandates in listed companies:** None

### **Other mandates:**

CEO Strategic Transformation and Group M&A of ISS A/S Member of the Supervisory Board of ISS Facility Services Holding GmbH Member of the Supervisory Board of ISS Austria Holding GmbH and ISS Facility Services GmbH Member of the Supervisory Board of ISS Tesis A.S. Member of the Supervisory Board of ISS World Services A/S

Image /page/180/Picture/8 description: This is a headshot of a man with short gray hair, wearing glasses and a navy blue suit jacket over a white shirt. He is smiling slightly and looking directly at the camera. The background is a solid light gray color.

**THOMAS BIRTEL Member of the Supervisory Board** Born 1954 Independent

Appointed until 157th AGM (2026) First elected: 03/05/2022

### **Mandates in listed companies:**

None

### **Other mandates:**

Member of the Supervisory Board of four companies of VHV Versicherung Chairman of the Board of CONCORDIA Sozialprojekte Stiftung Deutschland Member of the Board of CONCORDIA Sozialprojekte gemeinnützige Privatstiftung Wien

Image /page/180/Picture/15 description: This is a headshot of a woman with long brown hair, fair skin, and a bright smile. She is wearing a light-colored top and a pearl necklace. The background is a light gray circle, which is set against a white background.

**EFFIE K. DATSON Member of the Supervisory Board** Born 1970 Independent

Appointed until 158th AGM (2027) First elected: 05/05/2023

**Mandates in listed companies:** None

### **Other mandates:**

Managing Director of EK Datson Capital Inc Non-Executive Director of Chia Network Inc

Image /page/180/Picture/21 description: A man with short gray hair and a beard is wearing glasses and a dark suit jacket over a light blue button-down shirt. He is facing forward and smiling slightly. The background is white.

**DAVID DAVIES Member of the Supervisory Board** Born 1955

Appointed until 156th AGM (2025) First elected: 19/05/2017

### **Mandates in listed companies:**

Member of the Board of Directors and Chairman of the Audit Committee of Petrofac Ltd

### **Other mandates:**

Member of the Supervisory Board and Chairman of the Audit Committee of Gas Transmission System Operator of Ukraine LLC (GTSOU)

Image /page/180/Picture/28 description: This is a headshot of a man with short brown hair and a light complexion. He is wearing a dark blue suit jacket over a white collared shirt. The background is a light gray color.

### **MARC GRYNBERG**

Independent

**Member of the Supervisory Board** Born 1965 Independent

Appointed until 157th AGM (2026) First elected: 03/05/2022

### **Mandates in listed companies:**

Member of the Supervisory Board, the Accounts, Audit & Risk Committee, the Strategy & Sustainability Committee and Climate Director of Nexans SA Member of the Supervisory Board, the Investment Committee and Audit Committee of Umicore

### **Other mandates:**

None

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### **The following members resigned from the Supervisory Board of Wienerberger AG as of the end of the 154th Annual General Meeting on May 5, 2023:**

|                                                                                                                                                              | Mandates in listed companies:                                                                                                                                                                                                                                                                                                                                                                                               |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| PETER JOHNSON<br>Member of the Supervisory Board<br>Born 1947<br>Not independent since 13/05/2020<br>End of mandate: 05/05/2023<br>First elected: 12/05/2005 | None<br>Other mandates:<br>Chairman of the Remuneration Committee of St. Edmund Hall, University of Oxford                                                                                                                                                                                                                                                                                                                  |
| REGINA PREHOFER<br>Member of the Supervisory Board<br>Born 1956<br>Independent<br>End of mandate: 05/05/2023<br>First elected: 13/05/2011                    | First Deputy Chairwoman of the Supervisory Board of AT&S Austria Technologie & Systemtechnik AG<br>Other mandates:<br>Member of the Supervisory Board of SPAR Holding AG and SPAR Österreichische Warenhandels-AG<br>Member of the Supervisory Board of 6B47 Real Estate Investors AG<br>Member of the Board of Karlheinz and Agnes Essl Privatstiftung<br>Member of the Advisory Board of "aws venture-capital-Initiative" |
| OSWALD SCHMID<br>Member of the Supervisory Board<br>Born 1959<br>Independent<br>End of mandate: 05/05/2023<br>First elected: 06/05/2019                      | CEO and Member of the Board of Directors of NV Bekaert SA (until 31/08/2023)<br>Other mandates:<br>Founder and owner of Sinigual Consulting GmbH                                                                                                                                                                                                                                                                            |

### **Members delegated by the Works Council:**

| GERHARD SEBAN<br>Member of the Supervisory Board<br>Born 1967<br>First delegated: 03/02/2006    | Chairman of the Works Council of the Hennersdorf plant (Austria)<br>Chairman of the Central Works Council of Wienerberger Österreich GmbH<br>Chairman of the Group Works Council and the European Works Council of<br>Wienerberger AG |
|-------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| CLAUDIA SCHIROKY<br>Member of the Supervisory Board<br>Born 1971<br>First delegated: 02/07/2002 | Chairwoman of the Works Council and the Central Works Council of Wienerberger AG<br>Deputy Chairwoman of the Group Works Council of Wienerberger AG                                                                                   |
| WOLFGANG WALLNER<br>Member of the Supervisory Board<br>Born 1970                                | Deputy Chairman of the Group Works Council of Wienerberger AG<br>Foreman and member of the Works Council of Pipelife Austria GmbH & Co KG                                                                                             |

First delegated: 06/05/2019

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# <span id="page-182-0"></span>**Disclosures regarding the independence of the members of the Supervisory Board**

Pursuant to C Rule 53 of the Austrian Corporate Governance Code, the majority of the elected members of the supervisory board are to be independent of the company and its managing board. A supervisory board member is deemed to be independent if he or she has no relationship, either business or personal, with the company or its managing board that constitutes a material conflict of interest and consequently may influence his or her behavior. In companies with a free float of more than 50%, at least two capital representatives have to be independent, as specified in C Rule 54.

In defining the criteria of independence, the Supervisory Board of Wienerberger AG follows the Guidelines for Independence laid down in Annex 1 of the Austrian Corporate Governance Code. According to these guidelines, a supervisory board member is deemed to be independent if he or she

- **›** has not served as a member of the Managing Board or in an executive position at Wienerberger AG or a company of the group during the past five years;
- **›** does not, or did not in the past year, maintain business relations with Wienerberger AG or a company of the group to an extent of significance for the member of the Supervisory Board concerned (this also applies to business relations with companies in which the Supervisory Board member has a material economic interest);
- **›** has not acted as an external auditor of Wienerberger AG or been a partner or an employee of the accounting firm mandated to perform the audit during the past three years;
- **›** is not a member of the management board of another company in which a member of the Managing Board of Wienerberger AG serves on the supervisory board;
- **›** has not been a member of the Supervisory Board for more than 15 years;
- **›** is not closely related to a member of the Managing Board of Wienerberger AG or to persons holding any of the aforementioned positions

On the basis of the criteria stated above, all of the present seven members of the Supervisory Board elected by the Annual General Meeting confirmed their declarations of independence. Of the three members who resigned from their positions as of the end of the 154th Annual General Meeting on May 5, 2023, two declared themselves to be independent. Peter Johnson, who stepped down as a member of the Supervisory Board on May 5, 2023, stated in his declaration that, given his 15 years of membership of the Supervisory Board, he had ceased to fulfill one of the criteria of independence with effect from May 13, 2020. None of the members elected by the Annual General Meeting holds an investment of more than 10% or represents the interests of such a shareholder.

In the 2023 business year, no contracts were concluded with members of the Supervisory Board that would require the Supervisory Board's approval pursuant to L Rule 48 of the Austrian Corporate Governance Code. Any business transactions with companies in which members of the wienerberger Supervisory Board are active are concluded on an arm's length basis. For further information on related-party transactions, please refer to the Notes to the Consolidated Annual Financial Statements on [page 292.](#page-292-0)

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# <span id="page-183-0"></span>**Mode of Operation of the Managing Board and the Supervisory Board**

Committed to ensuring a sustainable, value-accretive development of the company, the Managing Board and the Supervisory Board of Wienerberger AG observe the company's stated principles as well as the principles of transparency, integrity, and accountability. Their actions are based on the applicable legal provisions and the Articles of Association of the company, as well as the rules of procedure of the Managing Board and the Supervisory Board. The latter govern the responsibilities, the working methods, and the interaction between the Managing Board and the Supervisory Board, as well as the procedure to be applied in the event of conflicts of interest. Additionally, they specify the types of business transactions requiring prior approval by the Supervisory Board.

# **How the Managing Board works**

As a collegiate body, the Managing Board is jointly responsible for the management of the company. Regardless of their shared overall responsibility, each Managing Board member is in charge of a clearly defined field of business. The work of the Managing Board is premised on shared responsibility for strategic and operational issues and a continuous exchange of information on important measures and developments in the individual fields of business. To this end, the Chairman calls meetings, usually weekly, with the members of the Managing Board for the discussion of topics of group-wide relevance as well as transactions to be approved by the Supervisory Board. Moreover, current business and developments as well as strategic topics are discussed at regular Executive Committee meetings. The Executive Committee comprises the Chief Operating Officers at the level below the Managing Board, who are in charge of individual sub-regions, and the Chief Strategy Officers responsible for products & solutions.

The Managing Board consistently incorporates sustainability aspects and the associated opportunities and risks related to the environment, social matters, and corporate governance into the development and implementation of wienerberger's corporate strategy. Decisions by the Managing Board are taken unanimously. The four-eyes principle applies when contracts are to be signed by the Managing Board. Transparency regarding external mandates held and strict compliance with the rules on directors' dealings serve to ensure that Managing Board members are not involved in conflicts of interest within the meaning of the Austrian Corporate Governance Code.

The Managing Board provides the Supervisory Board with regular, timely, and comprehensive information on all relevant questions of business performance, including risks and risk management. Within the Managing Board, the Chair of the

Managing Board acts as the central link to the Supervisory Board. In line with the principles of good corporate governance, the Chair of the Managing Board and the full Supervisory Board or its Chair engage in continuous and open exchange and discussions on strategic topics.

# **How the Supervisory Board and its committees work**

The Supervisory Board decides on issues of fundamental importance and on the strategic orientation of the company. The Supervisory Board and the Managing Board maintain intensive cooperation. Their chairpersons, in particular, regularly engage in discussions on the sustainable development and strategic orientation of the company.

In 2023, the Supervisory Board fulfilled its obligations in accordance with the relevant legal provisions, the Articles of Association and the Rules of Procedure within the framework of eight meetings, including two extraordinary ones for in-depth deliberations on material topics. During these meetings, the Managing Board provided the Supervisory Board with comprehensive information, both orally and in writing, on business performance, major growth projects, and the economic situation of the company, including its financial management. The strategic orientation of the group, questions of human resources and organizational developments, acquisition & investment projects, business performance, and risk management were discussed with the Managing Board, with due consideration given to sustainability aspects.

In particular, priority areas of Supervisory Board work in the reporting year included the following:

- **›** Review and approval of the 2022 annual financial statements presented by the Managing Board
- **›** Preparation of the 2022 Remuneration Report on Managing Board and Supervisory Board remuneration
- **›** Preparation of the agenda of the 154th Annual General Meeting
- **›** Nomination of candidates for election to the Supervisory Board
- **›** Review of strategic acquisitions aimed at generating sustainable and value-accretive growth and expanding wienerberger's portfolio
- **›** Discussion of and resolution on the use of treasury shares for acquisition projects (e.g. Strøjer Group, Denmark)
- **›** Adoption of resolutions regarding important financing projects, such as the placement of a sustainability-linked bond

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with a volume of EUR 350 million on the Austrian capital market

- **›** Discussion of and resolution on the Sustainability Program 2023-2026
- **›** Discussion and elaboration of the remuneration policy for the Managing Board and the Supervisory Board effective as of 2024
- **›** Review, discussion, and approval of the 2024 budget
- **›** Re-appointment of Harald Schwarzmayr and Gerhard Hanke to the Managing Board

### **Committees of the Supervisory Board**

In order to exercise its advisory and monitoring functions in an efficient manner, the Supervisory Board set up committees, the functions of which are described in detail in the following. The committees provide input for a focused and well-founded discussion and support the Supervisory Board in its decision-making processes. The committees are chaired by renowned experts in the respective fields of work.

| Committee                                  | Members                   |
|--------------------------------------------|---------------------------|
| Audit and Risk Committee                   | David Davies (Chairman)   |
|                                            | Katrien Beuls             |
|                                            | Effie K. Datson           |
|                                            | Marc Grynberg             |
|                                            | Gerhard Seban             |
| Nomination and<br>Remuneration Committee   | Peter Steiner (Chairman)  |
|                                            | Myriam Meyer              |
|                                            | Thomas Birtel             |
|                                            | David Davies              |
|                                            | Gerhard Seban             |
| Sustainability and<br>Innovation Committee | Myriam Meyer (Chairwoman) |
|                                            | Thomas Birtel             |
|                                            | Katrien Beuls             |
|                                            | Marc Grynberg             |
|                                            | Gerhard Seban             |

### Audit and Risk Committee

The responsibilities of the Audit and Risk Committee are laid down in Section 92 (4a) of the Austrian Stock Corporation Act and L Rule 40 of the Austrian Corporate Governance Code. Accordingly, the committee is responsible for monitoring the accounting process, verifying the independence of the external auditor and monitoring the auditor's activity, submitting a

proposal for the selection of the external auditor, reviewing the annual financial statements and preparing their adoption, reviewing the profit distribution proposal, the management report, and the consolidated corporate governance report, and approving non-audit services provided by the external auditor. A major part of the committee's work consists in monitoring group-wide accounting processes and the audit of the consolidated annual financial statements. Moreover, the committee verifies the effectiveness of the internal control system, the internal audit function, and the risk management system. It regularly submits the results of its work to the Supervisory Board.

In 2023, the Audit and Risk Committee fulfilled all its tasks, as defined by law and in its rules of procedure, in the course of six meetings. Priority areas of its work included the following:

- **›** Preparation and review of the consolidated and separate annual financial statements of Wienerberger AG
- **›** Evaluation of the quality of the external auditor's work and verification of the auditor's independence
- **›** Submission of a proposal for the election of the external auditor
- **›** Deliberations on the effectiveness and the further development of the internal control system and the company's risk management
- **›** Approval of the internal audit plan and the IT audit plan (including cyber security) for 2023 and analysis of the internal audit reports received in accordance with the audit plan; discussion of measures to be taken
- **›** In-depth discussion of the requirements of the Corporate Sustainability Reporting Directive (CSRD), the European Sustainability Reporting Standards (ESRS), and the provisions of the EU Taxonomy Regulation

In 2023, the external auditor, Deloitte Audit Wirtschaftsprüfungs GmbH, participated in all meetings of the Audit and Risk Committee and was available for questions and discussions.

### Nomination and Remuneration Committee

Pursuant to C Rules 42 and 43 of the Austrian Corporate Governance Code, the Supervisory Board has to set up a nomination committee and a remuneration committee which, in accordance with C Rule 43, may be combined into a single committee. In the interest of enhanced efficiency and stronger synergies, the Supervisory Board merged the previously separate committees into a single Nomination and Remuneration Committee in the course of its constituent meeting after the 154th Annual General Meeting on May 5, 2023. This committee deals with all personnel matters relating to the Supervisory Board and the Managing Board, with a special emphasis on

{185}------------------------------------------------

succession planning, and submits recommendations regarding candidates for the Managing Board and the Supervisory Board in the event of vacancies on these bodies. Moreover, the committee drafts the remuneration policy to be submitted to the Annual General Meeting every four years, monitors compliance with the policy, deals with the content of the employment contracts of Managing Board members, and examines issues regarding the structure of Supervisory Board remuneration. Pursuant to C Rule 43, the chairman of the Supervisory Board is a member of the committee.

In 2023, the Nomination and Remuneration Committee met seven times and dealt, in particular, with the following priority topics:

- **›** Succession planning and evaluation of potential candidates for election to the Supervisory Board (with support from an external consultant)
- **›** Discussion and updating of the requirements to be met by potential candidates, considering strategic demands and defined diversity aspects
- **›** Updating of the current skills matrix of the Supervisory Board
- **›** Continuous review of the external mandates held by Supervisory Board members to ensure that members have enough time and resources to fulfill their Supervisory Board duties
- **›** Preparation of target agreements for variable Managing Board remuneration with a special emphasis on sustainability aspects
- **›** Preparation of the remuneration report on Managing Board and Supervisory Board remuneration
- **›** Definition of the principles governing the remuneration of Managing Board and Supervisory Board members (remuneration policy) as of 2024, with input from an external corporate governance consultant specializing in remuneration systems
- **›** Discussion of a possible increase in Supervisory Board remuneration through the introduction of an equity component and preparation of a proposal to be submitted to the Supervisory Board
- **›** Evaluation of and preparation for the re-appointment of Harald Schwarzmayr and Gerhard Hanke to the Managing Board

### Sustainability and Innovation Committee

The Sustainability and Innovation Committee, established in 2019, is in charge of monitoring the implementation and further development of the group-wide innovation and sustainability strategy. Its responsibilities include, in particular, the discussion and identification of relevant topics, regulations, and trends at European and global levels, the monitoring of progress made as a result of climate-related measures, and support provided for sustainability reporting.

In 2023, the Sustainability and Innovation Committee met five times and dealt with the following priority topics:

- **›** Monitoring of progress achieved in the implementation of the Sustainability Program as regards the targets set for 2023
- **›** Discussion of the sustainability strategy, suitable implementing measures, and adaptations, where necessary
- **›** Preparation of the Sustainability Program 2023-2026, including targets to be set, for adoption by the Supervisory Board
- **›** Presentation and discussion of best-practice projects, including sustainability aspects
- **›** Discussion of material HR topics, such as training & development, including diversity aspects
- **›** Discussion of progress made in respect of wienerberger's decarbonization strategy and related research projects and risk analyses
- **›** Evaluation of the group-wide health & safety strategy
- **›** Support in implementing the requirements of the Corporate Sustainability Reporting Directive (CSRD), fulfilling the European Sustainability Reporting Standards (ESRS) and the provisions of the EU Taxonomy Regulation

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### **Meeting attendance by Supervisory Board members in 2023**

Meeting attendance by Supervisory Board members was high in the reporting year. Absences primarily concerned additional meetings convened at short notice for an in-depth discussion of essential issues. In such cases, separate meetings between the chairman and the member(s) unable to attend were arranged for the purpose of coordination or further explanations. As a rule, members unable to attend a meeting asked the chairperson to represent them by proxy.

| Attendance 2023             | Supervisory<br>Board | Audit and Risk<br>Committee | Nomination<br>Committee1 | Remuneration<br>Committee1 | Nomination and<br>Remuneration<br>Committee 1 | Sustainability<br>and Innovation<br>Committee |
|-----------------------------|----------------------|-----------------------------|--------------------------|----------------------------|-----------------------------------------------|-----------------------------------------------|
| Capital representatives     |                      |                             |                          |                            |                                               |                                               |
| Peter Steiner               | 8/8                  | -                           | 1/1                      | 2/2                        | 4/4                                           | -                                             |
| Myriam Meyer                | 7/8                  | -                           | 1/1                      | -                          | 4/4                                           | 5/5                                           |
| Katrien Beuls2              | 6/6                  | 3/3                         | -                        | -                          | -                                             | 3/3                                           |
| Thomas Birtel               | 7/8                  | -                           | -                        | 2/2                        | 4/4                                           | 3/5                                           |
| Effie K. Datson2            | 6/6                  | 3/3                         | -                        | -                          | -                                             | -                                             |
| David Davies                | 7/8                  | 6/6                         | 1/1                      | -                          | 4/4                                           | -                                             |
| Marc Grynberg               | 7/8                  | 6/6                         | -                        | 2/2                        | -                                             | 5/5                                           |
| Peter Johnson3              | 2/2                  | -                           | 1/1                      | 2/2                        | -                                             | -                                             |
| Regina Prehofer3            | 2/2                  | 3/3                         | -                        | 2/2                        | -                                             | -                                             |
| Oswald Schmid3              | 2/2                  | 2/3                         | -                        | -                          | -                                             | -                                             |
| Employee<br>representatives |                      |                             |                          |                            |                                               |                                               |
| Gerhard Seban               | 8/8                  | 6/6                         | 1/1                      | 2/2                        | 4/4                                           | 5/5                                           |
| Claudia Schiroky            | 5/8                  | -                           | -                        | -                          | -                                             | -                                             |
| Wolfgang Wallner            | 6/8                  | -                           | -                        | -                          | -                                             | -                                             |

*1) In the course of its constituent meeting after the 154th Annual General Meeting on May 5, 2023, the Supervisory Board combined the Nomination Committee and the Remuneration Committee into a single committee.*

*2) Supervisory Board member since May 5, 2023*

*3) Supervisory Board member until May 5, 2023*

### **Self-evaluation of the Supervisory Board**

In November 2023, the Supervisory Board distributed a questionnaire to its members for the self-evaluation required by C Rule 36 of the Austrian Corporate Governance Code. Alongside national and international corporate governance trends, the questions referred to cooperation between the Managing Board and the Supervisory Board, the working method of the Supervisory Board, organizational issues, as well as experience and feedback from previous evaluations of the Supervisory Board. The results of the self-evaluation were discussed during the Supervisory Board meeting on December 7, 2023, in the absence of the Managing Board.

Overall, the evaluation confirmed the efficient and professional cooperation within the Supervisory Board and its committees. This also applies to interactions between the Supervisory Board and the Managing Board, which were described as being constructive, balanced, and mutually appreciative.

In accordance with the usual schedule, the 2024 self-evaluation will again be performed by an external consultant.

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# <span id="page-187-0"></span>**Success through Diversity**

# OVERVIEW SUPERVISORY BOARD EXPERIENCED, DIVERSE, INDEPENDENT

as at 31/12/2023

Image /page/187/Figure/8 description: The image shows information about capital representatives, members, and employee representatives. There are 7 capital representatives elected by the Annual General Meeting for a definite period of time. The gender breakdown is 40% women and 60% men. The average age is 59, with 60% being less than 60 years old and 40% being older than 60 years old. There are 10 members. There are 3 employee representatives delegated by the Works Council for an indefinite period of time. 100% are independent. The origin is 70% international and 30% Austria.

*1) In accordance with the provisions of the Austrian Corporate Governance Code, the "independence" criterion exclusively applies to capital representatives on the Supervisory Board.*

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# <span id="page-188-0"></span>**Diversity as an aspect to be considered in Managing Board and Supervisory Board appointments**

For wienerberger, diversity and equal opportunities are not mere slogans, but elements firmly rooted in the company's sustainability strategy and its vibrant corporate culture shaped by shared values: trust, respect, passion, and creativity. wienerberger is convinced that demographic and cognitive diversity significantly contribute to sustainable economic success by fostering productivity, creativity, and innovation and facilitating complex decisions. Diversity not only creates a mutually appreciative work environment, but also helps us to better understand the needs of the various stakeholders of the group.

This also applies to wienerberger's supreme governing bodies. Professional qualifications required for the management and supervision of a listed company (e.g. the necessary expertise and experience), as well as personal characteristics, are essential criteria applied in the selection of Managing Board and Supervisory Board members. Moreover, diversity features such as age, gender, and an international background are taken into account with a view to achieving a balanced composition of the two steering bodies of the company. To ensure maximum transparency and fairness of the decision-making process, the search for and selection of candidates is always supported by an external consultant. In the case of in-house candidates for Managing Board positions about to fall vacant, independent management appraisals by external consultants ensure that the decisions taken are based on objective assessments.

The so-called skills matrix, which documents the range of expertise currently represented on the Supervisory Board and identifies competencies that may have to be strengthened in the course of succession planning, serves as a starting point in the search for suitable candidates. On this basis, the greatest possible diversity of the Supervisory Board in terms of gender, age, and nationality is aimed at. This is to ensure that the candidate search is geared to a specific set of requirements and that the Supervisory Board, in its entirety, combines all the qualifications needed to fulfil its supervisory duties and, in particular, advise the Managing Board on strategic issues.

These principles to be applied in succession planning have also been laid down in the Diversity Policy and the Succession Planning and Recruiting Policy for the Supervisory Board which can be viewed on the company's website at [www.wienerberger.com.](http://www.wienerberger.com) Compliance with these policies is monitored by the Nomination and Remuneration Committee.

### **Current composition of the Managing Board and the Supervisory Board**

The Managing Board of Wienerberger AG currently has four members (share of women: 25%), aged between 53 and 57. Their diverse educational and professional backgrounds in economics, finance, law, and engineering ensure a crossdisciplinary discourse within the Managing Board. Alongside a wide variety of experience in operational business both within and outside wienerberger, the Managing Board team, in office in its current constellation since 2020, brings together comprehensive industrial expertise and many years of international management experience. Details of the professional careers of the individual Managing Board members can be found on the website at [www.wienerberger.com.](http://www.wienerberger.com)

Pursuant to the applicable legal provisions, the capital representatives on the Supervisory Board are elected by the Annual General Meeting. In line with the diversity concept pursued by the Supervisory Board, suitable female candidates were proposed to the 154th Annual General Meeting for election to the Supervisory Board. Since May 5, 2023, the Supervisory Board has therefore consisted of seven capital representatives (three of them women) and three members delegated by the Works Council (one of them a woman). Thus, the percentage of women on the Supervisory Board is currently 40% (2022: 33%). The capital representatives on the Supervisory Board are between 54 and 69 years old and represent diverse professional competencies and many years of professional and management experience. In particular, the new members having joined since 2022 have further strengthened the Supervisory Board's existing industrial, ESG, and M&A competencies and added extensive legal and capital market expertise as well as know-how regarding the US market. Except for the members delegated by the Works Council, the membership of the Supervisory Board is completely international, reflecting not only the geographic coverage of wienerberger's activities, but also the company's broad international investor base.

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# <span id="page-189-0"></span>**Measures for the Advancement of Women**

As a value-oriented company operating in line with the principles of sustainability, wienerberger makes every effort to provide a fair and positive work environment for all its employees. *Equal pay and equal opportunities* are therefore central elements of wienerberger's corporate culture and its HR strategy. Targeted measures to promote equal opportunities and a fair gender balance in appointments to executive positions are particularly important. As an integral part of wienerberger's sustainability strategy, special emphasis is placed on increasing the percentage of women in senior management positions.

In 2023, women in executive positions accounted for 16% of wienerberger's employees, which represents a slight increase on the previous year's value (15%). Overall, the percentage of women in white-collar positions remained unchanged at 34% in 2023.

In order to gradually increase this ratio, which is relatively low compared to other sectors of the economy on account of the company's field of activity, the wienerberger Sustainability Program also includes specific targets to further improve the gender balance, which are supported by a series of measures. These include the nomination of women for internal training and development programs, the introduction of mentoring and networking programs, coaching to encourage high-potential women to apply for senior management positions, and efforts to deliberately showcase successful women within the company as part of internal and external communications. In recruiting, particularly for new appointments to senior management positions, special attention is paid to ensuring that the candidate pool is as balanced as possible. Diversity and gender balance are essential aspects of employer branding, particularly in schools, universities of applied sciences, and universities.

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# <span id="page-190-0"></span>**External Evaluation of Compliance with the Corporate Governance Code**

In its C Rule 62, the Austrian Corporate Governance Code, which goes beyond the requirements of the law, provides for a regular external evaluation of the company's compliance with the Code. For the 2023 reporting year, this evaluation was performed by the external auditor, Deloitte Audit Wirtschaftsprüfungs GmbH, and did not result in any negative findings regarding the company's public statements on compliance with the Austrian Corporate Governance Code. Compliance with the C Rules applicable to the auditor (Rules 77 to 83) was verified by the law firm Schönherr Rechtsanwälte GmbH. No non-compliance with C Rules 77-83 of the Austrian Corporate Governance Code was found.

The audit reports on the external evaluation can be viewed on the website at [www.wienerberger.com](http://at www.wienerberger.com).

Vienna, March 13, 2024

The Managing Board

*Heimo Scheuch Chairman of the Managing Board of Wienerberger AG CEO*

signature

*Gerhard Hanke Member of the Managing Board of Wienerberger AG CFO*

*Solveig Menard-Galli Member of the Managing Board of Wienerberger AG COO Europe East*

H.Hehman

*Harald Schwarzmayr Member of the Managing Board of Wienerberger AG COO Europe West*

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# <span id="page-191-0"></span>**Auditor's Report**

# **Report on the evaluation of Wienerberger AG's compliance with the Austrian Corporate Governance Code in the financial year 2023**

Due to the listing of the shares of Wienerberger AG on the Prime Market of the Vienna Stock Exchange, the Management Board, together with the Supervisory Board, are obligated to apply the rules of the Austrian Corporate Governance Code 2023 ("ÖCGK 2023") in the current version. According to rule 62 of the ÖCGK, a regular external evaluation of compliance with the ÖCGK is recommended.

Wienerberger AG follows this recommendation, which is why the Management Board of Wienerberger AG commissioned us to assess Wienerberger AG's compliance with the rules of the ÖCGK 2023 in the 2023 financial year ("evaluation"). The aim of the evaluation is to give the public a picture of Wienerberger AG's compliance with the principles of Corporate Governance.

### **Responsibility of the legal representatives**

The proper preparation of the Corporate Governance Report 2023 in accordance with the ÖCGK 2023 lies with the legal representative of Wienerberger AG.

### **Responsibilities of the Practitioner**

Our responsibility is to express a conclusion as to whether, based on our procedures performed and the evidence obtained, any matters have come to our attention that cause us to believe that the Corporate Governance Report is not in compliance, in all material respects, with the Austrian corporate law regulations and the regulations of the ÖCGK 2023 on the preparation of a (consolidated) corporate governance report.

We have performed the engagement in accordance with ISAE 3000 ("International Standard on Assurance Engagements 3000 – Assurance Engagements other than Audits or Reviews of Historical Financial Information"). Those standards require that we comply with ethical requirements, including independence rules, and plan and perform the engagement, taking into account the principle of materiality, so as to provide our conclusion with limited assurance.

In a limited assurance engagement, the audit procedures performed are less extensive than in a reasonable assurance engagement, and accordingly, less assurance is obtained.

The procedures selected depend on the Practitioner's professional judgment and included, in particular, the following activities:

- **›** Inquiry with legal representatives and employees of Wienerberger AG
- **›** Inspection of a sample of relevant documents and papers (in particular the articles of association of Wienerberger AG, rules of procedure for the supervisory board and management board, minutes of the supervisory board, etc.), insofar as these or their content must be consistent with the rules of the ÖCGK 2023
- **›** Review of the explanations on the deviations from "C Rules" as part of the corporate governance report of Wienerberger AG for the 2023 financial year and examination of their compliance with the requirements of the ÖCGK 2023

The subject of our engagement is neither an audit nor an auditor's review of financial statements. Likewise, neither the detection and clarification of criminal facts, such as embezzlement or other acts of fraud and administrative offenses, nor the assessment of the effectiveness and profitability of the management is the subject of our evaluation. Since we are also the auditors for Wienerberger AG in the 2023 financial year, the evaluation does not include compliance with C and R Rules 77 to 83 of the ÖCGK 2023.

### **Conclusion**

No deviations from the C rules in the Corporate Governance Report of Wienerberger AG were identified.

Based on the procedures performed, nothing has come to our attention that causes us to believe that the Corporate Governance Report of Wienerberger AG, for the year 2023 has not been prepared, in all material respects, in accordance with the requirements with the ÖCGK 2023.

### **Restriction on Distribution and Use**

This audit serves to support your company in proving an external evaluation of the Corporate Governance Report of Wienerberger AG. Our report on the audit may only be published on the homepage of Wienerberger AG and may only be shared on the condition that our overall responsibility towards you and any other recipient who receives the report with our

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consent is limited to the amount resulting from the following Terms and Conditions of the Engagement (in particular the General Conditions of Contract for Public Accounting Professions (AAB 2018)). A distribution in extracts of the report (e.g., enclosures to the report) is not permitted.

### **Terms and Conditions of the Engagement**

We prepare this report based on the contract concluded with you, which is based on the General Conditions of Contract for Public Accounting Professions (AAB) attached to this report. We are only liable for verbal information and advice if they are confirmed by us in writing. Beyond the scope of services, we do not have any protection and due diligence obligations of any kind, in particular no warning obligations.

Our liability is limited to claims for damages based on at least grossly negligent behaviour on our part. Liability for slight negligence is excluded. We are not liable for the work of any external auditors or lawyers. All limitations of liability also apply to Deloitte employees engaged by us. Insofar as claims for damages against us do not exist or no longer exist, claims for another legal reason (e.g., warranty, error) are also excluded.

To the extent permitted by law, our liability for gross negligence towards Wienerberger AG and also towards third parties (this also applies if there are several beneficiaries or bases for a claim) is limited to a maximum total liability of five times the fee received (excluding any cash expenses and expenses and excluding sales tax) towards Wienerberger AG and also towards third parties (this also in the case of several beneficiaries or bases of claims), but limited to a maximum of ten times the minimum sum insured for professional liability insurance in accordance with section 11 of the "Wirtschaftstreuhandberufsgesetz" (WTBG ). Claims for damages are limited to positive damage. We are only liable for lost profits in the event of intent or gross negligence, to the extent permitted by law. We are not liable for unforeseeable or atypical damage that we could not have expected.

Vienna, March 13, 2024

*Deloitte Audit Wirtschaftsprüfungs GmbH*

Mag. Gerhard Marterbauer Certified Public Accountant

pp. Margaretha Germann M.A. (HSG), ACCA Certified Public Accountant

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# <span id="page-194-0"></span>MANAGEMENT REPORT

### **[Economic Environment and](#page-195-0) [Capital Markets](#page-195-0)**

- [Economic environment in 2023](#page-195-0)
- [Monetary policy](#page-195-0)
- [Stock markets](#page-195-0)
- [The European housing market](#page-196-0)
- [The European infrastructure market](#page-196-0)
- [The US housing market](#page-196-0)
- [Economic outlook for 2024](#page-197-0)

### 

### **[Financial Review](#page-198-0)**

- [Earnings](#page-198-0)
- [Financial Result and Taxes](#page-199-0)
- [Assets and Financial Position](#page-199-0)
- [Treasury](#page-201-0)
- [Cashflow](#page-201-0)
- [Investments](#page-203-0)

### **[Value Management](#page-205-0)**

### 

### **[Operating Segments](#page-206-0)**

 [Europe West](#page-206-0) [Europe East](#page-207-0) [North America](#page-208-0)

### 

### **[Financials of the](#page-209-0)  [Fourth Quarter of 2023](#page-209-0)**

- [Europe West](#page-209-0)
- [Europe East](#page-209-0)
- [North America](#page-209-0)

### **[Outlook 2024](#page-210-0)**

### 

### **[Additional information](#page-211-0)  [about the Company](#page-211-0)**

- [Research and Development](#page-211-0)
- [wienerberger Share and](#page-213-0) [Shareholders](#page-213-0)
- [Risk Management and the Internal](#page-217-0)  [Control System](#page-217-0)

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# <span id="page-195-0"></span>**Economic Environment and Capital Markets**

# **Economic environment in 2023**

Compared to 2022, a year marked by uncertainties and challenges, 2023 was clearly more positive, both for the economy and the financial markets. However, the global recovery from the consequences of the corona pandemic, the ongoing war in Ukraine and the significant rise in the cost of living varied from region to region. Overall, compared to the previous year, the world economy stabilized to a certain extent and inflation trended downward after further noticeable interest rate hikes and peaks recorded in 2022. The tightening of monetary policy as a prerequisite for bringing inflation down from its persistently high level, as well as restraint shown in terms of fiscal policy led to a slowdown of global recovery in 2023. Given this difficult environment, the International Monetary Fund (IMF) again anticipates global economic growth in 2023 to fall short of the previous year's level and projects a growth rate of 3.1% (2022: 3.5%).

In Europe and North America, wienerberger's core regions, diverging developments were seen in 2023. In the US, economic momentum was stronger than expected, while the euro zone recorded weaker growth. The earlier turnaround in interest-rate policy in the US triggered a significant slowdown of GDP growth in 2022. The IMF therefore does not anticipate a further downturn of the US economy and expects a growth rate of 2.5% (2022: 1.9%). In contrast, the euro zone, where monetary tightening was initiated later, recorded 3.4% growth in 2022, but only a moderate rate of 0.5% in 2023. Germany, one of the largest economies of the euro zone, was sliding into recession in 2023, recording a negative growth rate of -0.3 % (2022: 1.8%) and falling below the level of the euro zone. Economic growth in France, at a rate of 0.8% (2022: 2.5%), was slightly above the euro zone average. In the United Kingdom, the economy grew at a rate of 0.5% in 2023, compared to 4.3% in the previous year. According to Euroconstruct, the Eastern European economies, which count among wienerberger's core markets, grew at a rate of 0.2% (2022: 4.2%).

# **Monetary policy**

In 2022, in view of significantly increased inflation rates, central banks departed from their policy of monetary easing pursued in previous years. Monetary tightening was continued in 2023 and helped to curb inflation. According to the IMF, global inflation was brought down from 8.7% in 2022 to 6.8% in 2023. This development was supported by a reduction of energy prices and food prices, the latter albeit to a lesser extent. The US Federal Reserve System (Fed) initiated the turnaround in interest-rate policy in March 2022 and has since increased the federal funds rate in a total of eleven steps to 5.25%-5.50%, the last rate hike dating from July 2023. The interest-rate turnaround, which set in earlier in the US than in Europe, eased the pressure on prices there and resulted in a rate of inflation below the global level. Given the downward trend in inflation, the Fed has refrained from further interest-rate hikes since July 2023. In July 2022, the European Central Bank (ECB) raised its key interest rate for the first time since 2016 and continued with further steps that brought the interest rate to 4.50% by the end of 2023. The deposit rate, which was still negative in 2021, came to 4.00% as at the end of 2023. Against the backdrop of declining inflation rates, the ECB has not implemented any further rate hikes since September 2023. The Bank of England (BoE) also took several interest-rate steps, its base rate standing at a year-end value of 5.25% since the last increase in August 2023. Central banks in Eastern and Southern Europe continued to react strongly to rising consumer prices by increasing interest rates to 5.75% (Poland), 7.00% (Romania) and even 10.75% (Hungary) as at the end of December 2023.

# **Stock markets**

2023 was an eventful but ultimately successful year for the global stock markets. After a highly positive start, the events in connection with the Silicon Valley Bank and Credit Suisse led to a crisis of confidence in banks and a steep, short-term drop in share prices, which was, however, soon followed by a swift recovery. Declining inflation rates and first signs of central banks ending their sequence of interest-rate hikes kept markets in motion and had a largely positive impact on the global stock-market climate.

The US stock market performed notably better than the European one. However, during the last quarter share prices finally picked up significantly in all markets, and the majority of market participants benefited from extremely positive market sentiment. In this environment, relevant lead indices closed the past stock-exchange year with notable price gains. At the end of December 2023, the Dow Jones 30 Industrial Average closed at +13.7% above the 2022 year-end value, while the S&P 500 recorded an even higher price gain of +24.2%. Fueled by hopes of a turnaround in interest-rate policy, the Nasdaq 100 surged in 2023 and closed the year with a gain of 53.8%. The EURO STOXX 50, the European lead index, underwent a year of ups and downs. After a strong start, it recorded losses in March, but rebounded over the summer months. A further downward trend was finally brought to a halt by the year-end rally and the index gained +19.2% compared to the previous year, while the French CAC 40 gained +16.5% over the same period. The British FTSE performed well at the beginning of the year, but was unable to sustain the trend and closed the year with a gain of +3.8%. The German DAX closed the year with a price gain of

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<span id="page-196-0"></span>+20.3% above the 2022 year-end value. The Austrian ATX, with its heavily weighted bank and energy stocks, closed at +9.9% year on year.

# **The European housing market**

The following analysis is based on the most recent country forecasts published by Euroconstruct, Europe's leading construction market forecasting network. The most important indicators of residential construction activity are the numbers of building permits issued, housing starts, and housing completions.

Given the further increase in key interest rates in 2023 and the resultant increase in mortgage rates, housing loans became more expensive, which in turn made home ownership less affordable. After a significant downturn already in the previous year, this effect was clearly reflected in the lower number of building permits issued in 2023 for single- and two-family homes. Most of the countries in both Region Europe East and Region Europe West recorded extremely steep reductions by as much as 50%. Our experience shows that in volatile times, the period between the issue of a building permit and the actual start of construction is getting longer and longer. The number of new housing starts was negative as well, declining by percentages in the mid double-digit range in our European core markets of Europe West and Europe East. Housing completions, as a lagging indicator, also were on a downward trend in 2023.

Within the residential construction sector, renovation activity is continuously gaining in importance for wienerberger's business performance. Despite European and national initiatives and stricter regulations aimed at enhancing energy efficiency and supporting the attainment of climate-related targets, the segment recorded a decline in our core regions of Europe West and Europe East, although the downturn was less pronounced than in new build.

### **The European infrastructure market**

In the infrastructure segment, high inflation and rising costs had a negative impact on the award of public contracts and resulted in projects being postponed. An analysis based on Euroconstruct as the industry benchmark shows the following growth forecast for Regions Europe West and Europe East:

The development of infrastructure expenditure varied greatly in some of the countries of our regions Europe West and Europe East. Although the decline in capital expenditure for infrastructure was far less severe than in new build, Region Europe West reported a drop by up to 5% in some countries. Europe East performed better and recorded an increase in capital expenditure for infrastructure in most countries compared to 2022.

This trend was also seen in water management, which accounts for roughly 10% of infrastructure expenditure and comprises potable-water and wastewater systems, an important market for our pipe business. Countries in Region Europe West, in particular, were confronted with a drop in infrastructure investments of up to 5%, whereas infrastructure spending increased in Region Europe East. Investments in the energy sector developed slightly better in both regions. Investments in transport infrastructure remained stable, with Region Europe East doing better that Region Europe West, where some countries saw a downturn in investments. A similar situation prevailed in telecommunications and road construction in many countries of Region Europe West, while Region Europe East developed significantly better.

### **The US housing market**

In 2023, the development of the housing market in the US was similar to that in Europe, although the slowdown set in earlier and was notably more pronounced on account of the earlier turnaround in interest-rate policy in the USA. According to the U.S. Census Bureau, the downturn of the previous year continued in 2023, with the number of building permits issued reduced by 11.7% year on year. Compared to the previous year, building permits for single-family homes decreased by 6.9%, whereas building permits for multi-family homes dropped by 19.9% over the same period. The number of housing starts declined by 9.0% to 1.413 million units year on year. A 6.0% reduction was recorded in the single-family-home segment, while the number of newly built multi-family homes dropped by 14.2%. Building completions, as a lagging indicator, increased by 4.5% to 1.453 million units. While 1.9% fewer single-family homes were completed in 2023, the multi-family home segment reported a 22.1% increase year on year.

After a reduction in the number of housing starts in 2022, the National Association of Home Builders (NAHB), one of the largest organizations representing the interests of principals, developers and building contractors in the USA, foresees another 8.6% reduction to 1.420 million units in 2023. While a 5.8% reduction was reported for the single-family-home segment, the multi-family-home segment suffered a double-digit decline by 14.4%.

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<span id="page-197-0"></span>The NAHB/Wells Fargo Housing Market Index, which is based on monthly surveys among NAHB members, reflects the general assessment of market conditions and estimates of house sales for the next six months. A value below 50 indicates that the majority of those surveyed see the outlook as negative. With a value of 37 in December 2023, the index was above the previous year's score of 31, reflecting improved but still sluggish macro-economic development. The S&P/Case Shiller 20-City Composite Home Price Index reflects the development of the value of residential real estate in 20 large US agglomerations. After a rise of 4.7% in the previous year, the upward trend continued in 2023 with a 6.1% rise. At year end, the fixed interest rate on 30-year mortgage loans was 6.82%. Compared to the previous year's value, this corresponds to a rise of 45 basis points, reflecting the increase of the federal funds rate by the Fed in 2023.

### **Economic outlook for 2024**

After the slowdown in growth momentum to 3.1% in 2023, the IMF forecasts stable global economic growth at the same level for 2024. The economic output of the US is projected to cool down slightly from 2.5% in the previous year to 2.1% in 2023, while the euro zone is expected to grow at a moderate rate of 0.9% compared to 0.5% in the previous year. For the United Kingdom, economic output is forecast to remain stable with a mere 0.6% increase over the previous year's value. The Eastern European economies are expected to grow at a rate of 2.8% (Euroconstruct). The IMF's assumptions are based on a global inflation rate of 5.8% in 2024. A significantly lower inflation rate of 2.8% is expected for the eurozone countries and 2.2% for the US. In general, it is assumed that the inflation rate will not return to the desired target levels until 2025 in most cases. Nevertheless, the downward trend of inflation seen in the second half of 2023 induced central banks to halt their interest-rate hikes and fueled speculations that interest rates might be lowered in 2024.

*Quellen: IMF (World Economic Outlook October and January 2024), U.S. Census Bureau, Euroconstruct, Freddie Mac Primary Mortgage Market Survey, NAHB, NAHB/Wells Fargo Housing Market Index, S&P/Case-Shiller 20-City Composite Home Price*

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# <span id="page-198-0"></span>**Financial Review**

### **Earnings**

The 2023 financial year was characterized by lower demand due to persistently high inflation and higher interest rates. Despite this challenging environment, wienerberger generated groupwide revenues of € 4,224 million (2022: € 4,977 million).

Revenues include consolidation effects amounting to € 59.2 million. Foreign-exchange effects accounted for a decrease in revenues by € -97.8 million, with the negative effects primarily due to the steep devaluation of the Turkish lira, as well as the Norwegian crown and the US dollar.

### **External Revenues by Segment**

Image /page/198/Figure/7 description: The image is a donut chart showing the distribution of something across three regions: Europe West, Europe East, and North America. Europe West accounts for 52%, Europe East accounts for 28%, and North America accounts for 20%.

Thanks to wienerberger's focus on efficient price and cost management, profitability remained high despite the difficult market environment, as is reflected in the operating EBITDA margin of 19.2% (2022: 20.5%).

EBITDA of € 783.3 million (2022: € 1,026.2 million) include contributions from the consolidation of acquired companies of € 5.6 million and negative foreign-currency effects of € -18.5 million. Operating EBITDA came to € 810.8 million (2022: 1,020.9 million).

To calculate operating EBITDA, income from the sale of non-operating assets of € 10.6 million was deducted and costs for structural adjustments of € -38.0 million were excluded.

| EBITDA        | in MEUR |  | 2023  | 2022    | Chg. in % |
|---------------|---------|--|-------|---------|-----------|
| Europe West   |         |  | 347.0 | 425.3   | -18       |
| Europe East   |         |  | 216.6 | 373.7   | -42       |
| North America |         |  | 219.8 | 227.3   | -3        |
| wienerberger  |         |  | 783.3 | 1,026.2 | -24       |

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<span id="page-199-0"></span>

| EBITDA Bridge<br>in MEUR                | 2023  | 2022    | Chg. in % |
|-----------------------------------------|-------|---------|-----------|
| EBITDA                                  | 783.3 | 1,026.2 | -24       |
| Result from the sale of non-core assets | -10.6 | -19.4   | +45       |
| Structural adjustments                  | 38.0  | 14.1    | >100      |
| Operating EBITDA                        | 810.8 | 1,020.9 | -21       |

Scheduled depreciation and amortization on non-current assets amounted to € 287.0 million (2022: € 276.3 million). Impairment charges to assets and special write-downs of assets added up to a total of € 19.2 million (2022: 28.8 million). The challenging market environment was also reflected in the earnings before interest and tax (EBIT) reported for the 2023 business year, which at € 477.3 million fell short of the previous year's value of €721.2 million by 34%.

| Profitability Ratios                |      |      |
|-------------------------------------|------|------|
| in %                                | 2023 | 2022 |
| Gross profit to revenues            | 38.2 | 39.1 |
| Administrative expenses to revenues | 7.8  | 6.6  |
| Costs of sales to revenues          | 18.5 | 17.3 |
| EBITDA margin                       | 18.5 | 20.6 |
| Operating EBITDA margin             | 19.2 | 20.5 |

# **Financial Result and Taxes**

The financial result decreased from € -32.8 million in 2022 to € -53.0 million in the reporting year. The increase in relevant key interest rates resulted in higher interest expenses, which were compensated only in part by rising interest income.

Profit before tax dropped from € 688.3 million in the previous year to € 424.3 million in the reporting period. The group's income tax expense was reduced to € 89.2 million (2022: € 119.8 million), which corresponds to an effective tax rate of 21.0% (2022: 17.4%). The higher effective tax rate reflects the relatively greater decline in earnings in Eastern European countries, which are generally taxed at a lower rate.

The resultant profit after tax amounted to € 335.1 million (2022: € 568.5 million). After the deduction of € 0.8 million in income attributable to non-controlling interests (2022: € 0.6 million), the net profit amounted to € 334.4 million (2022: € 567.9 million). Earnings per share came to € 3.17 (2022: € 5.17).

# **Assets and Financial Position**

As at 31/12/2023, wienerberger's total assets amounted to € 5,468.6 million, corresponding to a 5% increase over the previous year's value (31/12/2022: € 5,199.3 million). Non-current assets increased by 3% to € 3,368.2 million (31/12/2022: € 3,259.1 million), primarily as a result of additions from corporate acquisitions and strategic financial investments. Investments in non-current assets (maintenance & special capex) came to € 271.6 million (31/12/2022: 352.6 million).

Working capital (inventories + net trade receivables - net payables) increased by 24% to € 975.7 million (31/12/2022: € 789.6 million). The ratio of working capital to revenues rose to 23.1% (31/12/2022: 15.9%). The main drivers were the business-related decline in trade payables and the higher level of raw materials as at the reporting date.

In the reporting year, inventories increased by 11% from € 1,036.2 million to € 1,153.8 million, this being due to changes in both quantity (7%) and value (3%). In some regions, a comfortable level of inventories is being aimed at to ensure that customer requirements can be met at any time without interruption. Trade receivables decreased by 18% to € 306.8 million (31/12/2022: € 374.5 million).

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The high level of cash and cash equivalents of € 414.1 million (up by 38% from 31/12/2022) is due, among other factors, to lower trade receivables and positive cash flow from financing activities.

Compared to 31/12/2022, the group's equity improved by 8% from € 2,450.4 million to € 2,657.7 million. Dividends of € 94.8 million were paid out in the reporting year. The group's equity was reduced by €16.4 million (31/12/2022: € 213.4 million) through the buyback and sale of own shares. Other comprehensive income had a negative impact of € 23.7 million on Group equity and includes significant effects from currency translation of € -16.6 million, changes in the valuation of the hedging reserve of € -9.1 million and actuarial gains of € 2.0 million.

Non-current employee-related provisions, particularly pension provisions, declined due to plan settlements by 6% to € 69.5 million (31/12/2022: € 73.9 million). In general, wienerberger does not enter into any new defined-benefit pension commitments and, if possible, converts existing commitments into defined-contribution commitments. As a result, pension provisions carried on the balance sheet show a steady downward trend, as commitments are either expiring or paid out. Other long-term provisions, mainly for warranties and the recultivation

of depleted clay pits, did not change significantly compared to the previous year and came to € 103.5 million (31/12/2022: € 103.3 million).

Current provisions increased by 27% to a total of € 77.0 million (31/12/2022: € 60.8 million) primarily as a result of provisions set up for restructuring measures.

Interest-bearing debt (long-term and short-term financial liabilities) rose by € 249.0 million to € 1,701.2 million (31/12/2022: € 1,452.2 million), which was primarily attributable to the issuance of a sustainability-linked bond in the fourth quarter of 2023 (nominal value: € 350.0 million). Interest-bearing financial liabilities include liabilities to banks, bond holders, and other third parties in the amount of € 1,433.3 million (31/12/2022: € 1,198.4 million), derivatives to hedge foreign-currency risks with negative market values of € 2.4 million (31/12/2022: € 6.2 million), and lease liabilities of € 265.4 million (31/12/2022: € 247.6 million). These interest-bearing liabilities were offset by cash and cash equivalents, securities, and Intercompany receivables of € 486.5 million (31/12/2022: € 372.9 million), as well as committed but undrawn credit lines of € 950.0 million.

|                                                        | 2023    | 2022    | Chg. in % |
|--------------------------------------------------------|---------|---------|-----------|
| Calculation of Net Debt<br>in MEUR                     |         |         |           |
| Long-term interest-bearing financial liabilities       | 1,071.8 | 1,052.9 | +2        |
| Short-term interest-bearing financial liabilities      | 363.9   | 151.6   | >100      |
| Lease liabilities                                      | 265.4   | 247.6   | +7        |
| - Intercompany receivables and payables from financing | -26.2   | -21.1   | +24       |
| - Securities and other financial assets                | -46.2   | -51.8   | -11       |
| - Cash and cash equivalents                            | -414.1  | -300.0  | -38       |
| Net debt                                               | 1,214.7 | 1,079.3 | +13       |

Of the total amount of € 1,435.7 million in financial liabilities (excluding lease liabilities), 75% (31/12/2022: 87%) was of a long-term and 25% (31/12/2022: 13%) of a short-term nature. As at 31/12/2023, the group's net debt came to € 1,214.7 million, up by 13% from the previous year (31/12/2022: € 1,079.3 million). This corresponds to a gearing ratio of 45.7%, which is slightly above the previous year's value of 44.0%.

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<span id="page-201-0"></span>

| Balance Sheet Ratios             | 2023    | 2022    |
|----------------------------------|---------|---------|
| Capital employed in MEUR         | 3,822.5 | 3,492.9 |
| Net debt in MEUR                 | 1,214.7 | 1,079.3 |
| Equity ratio in %                | 48.6    | 47.1    |
| Gearing in %                     | 45.7    | 44.0    |
| Asset coverage in %              | 80.5    | 76.8    |
| Working capital to revenues in % | 23.1    | 15.9    |

# **Treasury**

With a view to upcoming maturities in 2024 and to safeguard the financing of acquisition projects, significant financing steps were taken in 2023: The syndicated revolving credit line was increased from € 400.0 million to € 600.0 million, a bridge facility of € 350.0 million, undrawn as of the balance-sheet date, was established, and a sustainability-linked bond with a volume of € 350.0 million was placed on the capital market.

The acquisition projects and financial investments in a total of € 84.9 million and the share buyback program worth € 26.0 million were financed from current cash inflows. At the end of the business year, a solid liquidity reserve of € 1,364.1 million was available (comprising cash and cash equivalents of € 414.1 million and committed but undrawn credit lines of € 950.0 million).

Owing to the aforementioned financing steps and the higher level of interest, the group's (negative) net interest result increased by € 13.8 million from € -42.3 million in the previous year to € -56.1 million in the 2023 financial year.

Compared to the previous year, the debt repayment period (ratio of net debt to EBITDA) increased moderately from 1.1 to 1.6 years. This means that the ratio was within the target range of 1.5 to 2.0 as at the reporting date. After Moody's Rating Agency had already set the rating outlook for wienerberger to positive in May 2022, it upgraded the group's rating from Ba1 positive to Baa3 stable, i.e. to investment grade, in March 2023.

| Treasury Ratios        | 31/12/2023 | 31/12/2022 |
|------------------------|------------|------------|
| Net debt/EBITDA        | 1.6        | 1.1        |
| EBITDA/interest result | 14.0       | 24.3       |

As at the balance-sheet date, 64% (2022: 76%) of the group's financial liabilities were fixed-interest-bearing, but without financial liabilities according to IFRS 16 Leases taken into account. Given the local character of wienerberger's business, foreign-exchange fluctuations are reflected primarily as translation risks and to a lesser extent as transaction risks. Subject to economic restrictions, translation risks (above-all from inter-group loans in foreign currencies) are hedged against exchange-rate fluctuations by means of interest-rate and cross-currency swaps. Most of the group's transaction risks are hedged through currency forwards.

## **Cashflow**

Compared to the previous year, cash flow from operating activities decreased to € 410.0 million (2022: € 723.8 million). The main drivers are the € 269.9 million reduction in gross cash flow and the € 186.1 million build-up of working capital.

In the reporting year, cash flow from investing activities was primarily influenced by cash outflows for maintenance capex of € 126.2 million (2022: € 134.7 million) as well as discretionary growth investments and investments in ESG (special capex) in the amount of € 145.4 million (2022: € 217.9 million). A total of € 84.9 million (2022: € 52.4 million) was spent on acquisitions and strategic investments. Proceeds from the sale of assets were reduced by € 30.2 million compared to previous year. These effects resulted in a cash outflow for investing activities of € -323.0 million (2022: € 332.8 million).

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Fingerprint

Free cash flow was below the previous year's level and amounted to € 257.5 million (2022: € 597.7 million).

Cash flow from financing activities improved significantly from € -448.8 million in the previous year to € 38.8 million in 2023. The improvement was due, above all, to newly contracted longterm financial liabilities of € 346.2 million, net cash outflows in short-term financial liabilities in the amount of € -126.9 million, dividend payments of € -94.8 million as well as a significant decrease in share buy-back activities (€ -26.0 million compared to € -213.4 million in the same period of the previous year).

Altogether, cash flow was positive at € 125.8 million (2022: € -57.8 million), resulting in year-end cash and cash equivalents of € 423.5 million (31/12/2022: € 306.5 million), after foreign-exchange effects.

Image /page/202/Figure/7 description: This image is a horizontal bar chart. The y-axis shows the years 2024, 2025, 2026, 2027, 2028, and >2028. The x-axis shows the values 0, 100, 200, 300, 400, and 500. The bar for 2024 has a value of 364.0. The bar for 2025 has a value of 427.7. The bar for 2026 has a value of 80.8. The bar for 2027 has a value of 75.8. The bar for 2028 has a value of 390.6. The bar for >2028 has a value of 96.9.

### **Maturity structure of interest-bearing financial liabilities (excl. leases)**in MEUR

| Cash Flow Statement                 |        |        |           |
|-------------------------------------|--------|--------|-----------|
| in MEUR                             | 2023   | 2022   | Chg. in % |
| Gross cash flow                     | 608.5  | 878.4  | –31       |
| Change in working capital and other | –198.5 | –154.6 | –28       |
| Cash flow from operating activities | 410.0  | 723.8  | –43       |
| Maintenance capex                   | –126.2 | –134.7 | +6        |
| Special capex                       | –145.4 | –217.9 | +33       |
| M&A                                 | –84.9  | –52.4  | –62       |
| Divestments and other               | 33.5   | 72.2   | –54       |
| Cash flow from investing activities | –323.0 | –332.8 | +3        |
| Special capex and M&A               | 230.3  | 270.3  | –15       |
| Lease payments                      | –59.7  | –63.6  | +6        |
| Free cash flow                      | 257.5  | 597.7  | –57       |

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### <span id="page-203-0"></span>**Investments**

In 2023, maintenance investments required to keep the company's operations running accounted for € 126.2 million (2022: € 134.7 million). Discretionary growth investments (e.g. plant

enlargements and optimization measures aimed at enhanced production efficiency) and investments in ESG (e.g. environment and sustainability projects, such as decarbonization, biodiversity, or circular economy) came to a total of € 145.4 million (2022: € 217.9 million).

Image /page/203/Figure/5 description: The image is a horizontal bar chart comparing the Maintenance Capex, Special Capex, and M&A in percentages for the years 2022 and 2023. In 2023, Maintenance Capex is 35%, Special Capex is 41%, and M&A is 24%, totaling 356.5. In 2022, Maintenance Capex is 33%, Special Capex is 54%, and M&A is 13%, totaling 405.0. The x-axis ranges from 0 to 500.

A total of € 63.4 million (2022: € 52.4 million) was spent on corporate acquisitions. Through the acquisition of the Steinheim brick plant of Otto Bergmann GmbH, wienerberger's business in Poroton clay blocks with particularly high thermal insulation was further expanded. The acquisitions of the Komproment ApS Group and the Strøjer Group in Denmark contributed to a strategy of further growth in the facade segment in Region

Europe West. By acquiring the Swedish technology specialist Wideco Sweden AG, wienerberger took yet another step toward enlarging its portfolio of energy and water management solutions. An additional amount of € 21.5 million (2022: € 0 million) was invested in other strategic participations, which brought the total of M&A capex in the reporting year up to € 84.9 million (2022: € 52.4 million).

|                                                    | Intangible   | Tangible       | Financial   | Total          |
|----------------------------------------------------|--------------|----------------|-------------|----------------|
| Development of Non-current Assets<br>in MEUR       |              |                |             |                |
| <b>31/12/2022</b>                                  | <b>846.8</b> | <b>2,306.8</b> | <b>36.8</b> | <b>3,190.4</b> |
| Capital expenditure                                | 13.3         | 258.3          | 21.5        | 293.1          |
| Change in the scope of consolidation               | 43.6         | 45.5           | 0.0         | 89.1           |
| Depreciation, amortization, and impairment charges | -43.4        | -262.6         | -2.2        | -308.2         |
| Disposals                                          | -10.6        | -28.0          | -6.1        | -44.7          |
| Currency translation and other                     | 5.3          | 89.7           | -0.2        | 94.8           |
| <b>31/12/2023</b>                                  | <b>854.9</b> | <b>2,409.6</b> | <b>49.9</b> | <b>3,314.4</b> |

### **Total investments and M&A** in MEUR

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| Total Investments<br>in MEUR | 2023  | 2022  | Chg. in % |
|------------------------------|-------|-------|-----------|
| Europe West                  | 122.4 | 183.6 | -33       |
| Europe East                  | 103.9 | 117.6 | -12       |
| North America                | 45.2  | 51.4  | -12       |
| wienerberger                 | 271.6 | 352.6 | -23       |

Of the total amount of investments in tangible and intangible assets in the reporting year, 45% was accounted for by Region Europe West, 38% by Region Europe East, and 17% by North America.

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# <span id="page-205-0"></span>**Value Management**

Wienerberger's value management focuses not only on longterm, sustainable creation of shareholder value, but also on ESG aspects with a special focus on the well-being of our employees, whose contributions are essential for the company's long-term success.

The key indicator of Wienerberger's value-oriented corporate governance is the return on capital employed (ROCE after tax). This indicator measures the after-tax return on capital currently employed in the company and reflects the value creation by the individual business units and by the Group as a whole. It is calculated by relating the net operating profit after tax (NOPAT) to the average interest-bearing total capital employed. Wienerberger's medium-term target is to sustainably exceed a ROCE of 10%. In addition to ROCE, other important performance indicators, such as EBITDA, free cash flow, efficiency-enhancing measures, total shareholder return, and the attainment of certain environmental, social, and governance (ESG) targets, are regularly analyzed as part of the company's value management. They are taken into account in the calculation of top management bonuses.

In 2023, we again exceeded our medium-term ROCE target (> 10%). wienerberger generated a strong operating EBIT of € 494.7 million (2022: € 739.6 million). NOPAT amounted to € 412.7 million, compared to € 609.9 million in the previous year. Average capital employed increased from € 3,370.5 million to € 3,657.7 million in the same period. Overall, wienerberger thus achieved a ROCE of 11.3% (2022: 18.1%)

| Calculation of Operating EBIT and NOPAT                       | 2023  | 2022   |
|---------------------------------------------------------------|-------|--------|
| EBIT in MEUR                                                  | 477.3 | 721.2  |
| Impairments/ Reversal of impairment charges to assets in MEUR | 17.3  | 18.4   |
| Impairment charges to goodwill in MEUR                        | 0.0   | 0.0    |
| Operating EBIT in MEUR                                        | 494.7 | 739.6  |
| Income taxes in MEUR                                          | -89.2 | -119.8 |
| Adjusted taxes and other effects in MEUR                      | 7.2   | -9.9   |
| NOPAT in MEUR                                                 | 412.7 | 609.9  |

| Calculation of Average Capital Employed              |         | 2023    | 2022    |
|------------------------------------------------------|---------|---------|---------|
| Equity and non-controlling interests                 | in MEUR | 2,657.7 | 2,450.4 |
| Financial liabilities                                | in MEUR | 1,701.2 | 1,452.2 |
| Intercompany receivables and payables from financing | in MEUR | -26.2   | -21.1   |
| Cash and financial assets                            | in MEUR | -510.2  | -388.6  |
| Capital employed at reporting date                   | in MEUR | 3,822.5 | 3,492.9 |
| Average capital employed                             | in MEUR | 3,657.7 | 3,370.5 |

| Calculation of ROCE      |         | 2023    | 2022    |
|--------------------------|---------|---------|---------|
| NOPAT                    | in MEUR | 412.7   | 609.9   |
| Average capital employed | in MEUR | 3,657.7 | 3,370.5 |
| ROCE                     | in %    | 11.3    | 18.1    |

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# <span id="page-206-0"></span>**Operating Segments**

### **Europe West**

| Europe West                  | 2023    | 2022    | Chg. in % |
|------------------------------|---------|---------|-----------|
| External Revenues in MEUR    | 2,193.1 | 2,522.0 | –13       |
| Operating EBITDA in MEUR     | 377.9   | 426.0   | –11       |
| EBITDA in MEUR               | 347.0   | 425.3   | –18       |
| Operating EBITDA margin in % | 17.2    | 16.9    | –         |

Region Europe West, which reports on our markets in Northern and Western Europe, provides system solutions for the entire building envelope (wall, façade, and roof), as well as for pavers, wastewater and rainwater disposal, sanitation, heating and cooling installations, and energy and water management. External revenues decreased by 13% from the previous year's level to € 2,193.1 million (2022: € 2,522.0 million). Operating EBITDA came to € 377.9 million (2022: € 426.0 million). In this difficult market environment, wienerberger succeeded in increasing its EBITDA margin by 0.3 percentage points to 17.2%.

2023 was marked by persistently high inflation and rising interest rates, which have stabilized at a high level since fall 2023. Given these macro-economic conditions, with several countries going into recession, construction activity slowed down in all sectors. In particular, demand weakened in the new build segment, most notably in Germany, whereas France, Belgium, and the Netherlands still recorded a satisfactory level of demand in the first half of the year. Our business in in-house pipes for energy and water management was not entirely immune to the negative trend in new build, but benefited from our enlarged product and customer portfolios, which generated higher added value and profitable growth in this segment. Demand for housing is higher now than it has been during the past 15 years. Owing to sluggish construction activity, an enormous backlog has built up in residential new build.

The renovation segment had a stabilizing effect across all regions. Supported by the growing importance of energy-efficient renovation, demand for our roofing solutions remained at a satisfactory level. In Belgium and France, in particular, legal provisions and government support for energy-efficient renovation had a positive impact on our performance.

In Great Britain and Ireland, synergies between the rainwater and drainage business of FloPlast and Cork Plastics, two companies taken over in 2021, helped to compensate for the challenges in the existing roofing business. In fact, the pipe business in Ireland and Great Britain even generated higher revenues and earnings than in the previous year. In infrastructure, high inflation had a dampening effect on the award of public

contracts in almost all countries. At the same time, however, our growing market share in wastewater systems and our profitable growth in renovation had a positive impact on our performance. In Norway, the main contribution to profitable growth came from our international project business.

Confronted with fluctuating levels of demand in all our markets, we reacted swiftly with targeted cost management and capacity adjustments focused on a reduction in the number of shifts worked at our plants. Inflation-related increases in personnel and maintenance costs were only partly offset by lower raw material prices, but our efficiency-enhancement program again delivered satisfactory contributions to earnings. Thanks to these measures, we managed to maintain a high level of profitability.

The takeover of the Danish Strøjer Group in the second quarter of 2023, following the acquisition of Komproment ApS in the first quarter of the year, further broadened our sustainable range of innovative façade solutions and thus increased our market shares in the Nordic countries. The acquisition of Wideco Sweden, another transaction closed in the second quarter, enlarged our portfolio of energy and water management solutions in Scandinavia to include smart mobile applications and expertise in developing innovative Internet of Things (IoT) solutions. All our acquisitions delivered satisfactory contributions to earnings in the second half of the year.

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### <span id="page-207-0"></span>**Europe East1**

| Europe East             |         | 2023    | 2022    | Chg. in % |
|-------------------------|---------|---------|---------|-----------|
| External Revenues       | in MEUR | 1,192.6 | 1,508.6 | -21       |
| Operating EBITDA        | in MEUR | 219.7   | 371.8   | -41       |
| EBITDA                  | in MEUR | 216.6   | 373.7   | -42       |
| Operating EBITDA margin | in %    | 18.4    | 24.6    | –         |

Region Europe East provides solutions for the building envelope (wall and roof), wastewater and rainwater disposal, for sanitation, heating, and cooling installations, for energy, gas, and drinking water supply systems, as well as for pavers. In 2023, external revenues dropped by 21% to € 1,192.6 million (2022: € 1,508.6 million); operating EBITDA amounted to € 219.7 million (2022: € 371.8 million).

During the 2023 business year, our Eastern European core markets were marked by high inflation and high mortgage rates. Despite evidence of a slight downward trend in inflation and interest rates as of the second half of the year, the significantly diminished real purchasing power of the public sector and of private households had a negative impact on our end markets, with new build being hit most severely. Markets in South-Eastern Europe, with both revenues and earnings on the increase, were the only ones that did not follow the general trend. Given the growing need for housing, renovation, and the expansion of water networks, measures were taken to stimulate construction activities in individual countries, such as the Czech Republic and Poland. In the Czech Republic, for example, we set ourselves apart from our competitors in that we not only provide our various solutions, but also assist clients in their applications for government grants. Moreover, we successfully entered new fields of business with our photovoltaic solutions.

Demand in the infrastructure segment remained stable overall, but the implementation of numerous projects continued to be delayed because funding from the public budget was insufficient and commercial investment projects could not be financed. In Poland and Hungary, the disbursement of EU funding was partly delayed or denied altogether, which led to a notable drop in the number of infrastructure projects implemented in these markets. In contrast, however, we recorded consistently high demand for our innovative irrigation systems. Our pipe business in the region Europe East was equally affected by weakening demand due to a lack of finance in both the private and public sectors. Many projects were postponed, most recently on account of the early onset of harsh winter weather. At the same time, the lower raw material prices had a beneficial effect on margins.

Confronted with weakening demand, we reacted swiftly with proactive cost management measures. We adjusted the production capacity of our plants by reducing the number of shifts and requiring workers to consume their unused vacations and take time off in lieu of accumulated hours of overtime. In production planning and the scheduling of mothballing, optimized capacity utilization of the remaining plants as well as their CO₂ emissions were taken into account. Thanks to the measures taken, wienerberger succeeded in maintaining a high level of profitability and keeping its market shares stable.

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# <span id="page-208-0"></span>**North America**

| North America           |         | 2023  | 2022  | Chg. in % |
|-------------------------|---------|-------|-------|-----------|
| External Revenues       | in MEUR | 837.7 | 944.8 | -11       |
| Operating EBITDA        | in MEUR | 213.2 | 223.1 | -4        |
| EBITDA                  | in MEUR | 219.8 | 227.3 | -3        |
| Operating EBITDA margin | in %    | 25.5  | 23.6  | –         |

The region North America provides ceramic façade as well as piping solutions on both residential and commercial construction projects. The pipe business offers solutions for sustainable water supply, rainwater sewage, and environmentally conscious wastewater disposal. In 2023, we recorded external revenues of € 837.7 million (2022: € 944.8 million) while operating EBITDA amounts to € 213.2 million (2022: € 223.1 million).

In this sluggish market environment wienerberger successfully increased market shares and operating EBITDA margin from 23.6% in 2022 to 25.5% in 2023, due to proactive cost and price management. In Canada we managed to significantly increase revenues and results.

The long-term demand for housing remains at a high level. Nevertheless, demand in new build was dampened by high interest rate levels throughout 2023. This was particularly evident in the case of new residential construction, where projects have slowed, due to affordability constraints.

The successful integration of Meridian Brick allowed for a quick realization of synergies, exceeding expectations. Overall, Meridian Brick made a significant contribution to strong earnings growth in our North American façade business. Increases in manufacturing costs due to inflation were offset by forward-looking cost and price management.

In the plastic pipe business, we saw significant improvement in demand in the second half of 2023. Strong margins were supported by a disciplined approach to pricing and project selection.

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# <span id="page-209-0"></span>**Financials of the Fourth Quarter of 2023**

| External revenues<br>in MEUR | 10–12/2023 | 10–12/2022 | Chg. in % |
|------------------------------|------------|------------|-----------|
| Europe West                  | 487.4      | 599.3      | –19%      |
| Europe East                  | 259.0      | 321.5      | –19%      |
| North America                | 191.9      | 207.6      | –8%       |
| wienerberger                 | 938.3      | 1,128.4    | –17%      |

| Operating EBITDA in MEUR | 10-12/2023 | 10-12/2022 | Chg. in % |
|--------------------------|------------|------------|-----------|
| Europe West              | 59.2       | 98.0       | -40       |
| Europe East              | 41.5       | 60.7       | -32       |
| North America            | 44.9       | 42.6       | +5        |
| wienerberger             | 145.7      | 201.3      | -28       |

## **Europe West**

In the fourth quarter of 2023, region Europe West generated external revenues of € 487.4 million (10-12/2022: € 599.3 million) and recorded operating EBITDA of € 59.2 million (10- 12/2022: € 98.0 million). Most of our Western and Northern European markets saw a stabilization of inflation due to interest rate increases by the federal banks. Additionally, fourth-quarter demand in new build was further depressed by the early onset of unusually harsh winter weather in November. Although the downturn in renovation continued, demand for our products and solutions was relatively high. We therefore continued our focus on targeted cost management and capacity adjustments throughout the fourth quarter. In infrastructure, the fourth quarter continued to be marked by a stable demand curve. Nevertheless, thanks to cost-cutting measures and the further enlargement of our product portfolio we succeeded in maintaining a stable level of profitability.

# **Europe East**

Compared to the previous year, external revenues of region Europe East declined to € 259.0 million (10-12/2022: € 321.5 million). At € 41.5 million, operating EBITDA fell short of the previous year's value (10-12/2022: € 60.7 million). Business performance in the fourth quarter of 2023 varied from country to country. Interest rates and inflation stabilized or began to trend downward, especially in the non-euro countries of Hungary and the Czech Republic. Although demand weakened under the impact of persistently high interest rates and high inflation throughout the region, it countinues to stabilize in the fourth quarter at a lower level. The early onset of harsh winter weather, especially in Poland, meant that construction activities had to be suspended relatively early this winter. In the countries of South-Eastern Europe we successfully generated growth in revenues and earnings in both building construction and the pipe business, outperforming the results achieved in the fourth quarter of the previous year. In response to the persistently unfavorable economic environment in the fourth quarter, we continued to adjust our production capacities and adopted stringent cost management measures.

# **North America**

In the fourth quarter of the financial year, Region North America reported external revenues of € 191.9 million (10-12/2022: € 207.6 million) and an even increased operating EBITDA compared to the fourth quarter of € 44.9 million (10-12/2022: € 42.6 million). As interest rates remained elevated, seasonal demand remained soft in the fourth quarter of 2023 for façade business. Texas continued to outperform eastern markets. As in the third quarter, the pipe solutions business saw significant improving project demand in the US resulting in very satisfying profit contribution.

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# <span id="page-210-0"></span>**Outlook 2024**

2024 will again be marked by geopolitical instability and major political changes, the impact of which on our end markets in Europe and North America is extremely difficult to assess. The fact that the central banks have not raised their key lending rates since the late fall of 2023 and the noticeably lower rates of inflation are grounds for a certain degree of optimism regarding a change of trend in our European end markets, particularly in the second half of 2024.

We expect the low level of construction activity seen in the fourth quarter of 2023 to persist in the first half of 2024, and therefore project that the performance of our end markets will be below the 2023 level in the first half of the year. Demand for housing remains high in all the countries we operate in. With sluggish new-build activity, this will lead to delays in execution and a backlog of projects. Looking ahead to the second half of 2024, we anticipate a stabilization of the situation or even a slight upswing in the residential new-build markets.

Compared to new build, we expect to see a more stable development in renovation and infrastructure. In the infrastructure segment, in particular, this assumption is supported by a further slight upturn of activities in 2024.

### Success with Terreal

After receiving all approvals, the acquisition of Terreal was completed on February 29, 2024. The takeover of this successful European provider of innovative roofing and solar solutions will significantly expand our footprint in repair and renovation and position us as the leading European pitched-roof expert. Overall, the transaction covers almost 3,000 employees and 28 production sites and is expected to generate annual revenues of approximately € 740 million. Thanks to the preparatory measures already taken, we have now begun the rapid and efficient integration of Terreal and are creating a strong platform for further growth.

### Measures in 2024

In the field of ESG, we have set ourselves ambitious targets for the 2026 Sustainability Program and will start working on their achievement in 2024. Measures aimed at reducing CO₂ emissions, lowering our energy input, and developing further innovative and energy-efficient product solutions have already been initiated. Our cost-saving and optimization programs will be stepped up and are set to continue contributing to earnings growth in the future. Price increases in the range of 1 to 2% are to cover the anticipated cost inflation of 2 to 3%, and maintain our EBITDA margin at a high level of around 19%.

Based on these assumptions, we expect to generate EBITDA of between EUR 860 to 890 million in 2024, including contributions from the Terreal Group.

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# <span id="page-211-0"></span>**Additional Information about the Company**

### **Research and Development**

Research and Development (R&D) are of central strategic importance for wienerberger, as they enable us to take the lead in terms of costs and technology and strengthen our position in the long term through product innovations. Our primary focus is on creating benefit for the users of our products and on meeting all requirements in terms of sustainability. Our R&D activities are fundamental to the achievement of our ambitious targets regarding decarbonization, biodiversity, and the circular economy. Moreover, the development of new materials, products, and innovative, ecological system solutions, the optimization of existing production technologies and the development of new ones, the digitalization of processes, and the continued transition to Industry 4.0 are among our central action areas.

Strategic R&D projects are managed centrally, but generally implemented at the local level. To this end, wienerberger operates several research centers in a number of countries, each of them specializing in a specific product group. Within the framework of demonstration projects, new technologies are first tested for their potential benefit and their added value for customers. Successful ideas are then quickly rolled out across the entire Group via our platforms.

### **Innovations, system solutions, and efficient use of resources**

One of the priorities of our research activities is to continuously optimize the properties of building materials and the use of resources, combined with the development of new solutions, in order to meet the steadily increasing demands on building materials in terms of energy efficiency, their CO2 footprint, earthquake resistance, and structural properties. Moreover, we focus on enhancing existing and new products by adding smart and/or digital functionalities. Our goal is to develop solutions that enable environment-friendly, fast, and easy installation of our products on the construction site, contribute to climate protection and the energy efficiency of buildings, and create added value for our customers. It goes without saying that all our R&D activities are completely in line with our ambitious ESG targets.

### **Becoming a CO2-neutral provider of building materials**

In pursuit of the goal of circularity, our new products are designed for reuse or recycling. Moreover, we are making every effort to ensure that all our products advance the target of decarbonization throughout their life cycle and thus reduce the entire Group's CO2 footprint. With their positive properties as a natural, energy-efficient building material, our bricks contribute to environmental protection and ensure a pleasant and healthy indoor climate in summer as well as in winter.

Our research priorities in ceramic production include the use of alternative energy sources (electrification of processes, possible use of hydrogen or "green" gas), the reduction of energy consumption in the drying and firing processes, and the optimized use of raw material resources through product developments and new formulations.

Additionally, we are continuously investing in the automation of production processes and the introduction of novel production technologies. As a technology and innovation leader, wienerberger is developing building materials and services for the future, including solutions for the entire building envelope. By reducing the weight of our products, enhancing the efficiency of our production processes, and optimizing the physical properties of our products, we have succeeded in improving thermal insulation by almost one third, reducing energy consumption in production, and enabling the construction of substantially thinner walls.

In the course of our ongoing innovation efforts, we are intensively exploring the possibilities of mobile masonry robots and prefabrication. In times of digitalization, high demand for affordable housing, and the growing shortage of skilled labor, the entire construction sector is confronted with major challenges. As the innovation leader of our industry, we see great potential for automation in both prefabrication and the execution of construction projects. We want to offer our customers product solutions that not only accelerate and facilitate construction work, but also reduce costs and, at the same time, offer the advantage of increased safety, efficiency and quality. To this end, we are cooperating with well-established businesses, start-ups, and universities. Among other solutions, the first prototype of an innovative masonry robot for use on construction sites has been designed on this basis. The objective is to develop this solution to market maturity in response to the increasing shortage of skilled labor on construction sites. In the plastic pipe segment, we have continuously optimized our products and further increased the share of recycled raw materials used in production. With this development, we are actively contributing toward improving the CO₂ balance across the entire product life cycle and ensuring full circularity. This

{212}------------------------------------------------

process was accompanied by regular quality control measures and numerous tests of the composition of the pipe material to ensure a consistently high level of product quality. Moreover, we are continuously working on our infrastructure solutions in the field of water management to prevent a shortage of this invaluable resource. In the field of energy, we are making every effort to promote the use of renewable energy sources. The smart rainwater management system developed by Pipelife, our wholly- owned subsidiary, is a noteworthy example: It is made entirely from secondary raw materials and optimizes rainwater management on sealed surfaces. Another example is our Preflex Spider, a prefabricated, tailor-made electrical installation ideally suited to increase the efficiency of construction site work.

Ceramic pipe production is another area where we are continuously improving our processes. Pipes of the Steinzeug-Keramo brand, produced exclusively from natural, reusable raw materials, are 100% recyclable at the end of their useful life.

Our response to current challenges – be it climate change, the shortage of skilled labor or the scarcity of resources – is innovation. Our vision is to improve people's quality of life with our smart building and infrastructure solutions. One third of wienerberger's revenues are already accounted for by innovative products and services. Our goal for the future is to maintain this share at such high level throughout the Group. Regular information on current topics in the field of research and development is provided on our website.

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# <span id="page-213-0"></span>**wienerberger Share and Shareholders**

Wienerberger AG is listed in the Prime Market segment of the Vienna Stock Exchange with no-par-value bearer shares. There are neither preferred shares or registered shares nor any restrictions on common stock. The "one share – one vote" principle therefore applies in full. In the USA, Wienerberger AG trades on the OTC market via an ADR Level 1 Program of the Bank of New York. With a market capitalization of € 3,377 million and a weighting of 6.0% in the ATX at the end of 2023, wienerberger is one of the seven largest listed companies in Austria.

Image /page/213/Figure/5 description: The image shows the text "Development of the share price" in a bold, green font.

Image /page/213/Figure/6 description: This image shows a stock chart with three different data series plotted over time. The x-axis represents the months of the year 2023, starting from January and ending in December. The y-axis on the left side represents the price in euros, ranging from €18 to €34. The y-axis on the right side represents the trading volume, ranging from 0 to 8,000,000. The first data series, labeled "Wienerberger AG", is represented by a green line and shows the stock price of Wienerberger AG over time. The second data series, labeled "ATX - Austrian Traded Index (index-linked)", is represented by a gray line and shows the performance of the Austrian Traded Index over time. The third data series, labeled "Trading volume of the wienerberger share per week (in number of shares, double-count method)", is represented by green bars and shows the trading volume of Wienerberger shares per week.

The wienerberger share opened the 2023 trading year at a share price of € 22.56, i.e. the closing price of a volatile prior year. The ongoing war in Ukraine, massive price increases, especially for fuels such as oil and gas, as well as further interest rate hikes depressed stock market sentiment in 2022. However, the downward trend seen in the final weeks of 2022 came to an end at the beginning of 2023 and the wienerberger share performed well in a friendly market environment. With price gains during the first months of trading, the share reached its first annual high of € 29.98 on March 3, 2023. However, starting in mid-March, the loss of confidence in banks due to events concerning the Silicon Valley Bank and Credit Suisse,

alongside persistently high inflation rates and expectations of further interest rate hikes, led to share price drops on the global stock markets. The wienerberger share was not immune to this negative trend, but its price recovered during the following months, soaring to € 29.82 at the end of July and almost matching its previous annual high. However, owing to the muted economic mood increasingly seen in wienerberger's end markets, a massive downward trend set in before long and the wienerberger share price fell to its annual low of € 22.30 on October 25. During the final months of the year, expectations of economic recovery and an associated end to interest rate hikes had a positive impact on the stock market climate. Friendly

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market sentiment combined with wienerberger's strong third-quarter results led a notable uptick in the share price. The wienerberger share, trading at € 30.22, reached another annual high at year end and closed the year with a price gain of 34%. A comparison with the ATX, the lead index of the Vienna Stock Exchange, which gained 9.9% in the reporting year, shows that the wienerberger share outperformed the index by 24.1 percentage points.

Based on the current forecast for the development of business, the Managing Board will propose to the 155th Annual General Meeting on May 7, 2024, that a dividend of € 0.90 per share be paid out. The dividend payout of € 100.3 million corresponds to a payout ratio of 37% of the free cash flow. Based on the year-end share price of € 30.22, this represents a dividend yield of 3.0%.

### **Liquidity** in MEUR1)

Image /page/214/Figure/6 description: The image is a horizontal bar chart. The y-axis shows the quarters of the year 2023, from Q1 23 to Q4 23. The x-axis shows values from 0 to 15. The value for Q1 23 is 12.6, the value for Q2 23 is 12.5, the value for Q3 23 is 11.5, and the value for Q4 23 is 12.6.

*1) ø Stock exchange turnover of the wienerberger share per day (double-count method)*

|                                   |          | 2023    | 2022    | Chg. in % |
|-----------------------------------|----------|---------|---------|-----------|
| Key Data per Share                |          |         |         |           |
| Earnings                          | in EUR   | 3,17    | 5.17    | -39       |
| Adjusted earnings                 | in EUR   | 3.33    | 5.34    | -38       |
| Dividend                          | in EUR   | 0.90    | 0.90    | 0         |
| Free cash flow 1)                 | in EUR   | 2.44    | 5.44    | -55       |
| Equity 2)                         | in EUR   | 25.17   | 22.30   | +13       |
| Share price high                  | in EUR   | 30.26   | 34.04   | -11       |
| Share price low                   | in EUR   | 22.30   | 18.98   | +17       |
| Share price at year-end           | in EUR   | 30.22   | 22.56   | +34       |
| P/E ratio high                    |          | 9.55    | 6.58    | –         |
| P/E ratio low                     |          | 7.03    | 3.67    | –         |
| P/E ratio at year-end             |          | 9.53    | 4.36    | –         |
| Shares outstanding (weighted) 3)  | in 1,000 | 105,582 | 109,884 | -4        |
| Market capitalization at year-end | in MEUR  | 3,376.6 | 2,520.7 | +34       |
| Ø Stock exchange turnover/day 4)  | in MEUR  | 12.3    | 15.9    | -23       |

*1) Cash flow from operating activities less cash flow from investing activities and outflow from the redemption of liabilities from leases plus special capex and net outflow for acquisitions // 2) Equity including non-controlling interests, excluding hybrid capital // 3) Adjusted for treasury shares // 4) Double-count method*

{215}------------------------------------------------

### <span id="page-215-0"></span>**Shareholder structure**

wienerberger is a pure free float company and has no core shareholder. 100% of its shares are publicly traded. The group's widely diversified shareholder structure is typical of a publicly traded company with international operations. The most recent survey of the shareholder structure performed in November

2023 showed that 15% of wienerberger shares are held by private investors. The large majority is held by institutional investors, more than half of them based in the Anglo-Saxon region, i.e. North America (35%) and Great Britain (22%). The remaining shares are held mainly by Continental European investors.

### **Shareholder Structure by Country** (Institutional Investors)

Image /page/215/Figure/6 description: This image shows a pie chart with 8 slices, each representing a different region or country and its corresponding percentage. The slices are labeled with numbers 1 through 8. The numbers correspond to the following regions and percentages: 1 USA 30%, 2 Great Britain 22%, 3 France 12%, 4 Austria 7%, 5 Germany 6%, 6 Scandinavia 4%, 7 Rest of Europe 8%, 8 Rest of the World 10%.

An analysis of the various strategies pursued by institutional investors shows that value-oriented investors dominate at a

rate of 27%, followed by GARP investors and growth-oriented investors (20% and 19% respectively).

### **Shareholder Structure by Investor Type** (Institutional Investors)

Image /page/215/Figure/10 description: This image is a donut chart with 5 categories. The categories are labeled 1 through 5. Category 1 is "Value" and has a value of 27%. Category 2 is "GARP" and has a value of 20%. Category 3 is "Growth" and has a value of 19%. Category 4 is "Index" and has a value of 15%. Category 5 is "Other" and has a value of 19%.

{216}------------------------------------------------

<span id="page-216-0"></span>Pursuant to sections 130 to 134 of the Austrian Stock Exchange Act, which provides for mandatory reporting of significant holdings, the following notifications were received from shareholders as at the end of 2023: More than 5% of wienerberger shares have been held by FMR LLC (Fidelity), based in the USA, since August 22, 2022. Each of the following shareholders own more than 4% of wienerberger shares: Impax Asset Management Group plc, based in Great Britain, since February 27, 2023; Marathon Asset Management Limited, based in Great Britain, since November 28, 2023; Klaus Umek, Petrus Advisers Investments Rund L.P., based in Great Britain, since December 7, 2023. The share capital of Wienerberger AG is comprises of 111,732,343 no-par-value and 6,339,332 treasury shares (= approx. 5.7% of the share capital).

### **Investor Relations**

In the course of our intensive investor relations activities, we are making every effort to establish long-term relations and engage in continuous exchanges with investors, analysts, and banks. The crucial goalin investor relations is to ensure the highest possible degree of transparency through ongoing, open, and active communication. To meet these demanding requirements in an era marked by geopolitical crises, wienerberger relies not only on personal contacts, but also on digital communication channels to respond to enquiries quickly and to inform the financial market about current developments in our markets through regular conference calls. We also participated in numerous roadshows and investor conferences, both virtually and within the framework of on-site meetings. In the year under review, the Managing Board and the Investor Relations team were in direct contact with investors and analysts from all over the world more than 600 times, informing them about our key financials, the company's operational and strategic developments, and current ESG (environmental, social, governance) topics.

The fact that Wienerberger is covered by a number of renowned Austrian and international investment banks ensures the visibility of the wienerberger stock among the financial community. As of February 2024, the wienerberger share is being covered by 13 analysts.

### **Disclosures on capital, shares, voting rights, and rights of control**

The 153rd Annual General Meeting held on May 3, 2022, authorized the Managing Board to buy back own shares of up to 8% of the share capital during a period of 30 months, without further resolution by the Annual General Meeting.

The Managing Board made use of this authorization and carried out a share buyback programme of up to 1,000,000 treasury shares (= 0.9% of the share capital) in the period from 31 March 2023 to 3 May 2023. A total of 976,600 treasury shares (= approx. 0.87% of the share capital) with a total value of € 26 million were bought back at a weighted average price of € 26.62 per share.

The 153rd Annual General Meeting held on May 3, 2022, authorized the Managing Board for a period of five years, with the approval of the Supervisory Board and without further resolution by the Annual General Meeting, to sell or use treasury shares other than over the stock exchange or through a public offering, subject to the provisions, mutatis mutandis, regarding the exclusion of shareholders' subscription rights, and to set the terms and conditions of the sale.

On 3 April 2023, the Managing Board made use of this authorization and used 387,440 treasury shares (= 0.35% of the share capital) at an agreed equivalent value of € 26 per share (= € 10,073,440 total value) as an additional non-cash transaction currency for the acquisition of the Danish Strøjer Group. In addition, a further 6,099 treasury shares (= approx. 0.005% of the share capital) were used on 27 December 2023 at a transaction price of € 29.98 (= € 182,848 total value) to implement an employee share participation program in North America.

The 150th Annual General Meeting held on May 6, 2019, resolved on an authorized capital of € 17,452,724 million (=15% of the share capital) through the issue of up to 17,452,724 new no-par-value shares over a period of five years. The shareholders' statutory subscription rights can be excluded under certain conditions. However, the total number of shares issued subject to the exclusion of subscription rights must not exceed 5,817,574 (=5% of the share capital). The Managing Board has not made use of this authorization to date.

{217}------------------------------------------------

<span id="page-217-0"></span>Change of control clauses are included in the employee contracts of the members of the Managing Board, the terms of the 2018, 2020 and 2023 corporate bonds, and several syndicated loans and other loans.

Further disclosures on the composition of wienerberger's capital, the types of shares, rights and restrictions, as well as the powers of the Managing Board to issue, buy back or sell shares are contained in the Notes to the Consolidated Financial Statements under Note 28 (Group Equity) starting on [page 265](#page-264-0).

# **Risk Management and the Internal Control System**

Our international operations not only offer great opportunities, but are also associated with short-, medium-, and long-term risks. wienerberger has therefore established an effective risk management system, which identifies existing risks and counters them in a structured process through prevention, reduction and transfer. Our risk awareness is taken into account in all strategic decisions. Purely operational risks are considered acceptable, whereas taking risks beyond the scope of operational business is not permitted.

As a leading provider of innovative and ecological solutions for the entire building envelope, we voluntarily undertake to present a transparent overview not only of climate-related

opportunities, but also of the associated risks. The identification and analysis of climate-related risks is part of Wienerberger Group's comprehensive risk management approach. Since 2020, we have therefore supported the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) as regards the identification, analysis, and assessment of physical and transitional risks in connection with the impact of the transition to a low-carbon economy (e.g. reputational risks, regulatory risks, market risks, and technology risks). For a detailed disclosure of our TCFD-related risk management, please refer to [pages 130-142](#page-129-0) in the annual report.

The internal control system (ICS) of Wienerberger AG plays a special role in risk management. Based on the standards of the internationally recognized framework for internal control systems (issued by COSO), the ICS provides the management with a comprehensive tool for the analysis and/or prevention of uncertainties and risks arising from the company's essential business activities. Rules and controls applicable throughout the Group and across its operating segments are set by the Managing Board. In accordance with the decentralized structure of wienerberger, responsibility for implementing the ICS lies with the respective local management. Internal Audit assumes a steering, communication, and monitoring function. To provide reasonable assurance regular audits are performed at the local sites.

The ICS comprises a system of measures and processes covering the following areas:

Image /page/217/Figure/10 description: The image is a diagram illustrating the components of IKS (Internal Control System). The diagram consists of five rectangular boxes surrounding a central circle labeled "IKS". Each box represents a different aspect of the system and contains a list of related elements. The "Control environment" box includes "Uniform and binding rules for the entire Group", "Standardized processes", "Uniform chart of accounts and reporting system", and "Compliance management system". The "Information & communication" box lists "Reports on the analysis of weaknesses and possible efficiency enhancements", "Reports on fraud cases", and "Regular risk reporting". The "Risk Assessment" box contains "Annual internal audit plan approved by the Managing Board and Supervisory Board" and "Group-wide risk management". The "Control activities" box includes "Standardized and integrated planning process", "ERP Audit Cockpit", and "Identity and Access Management (ERP authorization concept)". Finally, the "Monitoring" box lists "Risk- and process-oriented audits", "IT Audit", and "Ad-hoc audits".

{218}------------------------------------------------

### **Control environment**

- **›** Uniform and binding rules for the entire Group
- **›** Standardized processes
- **›** Uniform chart of accoutns and reporting system
- **›** Compliance management system

The control environment forms the basis for standardization and harmonization processes across the Group. As regards accounting, the Managing Board has established a groupwide policy with uniform and binding rules to be followed in the preparation of annual and interim financial statements. Business transactions are recorded by means of standardized processes based on a uniform Group chart of accounts. wienerberger's consolidated annual financial statements as well as its interim financial statements are prepared in accordance with IFRS in a fast-close process. The financial statements of all subsidiaries are audited by the finance and controlling departments, consolidated, and finally approved by the Managing Board of Wienerberger AG for submission to the Supervisory Board.

wienerberger's compliance management system consists of a set of rules designed to support employees in complying with the Group's ethical and legal standards. It applies to all employees working for Wienerberger. If national legislation provides for stricter rules, the latter take precedence. As clear rules are indispensable for the prevention of misconduct, Wienerberger implemented anti-bribery and anti-corruption policies, a policy regarding compliance with anti-trust law, export controls (lists of sanctions), as well as capital market and data privacy rules. The compliance management system is continuously adapted to changes in legislation. The policies are communicated to all relevant employees on a regular basis. Training sessions are organized and documented. Additional controls have been introduced at Group level to inform and support the local management in matters of compliance. Internal Audit regularly verifies compliance with the rules and policies in effect.

In accordance with its ESG strategy, wienerberger established its own Code of Conduct. The Code of Conduct is designed as a binding guideline setting out clear and uniform rules for employees, business partners, and suppliers. It also refers to the aforementioned internal corporate policies.

### **Risk assessment**

- **›** Annual internal audit plan approved by the Managing Board and the Supervisory Board
- **›** Group-wide risk management

To manage the group-wide risks, we aim to identify risks as early as possible and counteract them through appropriate measures in order to minimize deviations from our goals. The respective risk owners within our experienced international teams are in charge of the

- **›** identification
- **›** analysis
- **›** assessment
- **›** management
- **›** monitoring

of risks. To this end, surveys are conducted twice a year at top and senior management level, involving the members of the Managing Board, the regional managers and the heads of Corporate Functions, in order to update existing risks and identify new ones. Risks are identified and assessed proactively through interviews, workshops, and scenario analyses. Subsequently, the risks identified are analyzed and broken down into strategic and operational risks along the entire value chain and assigned to the risk owners. Risks are assessed on the basis of their probability of occurrence and the potential impact on the free cash flow. Different time horizons are taken into consideration for risk assessment, ranging from short-term (up to one year) to medium-term (one to five years) to long-term (five to 25 years) periods. These horizons were determined by the management and correspond to the annual planning process.

The effects on the free cash flow are classified in four categories – negligible (<€ 5 million), marginal (€ 5-50 million), significant (€ 50-100 million), and critical (>€ 100 million) – which are adapted to the business performance of the respective year and approved by the Managing Board.

Besides strategic risks, the major risks for the wienerberger are procurement, production, market and price risks, financial and legal risks, and climate-related risks. The risks identified are compared with the materiality matrix in order to ensure consistency of the internal risk assessment and alignment with the expectations of external stakeholder groups. For a detailed information on all types of risk, please refer to the Risk Report starting on [page 285.](#page-284-0)

{219}------------------------------------------------

The most important instruments for risk monitoring and risk management are the planning and controlling processes, Group policies, regular reporting of financial and non-financial indicators, and the diversification of risks through our portfolio approach.

Most of the risks identified are addressed and monitored within the framework of established internal processes of corporate management. In particular, local companies only take on risks arising from their operational business, which are analyzed by the respective risk owners within the business unit concerned and weighed against the potential gains. In addition, operational risks, financial risks and legal and compliance risks are managed, monitored and mitigated not only by the regional managers, but also centrally by the holding company. Another risk class includes material risks with a low probability of occurrence. These are continually monitored, assessed, and addressed through predefined defensive measures on a timely basis, whenever need arises.

Internal Audit draws up an annual, risk-oriented audit plan, which is approved by the Managing Board and the Audit and Risk Committee of the Supervisory Board. The risk indicators used as a basis for the audit plan include financial indicators, such as revenues, EBITDA, ROCE, internal indicators, such as the number of employees, whistleblower statistics, the findings of earlier internal audit reports, as well as the corruption perception index (CPI). The IT audit plan is based on a risk assessment process for the identification of risks in connection with the loss of confidentiality, integrity, and availability of information within the framework of relevant information systems. In the course of the year, Internal Audit regularly reports to the Managing Board and the Audit and Risk Committee on the audits performed, the results obtained, and the degree of implementation of the findings.

The Group auditor annually evaluates the functionality of the wienerberger risk management system and reports the outcome to the Managing Board and Supervisory Board. The functionality of the risk management system was reviewed and confirmed by the Group auditor in 2023. In addition, the Group auditor includes individual internal controls in sub-areas of the accounting process in the audit to the extent that he considers this necessary for his audit opinion.

### **Control activities**

- **›** Standardized and integrated planning process
- **›** Risk and control matrix
- **›** Identity and Access Management (ERP – authorization concept)

The controlling activities include an annual planning process that is based on an integrated bottom-up planning approach. The planning process covers the budgeting of profit and loss, the balance sheet, and the cash flows as well as industry specific KPIs of the following business year, as well as a medium-term plan for a horizon of four years. The monthly comparison of actual results with the forecasts for the respective period is an essential element of the internal control and risk management system. In addition, all subsidiaries prepare updated forecasts of their expected annual results three times a year.

In order to strengthen, formalize, and document the internal control system, a risk and control matrix with more than 580 controls, therof 35 key controls, broken down into about 12 main processes and over 178 sub-processes, was designed and introduced. Once every six months, the local management evaluates and documents the status of implementation of selected key controls. Internal Audit regularly reviews this self-evaluation and assesses the degree of maturity of the respective key controls.

As a further control instrument, a fully integrated governance, risk and compliance (GRC) system has been established. At its core, there is an identity and access management system. It comprises a complete joiner, mover and leaver process, which ensures that all identities and their assigned critical IT access rights within the organization are always up to date. The system has been integrated throughout the Group.

Through the identification of segregation of duty conflicts beyond the ERP system, excessive IT access rights as well as segregation of duty breaches across different applications can be restricted already at the stage of access request management.

{220}------------------------------------------------

If segregation of duty conflicts are nevertheless permitted for operational necessary reasons, they require approval and must be monitored by subsequent inspections. Such mitigating controls are performed by and documented in the identity and access management system. Additionally, the system provides for reporting options for the management to verify the controls performed.

Based on this governance, risk and compliance solution, an integrated process has been established. It ranges from the identification and communication of critical single access rights and segregation of duty conflicts to their control and documentation

Image /page/220/Figure/4 description: The image shows a circular diagram representing Identity and Access Management. In the center of the circle, it says "Identity- & Access- Management". Arrows around the circle indicate a process flow. The text around the circle includes: "Joiner, mover and leaver process", "Identities in critical IT systems", "Acces request management incl. segregation of duty conflicts", "Integrated management of access to critical IT systems", "Documentation and monitoring of unresolved segregation of duty conflicts", and "Management, reporting & monitoring of segregation of duty conflicts".

{221}------------------------------------------------

### **Monitoring**

- **›** Risk and process oriented audit
- **›** IT audit
- **›** Ad-hoc audit

The organizational and management structures of Wienerberger AG and its companies are clearly defined. Responsibilities for the process of monitoring risk management are determined and clearly segregated. A detailed description of the internal organizational structure can be found starting on [page 42.](#page-41-0)

The risk-oriented audit plan is based on regularly updated key financial figures, internal KPIs such as the number of employees, occupational accidents and whistleblower statistics, as well as external information such as the Corruption Perception Index. At predefined intervals - every three to five years, depending on the risk assessment - Internal Audit not only reviews compliance with the ICS in each Group company, but also analyzes operational processes with regard to their risk propensity and potential efficiency improvements. Depending on a revolving risk assessment, such audits are performed every three to five years. Moreover, Internal Audit verifies compliance with legal provisions and internal policies, thus acting as the central monitoring body of the internal control system. The information systems and the IT controls performed are checked against the IT / security requirements of the organization laid down in its information security management system.

In addition to its risk- and process-oriented audits, Internal Audit also performs ad-hoc and special audits if so requested by the management.

### **Information and Communication**

- **›** Reports on the analysis of weaknesses and efficiency enhancements
- **›** Report on fraud cases
- **›** Regular risk reporting

Twice a year, a structured risk management process takes place. In the course of this process, the risk management team supports the individual business areas through proactive interviews and workshops aimed at identifying and assessing their respective risks. The results and the related recommendations and measures are summarized and transmitted to the Managing Board, the Supervisory Board, and the external auditor of the Group. The most significant risks and mitigating measures are also explained and discussed before the Audit and Risk Committee.

Risk reports are submitted as follows:

- **›** Standardized structured risk management process in the form of interviews and workshops
- **›** Regular embedded in the Group's existing reporting channels
- **›** Ad hoc for instant communication of changing or new risks

Within the framework of the other information and communication duties of the ICS, Internal Audit and Group Reporting regularly report to the Audit and Risk Committee on material accounting and valuation procedures, the impact of newly adopted IFRS rules on the consolidated financial statements, major changes in the accounting process, and findings from risk management. Moreover, the Audit and Risk Committee is regularly informed of audit findings by the Internal Audit department, relevant implementation activities, and measures to eliminate weaknesses identified in the ICS.

{222}------------------------------------------------

# <span id="page-222-0"></span>CONSOLIDATED FINANCIAL STATEMENTS

### **22[4](#page-223-0)**

**[Consolidated](#page-223-0)  [Income Statement](#page-223-0)**

### **22[5](#page-224-0)**

**[Consolidated Statement of](#page-224-0) [Comprehensive Income](#page-224-0)**

### **22[6](#page-225-0)**

**[Consolidated Balance Sheet](#page-225-0)**

### **22[7](#page-226-0)**

**[Consolidated Statement](#page-226-0)  [of Cash Flows](#page-226-0)**

### **22[8](#page-227-0)**

**[Consolidated Statement](#page-227-0)  [of Changes in Equity](#page-227-0)**

### **22[9](#page-228-0)**

### **[Notes to the Consolidated](#page-228-0)  [Financial Statements](#page-228-0)**

### **22[9](#page-228-0)**

### **[General Information](#page-228-0)**

| 229 | 1. Basis for the preparation of the |  |  |  |
|-----|-------------------------------------|--|--|--|
|     | consolidated financial statements   |  |  |  |

- **229** [2. Consolidated companies](#page-228-0)
- **230** [3. Acquisitions and disposals](#page-229-0)
- [of companies](#page-229-0) **231** [4. Methods of consolidation](#page-230-0)
- **232** [5. Estimates and judgements](#page-231-0)
- **233** 6. Effects of new and revised standards
- **234** [7. Operating segments](#page-233-0)

### **23[9](#page-237-0)**

### **[Notes to the Consolidated](#page-238-0)  [Income Statement](#page-238-0)**

- **23[9](#page-238-0)** [8. Revenues](#page-238-0)
- **24[0](#page-238-0)** [9. Material expenses](#page-239-0)
- **24[1](#page-239-0)** [10. Depreciation, amortization,](#page-240-0)  [impairment charges and reversal](#page-240-0)  [of impairment charges](#page-240-0)
- **24[1](#page-239-0)** [11. Personnel expenses](#page-240-0)
- **24[3](#page-241-0)** [12. Employees](#page-242-0)
- **24[4](#page-242-0)** [13. Other operating expenses](#page-243-0)
- **24[5](#page-243-0)** [14. Other operating income](#page-244-0)
- **24[5](#page-243-0)** [15. Reconciliation of results](#page-244-0)  [according to the cost-of-sales](#page-244-0)  and the total-cost method
- **24[6](#page-244-0)** [16. Interest result and other](#page-245-0)  [financial result](#page-245-0)
- **24[8](#page-245-0)** [17. Income taxes](#page-247-0)
- **24[9](#page-246-0)** [18. Earnings per share, proposal](#page-248-0)  [for profit distribution](#page-248-0)

### **25[0](#page-249-0)**

### **[Notes to the Consolidated](#page-249-0)  [Statement of Comprehensive](#page-249-0)  [Income](#page-249-0)**

### **25[1](#page-0-0)**

### **[Notes to the Consolidated](#page-250-0)  [Statement of Cash Flows](#page-250-0)**

- **25[1](#page-0-0)** [19. Cash flow from operating](#page-250-0) [activities](#page-250-0)
- **25[1](#page-0-0)** [20. Cash flow from investing](#page-250-0)  [activities](#page-250-0)
- **25[2](#page-251-0)** 21. Cash flow from financing activities

### **25[3](#page-0-0)**

### **[Notes to the Consolidated](#page-252-0)  [Balance Sheet](#page-252-0)**

- **25[3](#page-0-0)** [22. Non-current assets and](#page-252-0)  [impairment test](#page-252-0)
- **26[2](#page-0-0)** [23. Investments](#page-261-0)
- **26[2](#page-0-0)** [24. Inventories](#page-261-0)
- **263** [2](#page-262-0)5. Receivables, securities and other financial assets
- **26[5](#page-0-0)** [26. Other receivables](#page-264-0)
- **26[5](#page-0-0)** [27. Assets held for sale](#page-264-0)
- **26[5](#page-0-0)** [28. Group equity](#page-264-0)
- **26[7](#page-0-0)** [29. Provisions](#page-266-0)
- **26[7](#page-0-0)** [30. Employee benefits](#page-266-0)
- **27[3](#page-0-0)** [31. Deferred taxes](#page-272-0)
- **27[5](#page-0-0)** [32. Liabilities](#page-274-0)
- **28[0](#page-0-0)** [33. Contingent liabilities](#page-279-0)  [and guarantees](#page-279-0)
- **28[0](#page-0-0)** [34. Derivative financial instruments](#page-279-0)  [and hedge accounting](#page-279-0)
- **28[1](#page-0-0)** [35. Disclosures on financial](#page-280-0)  [instruments](#page-280-0)

### **285**

### **[Risk Report](#page-284-0)**

- **28[5](#page-0-0)** [Principles of risk management](#page-284-0)
- **28[5](#page-0-0)** R[isk situation and operating risks](#page-284-0)  [relating to the Group's markets](#page-284-0)
- **28[6](#page-0-0)** [Procurement, production,](#page-285-0)  [investment and acquisition risks](#page-285-0)
- **28[7](#page-0-0)** [Financial risks](#page-286-0)
- **29[1](#page-0-0)** [Legal risks](#page-290-0)
- **29[2](#page-0-0)** [Other risks](#page-291-0)

### **293**

### **[Other Disclosures](#page-292-0)**

**29[3](#page-0-0)** [36. Related-party transactions](#page-292-0) **29[4](#page-293-0)** [37. Events after the balance](#page-293-0) 

[sheet date](#page-293-0)

### **295**

**[Statement by](#page-294-0)  [the Managing Board](#page-294-0)**

### **296**

**[Group companies](#page-295-0)**

### **301**

**[Auditor's report](#page-300-0)**

{223}------------------------------------------------

# <span id="page-223-0"></span>**Consolidated Income Statement**

| Notes         | in TEUR                                                      | 2023             | 2022             |
|---------------|--------------------------------------------------------------|------------------|------------------|
| (8)           | Revenues                                                     | 4,224,340        | 4,976,732        |
| (9-11, 13-15) | Cost of goods sold                                           | -2,611,733       | -3,029,434       |
|               | <b>Gross Profit</b>                                          | <b>1,612,607</b> | <b>1,947,298</b> |
| (9-11, 13-15) | Selling expenses                                             | -783,222         | -859,018         |
| (9-11, 13-15) | Administrative expenses                                      | -330,594         | -327,795         |
| (10, 14, 15)  | Other operating income                                       |                  |                  |
|               | Other                                                        | 88,961           | 66,753           |
| (10, 13, 15)  | Other operating expenses                                     |                  |                  |
| (10)          | Impairment charges to assets                                 | -17,342          | -18,389          |
|               | Other                                                        | -93,101          | -87,656          |
|               | <b>Operating profit/loss (EBIT)</b>                          | <b>477,309</b>   | <b>721,193</b>   |
| (2)           | Income from investments in associates and joint ventures     | -337             | 6,563            |
| (16)          | Interest and similar income                                  | 20,172           | 6,234            |
| (16)          | Interest and similar expenses                                | -76,304          | -48,495          |
| (16)          | Other financial result                                       | 3,483            | 2,851            |
|               | <b>Financial result</b>                                      | <b>-52,986</b>   | <b>-32,847</b>   |
|               | <b>Profit/loss before tax</b>                                | <b>424,323</b>   | <b>688,346</b>   |
| (17)          | Income taxes                                                 | -89,208          | -119,800         |
|               | <b>Profit/loss after tax</b>                                 | <b>335,115</b>   | <b>568,546</b>   |
|               | Thereof attributable to non-controlling interests            | 755              | 635              |
|               | Thereof attributable to equity holders of the parent company | 334,360          | 567,911          |
| (18)          | Earnings per share (in EUR)                                  | 3,17             | 5,17             |
| (18)          | Diluted earnings per share (in EUR)                          | 3,17             | 5,17             |

{224}------------------------------------------------

# <span id="page-224-0"></span>**Consolidated Statement of Comprehensive Income**

| Notes    | in TEUR                                                                              | 2023      | 2022      |
|----------|--------------------------------------------------------------------------------------|-----------|-----------|
|          | Profit/loss after tax                                                                | 335,115   | 568,546   |
|          | Foreign exchange adjustments                                                         | -16,590   | -14,478   |
|          | Foreign exchange adjustments to investments in<br>associates and joint ventures      | -45       | 46        |
|          | Changes in hedging reserves                                                          | -9,058    | 29,871    |
|          | Items to be reclassified to profit or loss                                           | -25,693   | 15,439    |
| (30)     | Actuarial gains/losses                                                               | 1,781     | 8,354     |
|          | Actuarial gains/losses from investments of associates and joint ventures             | 177       | 301       |
|          | Items not to be reclassified to profit or loss                                       | 1,958     | 8,655     |
|          | Other comprehensive income                                                           | -23,735   | 24,094    |
|          | Total comprehensive income after tax                                                 | 311,380   | 592,640   |
|          | Thereof comprehensive income attributable to non-controlling interests               | 696       | 671       |
|          | Thereof comprehensive income attributable to equity holders<br>of the parent company | 310,684   | 591,969   |
| Notes    | in TEUR                                                                              | 2023      | 2022      |
|          | Assets                                                                               |           |           |
| (22)     | Intangible assets and goodwill                                                       | 854,891   | 846,770   |
| (22)     | Property, plant and equipment                                                        | 2,365,369 | 2,268,885 |
| (22)     | Investment property                                                                  | 44,233    | 37,921    |
| (23)     | Investments in associates and joint ventures                                         | 15,773    | 20,420    |
| (23, 26) | Other financial investments and non-current receivables                              | 43,013    | 23,371    |
| (31)     | Deferred tax assets                                                                  | 44,919    | 61,754    |
|          | Non-current assets                                                                   | 3,368,198 | 3,259,121 |
| (24)     | Inventories                                                                          | 1,153,763 | 1,036,211 |
| (25)     | Trade receivables                                                                    | 306,780   | 374,514   |
| (26)     | Receivables from current taxes                                                       | 29,097    | 12,488    |
| (26)     | Other current receivables                                                            | 98,631    | 120,865   |
| (25, 35) | Securities and other financial assets                                                | 72,406    | 72,896    |
| (19–21)  | Cash and cash equivalents                                                            | 414,106   | 300,031   |
|          | Current assets                                                                       | 2,074,783 | 1,917,005 |
| (27)     | Non-current assets held for sale                                                     | 25,605    | 23,131    |
|          | Total assets                                                                         | 5,468,586 | 5,199,257 |
|          |                                                                                      |           |           |
|          | Equity and liabilities                                                               |           |           |
|          | Issued capital                                                                       | 111,732   | 111,732   |
|          | Share premium                                                                        | 987,031   | 983,995   |
|          | Retained earnings                                                                    | 1,921,571 | 1,677,900 |
|          | Other reserves                                                                       | –218,652  | –194,977  |
|          | Treasury shares                                                                      | –146,247  | –129,799  |
|          | Controlling interests                                                                | 2,655,435 | 2,448,851 |
|          | Non-controlling interests                                                            | 2,266     | 1,571     |
| (28)     | Equity                                                                               | 2,657,701 | 2,450,422 |
| (31)     | Deferred taxes                                                                       | 100,537   | 100,674   |
| (30)     | Employee-related provisions                                                          | 69,468    | 73,869    |
| (29)     | Other non-current provisions                                                         | 103,509   | 103,264   |
| (32, 35) | Long-term financial liabilities                                                      | 1,274,574 | 1,245,062 |
| (32)     | Other non-current liabilities                                                        | 23,313    | 15,508    |
|          | Non-current provisions and liabilities                                               | 1,571,401 | 1,538,377 |
|          |                                                                                      |           |           |
| (29)     | Current provisions                                                                   | 76,989    | 60,801    |
| (32)     | Payables for current taxes                                                           | 30,593    | 49,636    |
| (32, 35) | Short-term financial liabilities                                                     | 426,644   | 207,157   |
| (32)     | Trade payables                                                                       | 330,074   | 439,567   |
| (32)     | Other current liabilities                                                            | 363,671   | 438,537   |
|          | Current provisions and liabilities                                                   | 1,227,971 | 1,195,698 |
|          | Liabilities directly associated with assets held for sale                            | 11,513    | 14,760    |
|          | Total equity and liabilities                                                         | 5,468,586 | 5,199,257 |
| Notes    | in TEUR                                                                              | 2023      | 2022      |
|          | Profit/loss before tax                                                               | 424,323   | 688,346   |
| (10)     | Depreciation and amortization                                                        | 286,791   | 276,257   |
| (10)     | Impairment charges to assets and other valuation effects                             | 33,850    | 49,508    |
| (29, 30) | Increase/decrease in non-current provisions                                          | –5,245    | –18,245   |
| (2)      | Income from investments in associates and joint ventures                             | 337       | –6,563    |
|          | Gains/losses from the disposal of fixed and financial assets                         | –13,194   | –26,145   |
| (16)     | Interest result                                                                      | 56,132    | 42,261    |
|          | Interest paid                                                                        | –63,442   | –42,222   |
|          | Interest received                                                                    | 15,159    | 2,776     |
|          | Income taxes paid                                                                    | –115,370  | –91,364   |
|          | Other non-cash income and expenses                                                   | –10,887   | 3,753     |
|          | Gross cash flow                                                                      | 608,454   | 878,362   |
|          |                                                                                      |           |           |
|          | Increase/decrease in inventories                                                     | –119,895  | –171,285  |
|          | Increase/decrease in trade receivables                                               | 69,895    | –34,242   |
|          | Increase/decrease in trade payables                                                  | –115,237  | 19,934    |
|          | Increase/decrease in other net current assets                                        | –33,264   | 31,035    |
| (19)     | Cash flow from operating activities                                                  | 409,953   | 723,804   |
|          |                                                                                      |           |           |
|          | Proceeds from the sale of assets (including financial assets)                        | 35,162    | 65,428    |
|          | Payments made for property, plant and equipment and intangible assets                | –271,590  | –352,573  |
|          | Payments made for investments in financial assets                                    | –21,478   | 0         |
|          | Dividend payments from associates and joint ventures                                 | 2,194     | 3,216     |
|          | Increase/decrease in securities and other financial assets                           | –3,828    | –8,521    |
|          | Net payments made for the acquisition of companies                                   | –63,415   | –52,447   |
|          | Net proceeds from the sale of companies                                              | 0         | 12,100    |
| (20)     | Cash flow from investing activities                                                  | –322,955  | –332,797  |
|          |                                                                                      |           |           |
| (21)     | Cash inflows from the increase in short-term financial liabilities                   | 534,441   | 116,732   |
| (21)     | Cash outflows from the repayment of short-term financial liabilities                 | –661,315  | –220,016  |
| (21)     | Cash inflows from the increase in long-term financial liabilities                    | 346,229   | 15,434    |
| (21)     | Cash outflows from the repayment of lease liabilities                                | –59,731   | –63,627   |
| (28)     | Dividends paid by Wienerberger AG                                                    | –94,848   | –83,871   |
| (28)     | Purchase of treasury shares                                                          | –26,018   | –213,445  |
| (21)     | Cash flow from financing activities                                                  | 38,758    | –448,793  |
|          | Change in cash and cash equivalents                                                  | 125,756   | –57,786   |
|          | Effects of exchange rate fluctuations on cash held                                   | –8,720    | –64       |
|          | Cash and cash equivalents at the beginning of the period                             | 306,457   | 364,307   |
|          | Cash and cash equivalents at the end of the period 1)                                | 423,493   | 306,457   |

{225}------------------------------------------------

# <span id="page-225-0"></span>**Consolidated Balance Sheet**

{226}------------------------------------------------

# <span id="page-226-0"></span>**Consolidated Statement of Cash Flows**

*1) Cash and cash equivalents of TEUR 9,387 were recognized in the consolidated balance sheet as non-current assets held for sale*

{227}------------------------------------------------

# <span id="page-227-0"></span>**Consolidated Statement of Changes in Equity**

| olling interests | Non-controlling<br>interests | Total     |
|------------------|------------------------------|-----------|
| 2,148,168        | 900                          | 2,149,068 |
| 567,911          | 635                          | 568,546   |
| -14,514          | 36                           | -14,478   |
| 46               |                              | 46        |
| 29,871           |                              | 29,871    |
| 8,655            |                              | 8,655     |
| 24,058           | 36                           | 24,094    |
| 591,969          | 671                          | 592,640   |
| -83,871          |                              | -83,871   |
| 4,679            |                              | 4,679     |
| 1,351            |                              | 1,351     |
| -213,445         |                              | -213,445  |
| 0                |                              | 0         |
| 2,448,851        | 1,571                        | 2,450,422 |
| 334,360          | 755                          | 335,115   |
| -16,530          | -60                          | -16,590   |
| -45              |                              | -45       |
| -9,058           |                              | -9,058    |
| 1,958            |                              | 1,958     |
| -23,675          | -60                          | -23,735   |
| 310,685          | 695                          | 311,380   |
| -94,848          |                              | -94,848   |
| 4,218            |                              | 4,218     |
| 2,059            |                              | 2,059     |
| -26,018          |                              | -26,018   |
| 10,488           |                              | 10,488    |

| Notes    | in TEUR                                                                         | Issued<br>capital | Share<br>premium | Retained<br>earnings | Other reserves             |                    |                         | Treasury<br>shares | Controlling interests | Non-controlling<br>interests | Total     |
|----------|---------------------------------------------------------------------------------|-------------------|------------------|----------------------|----------------------------|--------------------|-------------------------|--------------------|-----------------------|------------------------------|-----------|
|          |                                                                                 |                   |                  |                      | Actuarial<br>gains/ losses | Hedging<br>reserve | Currency<br>translation |                    |                       |                              |           |
|          | Balance on 31/12/2021                                                           | 115,188           | 1,069,751        | 1,189,703            | -62,910                    | 77,778             | -233,903                | -7,439             | 2,148,168             | 900                          | 2,149,068 |
|          | Profit/loss after tax                                                           |                   |                  | 567,911              |                            |                    |                         |                    | 567,911               | 635                          | 568,546   |
|          | Foreign exchange adjustments                                                    |                   |                  |                      |                            |                    | -14,514                 |                    | -14,514               | 36                           | -14,478   |
|          | Foreign exchange adjustments to investments in associates and<br>joint ventures |                   |                  |                      |                            |                    | 46                      |                    | 46                    |                              | 46        |
|          | Changes in hedging reserves                                                     |                   |                  |                      |                            | 29,871             |                         |                    | 29,871                |                              | 29,871    |
|          | Changes in other reserves                                                       |                   |                  |                      | 8,655                      |                    |                         |                    | 8,655                 |                              | 8,655     |
|          | Other comprehensive income                                                      |                   |                  |                      | 8,655                      | 29,871             | -14,468                 |                    | 24,058                | 36                           | 24,094    |
|          | Total comprehensive income                                                      |                   |                  | 567,911              | 8,655                      | 29,871             | -14,468                 |                    | 591,969               | 671                          | 592,640   |
| (28)     | Dividend/hybrid coupon payment                                                  |                   |                  | -83,871              |                            |                    |                         |                    | -83,871               |                              | -83,871   |
|          | Effects from hyperinflation (IAS 29)                                            |                   |                  | 4,679                |                            |                    |                         |                    | 4,679                 |                              | 4,679     |
| (11, 28) | Changes in stock option plan                                                    |                   | 1,351            |                      |                            |                    |                         |                    | 1,351                 |                              | 1,351     |
| (11, 28) | Purchase of treasury shares                                                     |                   |                  |                      |                            |                    |                         | -213,445           | -213,445              |                              | -213,445  |
|          | Retirement of treasury shares                                                   | -3,456            | -87,107          | -522                 |                            |                    |                         | 91,085             | 0                     |                              | 0         |
|          | Balance on 31/12/2022                                                           | 111,732           | 983,995          | 1,677,900            | -54,255                    | 107,649            | -248,371                | -129,799           | 2,448,851             | 1,571                        | 2,450,422 |
|          | Profit/loss after tax                                                           |                   |                  | 334,360              |                            |                    |                         |                    | 334,360               | 755                          | 335,115   |
|          | Foreign exchange adjustments                                                    |                   |                  |                      |                            |                    | -16,530                 |                    | -16,530               | -60                          | -16,590   |
|          | Foreign exchange adjustments to investments in associates and<br>joint ventures |                   |                  |                      |                            |                    | -45                     |                    | -45                   |                              | -45       |
|          | Changes in hedging reserves                                                     |                   |                  |                      |                            | -9,058             |                         |                    | -9,058                |                              | -9,058    |
|          | Changes in other reserves                                                       |                   |                  |                      | 1,958                      |                    |                         |                    | 1,958                 |                              | 1,958     |
|          | Other comprehensive income                                                      |                   |                  |                      | 1,958                      | -9,058             | -16,575                 |                    | -23,675               | -60                          | -23,735   |
|          | Total comprehensive income                                                      | 0                 | 0                | 334,360              | 1,958                      | -9,058             | -16,575                 | 0                  | 310,685               | 695                          | 311,380   |
| (28)     | Dividend payment                                                                |                   |                  | -94,848              |                            |                    |                         |                    | -94,848               |                              | -94,848   |
|          | Effects from hyperinflation (IAS 29)                                            |                   |                  | 4,218                |                            |                    |                         |                    | 4,218                 |                              | 4,218     |
| (11, 28) | Changes in stock option plan                                                    |                   | 2,059            |                      |                            |                    |                         |                    | 2,059                 |                              | 2,059     |
| (11, 28) | Purchase of treasury shares                                                     |                   |                  |                      |                            |                    |                         | -26,018            | -26,018               |                              | -26,018   |
| (11, 28) | Sale of treasury shares                                                         |                   | 977              | -59                  |                            |                    |                         | 9,570              | 10,488                |                              | 10,488    |
|          | Balance on 31/12/2023                                                           | 111,732           | 987,031          | 1,921,571            | -52,297                    | 98,591             | -264,946                | -146,247           | 2,655,435             | 2,266                        | 2,657,701 |

{228}------------------------------------------------

# <span id="page-228-0"></span>**Notes to the Consolidated Financial Statements**

# **General Information**

### **1. Basis for the preparation of the consolidated financial statements**

Wienerberger AG, which is headquartered in Vienna, Austria, is the parent company of an international group of companies providing innovative, ecological solutions for the entire building envelope, in the fields of new buildings and renovations, as well as infrastructure in water and energy management whose business activities are categorized into three segments according to management responsibilities: Europe West, Europe East, and North America. The address of Wienerberger AG is Wienerbergerplatz 1, 1100 Vienna, Austria.

The consolidated financial statements were prepared pursuant to § 245a of the Austrian Commercial Code and in accordance with the International Financial Reporting Standards (IFRS) and Interpretations of the International Financial Reporting Interpretations Committee (IFRIC) published by the International Accounting Standard Board (IASB) as of the balance sheet date and adopted by the European Union (EU). Independent auditors have audited the annual financial statements of all major Austrian and foreign Group companies to confirm their compliance with the International Financial Reporting Standards as applicable within the EU.

In principle, the annual financial statements are based on historical acquisition and production costs and were prepared as of the balance sheet date, the only exception being certain financial instruments, such as derivatives and equity instruments, which are accounted for at fair value. Deferred taxes are determined based on the concept of temporary differences and re-evaluated on every balance sheet date. In addition, defined benefit pension and severance compensation plans are recognized and measured according to the projected unit credit method. The income statement is prepared in accordance with the cost of sales method; the reconciliation to the total cost method is provided in the Notes.

With few marked exceptions, the consolidated financial statements are presented in thousand euros.

### **2. Consolidated companies**

The list of companies enclosed at the end of the Notes provides an overview of the fully consolidated subsidiaries, joint ventures and associates included at equity, and investments that are not consolidated for materiality reasons. The following table shows the changes in the scope of consolidation of wienerberger during the reporting year and comprises subsidiaries as well as associates and joint ventures accounted for at equity:

| Consolidated companies                            | Full<br>Consolidation | Equity<br>consolidation and<br>Quota consolida-<br>tion |
|---------------------------------------------------|-----------------------|---------------------------------------------------------|
| Balance on 31/12/2022                             | 158                   | 6                                                       |
| Change in consolidation method                    | 0                     | 0                                                       |
| Included during reporting year for the first time | 10                    | 2                                                       |
| Merged/liquidated during the reporting period     | -12                   | 0                                                       |
| Divested during the reporting period              | 0                     | 0                                                       |
| Balance on 31/12/2023                             | 156                   | 8                                                       |
| Thereof foreign companies                         | 131                   | 6                                                       |
| Thereof domestic companies                        | 25                    | 2                                                       |

### Subsidiaries

In addition to Wienerberger AG, the 2023 consolidated financial statements include 25 (2022: 24) Austrian and 131 (2022: 134) foreign subsidiaries over which Wienerberger AG exercises control. In the fourth quarter, Pipelife France SNC a fully consolidated company, was liquidated and deleted. Subsidiaries are fully consolidated as of the date control is obtained and deconsolidated when control ceases to exist. According to IFRS 10, control is considered to exist when wienerberger has power over the subsidiary and can 

{229}------------------------------------------------

<span id="page-229-0"></span>use this power to influence the company's financial and operating policies. Five subsidiaries were not consolidated in 2023 (2022: 4) because their impact on the Group's assets, liabilities, financial position and profit or loss is immaterial for a true and fair view thereof.

### Investments in associates and joint ventures

All material Austrian and foreign companies in which Wienerberger AG directly or indirectly holds the majority of voting rights are included in the consolidated financial statements. According to the criteria of IFRS 11, Schlagmann Poroton GmbH und Co KG, Silike keramika, spol. s.r.o. and EXA IP B.V. are to be classified as joint ventures, because these companies are controlled jointly with a partner of equal rights. 50% is therefore accounted for at-equity. Maatschap Vanheede - Wienerberger (civil-law partnership) is a joint operation and included in the consolidated financial statements through pro-rata consolidation. WiTa Social Business Venture Holding is an associate in which the Group holds 49%. Moreover, wienerberger holds 30% of Fornaci Giuliane S.r.l, which is also managed jointly with the joint venture partners and therefore classified as a joint venture. In the reporting year, shares in TMBP Technologies GmbH were acquired, the company being included as an associate with a 31% participation. Moreover, Green Build s.r.o. was founded as a joint venture with a 50% participation. The following table shows the aggregated financial information of joint ventures and associates without taking account of wienerberger's equity share in these companies:

| in TEUR                              | 2023   | 2022    |
|--------------------------------------|--------|---------|
| Revenues                             | 87,976 | 131,599 |
| EBITDA                               | 10,097 | 26,688  |
| EBIT                                 | 2,995  | 19,926  |
| Profit/loss after tax                | -671   | 13,344  |
| Total comprehensive income after tax | -317   | 13,947  |

| Assets             |            |            | Equity and liabilities                    |            |            |
|--------------------|------------|------------|-------------------------------------------|------------|------------|
| in TEUR            | 31/12/2023 | 31/12/2022 | in TEUR                                   | 31/12/2023 | 31/12/2022 |
| Non-current assets | 67,132     | 61,751     | Equity                                    | 29,776     | 42,114     |
| Current assets     | 53,094     | 52,040     | Non-current provisions<br>and liabilities | 8,583      | 8,680      |
|                    |            |            | Current provisions<br>and liabilities     | 81,867     | 62,997     |
|                    | 120,226    | 113,791    |                                           | 120,226    | 113,791    |

### **3. Acquisitions and disposals of companies**

In January 2023, wienerberger took over 100% of the Steinheim plant of Otto Bergmann GmbH in order to expand its regional footprint in the field of Poroton high-thermal-insulation clay blocks. No material goodwill resulted from purchase price allocation. Since the date of first-time consolidation, revenues of TEUR 2,466 and EBITDA of TEUR -20 have been generated. No material acquisition-related costs were incurred for this transaction.

In February and April of the reporting year, the portfolio for façade solutions in Northern Europe was enlarged through the acquisition of 100% of the Komproment Group and the Strojer Group. With their innovative and sustainable solutions, these acquisitions will contribute to wienerberger's long-term growth strategy. For the Komproment Group, goodwill was identified in the amount of TEUR 7,384. From 01/01/2023 to 31/12/2023, the Group generated revenues of TEUR 12,127 and EBITDA of TEUR 333. Since the acquisition date revenues of TEUR 10,954 and EBITDA of TEUR 478 have been reported. For the Strojer Group, goodwill has been identified at a preliminary amount of TEUR 10,190. From 01/01/2023 to 31/12/2023, revenues amounted to TEUR 26,002 and EBITDA to TEUR 449. Since the date of first-time consolidation, revenues of TEUR 18,067 and EBITDA of TEUR 1,991 have been generated. Acquisition-related costs of the transaction came to TEUR 1,444, which are recognized in other operating expenses. Goodwill for the acquired companies is recognized in the Europe West reporting segment.

{230}------------------------------------------------

<span id="page-230-0"></span>In April 2023, 85% of Wideco Sweden AG, a Swedish technology company, was acquired. Shareholder Kawipe Consulting AB has the option to transfer the remaining 15% of the capital to wienerberger in 2025. As the risks and opportunities associated with the minority share are assumed by wienerberger, no non-controlling interests are recognized. According to IFRS 9, the liability for the call option is reported as a financial liability at fair value (see Note 35. Financial liabilities). With this transaction, wienerberger is taking a further step toward enlarging its portfolio of solutions in energy and water management. Goodwill acquired amounts to TEUR 1,510 and is recognized in the Europe West reporting segment. No material acquisition-related costs were incurred for this transaction. Between 01/01/2023 and 31/12/2023, the company generated revenues of TEUR 3,557 and EBITDA of TEUR 445. Since the acquisition date, the company has generated revenues of TEUR 2,687 and EBITDA of TEUR 436.

Net cash outflows for the acquisition of companies in the reporting year amounted to a total of TEUR 62,380. As of 31/12/2023, purchase price liabilities of TEUR 14,865 were recognized in other liabilities. Furthermore, payments for purchase price liabilities for acquisitions made in the previous year amounted to TEUR 1,035.

The reconciliation of assets acquired and liabilities assumed is shown in the following table:

| in TEUR                                                  | Strojer | Komproment | Other    | Total   |
|----------------------------------------------------------|---------|------------|----------|---------|
| Intangible assets                                        | 12,896  | 4,756      | 6,530    | 24,182  |
| Property, plant and equipment and financial assets       | 28,881  | 977        | 15,606   | 45,464  |
| Non-current assets                                       | 41,777  | 5,733.0    | 22,136.0 | 69,646  |
| Inventories                                              | 6,679   | 3,003      | 1,539    | 11,221  |
| Trade receivables                                        | 5,744   | 1,860      | 609      | 8,213   |
| Other current receivables                                | 1,621   | 722        | 1,857    | 4,200   |
| Current assets                                           | 14,044  | 5,585      | 4,005    | 23,634  |
| Deferred taxes                                           | 6,046   | 1,151      | 4,627    | 11,824  |
| Non-current provisions                                   | 24      | 40         | 701      | 765     |
| Non-current provisions and liabilities                   | 6,070   | 1,191      | 5,328    | 12,589  |
| Current provisions                                       | 1,618   | 480        | 208      | 2,306   |
| Short-term financial liabilities                         | 11,352  | 1,727      | 715      | 13,794  |
| Trade payables                                           | 4,246   | 817        | 356      | 5,419   |
| Other current liabilities                                | 923     | 673        | 458      | 2,054   |
| Current provisions and liabilities                       | 18,139  | 3,697      | 1,737    | 23,573  |
| Net assets acquired                                      | 31,612  | 6,430      | 19,076   | 57,118  |
| Goodwill                                                 | 10,193  | 7,384      | 1,830    | 19,407  |
| Cash and cash equivalents taken over                     | –227    | –10        | –710     | –947    |
| Purchase price liabilities                               | –787    | –375       | –1,730   | –2,892  |
| Payments made for companies acquired in previous periods |         |            |          | 1,035   |
| Sale of treasury stock for acquisitions                  | –10,306 |            |          | –10,306 |
| Net payments made for acquisitions                       | 30,485  | 13,429     | 18,466   | 63,415  |

### **4. Methods of consolidation**

The consolidation of associates is subject to the principles of IFRS 10. According to the acquisition method applicable within the framework of a corporate acquisition, the compensation transferred in exchange for the investment is compared with the revalued net assets (shareholders' equity) of the acquired company on the date of acquisition. All identifiable assets, liabilities and contingent liabilities are initially recognized at fair value in accordance with IFRS 3; any remaining positive difference between the purchase price and the revalued stake in equity is recognized in local currency as goodwill in the relevant segment. Negative differences are recognized in the income statement in other operating income. Goodwill and intangible assets with an indefinite useful life are subjected to an impairment test at least annually together with the cash-generating unit to which they are allocated and reduced to the lower recoverable 

{231}------------------------------------------------

<span id="page-231-0"></span>amount in the event of impairment. Impairment tests are also performed more frequently if there are indications of impairment of a cash-generating unit during the financial year (see Note 22. Non-current assets). Revenues, income and expenses as well as receivables and liabilities arising between consolidated companies are eliminated.

Intercompany gains and losses from the sale of goods or services between Group companies that affect current or non-current assets are eliminated, unless they are immaterial.

Associates and joint ventures are consolidated at equity. The Group's accounting and valuation principles are applied, unless deviations under local GAAP have an immaterial effect on the Group's financial statements.

### **5. Estimates and judgements**

In preparing the consolidated financial statements, management must make estimates and judgements that impact the recognition and measurement of assets, liabilities and contingent liabilities, the disclosure of other obligations as of the balance sheet date, and the recognition of income and expenses during the reporting period. The actual figures may deviate from management estimates.

For example, the valuation of pension plans and severance claims by actuaries include assumptions concerning the expected discount rate, increases in salaries and pensions, employee turnover rates, and the development of the costs of medical care. Detailed information on the parameters used is provided in Note 30. Employee benefits. This Note also includes a sensitivity analysis of the defined benefit obligations.

The useful life of property, plant and equipment is also determined on the basis of estimates which, in this case, are derived from experience with the operation of comparable equipment. Information on the useful lives of these assets is disclosed in Note 22. Non-current assets.

Provisions for site restorations are based on the best estimate of the expected costs for the recultivation of clay pits as well as long-term discount rates, considering the respective country-specific inflation rates. The calculation of provisions is based on estimates with a considerable degree of uncertainty. Cost estimates may vary on account of numerous factors, such as changes in relevant legislation or the development of new recultivation techniques and requirements. The impacts of climate-related risks on the most important assumptions considered in forecasting and the disclosure of such obligations are still too uncertain to allow for a more specific estimate of the provisions required. The ascertainment of such risks and their impacts on the Group will be an area of increased management attention in the coming reporting periods.

The measurement of deferred tax assets requires assumptions regarding the future taxable income and the time of utilization of the deferred tax assets. However, given the fact that the future business development cannot be predicted with certainty and is not entirely within wienerberger's control, the valuation of deferred taxes is uncertain.

wienerberger issues various types of product warranties, depending on the respective product category and on market conditions. In principle, the recognition and measurement of provisions for warranties/guarantees relate to estimates of the frequency and amount of losses. These estimates are based on historical records of the occurrence and scope of warranty claims as well as the best possible management estimates of payments to be made in warranty cases. The provisions are adjusted regularly to reflect new information becoming available.

In particular, impairment testing of goodwill and other assets involves estimates and forward-looking assumptions by management concerning the expected cash surpluses and the cost of capital for the Group and its cash-generating units during the planning period. On account of economic developments, the prevailing uncertainty regarding the pace of transition to low-emission technologies, and the environmental-policy measures taken to achieve the targets of CO2 reduction, the company's assumptions of the climate-related effects included in the calculations of recoverable amounts (e.g. capital expenditure, CO2 emission costs, and other assumptions) are by nature uncertain and may ultimately deviate from the actual amounts. The estimates made during the preparation of these consolidated financial statements reflect the best knowledge of management on a going-concern basis. They draw on past experience and take account of the remaining degree of uncertainty.

{232}------------------------------------------------

### **6. Effects of new and revised standards**

The following table provides an overview of the new standards and interpretations published by the IASB as of the balance sheet date:

| Standards/Interpretations |                                                                             | Published by IASB | Mandatory<br>first-time<br>adoption |    |
|---------------------------|-----------------------------------------------------------------------------|-------------------|-------------------------------------|----|
| IFRS 17                   | Insurance Contracts                                                         | May 2017          | 1/1/2023                            | 1) |
| IAS 8                     | Definition of Accounting Estimates - Amendments                             | February 2021     | 1/1/2023                            | 1) |
| IAS 1                     | Disclosure of Accounting policies - Amendments                              | February 2021     | 1/1/2023                            | 1) |
| IAS 12                    | Deferred Tax related to leases and decommissioning obligations - Amendments | May 2021          | 1/1/2023                            | 1) |
| IFRS 17                   | Insurance Contracts - Amendments                                            | June 2020         | 1/1/2023                            | 1) |
| IAS 12                    | International Tax Reform—Pillar Two Model Rules                             | May 2023          | 1/1/2023                            | 1) |
| IFRS 17 and IFRS 9        | Insurance Contracts, deferral of IFRS 9 - Amendments                        | December 2021     | 1/1/2023                            | 1) |
| IFRS 16                   | Lease Liability in a Sale and Leaseback - Amendments                        | September 2022    | 1/1/2024                            | 1) |
| IAS 1                     | Classification of Liabilities as Current or Non-current - Amendments        | January 2020      | 1/1/2024                            | 1) |
| IAS 1                     | Non-current Liabilities with Covenants – Amendments                         | October 2022      | 1/1/2024                            | 1) |
| IAS 7/ IFRS 7             | Supplier Finance Arrangements                                               | May 2023          | 1/1/2024                            | 1) |
| IAS 21                    | Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability       | August 2023       | 1/1/2025                            | 1) |

*1) Mandatory effective date according to European Union directive*

### New and amended standards and interpretations published and adopted by the EU

In May 2017, the IASB published the new standard IFRS 17 Insurance Contracts, which replaces IFRS 4 and regulates the accounting of insurance and re-insurance contracts. Moreover, the IASB published amendments to IFRS 17 in June 2020 and amendments to IFRS 17 and IFRS 9 in December 2021. The amendments enable entities for the first time to apply IFRS 17 and IFRS 9 at the same time, disclosing comparative information on a financial asset as if the classification and measurement rules of IRFS 9 had already been previously applied to the financial asset concerned. Application of the standard and the amendments has been mandatory since January 1, 2023. The new standard is of no relevance to wienerberger's consolidated financial statements, as the company holds neither insurance nor re-insurance contracts as an insurance provider.

In February 2021, amendments to IAS 1 and IAS 8 were published. Through the amendments to IAS 1 the term "significant accounting policies" was replaced by the term "material accounting policy information" wherever it occurs. The amendments to IAS 8 contain clarifications on changes in accounting estimates in order to improve the distinction from changes in accounting methods. Application of the amendments has been mandatory since January 1, 2023. The amendments have no material impact on wienerberger's consolidated financial statements.

Amendments to IAS 12 were published in May 2021. The amendments regulate how entities account for deferred taxes relating to assets and liabilities arising from a single transaction (e.g. leases). Application of the amendments has been mandatory since January 1, 2023. The amendment has no material impact on wienerberger's consolidated financial statements.

Further amendments to IAS 12 were published in May 2023. The amendments provide for a temporary exception to the requirements regarding the recognition and disclosure of deferred tax assets and liabilities related to global minimum taxation (Pillar II). Regarding the expected impacts on group accounts see note 31.Deferred taxes.

{233}------------------------------------------------

<span id="page-233-0"></span>The amendments to IFRS 16 specify the subsequent measurement requirements to be met by a seller-lessee in a sale-and-leaseback transaction. Application of the amendments has been mandatory since January 1, 2024. No material impacts on wienerberger's consolidated financial statements are expected.

Amendments to IAS 1 were published in January 2020 and October 2022. The amendments aim at a more general approach to the classification of liabilities as current liabilities, which is based on agreed covenants. Moreover, it is clarified that only those covenants that must be complied with by an entity on or before the reporting date affect the classification of a liability. Application of the amendment is mandatory as of January 1, 2024. No material impact on wienerberger's consolidated financial statements is expected.

### New and amended standards and interpretations published but not yet adopted by the EU

In May 2023, amendments to IAS 7 and IFRS 7 were published. The amendments require the disclosure of information that enables users of financial statements to assess how financing arrangements with suppliers affect the liabilities and cash flows of an entity as well as its liquidity risk, and how the company might be affected if the arrangements were no longer available. Application of the amendments is expected to be mandatory as of January 1, 2024. wienerberger is currently analyzing the impacts on its consolidated financial statements.

Amendments to IAS 21 were published in August 2023. The amendments require that entities apply a consistent approach to assessing whether a currency is exchangeable into another currency and, in the event of lack of exchangeability, identify the exchange rate to be applied as well as the required disclosures. Application of the amendments is expected to be mandatory as of January 1, 2025. wienerberger is currently analyzing the impact on its consolidated financial statements.

### **7. Operating segments**

The definition of operating segments and the presentation of segment results are based on the management approach required by IFRS 8 and follow internal reports to the Managing Board of Wienerberger AG as the chief operating decision maker, i.e. the body that decides on the allocation of resources to the individual segments.

Since 01/01/2023, wienerberger's strategy has been targeted at the regions Europe West, Europe East, and North America. wienerberger has therefore adjusted its segment reporting accordingly, including that of prior periods.

Region Europe West reports on Northern and Western Europe and encompasses system solutions for the entire building envelope (wall, roof, and façade) as well as pavers, wastewater and rainwater disposal, sanitation, heating and cooling installations, and energy, gas, and potable-water supply.

Region Europe East provides solutions for the building envelope (wall, facade and roof), as well as pavers, wastewater and rainwater disposal systems, sanitation, heating and cooling installations, and energy, gas, and potable-water supply.

Region North America provides ceramic façade and pipe solutions for residential and commercial construction projects. The pipe business comprises solutions for sustainable water supply, rainwater drainage, and ecological wastewater disposal.

The activities of the holding companies are allocated to the segments on the basis of the capital employed of the regions.

Reports to the responsible chief operating decision maker include operating EBITDA as the key indicator for the management of the operating segments as well as revenues, EBIT, operating EBIT, interest result and profit/loss after tax. Accordingly, these indicators are also presented in the segment reports. The split of these KPIs is based on the country of the individual companies' registered offices.

{234}------------------------------------------------

Investments for maintenance of the industrial base are shown as "maintenance capex", while investments in the expansion and optimization of plants, the development of new products, environmental and/or sustainability projects, and digitalization are summarized under "special capex".

The reconciliation of segment results to Group results considers only the elimination of revenues, income and expenses as well as receivables and liabilities arising between the operating segments.

wienerberger does not generate more than 10% of its revenues with any single external customer.

{235}------------------------------------------------

Image /page/235/Picture/5 description: The image contains a white arrow pointing up and to the left. The arrow is set against a light gray background with a subtle, swirling pattern that resembles ripples or waves.

### **Group**

<span id="page-235-0"></span>

|                                                             | Europe West |           | Europe East |           | North America 3) |         | Group eliminations |          | wienerberger |           |
|-------------------------------------------------------------|-------------|-----------|-------------|-----------|------------------|---------|--------------------|----------|--------------|-----------|
| in TEUR                                                     | 2023        | 2022      | 2023        | 2022      | 2023             | 2022    | 2023               | 2022     | 2023         | 2022      |
| External revenues                                           | 2,193,076   | 2,521,972 | 1,192,641   | 1,508,592 | 837,714          | 944,767 |                    |          | 4,223,431    | 4,975,331 |
| Intercompany revenues 1)                                    | 27,347      | 40,780    | 34,808      | 38,809    | 5,416            | 5,326   | –66,662            | –83,514  | 909          | 1,401     |
| Total revenues                                              | 2,220,423   | 2,562,752 | 1,227,449   | 1,547,401 | 843,130          | 950,093 | –66,662            | –83,514  | 4,224,340    | 4,976,732 |
| EBITDA                                                      | 346,955     | 425,260   | 216,554     | 373,689   | 219,836          | 227,300 |                    |          | 783,345      | 1,026,249 |
| Operating EBITDA                                            | 377,862     | 426,039   | 219,671     | 371,761   | 213,222          | 223,072 |                    |          | 810,755      | 1,020,872 |
| Depreciation and amortization 2)                            | –160,897    | –163,847  | –89,093     | –81,406   | –38,703          | –41,414 |                    |          | –288,693     | –286,667  |
| Impairment charges/reversal of impairment charges to assets | –17,342     | –5,138    | 0           | –13,251   | 0                | 0       |                    |          | –17,342      | –18,389   |
| EBIT                                                        | 168,715     | 256,275   | 127,461     | 279,032   | 181,133          | 185,886 |                    |          | 477,309      | 721,193   |
| Income from investments in associates and joint ventures    | –637        | 6,708     | 300         | –145      | 0                | 0       |                    |          | –337         | 6,563     |
| Interest result                                             | –41,765     | –24,329   | –6,942      | –3,738    | –7,425           | –14,194 |                    |          | –56,132      | –42,261   |
| Income taxes                                                | –38,825     | –58,651   | –13,873     | –40,707   | –36,510          | –20,442 |                    |          | –89,208      | –119,800  |
| Profit/ loss after tax                                      | 93,801      | 185,024   | 104,916     | 234,203   | 136,398          | 149,319 |                    | 0        | 335,115      | 568,546   |
| Liabilities                                                 | 1,692,655   | 1,743,936 | 962,643     | 989,972   | 462,222          | 385,820 | –306,635           | –370,893 | 2,810,885    | 2,748,835 |
| Capital employed                                            | 2,216,750   | 1,993,637 | 1,060,463   | 929,552   | 545,282          | 569,751 |                    |          | 3,822,495    | 3,492,940 |
| Assets                                                      | 3,228,654   | 3,131,906 | 1,704,475   | 1,619,212 | 842,093          | 819,032 | –306,636           | –370,893 | 5,468,586    | 5,199,257 |
| Investments in associates and joint ventures                | 12,528      | 18,861    | 2,922       | 1,559     | 323              | 0       |                    |          | 15,773       | 20,420    |
| Non-current assets held for sale                            | 221         | 0         | 25,384      | 23,131    | 0                | 0       |                    |          | 25,605       | 23,131    |
| Maintenance capex                                           | 58,546      | 67,200    | 43,601      | 44,153    | 24,065           | 23,369  |                    |          | 126,212      | 134,722   |
| Special capex                                               | 63,871      | 116,381   | 60,348      | 73,465    | 21,159           | 28,005  |                    |          | 145,378      | 217,851   |
| Ø Employees (in FTE)                                        | 9,059       | 9,162     | 7,503       | 7,487     | 2,351            | 2,429   |                    |          | 18,913       | 19,078    |

*1) Intercompany revenues represent the revenues between fully consolidated, at-equity consolidated and unconsolidated Group companies. // 2) Including special write-downs // 3) deviations from the former product-centric structure are due to the adjustment of the allocation of holding costs and employees to the new structure*

{236}------------------------------------------------

| Assets             | Wienerberger Group |           |
|--------------------|--------------------|-----------|
| in TEUR            | 2023               | 2022      |
| Austria            | 389,726            | 332,414   |
| United Kingdom     | 439,483            | 437,340   |
| USA                | 338,226            | 360,360   |
| Belgium            | 328,056            | 330,111   |
| Netherlands        | 300,582            | 299,215   |
| Germany            | 199,364            | 213,522   |
| France             | 192,511            | 199,907   |
| Poland             | 185,675            | 179,913   |
| Czech Republic     | 148,647            | 143,989   |
| Denmark            | 99,097             | 39,615    |
| Ireland            | 98,728             | 99,591    |
| Sweden             | 95,265             | 83,936    |
| Hungary            | 89,574             | 79,052    |
| Canada             | 74,342             | 77,142    |
| Other countries    | 388,922            | 383,014   |
| Wienerberger Group | 3,368,198          | 3,259,121 |

| Revenues           | Wienerberger Group |           |
|--------------------|--------------------|-----------|
| in TEUR            | 2023               | 2022      |
| Austria            | 213,443            | 291,067   |
| USA                | 746,196            | 864,903   |
| Great Britain      | 510,616            | 600,194   |
| Belgium            | 385,197            | 420,401   |
| Netherlands        | 376,606            | 397,970   |
| Germany            | 203,362            | 300,345   |
| Poland             | 202,170            | 267,940   |
| France             | 193,194            | 247,482   |
| Czech Republic     | 163,435            | 230,043   |
| Norway             | 157,104            | 166,570   |
| Sweden             | 114,678            | 132,374   |
| Hungary            | 102,960            | 161,757   |
| Croatia            | 96,233             | 71,018    |
| Romania            | 93,844             | 121,485   |
| Other countries    | 665,302            | 703,183   |
| Wienerberger Group | 4,224,340          | 4,976,732 |

{237}------------------------------------------------

<span id="page-237-0"></span>

| Products     | EBITDA  |           | Total investments |         |
|--------------|---------|-----------|-------------------|---------|
| in TEUR      | 2023    | 2022      | 2023              | 2022    |
| Wall         | 123,624 | 271,223   | 59,755            | 82,777  |
| Facade       | 245,288 | 308,417   | 66,300            | 93,729  |
| Roof         | 183,093 | 218,043   | 30,940            | 41,169  |
| Pavers       | 9,274   | 21,538    | 10,087            | 9,705   |
| Pipes        | 272,585 | 263,777   | 71,576            | 110,326 |
| Other        | -50,519 | -56,749   | 32,932            | 14,867  |
| wienerberger | 783,345 | 1,026,249 | 271,590           | 352,573 |

{238}------------------------------------------------

# <span id="page-238-0"></span>**Notes to the Consolidated Income Statement**

### **8. Revenues**

Revenues: Income from products delivered and services provided is recognized at the time of transfer of control of the product to the buyer. At wienerberger, this usually corresponds to the time of delivery to the customer.

In individual cases, revenue is recognized during production if an asset is produced according to customer specifications with no alternative use, and if there is an enforceable right acc. to IFRS 15 to payment against the customer. In the case of construction contracts, revenue is recognized on the basis of the stage of completion and is generally calculated using output-oriented methods (e.g. based on the quantity produced in relation to the total quantity). Revenue from services, on the other hand, is recognized using an input-oriented method based on the costs incurred as at the reporting date compared to the expected total costs of order execution (cost-to-cost method). This relates, for example, to 3D models for building design created as part of building information modeling. If there is a likelihood of the costs of order execution exceeding the amount agreed upon with the customers, a provision for contingent losses is to be set up.

Variable consideration is recognized in revenues subject to it being highly probable that significant cancellation of these amounts will not occur in the future. Revenue is reported net of rebates, discounts, bonuses, penalties and rights of return. The recognition of variable consideration is essentially based on historical data. Payments to customers are also deducted from revenues, provided they do not represent payments for separately identifiable goods and services.

In the reporting year, consolidated revenues decreased by 15% to TEUR 4,224,340, including a negative effect from currency translation in the amount of TEUR 97,761. The most significant negative foreign-exchange effects resulted from the steep devaluation of the Turkish lira, the Norwegian crown, and the US dollar. Revenues include results from construction contracts in the amount of TEUR -3,610 (2022: TEUR +9,546). Detailed information on revenues by region is provided in the presentation of operating segments on pages 236 and 237.

wienerberger generates revenues from the sale of building material and infrastructure solutions for a broad variety of application. As a rule, revenue is recognized at the time of delivery and, consequently, the transfer of control of the product to the buyer, which usually corresponds to the time of delivery agreed upon in the delivery terms. The goods are delivered to the customer by wienerberger's own means of transport or by contracted carriers. Transport revenues are recognized as part of external revenues, while transport-related expenses are recognized in selling costs (in gross amounts).

Revenues are adjusted for expected returns and customer bonuses or discounts. Return obligations arise primarily from returnable packaging material, such as pallets. Expected returns are estimated mainly on the basis of historical data of recent years.

In international project business with LLLD (long-length large-diameter) pipes, revenue is recognized over a period of time. In the brick business as well, revenue from individual contracts is recognized over a period of time. This applies, for instance, to customer-specific production or so-called "heritage" products. However, the period of production for such contracts usually does not extend beyond a few days or weeks. Progress made in contract execution during the reporting period is calculated by means of output-oriented methods, for instance on the basis of the volume produced relative to the total volume ordered.

Alongside the sale of products and system solutions, wienerberger also provides services to customers in the form of digitalized products and services. The current contributions to revenues from such services are immaterial.

The period of time between the transfer of goods and/or services to the buyer and the due date of the receivable is usually less than one year. wienerberger therefore makes use of the practical expedient not to adjust revenues for a significant financing component. The time of settlement of the receivables depends on the agreed payment terms.

{239}------------------------------------------------

<span id="page-239-0"></span>External revenues broken down by the most important product categories, reconciled to reporting segments, are as follows:

| 1–12/2023 |             |             |               |              |
|-----------|-------------|-------------|---------------|--------------|
| in TEUR   | Europe West | Europe East | North America | wienerberger |
| Wall      | 246,679     | 447,328     | 33,792        | 727,799      |
| Façade    | 667,310     | 7,882       | 602,930       | 1,278,122    |
| Roof      | 468,263     | 211,584     | 0             | 679,847      |
| Pavers    | 108         | 119,158     | 177           | 119,443      |
| Pipes     | 810,546     | 406,612     | 200,765       | 1,417,922    |
| Other     | 170         | 77          | 51            | 298          |
| Total     | 2,193,076   | 1,192,641   | 837,714       | 4,223,431    |

### **1–12/2022**

| in TEUR | Europe West | Europe East | North America | wienerberger |
|---------|-------------|-------------|---------------|--------------|
| Wall    | 328,534     | 645,274     | 31,436        | 1,005,244    |
| Façade  | 806,241     | 15,286      | 684,604       | 1,506,131    |
| Roof    | 493,215     | 268,970     | 0             | 762,185      |
| Pavers  | 71          | 127,196     | 418           | 127,685      |
| Pipes   | 893,805     | 451,824     | 228,278       | 1,573,907    |
| Other   | 106         | 42          | 31            | 179          |
| Total   | 2,521,972   | 1,508,592   | 944,767       | 4,975,331    |

Information on future revenues from contractual performance obligations not yet fulfilled on the balance sheet date is not disclosed, as customer contracts are generally fulfilled within one year. For the same reason, wienerberger makes use of the practical expedient not to capitalize contract costs, but to recognize them in expenses as incurred.

### **9. Material expenses**

The cost of goods sold, selling and administrative expenses and other operating income and expenses include expenses for materials, maintenance, merchandise and energy as follows:

| in TEUR              | 2023      | 2022      |
|----------------------|-----------|-----------|
| Cost of materials    | 805,147   | 1,142,010 |
| Maintenance expenses | 198,434   | 199,753   |
| Cost of merchandise  | 406,554   | 435,388   |
| Cost of energy       | 331,564   | 372,927   |
| Total                | 1,741,699 | 2,150,078 |

The reported expenses were reduced by a change in inventories of semi-finished and finished goods of TEUR 47,839 (2022: TEUR 28,268). This includes adjustments to the cost of goods sold resulting from the recognition of assets for the right to recover products returned from customers. The capitalization of own work and a proportional share of borrowing costs relating to the construction of qualified assets amounted to TEUR 3,201 (2022: TEUR 1,092).

Cost of materials consist mainly of expenses for clay, sand, plastics, sawdust and other additives, as well as expenses for pallets and other packaging materials. Maintenance expenses comprise the use of maintenance materials and other low-value spare parts as well as third-party services.

{240}------------------------------------------------

### <span id="page-240-0"></span>**10. Depreciation, amortization, impairment charges and reversal of impairment charges**

The cost of goods sold, selling and administrative expenses and other operating expenses for the reporting year include TEUR 286,791 (2022: TEUR 276,257) of scheduled depreciation and amortization as well as special write-downs in accordance with IAS 36 of TEUR 1,902 (2022: TEUR 10,410) from the mothballing of plants and/or lines. The impairment tests carried out according to IAS 36 (see Note 22. Non-current assets) resulted in impairment charges to property, plant and equipment and intangible assets in a total amount of TEUR 17,342 (2022: TEUR18,389).

| in TEUR                                                                           | 2023    | 2022    |
|-----------------------------------------------------------------------------------|---------|---------|
| Depreciation                                                                      | 286,791 | 276,257 |
| Special write-downs                                                               | 1,902   | 10,410  |
| Depreciation and special write-downs                                              | 288,693 | 286,667 |
| Impairment charges to property, plant and equipment and intangible assets         | 17,342  | 18,389  |
| Impairment charges                                                                | 17,342  | 18,389  |
| Depreciation, amortization, impairment charges and reversal of impairment charges | 306,035 | 305,056 |

### **11. Personnel expenses**

The cost of goods sold, selling and administrative expenses include the following personnel expenses:

| in TEUR                                                                            | 2023      | 2022      |
|------------------------------------------------------------------------------------|-----------|-----------|
| Wages                                                                              | 407,965   | 409,499   |
| Salaries                                                                           | 427,478   | 412,210   |
| Temporary personnel                                                                | 53,090    | 63,370    |
| Expenses for long-term incentive programs                                          | 7,419     | 3,947     |
| Expenses for severance payments (incl. voluntary severance payments)               | 5,249     | 4,345     |
| Expenses for pensions                                                              | 26,347    | 23,754    |
| Expenses for statutory social security and payroll-related taxes and contributions | 183,242   | 175,718   |
| Other employee benefits (incl. anniversary bonuses)                                | 38,159    | 45,654    |
| Personnel expenses                                                                 | 1,148,949 | 1,138,497 |

For the business year 2023, the wienerberger employees were granted a vested right to receive a certain number of shares in Wienerberger AG under the Employee Share Participation Program. In the reporting year, vested rights to receive a total of 223,264 shares (2022: 218,335 shares) were granted to wienerberger employees. According to IFRS 2, the program was accounted for as a cash-settled share-based payment. The obligation of the Group arising from the Employee Share Participation Program was transferred to Mitarbeiterbeteiligungs-Privatstiftung on the basis of individual agreements with all participating Group companies without compensatory payment (2022: TEUR 5,131 in other social expenses).

In the reporting year, the fixed remuneration component of the Managing Board members amounted to TEUR 2,540 (2022: TEUR 2,325). The variable components comprise a short-term (STI Short-Term Incentive) and a long-term remuneration component (LTI Long-Term Incentive). The final entitlements to the short-term remuneration component earned in 2023 amounted to TEUR 2,576, including fringe benefits (2022: TEUR 2,325), and will be paid out in 2024.

Since 2021, the LTI program for the long-term remuneration component of the Managing Board has been structured as a share-based remuneration program with a performance period of three years and a holding period of another two years for the allocated shares. The actual fixed salary of the Managing Board member concerned in 2023 is taken as the base amount for 100% target attainment. Maximum target attainment is capped at 150% for Managing Board members and 175% for the CEO.

{241}------------------------------------------------

<span id="page-241-0"></span>
In accordance with the Remuneration Policy, the following target parameters apply for all members of the Managing Board:

**›** RTSR (relative total shareholder return), measured against the performance of the peer group

**›** Return on capital employed after tax (ROCE)

**›** ESG-target: Reduction of group-wide CO2 emissions (Scope 1+2) compared to 2020

For 2023, the relevant targets and degrees of target attainment for these three categories are as follows:

| Target                 | Weighting | Minimum<br>target<br>performance | 100 %<br>Target | Maximum<br>target<br>performance | Actual target<br>achievement 2023 |        |
|------------------------|-----------|----------------------------------|-----------------|----------------------------------|-----------------------------------|--------|
| 2023                   |           |                                  |                 |                                  |                                   |        |
| RTSR                   | 33.0%     | 25.0%                            | 50.0%           | ≥75%                             | > 50%                             | 132%   |
| ROCE                   | 33.0%     | 11.0%                            | 11.5%           | 12.0%                            | 11.3%                             | 60%    |
| CO2 emission reduction | 33.0%     | 14.5%                            | 15.0%           | 15.5%                            | 15.6%                             | > 150% |
| 2022                   |           |                                  |                 |                                  |                                   |        |
| RTSR                   | 33.0%     | 25.0%                            | 50.0%           | ≥75%                             | > 50%                             | 132%   |
| ROCE                   | 33.0%     | 11.0%                            | 11.5%           | 12.0%                            | 11.3%                             | 60%    |
| CO2 emission reduction | 33.0%     | 10.0%                            | 11.7%           | 12.3%                            | 15.6%                             | > 150% |
| 2022                   |           |                                  |                 |                                  |                                   |        |
| RTSR                   | 33.0%     | 25.0%                            | 50.0%           | ≥75%                             | > 50%                             | 132%   |
| ROCE                   | 33.0%     | 10.2%                            | 10.6%           | 11.1%                            | 11.3%                             | > 150% |
| CO2 emission reduction | 33.0%     | 5.0%                             | 6.7%            | 7.2%                             | 15.6%                             | > 150% |

The LTI entitlement for 2023, determined on the basis of target attainment, amounts to TEUR 1,721 for the LTI 2021, TEUR 1,088 for the LTI 2022, and TEUR 976 for the LTI 2023 (2022: TEUR 2,172). Depending on the attainment of the targets of the three-year plan, the entitlement from the LTI 2021 will be paid out in 2024; the entitlement from the LTI 2022 will be paid out in 2025, and the entitlement from the LTI 2023 in 2026. In accordance with the agreement on the LTI, the latter will be paid out at the end of the term, with at least 50% granted in shares and not more than 50% in cash. As target attainment was determined on the basis of a cash amount and the exchange ratio for the share component will be defined at a later date, the fair value of the cash amount was used as a basis for measurement. For the LTI 2021, 2022, and 2023, an expense including incidental costs of TEUR 4,119 was recognized in the reporting year (2022: TEUR 2,701), of which 50% was recognized in equity for the share portion and 50% as a provision for the cash portion.

{242}------------------------------------------------

<span id="page-242-0"></span>In 2020, it was decided to grant a long-term share-based remuneration for the CEO. PSUs (performance share units) could be earned during an observation period from 2021 to 2023. The criteria and the definition of the target parameters for the PSUs for the CEO are shown in the following table:

| Parameters                          | Explanation                                                                                                                                                        |
|-------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Amount granted                      | 2,500 TEUR                                                                                                                                                         |
| Period of performance               | 3 years with a holding period of another 2 years (vesting period 5 years)                                                                                          |
| Weighting of targets (PSUs)         | 70 % EBITDA growth in accordance with the Strategy 2023<br>30 % ESG targets (see table below)                                                                      |
| Basic prerequisite                  | Annual payout of at least 50 % of the short-term variable bonus (STI); if this target is not met, the<br>allocation of PSUs will be reduced by one third each year |
| Target achievement                  | Target achievement is determined linearly between the defined upper and lower limits (PSUs)                                                                        |
| Maximum entitlement                 | Maximum 300 % (max. EUR 4,500 TEUR)                                                                                                                                |
| Allocation                          | Once in 3 years (+ 2 years holding period)                                                                                                                         |
| Claw-back, malus, leaver regulation | The provisions of the 2020–2024 Remuneration Policy apply                                                                                                          |

Based on the increase in EBITDA and the ESG targets achieved in 2023, a total of 116,035 PSUs was determined for the long-term sharebased remuneration plan. The number of PSUs was multiplied by the fair value per PSU and the percentage of the vesting period (5 years).

On this basis, an expense of TEUR 1,193, plus incidental costs of TEUR 105, i.e. a total of TEUR 1.298 was booked in the reporting year and recognized as a provision. Owing to the higher share price, the fair value of the PSUs increased, so that the expense booked in 2023 also contains the increase in value of entitlements earned in 2021 and 2022.

For the Managing Board members in office in the reporting year, TEUR 724 (2022: TEUR 709) in pension expenses in the form of contributions to pension funds (defined-contribution commitments) were booked in the reporting year. In 2023, a provision of TEUR 502 for severance pay was released (2022: contribution of TEUR 1,062). Moreover, payments in the amount of TEUR 991 (2022: TEUR 919) were made to former members of the Managing Board and their survivors. In 2023, Supervisory Board remuneration (to be paid out in 2024) came to a total of TEUR 890 (2022: TEUR 963 paid out in 2023).

### **12. Employees**

The average number of employees is shown in the following table:

| in FTE         | 2023   | 2022   |
|----------------|--------|--------|
| Production     | 11,975 | 12,291 |
| Sales          | 4,877  | 4,832  |
| Administration | 2,061  | 1,955  |
| Total          | 18,913 | 19,078 |

{243}------------------------------------------------

### <span id="page-243-0"></span>**13. Other operating expenses**

The following other operating expenses (including freight expenses) are recognized in the income statement:

| in TEUR                                                            | 2023    | 2022    |
|--------------------------------------------------------------------|---------|---------|
| Transportation costs for deliveries                                | 243,462 | 309,068 |
| Purchased services                                                 | 165,105 | 166,290 |
| Internal transport expenses                                        | 55,834  | 66,480  |
| License and patent expenses                                        | 37,369  | 36,572  |
| Non income-based taxes                                             | 38,275  | 34,858  |
| Restructuring expenses                                             | 22,880  | 8,197   |
| Rental and leasing charges                                         | 21,507  | 17,499  |
| Expenses for consumables, office materials and literature          | 11,717  | 16,171  |
| Expenses for employee education and training                       | 10,888  | 11,853  |
| Expenses for environmental protection measures                     | 10,443  | 10,067  |
| Expenses for commissions                                           | 6,046   | 8,188   |
| Expenses to economic associations                                  | 6,497   | 6,319   |
| Expenses for expected credit losses                                | 2,685   | 5,107   |
| Losses on the disposal of fixed assets, excluding financial assets | 1,892   | 2,221   |
| Miscellaneous                                                      | 63,783  | 66,659  |
| Other operating expenses                                           | 698,383 | 765,549 |

Restructuring expenses primarily comprise personnel-related expenses of TEUR 18,947. Purchased services primarily include expenses for legal advisory and miscellaneous consulting services, advertising, insurance, business trips and travel as well as telecommunications. Expenses for the external auditor and members of the auditor's network totaled TEUR 3,206 (2022: TEUR 2,775) for the audit of the consolidated financial statements in the year under review, TEUR 1,322 (2022: TEUR 131) for other assurance services, TEUR 89 (2022: TEUR 77) for tax consulting services and TEUR 35 (2022: TEUR 23) for other services.

In miscellaneous other expenses research and development expenses in the amount of TEUR 19,542 (2022: TEUR 19,576) are included for 2023.

Expenses for rent and leases, shown under other operating expenses, comprise the following:

| in TEUR                                 | 2023   | 2022   |
|-----------------------------------------|--------|--------|
| Expenses for short-term leases          | 5,808  | 7,857  |
| Expenses for leases of low-value assets | 3,542  | 2,356  |
| Expenses for variable lease payments    | 544    | 405    |
| Expenses for other lease payments       | 11,613 | 6,881  |
| Rental and leasing charges              | 21,507 | 17,499 |

Expenses for other lease payments primarily comprise non-lease components of contracts for land and buildings and other rent and lease payments not within the scope of IFRS 16.

{244}------------------------------------------------

### <span id="page-244-0"></span>**14. Other operating income**

The following other operating income is shown in the income statement:

| in TEUR                                                                 | 2023   | 2022   |
|-------------------------------------------------------------------------|--------|--------|
| Income from the disposal of tangible assets, excluding financial assets | 15,339 | 31,788 |
| Income from the disposal of emission certificates                       | 16,141 | 0      |
| Income from rental and lease contracts                                  | 5,306  | 5,930  |
| Subsidies                                                               | 2,027  | 1,476  |
| Income from insurance claims                                            | 3,619  | 404    |
| Income from the release of previously provided for obligations          | 5,240  | 1,929  |
| Miscellaneous                                                           | 49,321 | 32,754 |
| Other operating income                                                  | 96,993 | 74,281 |

Other operating income includes revenue-like proceeds that are not part of the Group's principal business activity of TEUR 4,743 (2022: TEUR 4,350). In the business year 2023, it also included a credit for research and development expenses of TEUR 1,033 (2022: TEUR 800).

### **15.Reconciliation of results according to the cost-of-sales and the total-cost method**

In the income statement prepared according to the cost-of-sales method, expenses are classified by functional area. Under the total-cost method, the amounts are shown for each individual category of expenses and adjusted to reflect the increase or decrease of finished and semi-finished goods within the framework of inventory changes, and own work capitalized. The reconciliation of expenses under these two methods is explained below; changes in inventories and the capitalization of costs relating to the construction of qualified non-current assets are included in the cost of materials:

| 2023<br>in TEUR             | Cost of<br>freight | Cost of<br>materials | Cost of<br>merchandise | Appreciation/<br>depreciation | Cost of<br>energy | Personnel<br>expenses | Other<br>operat-<br>ing<br>Income | Other<br>operating<br>expenses | Total     |
|-----------------------------|--------------------|----------------------|------------------------|-------------------------------|-------------------|-----------------------|-----------------------------------|--------------------------------|-----------|
| Cost of goods sold          | 0                  | 919,665              | 406,554                | 192,617                       | 323,336           | 647,479               | -4,104                            | 126,186                        | 2,611,733 |
| Selling expenses            | 243,462            | 30,633               | 0                      | 44,229                        | 6,262             | 301,025               | -4,210                            | 161,821                        | 783,222   |
| Administrative<br>expenses  | 0                  | 2,243                | 0                      | 31,956                        | 954               | 200,445               | -6,172                            | 101,168                        | 330,594   |
| Other operating<br>expenses | 0                  | 0                    | 0                      | 37,233                        | 1,012             | 0                     | 0                                 | 72,198                         | 110,443   |
| Other operating<br>income   | 0                  | 0                    | 0                      | 0                             | 0                 | 0                     | -82,509                           | -6,452                         | -88,961   |
|                             | 243,462            | 952,541              | 406,554                | 306,035                       | 331,564           | 1,148,949             | -96,995                           | 454,921                        | 3,747,031 |

{245}------------------------------------------------

<span id="page-245-0"></span>

| 2022                        | Cost of<br>freight | Cost of<br>materials | Cost of<br>merchandise | Appreciation/<br>depreciation | Cost of<br>energy | Personnel<br>expenses | Other<br>Income | Other<br>expenses | Total     |
|-----------------------------|--------------------|----------------------|------------------------|-------------------------------|-------------------|-----------------------|-----------------|-------------------|-----------|
| in TEUR                     |                    |                      |                        |                               |                   |                       |                 |                   |           |
| Cost of goods sold          | 0                  | 1,271,444            | 435,388                | 182,258                       | 363,553           | 652,448               | -3,431          | 127,774           | 3,029,434 |
| Selling expenses            | 309,068            | 37,424               | 0                      | 45,163                        | 6,853             | 296,993               | -4,687          | 168,204           | 859,018   |
| Administrative<br>expenses  | 0                  | 3,535                | 0                      | 26,127                        | 1,725             | 189,056               | -6,135          | 113,487           | 327,795   |
| Other operating<br>expenses | 0                  | 0                    | 0                      | 51,508                        | 796               | 0                     | 0               | 53,741            | 106,045   |
| Other operating<br>income   | 0                  | 0                    | 0                      | 0                             | 0                 | 0                     | -60,028         | -6,725            | -66,753   |
|                             | 309,068            | 1,312,403            | 435,388                | 305,056                       | 372,927           | 1,138,497             | -74,281         | 456,481           | 4,255,539 |

### **16. Interest result and other financial result**

In accordance with the classes of financial instruments defined by IFRS 9, the following items are included in the interest result and other financial result:

| 2023<br>in TEUR                                                                                              | Total   | Loans and<br>receivables<br>AC 1) | FLAC 2) | FVtPL 3) | Derivatives |
|--------------------------------------------------------------------------------------------------------------|---------|-----------------------------------|---------|----------|-------------|
| Interest and similar income                                                                                  | 20,172  | 13,769                            |         |          | 6,403       |
| Interest and similar expenses                                                                                | –66,353 |                                   | –62,210 |          | –4,143      |
| Interest expense on lease liabilities                                                                        | –7,128  |                                   | –7,128  |          |             |
| Net interest result from defined benefit pension<br>and severance obligations as well as anniversary bonuses | –2,823  |                                   |         |          |             |
| Interest result                                                                                              | –56,132 | 13,769                            | –69,339 | 0        | 2,260       |
| Income from third parties (dividends)                                                                        | 1,017   |                                   |         | 1,017    |             |
| Income from investments                                                                                      | 1,017   | 0                                 | 0       | 1,017    | 0           |
| Result from the disposal of investments                                                                      | –253    |                                   |         |          |             |
| Valuation of derivative financial instruments                                                                | –739    |                                   |         |          | –739        |
| Impairment of financial instruments                                                                          | –349    | –43                               |         | –306     |             |
| write-ups on financial instruments                                                                           | 558     | 4                                 |         | 554      |             |
| Valuation of other investments                                                                               | –2,165  |                                   |         | –2,165   |             |
| Foreign exchange differences                                                                                 | 9,333   |                                   |         |          |             |
| Net result                                                                                                   | 6,386   | –39                               | 0       | –1 918   | –739        |
| Bank charges                                                                                                 | –4,467  |                                   |         |          |             |
| Other                                                                                                        | 547     |                                   |         |          |             |
| Other financial result                                                                                       | 3,483   | –39                               | 0       | –901     | –739        |
| Total                                                                                                        | –52,649 | 13,731                            | –69,339 | –901     | 1,521       |

*1) loans and receivables carried at amortized cost // 2) financial liabilities carried at fair value through profit and loss // 3) financial assets carried at fair value through profit or loss*

Impairments of receivables from loans in the amount of TEUR 43 (2022: TEUR 24) and write-ups on financial instruments of TEUR 4 (2022: TEUR 309) are recognized in the financial result. The market valuation of derivatives contributed a negative amount of TEUR 739 (2022: negative amount of TEUR 2,546) to the result of the period.

{246}------------------------------------------------

#### <span id="page-246-0"></span>[Sustainability Report](#page-28-0) | [Corporate Governance Report](#page-175-0) | [Management Report](#page-193-0) | **[Consolidated Financial Statements](#page-222-0)**

|                                                                                                              |                | Loans and<br>receivables |                |               |               |  |
|--------------------------------------------------------------------------------------------------------------|----------------|--------------------------|----------------|---------------|---------------|--|
| 2022<br>in TEUR                                                                                              | Total          | AC 1)                    | FLAC 2)        | FVtPL 3)      | Derivatives   |  |
| Interest and similar income                                                                                  | 6,234          | 4,600                    |                |               | 1,634         |  |
| Interest and similar expenses                                                                                | -42,683        |                          | -35,769        |               | -6,914        |  |
| Interest expense on lease liabilities                                                                        | -4,535         |                          | -4,535         |               |               |  |
| Net interest result from defined benefit pension<br>and severance obligations as well as anniversary bonuses | -1,277         |                          |                |               |               |  |
| <b>Interest result</b>                                                                                       | <b>-42,261</b> | <b>4,600</b>             | <b>-40,304</b> | <b>0</b>      | <b>-5,280</b> |  |
| Income from third parties (dividends)                                                                        | 993            |                          |                | 993           |               |  |
| <b>Income from investments</b>                                                                               | <b>993</b>     | <b>0</b>                 | <b>0</b>       | <b>993</b>    | <b>0</b>      |  |
| Result from the disposal of investments                                                                      | -1,534         |                          |                |               |               |  |
| Valuation of derivative financial instruments                                                                | -2,546         |                          |                |               | -2,546        |  |
| Impairment of financial instruments                                                                          | -937           | -24                      |                | -913          |               |  |
| Write-ups on financial instruments                                                                           | 486            | 309                      |                | 177           |               |  |
| Valuation of financial instruments held for trading                                                          | -2,756         |                          |                | -2,756        |               |  |
| Foreign exchange differences                                                                                 | 10,733         |                          |                |               |               |  |
| <b>Net result</b>                                                                                            | <b>3,446</b>   | <b>285</b>               | <b>0</b>       | <b>-3,492</b> | <b>-2,546</b> |  |
| Bank charges                                                                                                 | -5,171         |                          |                |               |               |  |
| <b>Other financial result</b>                                                                                | <b>2,850</b>   | <b>285</b>               | <b>0</b>       | <b>-2,499</b> | <b>-2,546</b> |  |
| <b>Total</b>                                                                                                 | <b>-39,411</b> | <b>4,885</b>             | <b>-40,304</b> | <b>-2,499</b> | <b>-7,826</b> |  |

*1) loans and receivables carried at amortized cost// 2) financial liabilities carried at fair value through profit and loss // 3) financial assets carried at fair value through profit or loss*

### Hyperinflationary economies

IAS 29 is to be applied where an entity's functional currency is that of a hyperinflationary economy. In this Annual Report, the standard applies to a subsidiary in Turkey, where the cumulative three-year inflation rate has resulted in Turkey being classified as a hyperinflationary economy within the scope of IAS 29.

IAS 29 requires that financial statements concerned be restated by applying a general price index:

- **›** Monetary balance sheet items are not restated.
- **›** Non-monetary balance sheet items measured at cost or amortized cost are restated prior to translation into the Group currency on the basis of a price index used to measure the purchasing power in order to account for price changes that have occurred during the business year.
- **›** All positions of the statement of comprehensive income as well as all components of equity are also adjusted on the basis of suitable price indices.
- **›** Gains and losses from net monetary items are recognized in the financial result in the consolidated income statement.
- **›** The individual income statement items were translated on the basis of the mid-market exchange rate on the balance sheet date.

The financial statements of the Turkish subsidiary – previously based on the concept of historical acquisition and construction costs – were restated as of January 1, 2022, according to the criteria of IAS 29. The price index used was the CPI 2003 consumer price index published by the Turkish Statistical Institute.

As at 31/12/2023, the price index stood at 1,859.4 (2022: 1,128.5).

For the 2023 business year, the other financial result comprises, among other items, gains from the net position of monetary items according to IAS 29 in the amount of TEUR 1,115 (2022: TEUR 672).

{247}------------------------------------------------

### <span id="page-247-0"></span>**17. Income taxes**

This item includes income taxes paid and owed by Group companies as well as deferred tax charges.

| in TEUR                     | 2023   | 2022    |
|-----------------------------|--------|---------|
| Current tax expense         | 82,336 | 120,742 |
| Deferred tax expense/income | 6,872  | -942    |
| Income taxes                | 89,208 | 119,800 |

The difference between the Austrian corporate tax rate of 24 % applicable in 2023 (2022: 25 %) and the Group effective tax rate arises on account of the following factors:

| in TEUR                                                                        | 2023     | 2022     |
|--------------------------------------------------------------------------------|----------|----------|
| Profit/loss before tax                                                         | 424,323  | 688,346  |
| Tax expense at tax rate of 24 % (Previous year: 25 %)                          | -101,838 | -172,087 |
| Deviating foreign tax rates                                                    | 4,018    | 6,192    |
| Tax income and expense from prior periods                                      | 2,516    | -2,142   |
| Effect of non-taxable income from investments in associates and joint ventures | -38      | 1,007    |
| Change in unrecognized deferred tax assets 1)                                  | 25,197   | 87,520   |
| Permanent differences 1)                                                       | -19,219  | -39,072  |
| Changes in tax rates                                                           | 156      | -1,218   |
| Effective tax expense                                                          | -89,208  | -119,800 |
| Effective tax rate in %                                                        | 21.0%    | 17.4%    |

*1) Prior year was adjusted by the tax impact on not recognized interest carryforward in amount of TEUR 371*

Details on deferred taxes are disclosed in Note 31: Deferred taxes.

{248}------------------------------------------------

### <span id="page-248-0"></span>**18. Earnings per share, proposal for profit distribution**

As of the balance sheet date, the number of shares issued totaled 111,732,343 (2022: 111,732,343). As at 31/12/2023, wienerberger held 6,339,332 (2022: 5,756,271) treasury shares, which were deducted for the calculation of earnings per share. In the reporting year, wienerberger bought back 976,600 own shares for TEUR 26,018. In the 2023 business year, in the course of the acquisition of the Strojer Group, 387,440 shares presenting a total value of TEUR 10,306 were transferred to the sellers. 6,099 shares representing a total value of TEUR 146 were transferred to employees in North America within the framework of the Employee Share Participation Program (ESPP). This resulted in a weighted average number of 105,582,376 shares outstanding as a basis for the calculation of earnings per share in 2023.

| Number of shares | 2023        | 2022        |
|------------------|-------------|-------------|
| Outstanding      | 111,732,343 | 111,732,343 |
| Treasury shares  | 6,339,332   | 5,756,271   |
| Weighted average | 105,582,376 | 109,883,711 |

Earnings per share of EUR 3.17 were calculated by dividing the profit/loss after tax attributable to equity holders of the parent by the weighted average number of shares outstanding.

In accordance with the provisions of the Austrian Stock Corporation Act, the dividend payout is based on the separate financial statements of Wienerberger AG as of December 31, 2023, prepared in accordance with Austrian accounting rules.

These financial statements show a net profit of EUR 109,066,523.81. The Managing Board proposes to the Annual General Meeting a dividend of EUR 0.90 per share to be paid out from the net profit.

{249}------------------------------------------------

# <span id="page-249-0"></span>**Notes to the Consolidated Statement of Comprehensive Income**

The Consolidated Statement of Comprehensive Income provides a reconciliation of profit/loss after tax to total comprehensive income as defined in IAS 1. Total comprehensive income comprises, in particular, currency translation differences, actuarial gains and losses from the measurement of defined-benefit pension plans and similar post-employment benefits and the change in the hedging reserve. The components of comprehensive income are presented after tax.

In the reporting year, pre-tax currency translation differences of TEUR -17,742 (2022: TEUR -16,571) resulted primarily from the US dollar, the Turkish lira, the Polish zloty, and the British pound. Differences in the amount of TEUR 11,984 (2022: TEUR 2,868) previously recognized in the currency translation reserve were recycled to the income statement and primarily resulted from the redemption of Group loans in foreign currencies in the course of the reporting year.

The fair value measurement of hedging instruments and reclassifications decreased the hedging reserve before deferred taxes by TEUR -10,453 (2022: TEUR 38,816). Of this, a total of TEUR 1.408 (2022: TEUR 8,359) was accounted for by hedges of net investments in foreign operations and TEUR -11,860 (2022: TEUR 30,457) by hedges for future transactions (cash flow hedges).

Overall, changes in fair value measurement of hedging instruments designated in hedges of net investments in foreign operations (net investment hedges) in the amount of TEUR -157 (2022: TEUR -913) previously recognized in the hedging reserve, were recycled to the income statement in the reporting year. Ineffective components of TEUR 103 (2022: TEUR -1,751) were recognized in the income statement in the reporting year. For disclosures on hedge accounting, please refer to Note 34. Derivative financial instruments and hedge accounting.

Deferred taxes in a total amount of TEUR 2,585 (2022: TEUR -7,781) were recognized in other comprehensive income. The following table shows the allocation of deferred taxes to the components of other comprehensive income:

| in TEUR                                        | 2023  | 2022   |
|------------------------------------------------|-------|--------|
| Deferred taxes on foreign exchange translation | 1,106 | 2,141  |
| Deferred taxed on changes in hedging reserves  | 1,395 | -8,945 |
| Deferred taxes on actuarial gains/losses       | 84    | -977   |
| Deferred taxes in other comprehensive income   | 2,585 | -7,781 |

Overall, comprehensive income after tax increased the Group's equity attributable to equity holders of the parent company by a total of TEUR 310,684 (2022: TEUR 591.969) in the reporting year.

{250}------------------------------------------------

# <span id="page-250-0"></span>**Notes to the Consolidated Statement of Cash Flows**

The consolidated statement of cash flows shows the changes in cash and cash equivalents resulting from the inflow and outflow of funds during the reporting year. Cash and cash equivalents (liquid funds) include cash on hand and demand deposits with banks. Liquid funds and cash equivalents comprise cash on hand, checks received, sight deposits, short-term investments, and term deposits with financial institutions with a maturity of up to three months. Securities and current liabilities to banks do not qualify as cash and cash equivalents. Inflows and outflows from corporate acquisitions are netted and shown under net payments made for the acquisition of companies. The amounts reported by foreign Group companies are generally translated at the average exchange rate for the year. Deviating from this principle, cash and cash equivalents are translated at the exchange rate in effect on the balance sheet date.

As of 31/12/2023, an amount of TEUR 0 was put up as cash collateral (2022: TEUR 17,912).

### **19. Cash flow from operating activities**

Cash flow from operating activities declined from the previous year's level to TEUR 409,953 (2022: TEUR 723,804). The change is primarily due to the lower result.

### **20. Cash flow from investing activities**

The acquisition of property, plant and equipment and intangible assets resulted in an outflow of funds totaling TEUR 271,590 (2022: TEUR 352,573). This amount includes TEUR 126,212 (2022: TEUR 134,722) in maintenance capex. A total of TEUR 145,378 (2022: TEUR 217,851) was spent on the expansion and optimization of plants, the development of new products, environmental and/or sustainability projects, and digitalization (special capex). A total of TEUR 84,893 (2022: TEUR 52,447) was paid out for acquisitions (M&A) and investments in financial assets.

Non-cash additions to non-current assets in the amount of TEUR 95,755 (2022: TEUR 80,315) mainly result from the capitalization of right-of-use assets and obligations for site restorations.

Cash inflows from the sale of non-current assets amounted to TEUR 35,162 (2022: TEUR 65,428) and comprise the sale of property, plant and equipment and intangible assets.

{251}------------------------------------------------

![image.png](https://s3.amazonaws.com/moonup.process.public/99c9997a-9999-4999-9999-999999999999/99999999-9999-4999-9999-999999999999/94a9999a-9999-4999-9999-999999999999/image.png)

<span id="page-251-0"></span>The reconciliation of total investments in maintenance and special capex as well as payments made for corporate acquisitions (M&A) by wienerberger is as follows:

| in TEUR                                                         | 2023    | 2022    |
|-----------------------------------------------------------------|---------|---------|
| Maintenance capex                                               | 126,212 | 134,722 |
| Special capex                                                   | 145,378 | 217,851 |
| Payments made for investments in tangible and intangible assets | 271,590 | 352,573 |
| Net payments made for the acquisition of companies              | 63,415  | 52,447  |
| Payments made for investments in financial assets               | 21,478  | 0       |
| M&A capex                                                       | 84,893  | 52,447  |
| Total investments including financial assets                    | 356,483 | 405,020 |

### **21. Cash flow from financing activities**

The change in financial liabilities, as shown on the balance sheet, results from cash inflows and outflows recognized in cash flow from financing activities on the one hand, and from non-cash changes on the other hand:

| in TEUR                                            | Short-term<br>financial liabilities | Long-term<br>financial liabilities | Total financial<br>liabilities |
|----------------------------------------------------|-------------------------------------|------------------------------------|--------------------------------|
| Balance on 1/1/2023                                | 207,157                             | 1,245,062                          | 1,452,219                      |
| Cash inflows                                       | 534,441                             | 346,229                            | 880,670                        |
| Cash outflows                                      | –661,315                            | 0                                  | –661,315                       |
| Repayment of lease liabilities                     | –59,731                             | 0                                  | –59,731                        |
| New and amended lease contracts                    | 0                                   | 74,651                             | 74,651                         |
| Change in scope of consolidation                   | 13,794                              | 0                                  | 13,794                         |
| Market value changes in derivatives                | –3,739                              | 0                                  | –3,739                         |
| Currency translation differences and other effects | 2,972                               | 1,697                              | 4,669                          |
| Reclassifications                                  | 393,065                             | –393,065                           | 0                              |
| Balance on 31/12/2023                              | 426,644                             | 1,274,574                          | 1,701,218                      |

| in TEUR                                            | Short-term finan-<br>cial liabilities | Long-term finan-<br>cial liabilities | Total financial<br>liabilities |
|----------------------------------------------------|---------------------------------------|--------------------------------------|--------------------------------|
| Balance on 1/1/2022                                | 212,995                               | 1,326,108                            | 1,539,103                      |
| Cash inflows                                       | -220,016                              | 0                                    | -220,016                       |
| Cash outflows                                      | 116,732                               | 15,434                               | 132,166                        |
| Repayment of lease liabilities                     | -63,627                               | 0                                    | -63,627                        |
| New and amended lease contracts                    | 0                                     | 64,935                               | 64,935                         |
| Change in scope of consolidation                   | 1,135                                 | 5,270                                | 6,405                          |
| Market value changes in derivatives                | -2,543                                | 0                                    | -2,543                         |
| Currency translation differences and other effects | -4,072                                | -132                                 | -4,204                         |
| Reclassifications                                  | 166,553                               | -166,553                             | 0                              |
| Balance on 31/12/2022                              | 207,157                               | 1,245,062                            | 1,452,219                      |

{252}------------------------------------------------

# <span id="page-252-0"></span>**Notes to the Consolidated Balance Sheet**

### **22. Non-current assets and impairment test**

### Impairment test

As of the beginning of the 2023 business year, it was decided to transform the groups of CGUs in Europe from a product-centered structure – with Wienerberger Building Solutions and Wienerberger Piping Solutions – into a regional structure based on Region Europe West and Region Europe East. wienerberger defines its cash-generating units (CGUs) as plants, which are aggregated into groups of CGUs. Intangible assets with an indefinite useful life, such as goodwill and trademarks that are not amortized on a scheduled basis, are subjected to an impairment test at least once a year in accordance with IAS 36. These intangible assets are allocated to groups of CGUs for the purpose of impairment testing. The carrying amounts are shown in the following tables, in which the current regional segment structure is compared to the previous product-centered structure:

|                               | Goodwill |         | Trademarks |        |
|-------------------------------|----------|---------|------------|--------|
| in TEUR                       | 2023     | 2022    | 2023       | 2022   |
| Europe East                   | 65,874   | 64,573  | 27,024     | 26,244 |
| Region East WBS               | 60,595   | 59,603  | 12,402     | 11,622 |
| Region East WPS               | 5,279    | 4,970   | 14,622     | 14,622 |
| Emerging Markets              | 0        | 0       | 0          | 0      |
| Europe West                   | 446,059  | 424,486 | 29,107     | 37,983 |
| Region West - Western Europe  | 222,049  | 217,926 | 10,147     | 19,098 |
| Region West - Northern Europe | 43,158   | 25,293  | 12,644     | 12,644 |
| Region West - UK/Ireland      | 180,852  | 181,267 | 6,316      | 6,241  |
| North America                 | 0        | 0       | 1,809      | 1,875  |
| Brick North America           | 0        | 0       | 1,809      | 1,875  |
| Pipes North America           | 0        | 0       | 0          | 0      |
| wienerberger                  | 511,933  | 489,059 | 57,940     | 66,102 |

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|                                   | Goodwill |         | Trademarks |        |
|-----------------------------------|----------|---------|------------|--------|
| in TEUR                           | 2023     | 2022    | 2023       | 2022   |
| Wienerberger Building Solutions   | 435,295  | 415,085 | 17,984     | 17,129 |
| Building Solutions Central & East | 60,595   | 59,603  | 12,402     | 11,622 |
| Building Solutions North & West   | 374,700  | 355,482 | 5,582      | 5,507  |
| Wienerberger Piping Solutions     | 76,638   | 73,973  | 38,147     | 47,098 |
| WPS Eastern Europe                | 5,279    | 4,970   | 15,909     | 15,909 |
| WPS Western Europe                | 20,182   | 20,182  | 9,938      | 18,889 |
| WPS Northern Europe               | 25,955   | 25,029  | 11,478     | 11,478 |
| WPS UK/ Ireland                   | 25,222   | 23,792  | 822        | 822    |
| North America                     | 0        | 0       | 1,809      | 1,875  |
| WBS NOAM                          | 0        | 0       | 1,809      | 1,875  |
| WPS NOAM                          | 0        | 0       | 0          | 0      |
| wienerberger                      | 511,933  | 489,059 | 57,940     | 66,102 |

Other intangible assets consist primarily of acquired customer bases totaling TEUR 147,184 (2022: TEUR 154,377), acquired trademarks in the amount of TEUR 81,473 (2022: TEUR 83,714), of which TEUR 57,940 (2022: TEUR 66,102) with an indefinite useful life, as well as CO2 certificates, patents and licenses. Internally generated intangible assets of TEUR 892 (2022: TEUR 1,261) were capitalized during the reporting year.

wienerberger monitors its goodwill on the basis of 8 CGU groups (2022: 9 CGU groups).

In the Europe West segment, which comprises Northern and Western Europe, the CGU groups are broken down by region. The CGU groups are characterized by the fact that the market is provided with system solutions for the entire building envelope (wall, roof, façade) as well as wastewater and rainwater disposal systems, sanitation, heating and cooling installations, and energy, gas and potable-water supply systems. In particular, the production and the product portfolio of roof tiles, facing bricks and pipes are optimized for an entire region. This also applies to the optimization of the network of clay block plants, although for reasons of efficiency deliveries of these products are generally made over shorter distances than in the roof tile and facing brick business. The regions are therefore broken down into Western Europe, Northern Europe, and Great Britain and Ireland. Goodwill is allocation to the regions.

In the Europe East segment, the CGU groups continue to be distinguished by product group, i.e. wall, roof and façade, and the plastic pipe business. The segment comprises the CGU groups Region East WBS, Region East WPS, and Emerging Markets.

In the North America segment, the CGU groups are distinguished by product group: Brick North America comprises the North American brick business, and Pipes North America comprises the entire American plastic piping business.

The carrying amounts of the goodwill and operating assets allocated to the CGU groups were compared to their recoverable amounts and, if necessary, written down to the lower value in use or, as the case may be, the fair value less cost of disposal. In principle, the recoverability of the tested assets of the CGU groups is determined on the basis of their value in use. If the value in use is lower than the carrying amount of the tested assets, the fair value less cost of disposal is determined additionally. The values in use of a CGU group are generally determined using an income approach by discounting the expected free cash flows at the weighted average cost of capital after tax (WACC) to arrive at the present value.

For the determination of the value in use, the post-tax weighted average cost of capital is derived from external sources on the basis of generally accepted financial methods. The currency translation of the values in use was performed at the exchange rate on the day of the impairment test. An average weighted post-tax WACC of 8.19% (2022: 7.77%) was used for impairment testing at wienerberger, but specific cost of capital rates deviating therefrom were applied to all markets. In accordance with IAS 36, all cost of capital rates were reconciled to their pre-tax value for disclosure.

{254}------------------------------------------------

For the purpose of impairment testing, the following pre-tax cost of capital rates and growth rates were used:

|                               | Pre-tax WACC | Growth rate |
|-------------------------------|--------------|-------------|
| in %                          | 2023         | 2023        |
| Europe East                   |              |             |
| Region East WBS               | 12.83        | 2.04        |
| Region East WPS               | 14.99        | 2.08        |
| Emerging Markets              | 17.47        | 6.31        |
| Europe West                   |              |             |
| Region West - Western Europe  | 11.59        | 1.24        |
| Region West - Northern Europe | 10.68        | 1.57        |
| Region West - UK/Ireland      | 11.86        | 1.48        |
| North America                 |              |             |
| Brick North America           | 13.35        | 1.89        |
| Pipes North America           | 13.63        | 1.93        |
| wienerberger                  | 12.39        | 1.68        |

In 2022, the following pre-tax cost of capital rates and growth rates were used, based on the then relevant CGU structure:

|                                     | Pre-tax WACC | Growth rate |
|-------------------------------------|--------------|-------------|
| in %                                | 2022         | 2022        |
| Wienerberger Building Solutions     |              |             |
| Building Solutions Central & East   | 12.25        | 2.63        |
| Building Solutions North & West     | 10.88        | 1.18        |
| Building Solutions Emerging Markets | 15.75        | 6.54        |
| Wienerberger Piping Solutions       |              |             |
| WPS Eastern Europe                  | 13.87        | 2.24        |
| WPS Western Europe                  | 10.86        | 1.31        |
| WPS Northern Europe                 | 10.12        | 1.84        |
| WPS UK/ Ireland                     | 10.65        | 1.98        |
| Building Materials North America    |              |             |
| WBS NOAM                            | 12.30        | 1.51        |
| WPS USA                             | 13.70        | 1.44        |
| wienerberger                        | 11.81        | 1.84        |

The expectation of future cash surpluses is based on the latest internal plans prepared by the top management for the period from 2024-2027. These mid-term plans do not include the earnings potential of future strategic growth investments, such as potential corporate acquisitions. Planned investments for expansions and innovations concerning individual production lines and the related contributions to earnings are eliminated for the determination of the value in use.

The quality of these mid-term plans is reviewed on a regular basis by way of a variance analysis comparing the projected data with actual results, which are then incorporated into the subsequent planning process in the form of corrections. The calculation is based on four detailed planning periods (2024-2027). Based on the going-concern assumption, the surplus cash inflows in the following planning period are assumed to be sustainable over the long term and used as the basis for determining the present value of the terminal value. These perpetual cash flows are based on the assumption of country-specific growth rates derived from an external source (IMF, October 2023, World Economic Outlook Database). In the interest of long-term growth, profits are deemed to be fully retained to be used in future for the provision of production capacities. wienerberger tests its assets for impairment at least annually in connection 

{255}------------------------------------------------

with the corporate planning process. If interim forecasts or analyses indicate a significant negative variance from the original plan, the cash-generating unit concerned is again tested for impairment. In such cases, the impairment tests are recalculated on the basis of updated planning data and extended by a sensitivity analysis to include stress tests. Similarly, impairment tests are updated in the event that any external factors change significantly.

Assumptions regarding the future development of local markets, sales and prices constitute the decisive factors for determining the value in use. Therefore, the value in use is determined on the basis of forecasts published by statistical agencies and international organizations as well as management's experience. The estimates for cost structures are based primarily on the extrapolation of historical values and incorporate macroeconomic forecasts for the most important production factors, such as energy prices, plastic granulate prices, and wage and salary trends.

Of impairment charges to intangible assets and property, plant and equipment booked in a total amount of TEUR 17,342, TEUR 9,608 were accounted for by the CGU Germany in Region West Western Europe, as the value in use calculated for the CGU was lower than the carrying amount of assets. The impairment concerned a factory building as well as technical facilities and machinery. In the CGU Steinzeug in Region West Western Europe, intangible assets were impaired by TEUR 7,734 on account of a lower value in use.

An additional sensitivity analysis shows when the value in use would correspond to the carrying amount of the tested asset, assuming that individual elements are changed while the other parameters are kept constant. To this end, the post-tax WACC, as the central component of payment flows relevant to the value in use, was modified.

{256}------------------------------------------------

|  | WACC - 50 BP | WACC - 100 BP |           |      |
|--|--------------|---------------|-----------|------|
|  | 2023         | 2022          | 2023      | 2022 |
|  | 1,355,594    | 924,383       | 1,476,337 |      |
|  | 108,136      | 30,152        | 133,087   |      |
|  | -1,336       | -1,234        | -967      |      |
|  | 1,462,394    | 953,301       | 1,608,457 |      |
|  | 781,781      | 510,020       | 910,341   |      |
|  | 235,244      | 300,741       | 276,149   |      |
|  | 447,012      | 445,374       | 515,248   |      |
|  | 1,464,037    | 1,256,135     | 1,701,738 |      |
|  | 90,480       | 169,433       | 129,235   |      |
|  | 74,688       | 723,632       | 81,492    |      |
|  | 165,168      | 893,065       | 210,726   |      |
|  | 3,091,599    | 3,102,502     | 3,520,921 |      |

| Sensitivity analysis        |                | WACC + 25 BP     |                | WACC + 50 BP     |                | WACC + 100 BP    |                | WACC - 25 BP     |                  | WACC - 50 BP     |                  | WACC - 100 BP    |  |
|-----------------------------|----------------|------------------|----------------|------------------|----------------|------------------|----------------|------------------|------------------|------------------|------------------|------------------|--|
| in TEUR                     | 2023           | 2022             | 2023           | 2022             | 2023           | 2022             | 2023           | 2022             | 2023             | 2022             | 2023             | 2022             |  |
| Region East WBS             | 710,542        | 1,197,297        | 673,769        | 1,149,714        | 605,143        | 1,061,227        | 789,630        | 1,300,030        | 832,231          | 1,355,594        | 924,383          | 1,476,337        |  |
| Region East WPS             | -10,206        | 75,461           | -17,180        | 65,646           | -30,223        | 47,400           | 4,758          | 96,663           | 12,799           | 108,136          | 30,152           | 133,087          |  |
| Emerging Markets 1)         | -1,954         | -1,837           | -2,083         | -1,991           | -2,327         | -2,282           | -1,682         | -1,510           | -1,539           | -1,336           | -1,234           | -967             |  |
| <b>Europe East</b>          | <b>698,382</b> | <b>1,270,922</b> | <b>654,506</b> | <b>1,213,369</b> | <b>572,594</b> | <b>1,106,345</b> | <b>792,705</b> | <b>1,395,183</b> | <b>843,491</b>   | <b>1,462,394</b> | <b>953,301</b>   | <b>1,608,457</b> |  |
| Region West Western Europe  | 245,733        | 617,362          | 201,456        | 568,840          | 119,718        | 479,695          | 342,109        | 723,539          | 394,683          | 781,781          | 510,020          | 910,341          |  |
| Region West Northern Europe | 201,890        | 183,141          | 185,392        | 167,810          | 154,985        | 139,699          | 237,863        | 216,761          | 257,523          | 235,244          | 300,741          | 276,149          |  |
| Region West UK/Ireland      | 284,961        | 359,181          | 257,836        | 333,143          | 207,583        | 285,171          | 343,759        | 415,971          | 375,689          | 447,012          | 445,374          | 515,248          |  |
| <b>Europe West</b>          | <b>732,584</b> | <b>1,159,684</b> | <b>644,684</b> | <b>1,069,793</b> | <b>482,286</b> | <b>904,565</b>   | <b>923,731</b> | <b>1,356,271</b> | <b>1,027,895</b> | <b>1,464,037</b> | <b>1,256,135</b> | <b>1,701,738</b> |  |
| Brick North America         | 79,325         | 39,875           | 63,884         | 24,712           | 35,115         | -3,425           | 112,593        | 72,690           | 130,542          | 90,480           | 169,433          | 129,235          |  |
| Pipes North America         | 627,484        | 65,740           | 610,949        | 63,042           | 580,092        | 58,014           | 663,046        | 71,551           | 682,201          | 74,688           | 723,632          | 81,492           |  |
| <b>North America</b>        | <b>706,810</b> | <b>105,615</b>   | <b>674,833</b> | <b>87,754</b>    | <b>615,207</b> | <b>54,589</b>    | <b>775,639</b> | <b>144,241</b>   | <b>812,743</b>   | <b>165,168</b>   | <b>893,065</b>   | <b>210,726</b>   |  |
| wienerberger                | 2,137,776      | 2,536,222        | 1,974,023      | 2,370,916        | 1,670,087      | 2,065,499        | 2,492,075      | 2,895,695        | 2,684,129        | 3,091,599        | 3,102,502        | 3,520,921        |  |

*1) In CGU-Group "Emerging Markets" the recoverable amount was determined as Fair Value Less Cost of Disposal (FVLCD), which was higher than the book value of the tested assets.*

{257}------------------------------------------------

### Investment property

Investment property is measured at amortized cost and, except for land, subject to straight-line depreciation/amortization. Investment property shown on the balance sheet includes real estate and buildings with a carrying amount of TEUR 44,233 (2022: TEUR 37,921) that are not used in current business operations. These assets are scheduled for sale over the medium to long term and are therefore classified as investment property. The fair values of these assets derived from comparable transactions are measured at level 2 in the fair value hierarchy according to IFRS 13 and estimated at TEUR 97,564 (2022: TEUR 86,078). The fair value was determined mainly on the basis of purchase offers from third parties for the properties concerned or on the basis of prices observable in the market for similar properties. In 2023, these properties generated rental and other income of TEUR 1,331 (2022: TEUR 1,423). Expenses for investment property that generated rental income in the year under review amounted to TEUR 114 (2022: TEUR 276); expenses in the amount of TEUR 3,135 (2022: TEUR 3,076) were incurred for investment property that did not generate rental income. Investment property with a carrying amount of TEUR 13,907 (2022: TEUR 9,629) was sold during the reporting year.

### Non-current assets

The development of non-current assets (intangible assets and goodwill as well as property, plant and equipment) is shown in the following table. The amounts resulting from the translation of assets of subsidiaries reporting in foreign currencies at the exchange rates applicable at the beginning and the end of the year are reported as exchange-rate changes.

Items of property, plant and equipment are recognized at acquisition cost less straight-line depreciation or usage-based depletion (clay pits). The recognition of internally produced plant or equipment includes an appropriate component of material and production overheads, but excludes general administrative and selling expenses. In accordance with IAS 23, borrowing costs incurred during the production of qualified assets are capitalized as part of acquisition cost and depreciated over their useful life. Research and development expenses at wienerberger also include the costs of product development, process technology, the improvement of environmental standards and laboratory activities. Development costs are capitalized as part of the related asset category provided they meet the criteria for recognition of IAS 38.

wienerberger recognizes government grants at their fair value under liabilities. Their reversal is reported under other income during the relevant accounting period, provided there is reasonable assurance that all conditions attached to the grant have been met.

Non-current assets include land with a value of TEUR 410,883 (2022: TEUR 413,009).

The depreciation/amortization rates are based on the useful economic lives of the respective assets (component approach). Across the Group, the following useful lives are assumed:

| Production plants (incl. warehouses)     | 10–40 years | Other machinery                          | 4–30 years |
|------------------------------------------|-------------|------------------------------------------|------------|
| Administrative and residential buildings | 40 years    | Fittings, furniture and office equipment | 4–15 years |
| Building infrastructure                  | 4–40 years  | Customer base                            | 5–15 years |
| Kilns and dryers                         | 5–30 years  | Other intangible assets                  | 4–10 years |

Repairs that do not increase the useful life of assets are expensed as incurred. In accordance with IFRS 5, scheduled depreciation is discontinued when assets are classified as held for sale.

When plant or equipment is sold or retired, the gain or loss arising from the difference between the net proceeds on sale and the remaining carrying amount or impairment charge is reported in other operating income or expenses.

Intangible assets purchased by the Group, provided they are identifiable, are reported at acquisition cost less straight-line amortization and any impairment charges. Capitalized trademarks that have been established for a long time at the date of purchase and continue in use may be counted as intangible assets with an indefinite period of use and are therefore subject to annual impairment tests.

In accordance with IAS 20 and IAS 38, wienerberger measures emission certificates allocated free of charge based on the EU Emissions Trading Directive at zero acquisition cost. If actual emissions exceed the free certificates, a liability is recognized. Purchased certificates

{258}------------------------------------------------

are recognized at cost or the lower market price on the balance sheet date.

As at the balance sheet date, obligations to purchase property, plant and equipment came to a total of TEUR 34,615 (2022: TEUR 57,082).

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| Asset table                                            |                        | Acquisition or construction costs        |                                    |           |           |           | Depreciation and amortization |                               |                                    |                               |                                            |           |           |                                  |                                  |
|--------------------------------------------------------|------------------------|------------------------------------------|------------------------------------|-----------|-----------|-----------|-------------------------------|-------------------------------|------------------------------------|-------------------------------|--------------------------------------------|-----------|-----------|----------------------------------|----------------------------------|
| in TEUR                                                | Balance on<br>1/1/2023 | Change in<br>scope of con-<br>solidation | Foreign<br>exchange<br>incr./decr. | Additions | Disposals | Transfers | Balance on<br>31/12/2023      | Balance on<br>1/1/2023        | Foreign<br>exchange<br>incr./decr. | Depreciation/<br>amortization | Special write-<br>downs and<br>Impairments | Disposals | Transfers | Balance on<br>31/12/2023         | Carrying<br>amount<br>31/12/2023 |
| Goodwill                                               | 926,032                | 19,407                                   | –4,548                             | 0         | 0         | 0         | 940,891                       | 436,973                       | –8,015                             | 0                             | 0                                          | 0         | 0         | 428,958                          | 511,933                          |
| Other intangible assets                                | 607,998                | 24,182                                   | –814                               | 13,265    | 17,428    | 1,668     | 628,871                       | 250,287                       | –1,199                             | 35,417                        | 7,988                                      | 6,833     | 253       | 285,913                          | 342,958                          |
| Intangible assets and goodwill                         | 1,534,030              | 43,589                                   | –5,362                             | 13,265    | 17,428    | 1,668     | 1,569,762                     | 687,260                       | –9,214                             | 35,417                        | 7,988                                      | 6,833     | 253       | 714,871                          | 854,891                          |
| Land and buildings                                     | 1,741,263              | 30,044                                   | 2,680                              | 63,271    | 14,517    | 20,500    | 1,843,241                     | 708,924                       | 3,938                              | 64,820                        | 778                                        | 6,979     | –634      | 770,847                          | 1,072,394                        |
| Machinery and equipment                                | 2,906,736              | 10,259                                   | 2,847                              | 92,674    | 63,822    | 93,840    | 3,042,534                     | 2,048,651                     | 4,855                              | 131,469                       | 10,224                                     | 62,447    | –2,556    | 2,130,196                        | 912,338                          |
| Fixtures, fittings, tools and equipment                | 332,836                | 2,929                                    | –5                                 | 67,025    | 38,681    | 3,851     | 367,955                       | 207,526                       | 258                                | 54,225                        | 0                                          | 34,144    | –1,738    | 226,127                          | 141,828                          |
| Assets under construction                              | 254,588                | 317                                      | –2,954                             | 131,110   | 803       | –141,852  | 240,406                       | 1,437                         | 45                                 | 0                             | 254                                        | 126       | –13       | 1,597                            | 238,809                          |
| Property, plant and equipment                          | 5,235,423              | 43,549                                   | 2,568                              | 354,080   | 117,823   | –23,661   | 5,494,136                     | 2,966,538                     | 9,096                              | 250,514                       | 11,256                                     | 103,696   | –4,941    | 3,128,767                        | 2,365,369                        |
| Investment property                                    | 78,646                 | 1,915                                    | 654                                | 0         | 23,974    | 23,669    | 80,910                        | 40,725                        | 844                                | 860                           | 0                                          | 10,067    | 4,315     | 36,677                           | 44,233                           |
| Intangible assets and<br>property, plant and equipment | 6,848,099              | 89,053                                   | –2,140                             | 367,345   | 159,225   | 1,676     | 7,144,808                     | 3,694,523                     | 726                                | 286,791                       | 19,244                                     | 120,596   | –373      | 3,880,315                        | 3,264,493                        |
| Asset table                                            |                        | Acquisition or construction costs        |                                    |           |           |           |                               | Depreciation and amortization |                                    |                               |                                            |           |           |                                  |                                  |
| in TEUR                                                | Balance on<br>1/1/2022 | Change in<br>scope of con-<br>solidation | Foreign<br>exchange<br>incr./decr. | Additions | Disposals | Transfers | Balance on<br>31/12/2022      | Balance on<br>1/1/2022        | Foreign<br>exchange<br>incr./decr. | Depreciation/<br>amortization | Special write-<br>downs and<br>Impairments | Disposals | Transfers | Carrying<br>amount<br>31/12/2022 |                                  |
| Goodwill 1)                                            | 923,133                | 10,310                                   | 1,862                              | 0         | 9,540     | 267       | 926,032                       | 434,812                       | 11,701                             | 0                             | 0                                          | 9,540     | 0         | 489,059                          |                                  |
| Other intangible assets                                | 590,168                | 15,187                                   | –8,947                             | 26,326    | 6,818     | –7,918    | 607,998                       | 221,118                       | –3,834                             | 39,532                        | 5,308                                      | 2,804     | –9,033    | 357,711                          |                                  |
| Intangible assets and goodwill                         | 1,513,301              | 25,497                                   | –7,085                             | 26,326    | 16,358    | –7,651    | 1,534,030                     | 655,930                       | 7,867                              | 39,532                        | 5,308                                      | 12,344    | –9,033    | 846,770                          |                                  |

| in TEUR                                             | Balance on 1/1/2022 | Change in scope of consolidation | Foreign exchange incr./decr. | Additions | Depreciation | Transfers | Balance on 1/1/2022 | Balance on 1/1/2022 | Foreign exchange incr./decr. | Depreciation/ amortization | Special write-downs and Impairments | Disposals | Transfers | Balance on 1/1/2022 | Carrying amount 31/12/2022 |
|-----------------------------------------------------|---------------------|----------------------------------|------------------------------|-----------|--------------|-----------|---------------------|---------------------|------------------------------|----------------------------|-------------------------------------|-----------|-----------|---------------------|----------------------------|
| Goodwill 1)                                         | 923,133             | 10,310                           | 1,862                        | 0         | 9,540        | 267       | 926,032             | 434,812             | 11,701                       | 0                          | 0                                   | 9,540     | 0         | 436,973             | 489,059                    |
| Other intangible assets                             | 590,168             | 15,187                           | -8,947                       | 26,326    | 6,818        | -7,918    | 607,998             | 221,118             | -3,834                       | 39,532                     | 5,308                               | 2,804     | -9,033    | 250,287             | 357,711                    |
| Intangible assets and goodwill                      | 1,513,301           | 25,497                           | -7,085                       | 26,326    | 16,358       | -7,651    | 1,534,030           | 655,930             | 7,867                        | 39,532                     | 5,308                               | 12,344    | -9,033    | 687,260             | 846,770                    |
| Land and buildings                                  | 1,672,642           | 15,516                           | 2,640                        | 80,889    | 17,747       | -12,677   | 1,741,263           | 667,081             | 967                          | 52,104                     | 12,319                              | 4,438     | -19,109   | 708,924             | 1,032,339                  |
| Machinery and equipment                             | 2,835,844           | 8,670                            | 8,796                        | 78,171    | 75,873       | 51,128    | 2,906,736           | 2,025,195           | 8,929                        | 129,079                    | 8,379                               | 76,498    | -46,433   | 2,048,651           | 858,085                    |
| Fixtures, fittings, tools and equipment             | 296,538             | 662                              | 456                          | 51,514    | 15,901       | -433      | 332,836             | 172,416             | -153                         | 54,211                     | 1,639                               | 15,325    | -5,262    | 207,526             | 125,310                    |
| Assets under construction                           | 177,708             | 2,959                            | -3,343                       | 195,252   | 821          | -117,167  | 254,588             | 1,887               | -90                          | 0                          | 899                                 | 225       | -1,034    | 1,437               | 253,151                    |
| Property, plant and equipment                       | 4,982,732           | 27,807                           | 8,549                        | 405,826   | 110,342      | -79,149   | 5,235,423           | 2,866,579           | 9,653                        | 235,394                    | 23,236                              | 96,486    | -71,838   | 2,966,538           | 2,268,885                  |
| Investment property                                 | 89,824              | 36                               | 161                          | 736       | 16,730       | 4,619     | 78,646              | 45,919              | -91                          | 1,331                      | 255                                 | 7,100     | 411       | 40,725              | 37,921                     |
| Intangible assets and property, plant and equipment | 6,585,857           | 53,340                           | 1,625                        | 432,888   | 143,430      | -82,181   | 6,848,099           | 3,568,428           | 17,429                       | 276,257                    | 28,799                              | 115,930   | -80,460   | 3,694,523           | 3,153,576                  |

*1) Disposal of previously impaired goodwill of IGM Ciglana d.o.o. (deconsolidated in 2022)*

{260}------------------------------------------------

### Leases

wienerberger recognizes rights of use in non-current assets within the relevant asset classes. wienerberger primarily rents vehicles, office space, storage facilities, production sites and showrooms. Lease contracts are negotiated individually under different terms and conditions. Plant and equipment include rented vehicles.

The change in rights of use for leases, reported as part of property, plant and equipment, is recognized as follows:

| in TEUR                                    | 1/1/2023 | Foreign<br>exchange<br>incr./decr. | Change in<br>scope of<br>consolidation | Additions | Deprecia-<br>tion | Disposals | 31/12/2023 |
|--------------------------------------------|----------|------------------------------------|----------------------------------------|-----------|-------------------|-----------|------------|
| Land and buildings                         | 157,548  | 1,145                              | 1,072                                  | 26,163    | 21,949            | 4,713     | 159,265    |
| Machinery and equipment                    | 4,874    | -89                                | 0                                      | 3,049     | 2,280             | 291       | 5,262      |
| Fixtures, fittings, tools and<br>equipment | 76,914   | -113                               | 258                                    | 55,687    | 38,199            | 4,027     | 90,521     |
| Right-of-use asset leases                  | 239,336  | 943                                | 1,330                                  | 84,899    | 62,428            | 9,031     | 255,048    |

|                                            |          | Foreign                 | Change in                 |           |              |           |            |
|--------------------------------------------|----------|-------------------------|---------------------------|-----------|--------------|-----------|------------|
| in TEUR                                    | 1/1/2022 | exchange<br>incr./decr. | scope of<br>consolidation | Additions | Depreciation | Disposals | 31/12/2022 |
| Land and buildings                         | 153,058  | -866                    | 1,616                     | 30,514    | 19,864       | 6,910     | 157,548    |
| Machinery and equipment                    | 7,118    | -158                    | 57                        | 1,315     | 2,936        | 522       | 4,874      |
| Fixtures, fittings, tools and<br>equipment | 75,114   | 167                     | 108                       | 41,027    | 38,961       | 543       | 76,914     |
| Right-of-use asset leases                  | 235,290  | -857                    | 1,781                     | 72,856    | 61,761       | 7,975     | 239,336    |

In the interest of operational flexibility, contracts for real estate, in particular, frequently include extension and termination options. In individual cases, unlimited contract terms with termination options are agreed upon. In principle, long contract terms are assumed, with due consideration given to contractual and economic factors. In the majority of cases, the exercise of extension options and/or the non-exercise of termination rights are assumed. The group's material lease contracts according to IFRS 16 do not contain purchase options.

Details on lease liabilities, including an analysis of maturities, are disclosed in Note 32. Liabilities. Interest payable during the reporting period is disclosed in Note 16. Interest result and other financial result.

In accordance with the practical expedient, payments for short-term leases with a maturity of not more than twelve months and leases of low-value assets are recognized on a linear basis as rental and leasing expenses over the term of the lease concerned. For a breakdown of other rental and lease expenses, see Note 13. Other operating expenses.

The entire cash outflow for leases amounted to TEUR 59.731 (2022: TEUR 63,627).

{261}------------------------------------------------

### <span id="page-261-0"></span>**23. Investments**

Investments in associates and joint ventures as well as other investments comprise the following:

| in TEUR                                      | 2023   | 2022   |
|----------------------------------------------|--------|--------|
| Investments in associates and joint ventures | 15,773 | 20,420 |
| Investments in subsidiaries                  | 57     | 58     |
| Other investments                            | 34,082 | 16,297 |
| Financial Investments                        | 49,912 | 36,775 |

### **24. Inventories**

Inventories are carried at the lower of acquisition and/or production cost and net realizable value, with valuation based on the moving average price method. Cost includes direct expenses as well as allocated overhead and depreciation based on normal capacity usage (between 85 % and 100 % of capacity). Interest on borrowed capital and selling and administrative expenses are not included in the production cost of current assets. Risks resulting from the length of storage or other impairments in value are reflected through appropriate write-downs.

In the following table, inventories are broken down by material category as at the balance sheet date:

| 2023      | 2022      |
|-----------|-----------|
| 271,840   | 258,614   |
| 145,543   | 139,873   |
| 733,802   | 631,613   |
| 2,578     | 6,111     |
| 1,153,763 | 1,036,211 |
|           |           |

Pallets are included in raw materials and consumables. Clay purchased from third parties, together with clay extracted at wienerberger's own extraction sites, is reported under semi-finished goods. Write-downs of inventories of TEUR 7,383 (2022: TEUR 9,857) were recognized for products with a net realizable value (selling price less selling and administrative expenses) lower than their acquisition or production costs.

{262}------------------------------------------------

### <span id="page-262-0"></span>**25.Receivables, securities and other financial assets**

### Financial assets at amortized cost

|                                            |         | 2023                          |                               |         | 2022                          |                               |  |
|--------------------------------------------|---------|-------------------------------|-------------------------------|---------|-------------------------------|-------------------------------|--|
| in TEUR                                    | Total   | Remaining<br>term < 1<br>year | Remaining<br>term > 1<br>year | Total   | Remaining<br>term<br>< 1 year | Remaining<br>term<br>> 1 year |  |
| Trade receivables from third parties       | 306,670 | 306,670                       | 0                             | 373,645 | 373,645                       | 0                             |  |
| Trade receivables from subsidiaries 1)     | 110     | 110                           | 0                             | 869     | 869                           | 0                             |  |
| Trade receivables                          | 306,780 | 306,780                       | 0                             | 374,514 | 374,514                       | 0                             |  |
| Financial receivables from subsidiaries 1) | 26,255  | 26,255                        | 0                             | 21,145  | 21,145                        | 0                             |  |
| Receivables arising from loans             | 12,354  | 12,354                        | 0                             | 6,483   | 6,483                         | 0                             |  |
| Loans granted                              | 38,609  | 38,609                        | 0                             | 27,628  | 27,628                        | 0                             |  |
| Loans and receivables AC 2)                | 345,389 | 345,389                       | 0                             | 402,142 | 402,142                       | 0                             |  |

*1) includes intercompany receivables against at-equity consolidated and unconsolidated Group companies // 2) z financial assets at amortized cost*

Trade receivables include contract assets of TEUR 1,635 (2022: TEUR 1,603) from customer-specific production orders. They represent a conditional right to consideration for complete performance of the contractual obligations by wienerberger.

Loans and receivables are recognized at amortized cost and adjusted to reflect weighted expected credit losses. Valuation allowances are deducted directly from receivables and other assets. In accordance with the derecognition criteria of IFRS 9, receivables sold (factoring) are derecognized. As of December 31, 2023, trade receivables in the amount of TEUR 116,523 (2022: TEUR 124,954) had been sold to third parties. Trade receivables in a total amount of TEUR 1,291 (2022: TEUR 2,271) are secured by notes payable.

Spot transactions in financial assets are recognized on the transaction date. A financial asset is derecognized when the contractual rights to cash flows from that asset expire.

Financial receivables from subsidiaries result from loans granted to Group companies consolidated at equity and other investments.

Financial assets measured at fair value through profit or loss in a total amount of TEUR 40,745 (2022: TEUR 22,453) include securities of TEUR 6,088 (2022: TEUR 5,554) recognized in current assets, derivatives of TEUR 575 (2022: TEUR 602) and other investments recognized in non-current assets amounting to TEUR 34,081 (2022: TEUR 16,355). For further details, see Note 35. Disclosures on financial instruments.

### Securities at fair value through profit or loss

| 2023<br>in TEUR | Carrying amount | Market<br>value | Market value changes recog. in financial result |
|-----------------|-----------------|-----------------|-------------------------------------------------|
| Shares in funds | 5,585           | 5,585           | 511                                             |
| Stock           | 224             | 224             | 0                                               |
| Other           | 279             | 279             | 0                                               |
| Securities      | 6,088           | 6,088           | 511                                             |

{263}------------------------------------------------

| 2022            |                 | Market | Market value changes recog. in financial result |
|-----------------|-----------------|--------|-------------------------------------------------|
| in TEUR         | Carrying amount | value  |                                                 |
| Shares in funds | 5,146           | 5,146  | 153                                             |
| Stock           | 76              | 76     | 0                                               |
| Other           | 332             | 332    | 0                                               |
| Securities      | 5,554           | 5,554  | 153                                             |

Securities are held for short-term investment of excess liquidity and to cover pension and severance obligations; they primarily include mutual fund units and shares, which are accounted for at fair value. Market value changes are recognized in the financial result. As of the balance sheet date, no debt instruments measured at fair value through other comprehensive income were held.

### Derivatives

| in TEUR                                         |  | 2023               |                 | 2022               |                 |
|-------------------------------------------------|--|--------------------|-----------------|--------------------|-----------------|
|                                                 |  | Carrying<br>amount | Market<br>value | Carrying<br>amount | Market<br>value |
| Derivatives designated in cash flow hedges      |  | 18,260             | 18,260          | 31,086             | 31,086          |
| Derivatives designated in net investment hedges |  | 8,874              | 8,874           | 8,026              | 8,026           |
| Other derivatives                               |  | 575                | 575             | 602                | 602             |
| Derivatives with positive market value          |  | 27,709             | 27,709          | 39,714             | 39,714          |

Securities and other financial assets carried on the balance sheet can be broken down as follows:

| in TEUR                               | 2023   | 2022   |
|---------------------------------------|--------|--------|
| Loans granted                         | 38,609 | 27,628 |
| Securities                            | 6,088  | 5,554  |
| Derivatives hedge accounting          | 27,134 | 39,112 |
| Other derivatives                     | 575    | 602    |
| Securities and other financial assets | 72,406 | 72,896 |

{264}------------------------------------------------

Image /page/264/Picture/2 description: The image shows a white arrow pointing upwards on a light gray background with a subtle fingerprint pattern.

### <span id="page-264-0"></span>**26. Other receivables**

| in TEUR                               |         | 2023                          |                               |         | 2022                          |                               |  |
|---------------------------------------|---------|-------------------------------|-------------------------------|---------|-------------------------------|-------------------------------|--|
|                                       | Total   | Remaining<br>term<br>< 1 year | Remaining<br>term<br>> 1 year | Total   | Remaining<br>term<br>< 1 year | Remaining<br>term<br>> 1 year |  |
| Receivables from current taxes        | 29,097  | 29,097                        | 0                             | 12,488  | 12,488                        | 0                             |  |
| Right-of-return asset                 | 15,699  | 15,699                        | 0                             | 26,551  | 26,551                        | 0                             |  |
| Prepaid expenses and deferred charges | 20,999  | 19,043                        | 1,956                         | 16,586  | 13,928                        | 2,658                         |  |
| Miscellaneous receivables             | 70,807  | 63,889                        | 6,918                         | 84,744  | 80,386                        | 4,358                         |  |
| Other receivables                     | 107,505 | 98,631                        | 8,874                         | 127,881 | 120,865                       | 7,016                         |  |

Assets derived from the right to recover products from customers (right-of-return assets) result from the accounting of rights of return, such as returnable pallets. The remaining other receivables mainly include receivables from tax authorities and social security institutions.

### **27. Assets held for sale**

wienerberger owns land and buildings as non-core assets from which income is to be derived through their sale. According to IFRS 5, non-current assets held for sale must be reported separately, provided they are available for immediate sale in their current condition and transaction of the sale is highly probable within one year. If these prerequisites are met, they are reported separately on the balance sheet, measured at the lowest of carrying amount and fair value less costs of sale. Assets classified as held for sale are no longer depreciated. Liabilities to be disposed of together with the assets in a single transaction are part of the disposal group.

Since the second quarter of 2022, wienerberger has reported assets and liabilities associated with business activities in Russia separately on the balance sheet, as required by IFRS 5. Having obtained the necessary official approvals, wienerberger sold its Russian activities as of 05/02/2024. As at the balance sheet date, assets of TEUR 25,605 (2022: TEUR 23,121) were reported under "non-current assets held for sale", comprising mainly inventories and cash and cash equivalents. These were booked against trade payables, other liabilities and provisions of TEUR 11,514 (2022: TEUR 14,760) recognized in connection with assets held for sale. Reserves included in equity amounting to TEUR -42,415 (2022: TEUR -40,059) primarily result from currency translation and long-term intercompany financing, which are linked to the Russian disposal group.

### **28. Group equity**

The development of Group equity in 2023 and 2022 is shown the Consolidated Statement of Changes in Equity.

The 153rd Annual General Meeting of Wienerberger AG on May 3, 2022, authorized the Managing Board for a period of 30 months to buy back own shares of up to 8% of the share capital at a price of no less than one euro and no more than twice the stock exchange price of May 3, 2022 per share. Moreover, the Managing Board was authorized, subject to approval by the Supervisory Board, but without further resolution by the Annual General Meeting, to cancel own shares (authorization valid for a period of 30 months) or to resolve to sell and/or use them other than on the stock exchange or by public offering (authorization valid for a period of five years). This authorization replaces the authorization to buy back or sell own shares granted by the Annual General Meeting on May 5, 2020.

The 150th Annual General Meeting held on May 6, 2019, approved authorized capital of EUR 17,452,724. This authorization covers an ordinary capital increase by contributions in cash or in kind within a period of five years, subject to approval by the Supervisory Board. The share capital can be increased by a maximum of EUR 17,452,724 through the issue of up to 17,452,724 new bearer shares 

{265}------------------------------------------------

with the possibility of excluding subscription rights for fractional amounts. The capital increase can be carried out in several tranches, if necessary. The type of shares, the issue price and the issue conditions are to be determined by the Managing Board, subject to approval by the Supervisory Board. In principle, the shareholders have statutory subscription rights. However, the Managing Board was authorized to exclude the shareholders' statutory subscription rights in two special cases: first, for a capital increase in case of a contribution in kind for the granting of shares as currency for the acquisition of companies, parts of companies or participations in companies, and second, for multiple allotments in connection with the placement of new shares by the company (greenshoe). The number of shares issued subject to the exclusion of subscription rights must not exceed 5,817,574.

As at 31/12/2023, wienerberger's group equity amounted to TEUR 2,657,701 compared to TEUR 2,450,422 in the previous year. Profit after tax increased equity by TEUR 335,115 (2022: TEUR 568,546). The other components of comprehensive income led to a decrease in equity by TEUR 23,735 (2022: increase by TEUR 24,094) net of deferred taxes. In addition, an amount of TEUR 2,059 (2022: TEUR 1,351) resulting from the change in the stock option plan was recognized in capital reserves (see details in Note 12. Personnel expenses) and retained earnings were increased by the effect of the first-time application of IAS 29 in the amount of TEUR 4,218 (2022: TEUR 4,679). As at 31/12/2023, the share of equity in total assets amounted to 48.6% (2022: 47.1%), and net debt increased from TEUR 1,079,292 in 2022 to TEUR 1,214,706.

Non-controlling interests amounted to TEUR 2,266 compared to TEUR 1,571 in the previous year.

As at 31/12/2023, the share capital of Wienerberger AG totaled EUR 111,732,343, divided into 111,732,343 no-par value shares that all carry the same rights. All shares are fully paid in. A dividend of EUR 0.90 per share was paid out in 2023, i.e. TEUR 100,559 less TEUR 5,711 for treasury shares, or TEUR 94,848 in total.

In the reporting year, wienerberger bought back 976,600 own shares for a price of TEUR 26,018, including transaction costs of TEUR 18. In the course of the acquisition of the Strøjer Group in the 2023 business year, 387,440 shares with a value of TEUR 10,306 were transferred to the sellers; another 6,099 shares with a value of TEUR 183 were transferred to employees within the framework of the Employee Share Participation Program in North America.

Retained earnings of TEUR 1,921,571 (2022: TEUR 1,677,900) include the retained earnings of Wienerberger AG and all retained earnings of subsidiaries not eliminated in the course of capital consolidation. Group results for 2023, excluding the share of profit or loss attributable to non-controlling interests, are included in retained earnings.

Other reserves include the components of other comprehensive income. These include actuarial gains and losses from pension and severance pay plans, which are not subsequently reclassified to profit or loss. The remaining other reserves include those components of other comprehensive income which, as a matter of principle, must be reclassified to profit or loss. The currency translation reserve includes all differences from foreign currency translation after tax, recognized in other comprehensive income, with the differences from companies consolidated at equity shown separately. The hedging reserve reflects fair value changes of hedges. These hedges comprise hedges of net investments in foreign operations (net investment hedges) as well as hedges for foreign currency transactions (cash flow hedges).

Change-of-control clauses are included in the employment contracts of the members of the Managing Board, the terms and conditions of the 2018, 2020 and 2023 corporate bonds, and in several syndicated term loans and other loans.

{266}------------------------------------------------

### <span id="page-266-0"></span>**29. Provisions**

|                                         |          | Foreign<br>exchange<br>incr./decr. | Change in<br>scope of<br>consolidation | Reversal | Use     | Addition | 31/12/2023 |
|-----------------------------------------|----------|------------------------------------|----------------------------------------|----------|---------|----------|------------|
| in TEUR                                 | 1/1/2023 |                                    |                                        |          |         |          |            |
| Provisions for warranties               | 32,030   | 261                                | 64                                     | 2,963    | 10,334  | 11,761   | 30,819     |
| Provisions for site restoration         | 49,774   | 50                                 | 302                                    | 4,865    | 11,046  | 10,191   | 44,406     |
| Miscellaneous non-current<br>provisions | 21,461   | -96                                | 0                                      | 334      | 4,337   | 11,591   | 28,285     |
| Other non-current provisions            | 103,264  | 215                                | 366                                    | 8,162    | 25,717  | 33,543   | 103,509    |
| Taxes provision                         | 1,743    | 9                                  | 0                                      | 252      | 0       | 251      | 1,751      |
| Other current provisions                | 59,058   | -670                               | 2,307                                  | 6,038    | 74,959  | 95,540   | 75,238     |
| Current provisions                      | 60,801   | -661                               | 2,307                                  | 6,290    | 74,959  | 95,791   | 76,989     |
| Other provisions                        | 164,065  | -446                               | 2,673                                  | 14,452   | 100,676 | 129,334  | 180,498    |

In accordance with IAS 37, provisions for obligatory site restoration are set up when clay pits are purchased and reported as additions to non-current assets according to IAS 16. The underlying assumptions for these obligations are generally based on the regulations applicable in the respective countries. Non-current provisions that are expected to be used after 12 months are discounted and reported at their present value. Other non-current provisions primarily comprise other non-current personnel provisions and other environment provisions. Other current provisions mainly comprise provisions for restructuring and other current personnel provisions.

### **30. Employee benefits**

| in TEUR                            | 2023   | 2022   |
|------------------------------------|--------|--------|
| Provisions for severance payments  | 22,958 | 22,041 |
| Provisions for pensions            | 35,215 | 41,597 |
| Provisions for anniversary bonuses | 11,295 | 10,231 |
| Employee-related provisions        | 69,468 | 73,869 |

The company is exposed to various risks in connection with the plans for post-employment benefits. In addition to general actuarial risks, such as an increase in life expectancy for retirement benefits or interest rate risks, the company is also exposed to foreign exchange risks or investment risks on the capital markets.

### Pension obligations

The length of service forms the basis for retirement benefits under pension plans. The obligations for pensions are netted against plan assets held to cover pension obligations. According to IAS 19, actuarial gains and losses are recognized in other comprehensive income in the year in which they are incurred. The interest component of post-employment benefits is recognized separately in the financial result. Expenses for the appropriation to pension provisions are allocated to the respective functional areas.

wienerberger has undertaken pension commitments to employees in the Netherlands, Great Britain, Scandinavia, the USA, Canada, Germany and Belgium as well as to individual members of senior management in Austria. Future pension agreements are granted to employees in the form of defined-contribution plans. As far as possible, defined-benefit pension agreements are converted into defined-contribution pension models through the transfer of previously earned entitlements to pension funds. wienerberger has also undertaken a number of defined-benefit pension commitments, mainly to former managers, based on unfunded pension plans.

In the 2023 business year, the pension regime for the employees of General Shale Brick Inc. (USA), which was based on a funded defined-benefit pension plan, was assigned to an insurance company and the pension plan was thus settled. In the reporting year, 

{267}------------------------------------------------

the expense resulting from the pension claims being settled and assigned amounted to TEUR 1,205 and was recognized in personnel expenses. In total, obligations amounting to TEUR 55,692 and plan assets of TEUR 56,898 were transferred. The employees of General Shale Brick Inc. (USA) are still covered by an unfunded (retirement) health insurance scheme.

Entitlements earned by Dutch employees are satisfied through a defined-contribution pension plan, primarily through contributions to an industry-wide Dutch pension fund. In Great Britain, a defined-contribution pension plan covers all employees. thebrickbusiness, a company acquired in 2004, and Baggeridge, acquired in 2007, had defined-benefit models. Claims were frozen and provisions were set up for the resultant obligations. The employees of the Steinzeug-Keramo Group are also covered by defined-benefit pension models. The Pipelife Group has defined-benefit pension plans for individual members of the management in the Netherlands, Belgium, Austria and Germany.

{268}------------------------------------------------

The calculations are based on the following weighted average parameters:

| Parameters                 | 2023                                                | 2022                                                |
|----------------------------|-----------------------------------------------------|-----------------------------------------------------|
| Discount rate              | 4.4%                                                | 4.5%                                                |
| Expected salary increases  | 0.2%                                                | 0.2%                                                |
| Expected pension increases | 1.4%                                                | 1.1%                                                |
| Average employee turnover  | 0.3%                                                | 0.2%                                                |
| Mortality tables           |                                                     |                                                     |
| Austria                    | AVÖ 2018-P ANG                                      | AVÖ 2018-P ANG                                      |
| Germany                    | Heubeck 2018 G                                      | Heubeck 2018 G                                      |
| USA                        | Pri.A-2012 Fully Generational with<br>Scale MP 2021 | Pri.A-2012 Fully Generational with<br>Scale MP 2021 |
| Great Britain              | 105% of SAPS "S2" Combined / CMI<br>2022            | 105% of SAPS "S2" Combined / CMI<br>2021            |
| Belgium                    | MR-3/FR-3                                           | MR-3/FR-3                                           |
| Sweden                     | DUS14/DUS21                                         | DUS14/DUS21                                         |
| Canada                     | CPM Improvement Scale B                             | CPM Improvement Scale B                             |
| Netherlands                | AG Prognosetafel 2020                               | AG Prognosetafel 2020                               |

The country-specific discount rate is based on the average return on senior, fixed-interest industrial bonds with a term to maturity that reflects the average maturity of the obligations to employees.

Total pension expenses for 2023 cover both defined-contribution and defined-benefit pension plans. The current and past service cost and the effects of plan settlements are recognized in the operating result; the net interest effect is recognized in the financial result.

| in TEUR                                     | 2023   | 2022   |
|---------------------------------------------|--------|--------|
| Defined contribution plans                  | 21,669 | 20,998 |
| Defined benefit plans                       |        |        |
| Service cost for defined benefit plans      | 3,363  | 2,756  |
| Impact of plan curtailments and settlements | 1,189  | 0      |
| Net interest cost                           | 1,558  | 912    |
| Expenses for defined benefit plans          | 6,110  | 3,668  |
| Total expenses for pensions                 | 27,779 | 24,666 |

The gross pension obligations are reconciled to net obligations as shown on the balance sheet by deducting the fair value of plan assets. Of the total net obligations, an amount of TEUR 6,610 (2022: TEUR 6,870) is related to the US (retirement) health insurance program. A change in the trend medical service costs does not have a material impact on the interest expense or the defined-benefit pension obligations.

{269}------------------------------------------------

↑

The components of pension obligations and their coverage by plan assets are shown below:

|                                                                       | Defined benefit<br>pension obligations |          | Fair Value<br>of plan assets |         |
|-----------------------------------------------------------------------|----------------------------------------|----------|------------------------------|---------|
| in TEUR                                                               | 2023                                   | 2022     | 2023                         | 2022    |
| Value as of 1/1                                                       | 237,156                                | 336,707  | 195,559                      | 275,082 |
| Change in scope of consolidation                                      | 0                                      | 0        | 0                            | 321     |
| Reclassifications                                                     | 0                                      | 369      | 0                            | 0       |
| Foreign exchange increase/decrease                                    | -767                                   | 1,412    | 780                          | -1,099  |
| Service cost for defined benefit pension plans                        | 3,363                                  | 2,756    | 0                            | 0       |
| Interest cost                                                         | 10,288                                 | 5,780    | 0                            | 0       |
| Expected income from plan assets                                      | 0                                      | 0        | 8,730                        | 4,873   |
| Effects of plan curtailments                                          | 1,189                                  | 0        | 0                            | 0       |
| Actuarial gains/losses                                                | -4,786                                 | -93,605  | 147                          | -87,895 |
| Payments to retirees                                                  | -16,604                                | -15,029  | -16,606                      | -15,149 |
| Payments received from employees                                      | 160                                    | 143      | 160                          | 143     |
| Settlements                                                           | -55,692                                | 305      | -56,898                      | 287     |
| Payments received from employers                                      | -449                                   | -1,682   | 8,726                        | 18,996  |
| Value as of 31/12                                                     | 173,858                                | 237,156  | 140,598                      | 195,559 |
| Fair value of plan assets                                             | -140,598                               | -195,559 |                              |         |
| Net pension obligations                                               | 33,260                                 | 41,597   |                              |         |
| Thereof provision for pensions                                        | 35,215                                 | 41,597   |                              |         |
| thereof: market value of plan assets in excess of pension obligations | -1,955                                 |          |                              |         |
| Actuarial gains/losses resulting from pension plans                   |                                        |          |                              |         |
| Actuarial gains/losses from changes in demographic assumptions        | -4,776                                 | -2,218   |                              |         |
| Actuarial gains/losses from changes in financial assumptions          | 2,380                                  | -64,123  |                              |         |
| Actuarial gains/losses from experience adjustments                    | -2,390                                 | -27,264  |                              |         |
| Deviation of return on plan assets                                    | -147                                   | 87,895   |                              |         |
| Actuarial gains (-)/losses (+) in other comprehensive income          | -4,933                                 | -5,710   |                              |         |

Pension plan assets consist mainly of the assets of funded defined-benefit pension plans in Great Britain and Pipelife's plan in the Netherlands. The plan assets are invested in equities (34%; 2022: 31%), bonds (25%; 2022: 37%) and other assets (41%; 2022: 32%).

The sensitivity of the gross pension obligation was tested by modifying the major actuarial assumptions individually while keeping all other conditions constant. A negative amount represents a reduction of the obligation, while a positive amount indicates an increase.

{270}------------------------------------------------

|                                             | Change of<br>parameter        | Increase of<br>parameter | Decrease of<br>parameter |
|---------------------------------------------|-------------------------------|--------------------------|--------------------------|
| Sensitivity of the gross pension obligation | in basis points<br>(bp)/years | in TEUR                  | in TEUR                  |
| Discount rate                               | +/- 25 BP                     | -4,770                   | 4,990                    |
| Salary increases                            | +/- 100 BP                    | 246                      | -239                     |
| Employee turnover                           | +/- 100 BP                    | -59                      | 53                       |
| life expectancy                             | +/- 1 BP                      | 5,813                    | -6,012                   |

The payments to defined-benefit pension plans are expected to total TEUR 9,524 in 2024. As at 31/12/2023, the weighted average duration of the pension obligations was 12.1 years (2022: 11.7 years).

### Severance obligations

According to Austrian law, Austrian employees are entitled to a lump-sum payment upon retirement or termination by the employer, the amount being dependent on the length of service. Provisions for severance pay are set up for these future obligations. Similar provisions apply, for instance, in France, Italy, Poland and Turkey. The provisions for severance pay are calculated according to actuarial principles using the projected unit credit method. For Austrian employees whose employment started after 31/12/2002, the employer contributes 1.53% of the gross wage or salary each month to an employee severance fund. According to IAS 19, this is classified as a defined-contribution plan, and the related employer contributions are reported under severance expense.

The country-specific discount rate used to calculate the severance obligations under the projected unit credit method is based on the same yield curve used to calculate the pension obligations. The calculations are based on the following weighted average parameters:

| Parameters                | 2023 | 2022 |
|---------------------------|------|------|
| Discount rate             | 4.6% | 4.4% |
| Expected salary increases | 3.5% | 3.9% |
| Average employee turnover | 2.0% | 2.0% |

The current and past service cost and the effects of settlement payments from defined-benefit severance plans are included in the operating result, while the net interest effect is recognized in the financial result.

| in TEUR                                | 2023  | 2022  |
|----------------------------------------|-------|-------|
| Defined contribution plans             | 1,783 | 1,726 |
| Defined benefit plans                  |       |       |
| Service cost for defined benefit plans | 819   | 891   |
| Past service cost                      | -688  | 75    |
| Effects of settlements                 | -18   | -791  |
| Net interest cost                      | 941   | 262   |
| Expenses for defined benefit plans     | 1,054 | 437   |
| Expenses for severance payments        | 2,837 | 2,163 |

Severance obligations in France are covered by plan assets, which are held in shares (14%; 2022: 14%), bonds (78%; 2022: 76%) and other assets (8%; 2022: 10%).

{271}------------------------------------------------

The following table shows the composition of severance obligations and their coverage through plan assets:

|                                                                         | Defined benefit<br>severance obligation |        | Fair value<br>of plan assets |       |
|-------------------------------------------------------------------------|-----------------------------------------|--------|------------------------------|-------|
| in TEUR                                                                 | 2023                                    | 2022   | 2023                         | 2022  |
| Value as of 1/1                                                         | 24,380                                  | 29,390 | 2,857                        | 2,628 |
| Change in scope of consolidation                                        | 188                                     | 33     |                              | 0     |
| Foreign exchange increase/decrease                                      | –117                                    | –145   |                              | 0     |
| Service cost for defined benefit severance obligations                  | 819                                     | 891    |                              | 0     |
| Interest cost                                                           | 1,050                                   | 282    |                              | 0     |
| Expected income from plan assets                                        | 0                                       | 0      | 109                          | 19    |
| Effects of settlements                                                  | –18                                     | –519   |                              | 0     |
| Actuarial gains/losses                                                  | 3,268                                   | –3,411 | 20                           | 210   |
| Past service cost                                                       | –688                                    | 75     |                              | 0     |
| Payments                                                                | –2,282                                  | –1,899 |                              | 0     |
| Payments received from employers                                        | –657                                    | –317   |                              | 0     |
| Value as of 31/12                                                       | 25,943                                  | 24,380 | 2,986                        | 2,857 |
| Fair value of plan assets                                               | –2,986                                  | –2,857 |                              |       |
| Net severance compensation obligations                                  | 22,957                                  | 21,523 |                              |       |
| Thereof provision for severance                                         | 22,957                                  | 22,041 |                              |       |
| thereof: market value of plan assets in excess of severance obligations | 0                                       | –518   |                              |       |
| Actuarial gains/losses resulting from severance payment plans           |                                         |        |                              |       |
| Actuarial gains/losses from changes in demographic assumptions          | 2,651                                   | –103   |                              |       |
| Actuarial gains/losses from changes in financial assumptions            | 471                                     | –1,766 |                              |       |
| Actuarial gains/losses from experience adjustments                      | 147                                     | –1,542 |                              |       |
| Deviation of return on plan assets                                      | –20                                     | –210   |                              |       |
| Actuarial gains (-)/losses (+) in other comprehensive income            | 3,249                                   | –3,621 |                              |       |

The sensitivity of the gross severance obligation was tested by modifying the major actuarial assumptions individually while keeping all other conditions constant. A negative amount represents a reduction of the obligation, while a positive amount indicates an increase.

|                                               | Change of<br>parameter | Increase of<br>parameter | Decrease of<br>parameter |
|-----------------------------------------------|------------------------|--------------------------|--------------------------|
| Sensitivity of the gross severance obligation | in basis points (bp)   | in TEUR                  | in TEUR                  |
| Discount rate                                 | +/- 25 BP              | -517                     | 535                      |
| Salary increases                              | +/- 100 BP             | 2,059                    | -1,845                   |
| Employee turnover                             | +/- 100 BP             | -458                     | 480                      |

The payments to severance plans are expected to total TEUR 1,086 in 2024. As of 31/12/2023, the weighted average duration of the severance obligations was 10.1 years (2022: 10.2 years).

{272}------------------------------------------------

### <span id="page-272-0"></span>**31. Deferred taxes**

In accordance with IAS 12, the calculation of deferred taxes includes all temporary valuation and accounting differences between the tax balance sheet and the balance sheet according to IFRS. Deferred tax assets also include tax credit entitlements which arise from the expected use of existing loss carryforwards in future years and whose realization is probable. These entitlements are calculated on the basis of planned operating results and the earnings effects from the reversal of taxable temporary differences. Deferred taxes are calculated using the tax rate expected to be in effect when these differences are reversed in the future and are based on the local tax rate applicable to the individual Group companies. Future changes in tax rates are applied if the relevant legal amendment has been substantially enacted as of the balance sheet date.

The following deferred tax assets and liabilities as of 31/12/2023 result from temporary valuation and accounting differences between the carrying amounts of the consolidated financial statements and the corresponding tax bases:

| in TEUR                                            | 2023     |             | 2022     |             |
|----------------------------------------------------|----------|-------------|----------|-------------|
|                                                    | Assets   | Liabilities | Assets   | Liabilities |
| Intangible assets                                  | 3,212    | -61,063     | 1,834    | -63,306     |
| Property, plant and equipment and financial assets | 4,856    | -134,626    | 11,704   | -147,255    |
| Inventories                                        | 7,915    | -7,941      | 5,133    | -4,668      |
| Receivables                                        | 18,167   | -11,829     | 17,264   | -13,075     |
| Miscellaneous receivables                          | 4,061    | -30         | 32,880   | -47         |
|                                                    | 38,211   | -215,489    | 68,815   | -228,351    |
| Provisions                                         | 16,685   | -2,908      | 19,883   | -10,460     |
| Liabilities                                        | 67,393   | -6,216      | 63,195   | -4,408      |
| Prepayments received                               | 328      | -347        | 998      | -1,132      |
|                                                    | 84,406   | -9,471      | 84,076   | -16,000     |
| Tax losses carried forward 1)                      | 241,139  | 0           | 274,703  |             |
| Deferred tax assets/liabilities                    | 363,756  | -224,960    | 427,594  | -244,351    |
| Unrecognized deferred tax assets 1)                | -194,414 |             | -222,162 |             |
| Offset within legal tax units and jurisdictions    | -124,423 | 124,423     | -143,677 | 143,677     |
| Recognized tax assets/liabilities                  | 44,919   | -100,537    | 61,754   | -100,674    |

#### *1) Prior year figures were adjusted for unrecognized interest carryforwards in the amount of TEUR 12.148*

Deferred taxes are calculated on the basis of the tax rates applied or announced to be applied in the individual countries pursuant to tax legislation currently in effect or substantially enacted. In Austria, the Eco-Social Tax Reform Act was published in the Federal Law Gazette on February 14, 2022. It provides for a step-by-step reduction of the corporate income tax rate to 23% as of January 1, 2024.

For the foreign companies, deferred taxes are calculated on the basis of the respective country-specific tax rates, which in the 2023 business year ranged from 0% to 30%.

Deferred tax assets include an amount of TEUR 5,549 (2022: TEUR 4,544) for companies with a negative tax result for the reporting year. Given the underlying mid-term planning, their recoverability is justified.

At Group level, deductible temporary differences and tax loss carryforwards (including interest carryforwards and pro-rata depreciation and amortization) amounted to TEUR 728.375 (2022: TEUR 857.3122). Thereof, TEUR 36,698 (2022: TEUR 75,479) relate to deductible temporary differences and TEUR 691.677 (2022: TEUR 781.8342) to tax loss carryforwards (including interest carryforwards pro-rata depreciation and amortization).

*2) Prior year figures were adjusted for unrecognized interest carryforwards in the gross amount of TEUR 40.495 (TEUR 12.148 net)*

{273}------------------------------------------------

No deferred tax assets were recognized for these amounts, as their recoverability is not fully evidenced by mid-term planning. This corresponds to unrecognized deferred tax assets of TEUR 194.414 (2022: TEUR 222.1622) for temporary differences and tax loss carryforwards (including pro-rata depreciation and amortization). Thereof, TEUR 7.002 (2022: TEUR 17.334) relate to deductible temporary differences and TEUR 187.412 (2022: TEUR 204.8282) to tax loss carryforwards (including interest carryforwards and prorata depreciation).

The following table shows when unused tax loss carryforwards expire:

| in TEUR                                     | 2023    | 2022    |
|---------------------------------------------|---------|---------|
| Expiry date of unused tax losses ≤ 5 years  | 7,724   | 8,167   |
| Expiry date of unused tax losses 6–10 years | 3,403   | 1,605   |
| Unlimited carryforward of unused tax losses | 626,237 | 731,567 |
| Total of unused tax losses                  | 637,363 | 741,339 |

Temporary pro-rata tax depreciation (over 7 years), which is tax-deductible under Austrian law, amounted to TEUR 46,280 (2022: TEUR 56,710) for Wienerberger AG. As in the previous year, no deferred tax assets were recognized for this amount.

As at 31/12/2023, taxable temporary differences relating to investments in subsidiaries amounted to TEUR 351.195 (2022: TEUR 334.217), for which no deferred tax liabilities were recognized in accordance with IAS 12.39 (outside basis differences).

wienerberger has applied the temporary exception issued by the IASB in May 2023 from the accounting requirements for deferred taxes in IAS 12. Accordingly, the group neither recognizes nor discloses information about deferred tax assets and liabilities to Pillar 2 income taxes.

On December 30, 2023, the Pillar 2 income taxes legislation was enacted in Austria, being effective as from January 1, 2024 (Mindestbesteuerungsreformgesetz, Min-BestRefG). Under the legislation, the parent company will be required to pay in Austria top-up tax on profits of its subsidiaries that are taxed at an effective tax rate of less than 15%. We are in the implementation phase of Pillar 2 and have carried out a temporary safe harbor calculation for the reporting year. Based on our preliminary analysis, we assume that exposure to this tax may exist in Ireland, Hungary, Bulgaria, Serbia and Romania, but we don't expect a material impact.

*2) Prior year figures were adjusted for unrecognized interest carryforwards in the gross amount of TEUR 40.495 (TEUR 12.148 net)*

{274}------------------------------------------------

<span id="page-274-0"></span>Below table shows the amount by country of deferred tax assets at the beginning of the transition year 2024 in the meaning of article 9.1.1 of the OECD guidelines attributable to tax loss carryforwards, interest carryforwards and pro-rata depreciation and amortization:

| in TEUR     |          | 2023    |         |
|-------------|----------|---------|---------|
| Country     | Tax rate | Gross   | Net     |
| Germany     | 30.0%    | 399,962 | 119,989 |
| Austria     | 23.0%    | 157,270 | 36,172  |
| Netherlands | 25.8%    | 48,004  | 12,385  |
| Denmark     | 22.0%    | 27,496  | 6,049   |
| Russia      | 20.0%    | 17,469  | 3,494   |
| Belgium     | 25.0%    | 15,516  | 3,879   |
| Poland      | 19.0%    | 7,028   | 1,335   |
| Others      |          | 18,932  | 4,109   |
| Total       |          | 691,677 | 187,412 |

### **32. Liabilities**

Financial liabilities are recognized at amortized costs and subsequently measured under the effective interest rate method. The only exception being derivatives with negative market values, which are measured at fair value. Foreign currency liabilities are translated at the exchange rate in effect on the balance sheet date. To date, wienerberger has not elected to use the option provided by IFRS 9, which permits the initial recognition of a financial liability at fair value through profit or loss.

{275}------------------------------------------------

The remaining terms of the various classes of liabilities are shown in the following tables:

|                                                                  |                  | Remaining<br>term<br>< 1 year | Remaining<br>term 1–5<br>years | Remaining<br>term > 5<br>years |
|------------------------------------------------------------------|------------------|-------------------------------|--------------------------------|--------------------------------|
| 2023                                                             |                  |                               |                                |                                |
| in TEUR                                                          | Total            |                               |                                |                                |
| Interest-bearing loans                                           | 1,435,735        | 363,923                       | 974,881                        | 96,931                         |
| Lease liabilities                                                | 265,448          | 62,688                        | 109,806                        | 92,954                         |
| Financial liabilities owed to subsidiaries 1)                    | 35               | 35                            | 0                              | 0                              |
| <b>Financial liabilities</b>                                     | <b>1,701,218</b> | <b>426,646</b>                | <b>1,084,687</b>               | <b>189,885</b>                 |
| Trade payables owed to third parties                             | 329,488          | 329,488                       | 0                              | 0                              |
| Trade payables owed to subsidiaries 1)                           | 586              | 586                           | 0                              | 0                              |
| <b>Trade payables</b>                                            | <b>330,074</b>   | <b>330,074</b>                | <b>0</b>                       | <b>0</b>                       |
| <b>Payables for current taxes</b>                                | <b>30,593</b>    | <b>30,593</b>                 | <b>0</b>                       | <b>0</b>                       |
| Contract liability                                               | 9,672            | 9,672                         | 0                              | 0                              |
| Amounts owed to tax authorities and social security institutions | 72,419           | 72,419                        | 0                              | 0                              |
| Refund liabilities                                               | 18,891           | 18,891                        | 0                              | 0                              |
| Deferred income                                                  | 11,078           | 4,178                         | 1,459                          | 5,441                          |
| Miscellaneous liabilities                                        | 274,924          | 258,511                       | 4,258                          | 12,155                         |
| <b>Other liabilities</b>                                         | <b>386,984</b>   | <b>363,671</b>                | <b>5,717</b>                   | <b>17,596</b>                  |
| <b>Total liabilities</b>                                         | <b>2,448,869</b> | <b>1,150,984</b>              | <b>1,090,404</b>               | <b>207,481</b>                 |

*1) includes intercompany liabilities against at-equity consolidated and unconsolidated Group companies*

{276}------------------------------------------------

### [Sustainability Report](#page-28-0) | [Corporate Governance Report](#page-175-0) | [Management Report](#page-193-0) | **[Consolidated Financial Statements](#page-222-0)**

| 2022                                                             |                  | Remaining<br>term | Remaining<br>term 1–5 | Remaining<br>term > 5 |
|------------------------------------------------------------------|------------------|-------------------|-----------------------|-----------------------|
| in TEUR                                                          | Total            | < 1 year          | years                 | years                 |
| Interest-bearing loans                                           | 1,204,554        | 151,643           | 904,594               | 148,317               |
| Lease liabilities                                                | 247,633          | 55,482            | 97,547                | 94,604                |
| Financial liabilities owed to subsidiaries                       | 32               | 32                | 0                     | 0                     |
| <b>Financial liabilities</b>                                     | <b>1,452,219</b> | <b>207,158</b>    | <b>1,002,140</b>      | <b>242,921</b>        |
| Trade payables owed to third parties                             | 438,481          | 438,481           | 0                     | 0                     |
| Trade payables owed to subsidiaries                              | 1,086            | 1,086             | 0                     | 0                     |
| <b>Trade payables</b>                                            | <b>439,567</b>   | <b>439,567</b>    | <b>0</b>              | <b>0</b>              |
| <b>Payables for current taxes</b>                                | <b>49,636</b>    | <b>49,636</b>     | <b>0</b>              | <b>0</b>              |
| Contract liability                                               | 7,876            | 7,876             | 0                     | 0                     |
| Amounts owed to tax authorities and social security institutions | 80,071           | 80,071            | 0                     | 0                     |
| Refund liabilities                                               | 33,872           | 33,872            | 0                     | 0                     |
| Deferred income                                                  | 13,631           | 11,677            | 288                   | 1,666                 |
| Miscellaneous liabilities                                        | 318,595          | 305,041           | 1,762                 | 11,792                |
| <b>Other liabilities</b>                                         | <b>454,045</b>   | <b>438,537</b>    | <b>2,050</b>          | <b>13,458</b>         |
| <b>Total liabilities</b>                                         | <b>2,395,467</b> | <b>1,134,898</b>  | <b>1,004,190</b>      | <b>256,379</b>        |

Leases already concluded but not yet commenced on the balance sheet date have not been taken into account in the valuation of lease liabilities. On the basis of information available on the balance sheet date, such arrangements will result in an increase in right-of-use assets and lease liabilities in the following year by TEUR 3,695 (2022: TEUR 9,453).

Refund liabilities primarily comprise rights of return recognized for returnable pallets.

Contract liabilities comprise advance payments received from customers and are recognized on the balance sheet in other liabilities. On the balance sheet date, they amounted to TEUR 9,672 (2022: TEUR 7,876). Revenues generated from these orders are recognized at the time of transfer of the goods/services to the customer.

Miscellaneous other liabilities include TEUR 77,985 (2022: TEUR 85,231) due to employees and TEUR 145,570 (2022: TEUR 173,940) from accruals for bonuses and other sales deductions due to customers. Prepayments received include TEUR 8,740 (2022: TEUR 7,410) in subsidies and investment grants from third parties, which are reversed to income over the useful life of the related items of property, plant and equipment. In addition to liabilities from current taxes, amounts owed to tax authorities and social security institutions also include tax liabilities of TEUR 41,508 (2022: TEUR 50,902).

Financial liabilities include the following derivatives with negative market values:

### Derivatives

| in TEUR                                         | 2023  | 2022  |
|-------------------------------------------------|-------|-------|
| Derivatives designated in cash flow hedges      | 313   | 1,278 |
| Derivatives designated in net investment hedges | 0     | 3,899 |
| Other derivatives                               | 2,117 | 992   |
| Derivatives with negative market value          | 2,430 | 6,169 |

Total liabilities include TEUR 2,432,589 (2022: TEUR 2,377,831) in financial liabilities measured at amortized cost, TEUR 13,850 (2022: TEUR 11,467) in other liabilities measured at fair value, TEUR 313 (2022: TEUR 5,177) in derivatives designated as hedging instruments, 

{277}------------------------------------------------

and TEUR 2,117 (2022: TEUR 992) in other derivatives measured at fair value through profit or loss.

Financial liabilities are expected to result in the following cash flows:

### Analysis of contractual cash flows

|                                             | Carrying<br>amount as at<br>31/12/2023 | Total      | < 6<br>months | 6–12<br>months | 1–2<br>years | 2–5<br>years | > 5<br>years |
|---------------------------------------------|----------------------------------------|------------|---------------|----------------|--------------|--------------|--------------|
| 2023<br>in TEUR                             |                                        |            |               |                |              |              |              |
| Bonds                                       | 1,005,350                              | –1,112,314 | –266,000      | –17,063        | –428,063     | –401,188     |              |
| Liabilities to banks                        | 427,020                                | –519,056   | –50,088       | –79,920        | –45,385      | –239,093     | –104,570     |
| Lease liabilities                           | 265,448                                | –279,068   | –31,671       | –28,564        | –47,677      | –77,424      | –93,732      |
| Liabilities to non-banks                    | 970                                    | –1,194     | –268          | –83            | –7           | –836         | 0            |
| Financial instruments                       | 1,698,788                              | –1,911,632 | –348,027      | –125,630       | –521,132     | –718,541     | –198,302     |
| Forward exchange contracts and<br>swaps     | 2,430                                  | –2,684     | –2,504        | –180           | 0            | 0            | 0            |
| Derivative financial instru-<br>ments       | 2,430                                  | –2,684     | –2,504        | –180           | 0            | 0            | 0            |
| Carrying amounts/<br>Contractual cash flows | 1,701,218                              | –1,914,316 | –350,531      | –125,810       | –521,132     | –718,541     | –198,302     |

{278}------------------------------------------------

|                                             | Carrying     |            |          |          |          |          |          |
|---------------------------------------------|--------------|------------|----------|----------|----------|----------|----------|
| 2022                                        | amount as at |            | < 6      | 6–12     | 1–2      | 2–5      | > 5      |
| in TEUR                                     | 31/12/2022   | Total      | months   | months   | years    | years    | years    |
| Bonds                                       | 656,833      | –693,000   | –16,000  | 0        | –266,000 | –411,000 | 0        |
| Liabilities to banks                        | 540,306      | –612,511   | –57,849  | –104,863 | –82,195  | –210,673 | –156,931 |
| Lease liabilities                           | 247,633      | –282,881   | –29,520  | –25,330  | –42,286  | –79,641  | –106,104 |
| Liabilities to non-banks                    | 1,278        | –1,294     | –384     | –3       | –86      | –821     | 0        |
| Financial instruments                       | 1,446,050    | –1,589,686 | –103,753 | –130,196 | –390,567 | –702,135 | –263,035 |
| Interest rate derivatives                   | 3,899        | –4,583     | –4,583   | 0        | 0        | 0        | 0        |
| Forward exchange contracts and<br>swaps     | 2,270        | –2,918     | –2,208   | –710     | 0        | 0        | 0        |
| Derivative financial instruments            | 6,169        | –7,501     | –6,791   | –710     | 0        | 0        | 0        |
| Carrying amounts/<br>Contractual cash flows | 1,452,219    | –1,597,187 | –110,544 | –130,906 | –390,567 | –702,135 | –263,035 |

The cash flows shown in the above tables include interest paid on both fixed-interest and floating-rate financial liabilities. These were determined on the basis of the interest rates established at the end of the reporting period.

{279}------------------------------------------------

### <span id="page-279-0"></span>**33. Contingent liabilities and guarantees**

Contingent liabilities result from obligations to third parties, and include the following:

| in TEUR                       | 31.12.2023    | 31/12/2023    |
|-------------------------------|---------------|---------------|
| Guarantees                    | 22,583        | 15,050        |
| Other contractual obligations | 211           | 2,079         |
| <b>Contingent liabilities</b> | <b>22,794</b> | <b>17,129</b> |

All events reported under contingent liabilities reflect possible future obligations that are contingent upon the occurrence of a future event that is completely uncertain as of the balance sheet date.

### **34. Derivative financial instruments and hedge accounting**

The market value of derivative financial instruments represents the value the company would receive or be required to pay upon settlement as of the balance sheet date. Current market conditions – above all current interest rates, foreign exchange rates and the credit standing of the counterparty – are taken into account. These valuation parameters are observable on the market and are available to all relevant market participants. The fair value of the respective derivative instruments corresponds to the net present value determined by means of recognized mathematical methods, including adjustments according to IFRS 13 (credit value and debit value adjustments – CVA/DVA).

As of the balance sheet date, wienerberger held foreign exchange forward contracts that were concluded to hedge transactional risks for a period of up to 12 months. The risk positions covered by these hedges are documented in the Group's foreign-currency-based liquidity planning. These derivatives are designated as hedging instruments in cash flow hedges of future transactions, and changes in their market value during the term are recognized in the hedging reserve. The ineffective portion of the change in market value is recognized through profit or loss and consists primarily of the CVA/DVA adjustments as defined in IFRS 13. On the maturity date of the hedge, the cumulative, effective market value differences are reclassified from other comprehensive income to profit or loss.

wienerberger also holds currency swaps that are used to hedge cash pool and bank account balances in foreign currencies. The foreign currency differences on the bank account balances that are hedged with these instruments are recognized through profit or loss and, consequently, the market value differences of the hedges are also recognized through profit or loss. As these are natural hedges, hedge accounting is not applied.

As of the balance sheet date, two interest rate swaps to partially hedge the interest expense were in effect, which are designated as hedging instruments in cash flow hedges and for which the effective portion of the market value changes were recorded in the hedging reserve. The ineffective part of the market value change is determined by means of the hypothetical derivative method and recognized in profit or loss.

The cross-currency swaps are derivatives that hedge the Group's net investments in various currencies (US dollar, British pound, Canadian dollar) and are therefore classified as hedges of a net investment in a foreign operation. The effectiveness of these hedges is measured at least quarterly by comparing the cumulative market value changes with the cumulative currency differences of the hedged position, which is represented by a hypothetical derivative. The effective portion of the hedge is recognized in the hedging reserve, and the ineffective portion is recognized in the statement of profit or loss.

{280}------------------------------------------------

<span id="page-280-0"></span>

| Hedging Instruments 31/12/2023<br>in TEUR              | Nominal Value | positive<br>market values | negative<br>market values |
|--------------------------------------------------------|---------------|---------------------------|---------------------------|
|                                                        |               | Book Value                |                           |
| Interest rate hedging instruments                      | 187,834       | 17,724                    | -                         |
| Foreign currency hedging instruments                   | 601,676       | 1,111                     | -2,430                    |
| Interest rate and foreign currency hedging instruments | 193,597       | 8,874                     | -                         |
|                                                        | 983,107       | 27,709                    | -2,430                    |

*1) The disclosure of nominal values is made in the functional currency of the Wienerberger Group. In the previous year, the disclosure of nominal values was made in the local currency // 2) In the balance sheet in the item Securities and other financial assets // 3) In the balance sheet in the item short-term financial liabilities*

| Hedging Instruments 31/12/2022<br>in TEUR              | Nominal Value 1) | Positive<br>market values 2)<br>Book Value | Negative<br>market values 3) |
|--------------------------------------------------------|------------------|--------------------------------------------|------------------------------|
| Interest rate hedging instruments                      | 206,667          | 27,100                                     | -                            |
| Foreign currency hedging instruments                   | 463,860          | 4,588                                      | -2,270                       |
| Interest rate and foreign currency hedging instruments | 242,120          | 8,026                                      | -3,899                       |
|                                                        | <b>912,647</b>   | <b>39,714</b>                              | <b>-6,169</b>                |

*1) The disclosure of nominal values is made in the functional currency of the Wienerberger Group. In the previous year, the disclosure of nominal values was made in the local currency // 2) In the balance sheet in the item Securities and other financial assets // 3) In the balance sheet in the item short-term financial liabilities*

### **35. Disclosures on financial instruments**

Financial instruments are classified in three levels that reflect the degree of valuation certainty. wienerberger uses the following hierarchy to classify financial instruments measured at fair value according to the valuation method used:

- **›** Level 1: Valuation based on the market price for a specific financial instrument
- **›** Level 2: Valuation based on the market prices for similar instruments or on valuation models that only use parameters that can be monitored on the market
- **›** Level 3: Valuation based on models with significant parameters that cannot be monitored on the market

The financial instruments carried at fair value by wienerberger are generally classified as level 1 (units in mutual funds, corporate bonds and shares, see Note 25. Receivables, securities and other financial assets) or level 2 (other financial assets and derivative financial instruments; see Note 34. Derivative financial instruments and hedge accounting). No items were reclassified between hierarchy levels during the reporting year.

Other securities recognized as financial instruments at fair value through profit or loss are partly classified as level 3 of the valuation hierarchy. They serve as reinsurance for pension obligations for which netting against the provision is not permitted.

Investments in associates and other investments are recognized at fair value, which is determined on the basis of the underlying planning by means of a DCF method. They are therefore classified as level 3 of the valuation hierarchy.

Other liabilities accounted for at fair value are contingent purchase price liabilities in connection with the acquisition of companies referring primarily to a liability of TEUR 11,250 for 20.33% of the outstanding shares in Vargon d.o.o. The put option was discounted on the basis of the agreed purchase price up to the option's exercise date. Therefore, the liability is classified at level 3 of the fair valu-

{281}------------------------------------------------

![Arrow pointing up and to the right](https://i.imgur.com/9v99999.png)

ation hierarchy. Furthermore, a contingent purchase price liability of TEUR 2,600 results from other acquisitions. A further amount of TEUR 1,015 results from non-contingent liabilities from acquisitions.

The following table shows the financial assets and financial liabilities carried at fair value:

### Financial assets and financial liabilities carried at fair value

|             | in TEUR                                           | Level 1 | Level 2 | Level 3 | Carrying amount as at 31/12/2023 |
|-------------|---------------------------------------------------|---------|---------|---------|----------------------------------|
| Assets      |                                                   |         |         |         |                                  |
|             | Investments in subsidiaries and other investments | 4,641   |         | 29,498  | 34,139                           |
|             | Stock                                             | 224     |         |         | 224                              |
|             | Shares in funds                                   | 5,585   |         |         | 5,585                            |
|             | Other                                             |         |         | 279     | 279                              |
|             | At fair value through profit or loss              | 10,450  |         | 29,777  | 40,227                           |
|             | Derivatives designated in cash flow hedges        |         | 18,260  |         | 18,260                           |
|             | Derivatives designated in net investment hedges   |         | 8,874   |         | 8,874                            |
|             | Other derivatives                                 |         | 575     |         | 575                              |
|             | Derivatives with positive market value            |         | 27,709  |         | 27,709                           |
| Liabilities |                                                   |         |         |         |                                  |
|             | Derivatives designated in cash flow hedges        |         | 313     |         | 313                              |
|             | Other derivatives                                 |         | 2,117   |         | 2,117                            |
|             | Derivatives with negative market value            |         | 2,430   |         | 2,430                            |
|             | Contingent purchase price liability               |         |         | 13,850  | 13,850                           |

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#### [Sustainability Report](#page-28-0) | [Corporate Governance Report](#page-175-0) | [Management Report](#page-193-0) | **[Consolidated Financial Statements](#page-222-0)**

|                                                   |         |         |         | Carrying<br>amount as at<br>31/12/2022 |
|---------------------------------------------------|---------|---------|---------|----------------------------------------|
| in TEUR                                           | Level 1 | Level 2 | Level 3 |                                        |
| Assets                                            |         |         |         |                                        |
| Investments in subsidiaries and other investments |         |         | 16,355  | 16,355                                 |
| Stock                                             | 76      |         |         | 76                                     |
| Shares in funds                                   | 5,146   |         |         | 5,146                                  |
| Other                                             |         |         | 332     | 332                                    |
| At fair value through profit or loss              | 5,222   |         | 16,687  | 21,909                                 |
| Derivatives designated in cash flow hedges        |         | 31,086  |         | 31,086                                 |
| Derivatives designated in net investment hedges   |         | 8,026   |         | 8,026                                  |
| Other derivatives                                 |         | 602     |         | 602                                    |
| Derivatives with positive market value            |         | 39,714  |         | 39,714                                 |
| Liabilities                                       |         |         |         |                                        |
| Derivatives designated in cash flow hedges        |         | 1,278   |         | 1,278                                  |
| Derivatives designated in net investment hedges   |         | 3,899   |         | 3,899                                  |
| Other derivatives                                 |         | 992     |         | 992                                    |
| Derivatives with negative market value            |         | 6,169   |         | 6,169                                  |
| Contingent purchase price liability               |         |         | 11,467  | 11,467                                 |

The development of financial instruments classified as level 3 is shown in the following table:

|                                            | Investments |        | Other securities |      | Contingent purchase<br>price liability |        |
|--------------------------------------------|-------------|--------|------------------|------|----------------------------------------|--------|
| in TEUR                                    | 2023        | 2022   | 2023             | 2022 | 2023                                   | 2022   |
| Balance on 1/1                             | 16,355      | 17,319 | 332              | 340  | 11,467                                 | 13,945 |
| Additions 1)                               | 15,566      | 1,781  | 133              | 0    | 3,285                                  | 10,812 |
| Change in scope of consolidation           | 0           | 13     | 0                | 0    | 0                                      | 0      |
| Results from valuation in income statement | -2,172      | -2,758 | -186             | -8   | -902                                   | -3,964 |
| Disposals                                  | -251        | 0      | 0                | 0    | 0                                      | -9,326 |
| Balance on 31/12                           | 29,498      | 16,355 | 279              | 332  | 13,850                                 | 11,467 |

*1) The representation of the movement types in purchase price liabilities has been changed compared to the previous year. New purchase price liabilities resulting from acquisitions are now presented as additions and not as change in scope of consolidation, as these are held by the acquiring companies*

In principle, wienerberger carries financial receivables as well as liabilities at amortized cost, with a provision for expected credit losses on financial receivables being deducted in the amount of the weighted expected defaults. The fair value of bonds is determined on the basis of market prices (level 1), whereas the fair value of loans is derived by means of an income approach valuation, which permits classification under level 2.

Trade receivables and trade payables, refund liabilities, loans granted, and other receivables and liabilities mostly have a term of less than one year. The respective carrying amounts generally correspond to fair values and are therefore not reported separately.

{283}------------------------------------------------

### Financial assets and financial liabilities at amortized cost

|                                                      |           | Fair Value |         |  |                                        |
|------------------------------------------------------|-----------|------------|---------|--|----------------------------------------|
| in TEUR                                              | Level 1   | Level 2    | Level 3 |  | Carrying<br>amount as at<br>31/12/2023 |
| Assets                                               |           |            |         |  |                                        |
| Other receivables                                    |           | 12,354     |         |  | 12,354                                 |
|                                                      |           |            |         |  |                                        |
| Liabilities                                          |           |            |         |  |                                        |
| Long-term loans                                      |           | 327,088    |         |  | 329,433                                |
| Roll-over                                            |           | 14,901     |         |  | 14,971                                 |
| Short-term loans                                     |           | 81,758     |         |  | 82,616                                 |
| Financial liabilities owed to financial institutions |           | 423,747    |         |  | 427,020                                |
| Bonds                                                | 1,019,137 |            |         |  | 1,005,350                              |
| Long-term loans                                      |           | 549        |         |  | 592                                    |
| Short-term loans                                     |           | 341        |         |  | 343                                    |
| Lease liabilities                                    |           | 265,448    |         |  | 265,448                                |
| Financial liabilities owed to subsidiaries           |           | 35         |         |  | 35                                     |
| Financial liabilities owed to non-banks              | 1,019,137 | 266,373    |         |  | 1,271,768                              |
| Purchase price liability                             |           | 1,015      |         |  | 1,015                                  |

### **Fair Value**

| in TEUR                                              | Level 1 | Level 2 | Level 3 | Carrying amount as at 31/12/2022 |
|------------------------------------------------------|---------|---------|---------|----------------------------------|
| Assets                                               |         |         |         |                                  |
| Other receivables                                    |         | 6,483   |         | 6,483                            |
| Liabilities                                          |         |         |         |                                  |
| Long-term loans                                      |         | 401,782 |         | 404,839                          |
| Roll-over                                            |         | 26,235  |         | 26,133                           |
| Short-term loans                                     |         | 108,632 |         | 109,334                          |
| Financial liabilities owed to financial institutions |         | 536,649 |         | 540,306                          |
| Bonds                                                | 636,243 |         |         | 656,833                          |
| Long-term loans                                      |         | 848     |         | 898                              |
| Short-term loans                                     |         | 348     |         | 348                              |
| Lease liabilities                                    |         | 247,633 |         | 247,633                          |
| Financial liabilities owed to non-banks              | 636,243 | 248,861 |         | 905,744                          |
| Purchase price liability                             |         | 1,036   |         | 1,036                            |

{284}------------------------------------------------

## <span id="page-284-0"></span>**Risk Report**

### **Principles of risk management**

The conduct of global operations exposes wienerberger to a variety of risks that are inseparable from entrepreneurial activities. These risks have an effect on the business segments of the Group and on its assets, liabilities and planned commercial decisions.

Throughout the Group, wienerberger focuses on the early identification and active management of risks in its operating environment. To this end, regular surveys are being performed by the Managing Board in cooperation with the Chief Operating Officers of the regions and Corporate Function heads in order to update the existing risk catalogue and to identify new risks. In the course of this process, strategic and operational risks are identified along the entire value chain. The impact of these risks on cash flow is assessed and appropriate risk mitigation strategies and measures are adopted and implemented.

### **Risk situation and operating risks relating to the Group's markets**

wienerberger is operating as a well-diversified and resilient provider of innovative, ecological solutions for the entire building envelope, in the fields of new buildings and renovations, as well as infrastructure in water and energy management. The Group is dependent on macro-economic parameters in the countries it operates in, which include, in particular, general economic developments and building activities in new build and renovation as well as the public construction sector. Consumer confidence, the unemployment rate, long-term interest rates, the availability of finance, tax legislation, building regulations and subsidies for housing construction, the availability of labor for construction sites, as well as other factors beyond the Group's sphere of influence also have an impact on the level of business activity. The economic cycles of the construction industry that influence wienerberger's business are notably longer than in other sectors and vary in timing from market to market.

Unfavorable developments of any or all of these factors can have a negative impact on demand for wienerberger products and system solutions, sales volumes, and the price level. Cyclical fluctuations in demand harbor the risk of excess capacity, which in turn may result in increased pressure on prices, lower margins, and revenues that fail to cover production costs. With regard to cost allocation, a distinction must be made at wienerberger between the ceramics business and the piping business. The share of fixed costs in the ceramics business is higher than that of the plastic piping business due to the comparatively greater intensity of fixed assets. Production capacities are therefore analyzed on an ongoing basis and adjusted to market conditions through respective measures.

In the long term, wienerberger regards the Central and Eastern European markets with their pent-up demand for new residential construction and infrastructure as growth markets. Experience shows that these markets are more volatile and can entail risks from weaker demand and higher price pressure.

Moreover, wienerberger products compete with other building materials, such as concrete, timber, calcium silicate, glass, steel, or aluminum, which exposes the Group to a substitution risk. This also applies to the piping business. Based on our strong position as an industry leader in terms of quality and the development of innovative products, we are making every effort to minimize this risk. Our innovations primarily aim at improving the physical properties of building materials and their cost-efficiency.

Developments in the plastic piping business are largely influenced by raw material prices, which usually correlate with the crude oil price. Synthetic polymers account for a substantial part of plastic pipe production costs. The volatility of raw material prices has increased significantly in recent years. Major fluctuations within a single month call for a flexible pricing policy to keep such price fluctuations under control or adjust to the market. In price management, fast reactions are crucial in order to secure sustainable profitability. Alongside the price risk, this business segment is also exposed to a supply risk. Any interruption of supply invariably leads to disruption in production. With few exceptions, alternative raw material suppliers are available to counter the supply risk.

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<span id="page-285-0"></span>Building material and infrastructure activities are subject to seasonal fluctuations, with quantities sold between April and October being substantially above those sold during the rest of the year. Like the building material and infrastructure sectors as a whole, wienerberger is partly dependent on weather conditions for its earnings, as long periods of frost and rain slow down construction work and may have a notable impact on demand.

To avoid fluctuations in earnings wherever possible, wienerberger has adopted a strategy of diversification in terms of geography and end markets, while at the same time concentrating on its core business of providing solutions for walls, roofs and façades as well as pavers and piping systems. wienerberger has positioned itself as a provider of innovative, ecological solutions for the entire building envelope. Our activities are subject to the usual local market risks. We have to continuously defend our positions against competitors and substitute products. We expect to see a growing degree of concentration among our customers, with trading companies playing an important role, and a resultant increase of the pressure on prices. Specific market situations can also have a negative impact on the price level and may force wienerberger to adapt its pricing strategy if necessary.

As a multinational corporation, wienerberger operates in countries that are in different stages of economic and social development. Unfavorable changes in the political, legal, and economic framework therefore represent additional sources of risk. Risks arising from changes in the tax law governing the markets concerned, risks from changes in the taxation of energy sources, risks from amendments to labor law, risks from linguistic and cultural differences encountered in international activities demanding an effort of coordination, restrictions on the repatriation of profits, and risks arising from increasingly stringent legal provisions on the use of raw materials, product standards, and product liability, as well as environmental and safety standards, may also have a significant impact on wienerberger's activities. Additionally, in certain markets, such as India, there is a risk of expropriation of production facilities without any guarantee of adequate compensation. In these markets, in particular, wienerberger is exposed to potential tax risks resulting from changes in tax law or the interpretation of tax law in effect. From today's perspective, wienerberger is not able to quantify the probability of occurrence or the extent of such potential risks.

wienerberger does not operate in Ukraine. Its business in Russia was sold on February 5, 2024. As of the balance sheet date, the assets and liabilities are recognized as assets and liabilities held for sale in accordance with IFRS 5.

### **Procurement, production, investment and acquisition risks**

wienerberger has a modern and regional plant network. Therefore, the risk of operating breakdowns or a longer loss of production due to technical problems is low. Supplies of clay as a material or synthetic polymers for our plants are guaranteed on a lasting basis by sufficient deposits and long-term supply contracts.

The cost of energy for the firing of bricks represents a significant percentage of wienerberger's cost structure. In 2023 wienerberger's energy costs totaled TEUR 331,564 (2022: TEUR 372,927) or 7.8 % (2022: 7.5 %) of revenues. These expenses comprise 56% for natural gas, 41% for electricity and 3% for other energy sources. Energy prices are dependent on international and local market developments and are subject to fluctuations. wienerberger minimizes the risk connected with rising energy prices in liberalized markets (in total, roughly 90% of energy costs) by concluding futures contracts or fixed-price agreements with national and international suppliers. These prices and volumes are usually fixed on a long-term or medium-term basis. In a limited number of Eastern European countries (in total, roughly 10% of energy costs) the prices for natural gas are regulated by the government and contracts with local suppliers are negotiated annually. In 2014, wienerberger was granted carbon leakage status for its ceramic activities in the EU. Based on a further qualitative evaluation performed in 2018, the brick industry was included in the new carbon leakage list for the fourth trading period. This means that wienerberger retains its carbon leakage status and will continue to be allocated a major part of the required CO2 certificates free of charge, although free allocation will be subject to tougher competition in the future. wienerberger therefore established the ETS Strategy Task Force to prepare for these changes. Investments in decarbonization currently in the process of implementation are expected to offset the negative impact of fewer CO2 certificates being allocated free of charge.

In addition to price risk, wienerberger is also exposed to energy supply risk (natural gas and electricity), in particular with respect to the current conflict between Russia and Ukraine. A disruption in supply inevitably results in a loss of production and can therefore have a negative effect on operating results if demand cannot be met from inventories or through the use of alternative energy sources.

Continuing optimization (operational excellence) and product innovations as well as internal and external growth projects are imple-

{286}------------------------------------------------

<span id="page-286-0"></span>mented to increase the enterprise value of wienerberger. The future profitability of these projects is dependent to a large degree on the investment volume and the prices of acquisition targets, as well as market developments. For this reason, all growth projects must meet the defined return on investment criteria for the Group's bolt-on and strategic projects. The entry into new markets is also connected with risks involving competition, planning certainty and the assessment of the political situation as well as the establishment of a successful and profitable organizational structure. New projects are therefore analyzed extensively in advance, both from a qualitative and quantitative standpoint.

### **Financial risks**

In addition to the financing risk, operating activities expose wienerberger to interest-rate and currency risks. Derivative financial instruments, in particular forward exchange contracts and interest rate swaps, as well as operational measures are used to limit and manage these risks. All cash flow hedges and hedges of investments in foreign operations are classified as highly effective as a means of offsetting the hedged risks in keeping with risk management objectives. No derivatives are held for speculative purposes.

The refinancing sources open to wienerberger are determined by numerous financial, macroeconomic and other factors beyond the control of management. These factors include covenants in the existing and future debt arrangements as well as the development of the current rating. According to these covenants, the ratio of net debt to EBITDA must not exceed 3.9 years; this ratio came to 1.6 years as of December 31, 2023. Part of wienerberger's earnings is used to pay interest and is therefore not available for other purposes. If the general level of interest were to increase, or if the Group's rating deteriorated or covenants were not met, additional interest expense could arise due to an increase in the credit risk premium and lead to higher financing costs and lower cash flow. The failure to comply with covenants could also result in a loan becoming due immediately.

### Currency risks

A significant portion of wienerberger's revenues and earnings is generated by subsidiaries whose headquarters are not located in the euro zone. In the reporting year, wienerberger generated 58% of its revenues in currencies other than the euro, predominately Eastern European currencies (16%), the US dollar (18%) and the British pound (12%). The currency risk inherent in cash flows is immaterial due to the local nature of the building materials business. Cash flows into or out of the euro region are primarily related to dividends or loans and the sale of goods and services. These intercompany cash flows depend on the exchange rates applicable and are managed by the holding company.

Given the decentralized structure of the Group, finance for the purchase of current assets and the settlement of incoming invoices is raised in the currency of the local organization. As a result, currency risks are reduced to a minimum, since the Group companies generally issue their invoices in local currency and these transactions form a natural hedge. Non-realized currency translation differences from long-term intercompany loans are recognized under foreign exchange adjustments. Likewise, currency translation differences between the exchange rate on the cut-off date within the balance sheet and the average exchange rate within the income statement are recognized in other comprehensive income. The currency-related translation risk from US, Canadian, British and certain Eastern European business activities is reduced by means of cross-currency swaps. A cross-currency swap is concluded in the amount of the part of the foreign-denominated assets to be hedged.

In accordance with the principle of the functional currency, the annual financial statements of foreign companies are translated into the euro. The functional currency for all companies is the local currency, as the companies conduct their business independently in financial, economic and organizational terms. All balance sheet items, except for equity, are translated at the mid-market rate as at 31/12/2023. Goodwill is accounted for as an asset in local currency and translated at the mid-market rate on the cut-off date for the consolidated financial statements. Income and expense items are translated at annual average exchange rates. The only exception from this principle are income and expense items of subsidiaries in hyperinflationary economies, which are translated at the mid-market rate on the cut-off date for the consolidated financial statements.

However, the translation of foreign company financial statements into the euro results in currency translation differences (translation risk), which are recognized in other comprehensive income under foreign exchange adjustments. The revenues, earnings, and balance sheet items of companies not headquartered in the euro region are therefore dependent on the respective euro exchange rate. Since June 30, 2022, according to IAS 29, Turkey has been classified as a hyperinflationary economy. From January 1, 2022, the annual 

{287}------------------------------------------------

financial statements of the Turkish subsidiary have therefore been restated on the basis of the price index published by the Turkish

The wienerberger risk strategy calls for reducing the translation risk arising from net investments in foreign subsidiaries to a certain extent through hedging. The following table shows Group revenues and capital employed by currency, with the calculation of capital employed including the effects of forward exchange contracts and cross-currency swaps:

Statistical Institute (see Note 16. Interest result and other financial result – Hyperinflationary economies).

| Revenues                    | 2023    |            | 2022    |            |
|-----------------------------|---------|------------|---------|------------|
|                             | in MEUR | Share in % | in MEUR | Share in % |
| Euro                        | 1,772   | 41.9       | 2,015   | 40.5       |
| Eastern European currencies | 687     | 16.3       | 988     | 19.9       |
| British pound               | 511     | 12.1       | 600     | 12.1       |
| US dollar                   | 746     | 17.7       | 865     | 17.4       |
| Other                       | 509     | 12.0       | 509     | 10.2       |
| Group revenues              | 4,224   | 100        | 4,977   | 100        |

| Capital employed                      | 2023    |            | 2022    |            |
|---------------------------------------|---------|------------|---------|------------|
|                                       | in MEUR | Share in % | in MEUR | Share in % |
| Euro                                  | 2,352   | 61.5       | 2,085   | 56.5       |
| Eastern European currencies           | 549     | 14.4       | 569     | 16.3       |
| US dollar                             | 383     | 10.0       | 352     | 13.3       |
| British pound                         | 267     | 7.0        | 233     | 6.7        |
| Other                                 | 272     | 7.1        | 252     | 7.2        |
| Capital employed after hedging effect | 3,823   | 100        | 3,491   | 100        |

The effects of a hypothetical change in foreign exchange rates on the consolidated income statement and the consolidated statement of comprehensive income are calculated by means of sensitivity analyses. For the purpose of this presentation, an annual volatility is assumed as of the balance sheet date. This volatility is calculated on the basis of the daily change in the respective exchange rate against the euro. In accordance with IFRS 7, currency risks result from monetary financial instruments not denominated in the functional currency of the reporting entity. Consequently, receivables, liabilities, cash and cash equivalents as well as derivative foreign-currency financial instruments form the basis for the calculation of the sensitivity of the consolidated income statement. The sensitivity of the consolidated statement of comprehensive income reflects the differences of long-term loans to subsidiaries as well as valuation effects of cash flow hedges for currency risks reported in other comprehensive income. Translation differences arising from the translation of financial statements prepared in a currency other than the euro were not included in the calculation.

A change in the annual volatility of the euro against the most relevant currencies as of the reporting date would affect the consolidated income statement and the consolidated statement of comprehensive income as follows (presented in order of materiality):

{288}------------------------------------------------

### **Sensitivity of the consolidated income statement**

| in TEUR |                      | 2023                       |                            |                      | 2022                       |                            |
|---------|----------------------|----------------------------|----------------------------|----------------------|----------------------------|----------------------------|
|         | Annual<br>volatility | if the euro<br>depreciates | if the euro<br>appreciates | Annual<br>volatility | if the euro<br>depreciates | if the euro<br>appreciates |
| EUR/GBP | 4.79%                | 1,043                      | -1,043                     | 7.74%                | 4,431                      | -4,431                     |
| EUR/NOK | 9.39%                | 709                        | -709                       | 10.31%               | 369                        | -369                       |
| EUR/SEK | 7.43%                | 643                        | -643                       | 7.30%                | 1,336                      | -1,336                     |
| EUR/USD | 7.49%                | 202                        | -202                       | 9.99%                | 293                        | -293                       |
| EUR/HUF | 9.44%                | 128                        | -128                       | 13.51%               | 791                        | -791                       |
| EUR/PLN | 6.26%                | 118                        | -118                       | 9.03%                | 1,617                      | -1,617                     |
| EUR/CZK | 4.49%                | 110                        | -110                       | 5.92%                | 19                         | -19                        |

### **Sensitivity of the consolidated statement of comprehensive income**

| in TEUR |                      | 2023                       |                            |                      | 2022                       |                            |  |
|---------|----------------------|----------------------------|----------------------------|----------------------|----------------------------|----------------------------|--|
|         | Annual<br>volatility | if the euro<br>depreciates | if the euro<br>appreciates | Annual<br>volatility | if the euro<br>depreciates | if the euro<br>appreciates |  |
| EUR/PLN | 6.26%                | 3,128                      | -3,128                     | 9.03 %               | 2,747                      | -2,747                     |  |
| EUR/TRY | 14.68%               | 2,424                      | -2,424                     | 12.55 %              | 1,958                      | -1,958                     |  |
| EUR/NOK | 9.39%                | 2,048                      | -2,048                     | 10.31 %              | 2,506                      | -2,506                     |  |
| EUR/SEK | 7.43%                | 2,023                      | -2,023                     | 7.30 %               | 1,569                      | -1,569                     |  |
| EUR/CZK | 4.49%                | 1,928                      | -1,928                     | 5.92 %               | 718                        | -718                       |  |
| EUR/GBP | 4.79%                | -1,271                     | 1,271                      | 7.74 %               | -1,686                     | 1,686                      |  |

### Interest-rate risk

The interest-rate risk comprises two components: the relevant value of the average maturity for the Group's financing, and interest payable. The risk associated with fixed interest rates lies in a possible decline in the level of interest, while the risk associated with variable interest rates arises from the possibility of an increase in interest rates. A parallel upward shift of the yield curve by 100 basis points would lead to an increase in profit after tax by TEUR 1,510 (2022: reduction by TEUR 587) and, through this change in the income statement, also a change in equity by the same amount. A corresponding decrease of the level of interest would have led to an increase in profit after tax and in equity by the same amount.

The risk positions of Wienerberger AG with respect to the risk of interest-rate changes arising from liabilities with fixed and variable interest rates are shown in the breakdown following.

In order to analyze the interest-rate risk (fixed and variable interest rates), financial liabilities are adjusted for the effects of derivative instruments (hedging), and short-term fixed-interest financial liabilities are treated as variable-interest items. Sensitivity analyses were carried out on fixed-interest and variable-interest financial liabilities to estimate the impact on earnings and equity.

{289}------------------------------------------------

| in TEUR                                                  | 2023                   |                           | 2022                   |                           |
|----------------------------------------------------------|------------------------|---------------------------|------------------------|---------------------------|
|                                                          | Fixed<br>interest rate | Variable<br>interest rate | Fixed<br>interest rate | Variable<br>interest rate |
| Interest-bearing loans                                   | 1,326,255              | 374,963                   | 1,022,403              | 429,816                   |
| Reclassification of short-term fixed interest rate loans | -313,426               | 313,426                   | -77,024                | 77,024                    |
| Effects of derivative instruments (hedging)              | 187,834                | -187,834                  | 206,667                | -206,667                  |
| Financial liabilities after hedging effects              | 1,200,663              | 500,555                   | 1,152,046              | 300,173                   |

### Credit risk

For its financial transactions, wienerberger has established strict requirements as regards the credit standing of its financial partners, which are defined in internal financial and treasury policies. The credit risk inherent in the investment of liquid funds and securities is limited because wienerberger works only with financing partners whose credit rating leads to expectations of a sound financial standing and sets counterparty limits based on this credit rating. However, even counterparties with an excellent rating may pose a credit risk and wienerberger therefore continuously monitors developments on the financial markets and adjusts credit limits accordingly. The following table shows the maximum exposure of trade receivables and miscellaneous receivables (including receivables from current taxes) to credit risks as of December 31, 2023, broken down by region:

| Credit risk                                           | 2023    |            | 2022    |            |
|-------------------------------------------------------|---------|------------|---------|------------|
|                                                       | in MEUR | Share in % | in MEUR | Share in % |
| Western Europe                                        | 238.5   | 56         | 295.5   | 59         |
| Central-Eastern Europe                                | 88.6    | 21         | 98.0    | 20         |
| North America                                         | 88.7    | 21         | 93.9    | 19         |
| Other                                                 | 6.7     | 2          | 10.9    | 2          |
| Total trade receivables and miscellaneous receivables | 422.4   | 100        | 498.3   | 100        |
| thereof insured against default                       | 266.1   |            | 290.0   |            |

Trade receivables consist primarily of receivables due from building material dealers and large customers. If an amount is overdue for more than 360 days, default is assumed, and the receivable is written off in its entirety. Receivables are derecognized when there is a legal basis for the assumption that no more payments will be received.

The following table shows the age of overdue trade receivables and impairment charges to trade receivables:

|                           | 2023                |                     |                    | 2022                |                     |                    |
|---------------------------|---------------------|---------------------|--------------------|---------------------|---------------------|--------------------|
| in MEUR                   | Gross<br>receivable | Loss -<br>allowance | Carrying<br>amount | Gross<br>receivable | Loss -<br>allowance | Carrying<br>amount |
| Not due                   | 229.2               | –3.0                | 226.2              | 296.9               | –1.4                | 295.5              |
| Up to 30 days overdue     | 71.0                | –0.8                | 70.2               | 64.4                | –1.6                | 62.8               |
| 31 to 60 days overdue     | 6.7                 | –0.2                | 6.5                | 11.2                | –0.8                | 10.4               |
| 61 to 90 days overdue     | 2.2                 | –0.5                | 1.7                | 3.6                 | –1.1                | 2.5                |
| More than 90 days overdue | 17.2                | –15.0               | 2.2                | 20.0                | –16.7               | 3.3                |
| Trade receivables         | 326.3               | –19.5               | 306.8              | 396.1               | –21.6               | 374.5              |

{290}------------------------------------------------

<span id="page-290-0"></span>Loans granted and other long-term receivables primarily comprise receivables from financing activities as well as receivables in respect of companies included at equity and non-consolidated companies. In the reporting year, credit losses were calculated mainly for defaults expected to occur in the following 12 months, as the assessment of the counterparties' solvency has not changed materially. As a matter of principle, default is defined on the basis of generally recognized rating classes as well as externally available or internally calculated ratings. Additional information available internally is also used to assess the risk of default. As of the balance sheet date, there were no receivables (2022: 0) for which an expected credit loss was assumed over the residual term.

Allowances for impairment losses on trade receivables as well as loans granted can be reconciled as follows:

| Loss allowance                       | 2023                 |                                               | 2022                 |                                               |
|--------------------------------------|----------------------|-----------------------------------------------|----------------------|-----------------------------------------------|
| in MEUR                              | Trade<br>receivables | Loans and other<br>non-current<br>receivables | Trade<br>receivables | Loans and<br>other non-current<br>receivables |
| Balance on 1/1                       | 21.6                 | 0.8                                           | 16.3                 | 1.1                                           |
| Foreign exchange translation         | -0.2                 | 0.0                                           | 0.2                  | 0.0                                           |
| Provision for expected credit losses | 2.7                  | 0.0                                           | 5.0                  | 0.0                                           |
| Change in scope of consolidation     | -2.8                 | 0.0                                           | 0.8                  | 0.0                                           |
| Disposals                            | -1.8                 | -0.8                                          | -0.7                 | -0.3                                          |
| Balance on 31/12                     | 19.5                 | 0.0                                           | 21.6                 | 0.8                                           |

### Liquidity risks

Preserving liquidity and safeguarding a healthy financial base represent the focal points of wienerberger's strategy. The most important instruments in this respect are the maximization of free cash flow through original growth measures and cost reduction, active working capital management, and a cutback in investments to the necessary minimum.

Liquidity risks arise, above all, when cash flows from revenues fall below expectations on account of weakening demand and the measures to reduce working capital and cash outflows for fixed-cost items (active capacity management) are not sufficient or can only be implemented with a certain delay.

Liquidity is managed regularly through rolling quarterly liquidity planning as well as regular analyses of the cash conversion cycle, which is based on average accounts payable turnover, inventory turnover and receivables conversion, and came to 91 days in 2023 (2022: 62 days). The increase was mainly due to a longer storage period of inventories. As at the balance sheet date, the number of days of outstanding receivables improved from 27 to 24 days compared to previous year. For a disclosure of liquidity risk arising from financial liabilities, refer to the analysis of contractual cash flows in Note 32. Liabilities.

As of the balance sheet date, credit lines in the amount of TEUR 950,000 (2022: TEUR 400,000) were committed, all of which were undrawn.

### **Legal risks**

Depending on the market position in individual countries and the size of planned acquisitions, transactions are subject to approval by the anti-trust authorities. These approval procedures can lead to delays or, in individual cases, to the prohibition of specific acquisitions or mergers. wienerberger evaluates the anti-trust risk associated with an acquisition together with national and international legal and business experts during the early stages of work on a project in order to minimize this risk. No acquisitions planned by the Group have ever been prohibited.

In connection with real estate transactions, Wienerberger AG is liable for possible contamination and any consequential damage incurred as long as the property is owned by wienerberger.

{291}------------------------------------------------

<span id="page-291-0"></span>In various countries the Group is subject to local tax law, the further development of which may have financial implications in the form of changes in charges and taxes.

### **Other risks**

In many countries, wienerberger is subject to extensive and increasingly strict environmental, health and safety regulations (ESG - Environment, Social, Governance). Hence, investments are required to comply with these regulations. Failure to comply with these regulations could result in administrative fines, claims for damages or the withdrawal of operating permits.

wienerberger plants are doing more to prevent damage to the environment than is currently required by law, but the increasingly strict environmental standards confront the Group with a range of new challenges. wienerberger cooperates with experts and external consultants in order to be fully aware of any legislative changes and to comply with all legal and contractual obligations in effect. Risks arising from the restoration of clay pits are part of the company's operations and are continuously monitored.

As a leading provider of building material and infrastructure solutions, we are voluntarily committed to the transparent disclosure of climate-related opportunities and risks. The identification and analysis of climate-related risks is part of wienerberger's overall approach to risk management. Since 2020, we have therefore supported the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) as regards the identification, analysis and assessment of physical and transition risks.

The risks associated with a breakdown of our centralized Group data processing system as a result of natural disasters have been minimized through the installation of redundant systems at facilities in different locations and cloud solutions.

A number of building materials companies with operations in the USA are subject of class action suits filed by patients with asbestos-related diseases. Having scrutinized our US activities, we have classified this risk as minimal, as none of our American subsidiaries has ever produced or sold asbestos products.

A limited number of older wienerberger buildings contain a low percentage of asbestos products. The company takes utmost care to ensure that such products do not constitute a direct threat to its staff and utilizes specialized services when removing such asbestos products.

wienerberger competes with other companies in the labor market. In order to train future managers and prepare them for management positions, wienerberger has developed curricula such as the Sales Academy, the Plant Manager Program and the Ready4Excellence Program. wienerberger uses these programs and personalized training measures to optimally train its employees and to strengthen their loyalty to the company (see the Wienerberger Sustainability Report for additional information).

{292}------------------------------------------------

# <span id="page-292-0"></span>**Other Disclosures**

### **36. Related-party transactions**

The following companies and persons are considered to be related parties of wienerberger's: the members of the Supervisory Board and the Managing Board and their close family members, associated companies, joint ventures, non-consolidated subsidiaries of Wienerberger AG as well as ANC Privatstiftung and its affiliates. Transactions with companies in which members of the Supervisory Board of Wienerberger AG are active are conducted at arm's length. Business relations between the company and related parties, in particular members of the Managing Board and the Supervisory Board of Wienerberger AG, are disclosed in Note 11. Personnel expenses, as far as payments under Managing Board contracts and Supervisory Board mandates are concerned.

ANC Privatstiftung and its affiliates operate the landfill business in Austria that was transferred by Wienerberger AG in 2001 and own a limited amount of assets (in particular real estate and securities). The managing board of ANC Privatstiftung consists of three members, one of them a member of wienerberger's top management. As the annual financial statements of ANC-Privatstiftung are presented after publication of the Annual Report, the previous year's figures are shown here. As of 31/12/2022, the total assets of ANC Privatstiftung amounted to TEUR 34,178 (31/12/2021: TEUR 32,853), consisting primarily of land and buildings totaling TEUR 6,920 (31/12/2021: TEUR 7,350) and securities and liquid funds in the amount of TEUR 23,562 (31/12/2021: TEUR 21,189). As at 31/12/2022, ANC Privatstiftung reported provisions of TEUR 10,264 (31/12/2021: TEUR 11,071) and no financial liabilities.

Wienerberger AG and its subsidiaries grant loans to associates, joint ventures and non-consolidated subsidiaries on arm's length conditions. As at 31/12/2023, the outstanding non-interest-bearing loans to joint ventures amounted to TEUR 22,162 (2022: TEUR 17,079), while interest-bearing loans to non-consolidated associates amounted to TEUR 4,071 (2022: TEUR 4,043). In addition, trade receivables due from joint ventures in the amount of TEUR 102 (2022: TEUR 204), including the sale of plant and equipment, and trade receivables due from non-consolidated associates of TEUR 0 (2022: TEUR 559) were recognized as of the balance sheet date. Revenues of TEUR 853 (2022: TEUR 1,308) were generated with joint ventures in 2023.

Other related party transactions relate to clay supplies received in the amount of TEUR 565 (2022: TEUR 1,044) as well as rental services of TEUR 404 (2022: TEUR 320) for non-consolidated associates. In addition, products in the amount of TEUR 991 (2022: TEUR 956) were sold to a related party in 2023. Transactions with natural persons as related parties amounted to TEUR 258 in 2023 (2022: TEUR 257).

{293}------------------------------------------------

### <span id="page-293-0"></span>**37. Events after the balance sheet date**

In January 2024, 100% of the British supplier of underfloor heating systems, Maincor Ltd. was acquired. In the same month, wienerberger acquired 100% of the Dutch company I-Real B.V., a solution provider for smart water management. In February 2024, wienerberger acquired 100% of Summitville Tiles, Inc., a renowned provider of prefabricated facade solutions in North America. The transactions will be consolidated for the first time in the first quarter of 2024, whereby the purchase price allocations are provisional in each case.

Following receipt of all approvals, the acquisition of 100% of the shares in the French Terreal Group was completed on February 29, 2024. Terreal is a successful provider of innovative roof and solar solutions, with which wienerberger is significantly expanding its presence in the renovation and refurbishment market developing into the leading expert for pitched-roofs. The acquisition includes 28 production sites in Europe and North America and expected annual revenues of around EUR 740 million. The purchase price consists of a cash component and the transfer of 6 million treasury shares. The purchase price was transferred at the time of closing on the basis of a preliminary purchase price calculation. The final purchase price must be determined within 90 days of the closing. The purchase price allocation is not final at the time of preparation of these consolidated financial statements. The first-time consolidation will take place as part of the first quarterly financial statements for 2024.

The Russian activities were sold in February 2024 following receipt of the final governmental approval. The parties agreed not to disclose the selling price. The assets and liabilities were reported separately as at December 31, 2023 in accordance with IFRS 5. Deconsolidation will take place in the first quarter of 2024, resulting in an expected gain from the disposal of around EUR 8.5 million and a reclassification of cumulative FX effects from other comprehensive income of around EUR -42.4 million.

The consolidated financial statements were prepared by the Managing Board of Wienerberger AG on March 13, 2024 and submitted to the Supervisory Board on March 22, 2024 for authorisation for issue.

Vienna, March 13, 2024

The Managing Board of Wienerberger AG

*Heimo Scheuch Chairman of the Managing Board of Wienerberger AG CEO*

f

*Gerhard Hanke Member of the Managing Board of Wienerberger AG CFO*

*Solveig Menard-Galli Member of the Managing Board of Wienerberger AG COO Europe East*

H. Hehman

*Harald Schwarzmayr Member of the Managing Board of Wienerberger AG COO Europe West*

{294}------------------------------------------------

# <span id="page-294-0"></span>**Statement by the Managing Board**

We confirm to the best of our knowledge that the consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group as required by the applicable accounting standards and that the Group management report gives a true and fair view of the development and performance of the business and the position of the Group, together with a description of the principal risks and uncertainties the Group faces.

We confirm to the best of our knowledge that the separate financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the parent company as required by the applicable accounting standards and that the management report gives a true and fair view of the development and performance of the business and the position of the company, together with a description of the principal risks and uncertainties the company faces.

Vienna, March 13, 2024

The Managing Board of Wienerberger AG

*Heimo Scheuch Chairman of the Managing Board of Wienerberger AG CEO*

Image /page/294/Picture/9 description: The image contains a signature in blue ink on a white background. The signature is illegible, consisting of a series of connected loops and lines.

*Gerhard Hanke Member of the Managing Board of Wienerberger AG CFO*

*Solveig Menard-Galli Member of the Managing Board of Wienerberger AG COO Europe East*

H. Hehman

*Harald Schwarzmayr Member of the Managing Board of Wienerberger AG COO Europe West*

{295}------------------------------------------------

# <span id="page-295-0"></span>**Group companies**

| Company                                              | Headquarters           | Share capital | Currency     | Interest in %    | Type of consolidation        | Notes |
|------------------------------------------------------|------------------------|---------------|--------------|------------------|------------------------------|-------|
| Wienerberger International N.V.                      | Zaltbommel             | 50,001        | EUR          | 100.00%          | VK                           |       |
| Handel Ceramika Budowlana Sp. z o.o.                 | Warszawa               | 50,000        | PLN          | 100.00%          | OK                           | 1)    |
| Wienerberger Roof Asset Management GmbH              | Wien                   | 35,000        | EUR          | 100.00%          | VK                           |       |
| Wienerberger Österreich GmbH                         | Wien                   | 5,000,000     | EUR          | 100.00%          | VK                           |       |
| Wienerberger Bausysteme GmbH                         | Wien                   | 35,000        | EUR          | 100.00%          | VK                           |       |
| Wienerberger TOV ("in liquidation")                  | Kyiv                   | 3,000,000     | UAH          | 100.00%          | VK                           |       |
| Wienerberger Ceramika Budowlana Sp. z o.o.           | Warszawa               | 374,324,808   | PLN          | 100.00%          | VK                           |       |
| Wienerberger d.o.o.                                  | Sarajevo               | 2,000         | BAM          | 100.00%          | VK                           |       |
| Wienerberger Backa d.o.o                             | Kanjiza                | 651,652       | EUR          | 100.00%          | VK                           |       |
| Wienerberger Opekarna Ormož d.o.o.                   | Križevci pri Ljutomeru | 951,986       | EUR          | 100.00%          | VK                           |       |
| Opekarna Pragersko d.o.o.                            | Pragersko              | 1,022,743     | EUR          | 100.00%          | VK                           |       |
| Semmelrock International GmbH                        | Wien                   | 3,000,000     | EUR          | 100.00%          | VK                           |       |
| Semmelrock Baustoffindustrie GmbH                    | Wien                   | 1,000,000     | EUR          | 100.00%          | VK                           |       |
| Semmelrock Stein + Design GmbH                       | Wien                   | 35,000        | EUR          | 100.00%          | VK                           |       |
| Semmelrock Industriebeteiligungsverwaltung GmbH      | Wien                   | 35,000        | EUR          | 100.00%          | VK                           |       |
| SEMMELROCK STEIN + DESIGN Dlazby s.r.o.              | Sered                  | 3,027,286     | EUR          | 100.00%          | VK                           |       |
| Semmelrock Stein & Design d.o.o.                     | Ogulin                 | 22,870,000    | HRK          | 100.00%          | VK                           |       |
| Semmelrock Stein & Design Sp. z o.o.                 | Warsaw                 | 46,000,000    | PLN          | 100.00%          | VK                           |       |
| Semmelrock Stein + Design S.R.L.                     | Bolintin-Vale          | 1,328,400     | RON          | 100.00%          | VK                           |       |
| Semmelrock Stein und Design EOOD                     | Sofia                  | 11,500,000    | BGN          | 100.00%          | VK                           |       |
| Wienerberger GmbH                                    | Hannover               | 9,500,000     | EUR          | 100.00%          | VK                           |       |
| Schlagmann Beteiligungs GmbH                         | Zeilarn                | 26,000        | EUR          | 50.00%           | OK                           | 1)    |
| Schlagmann Poroton GmbH & Co KG                      | Zeilarn                | 10,300,000    | EUR          | 50.00%           | EQ                           |       |
| Schlagmann Poroton Vertriebs GmbH                    | Zeilarn                | 25,000        | EUR          | 50.00%           | EQ                           | 4)    |
| Tongruben Verwaltungs GmbH                           | Hannover               | 26,000        | EUR          | 100.00%          | OK                           | 1)    |
| Argeton GmbH                                         | Hannover               | 100,000       | EUR          | 100.00%          | VK                           |       |
| Wienerberger Deutschland Service GmbH                | Hannover               | 1,000,000     | EUR          | 100.00%          | VK                           |       |
| RM 2964 Vermögensverwaltungs GmbH                    | Zeilarn                | 25,000        | EUR          | 50.00%           | EQ                           | 4)    |
| MR Erwerbs GmbH & Co. KG                             | Zeilarn                | 50,000        | EUR          | 50.00%           | EQ                           | 4)    |
| Redbloc Elemente GmbH                                | Zeilarn                | 25,000        | EUR          | 50.00%           | EQ                           | 4)    |
| Redbloc Systems Deutschland GmbH                     | Zeilarn                | 25,000        | EUR          | 25.00%           | EQ                           | 4)    |
| Mayr Dachkeramik GmbH                                | Salching               | 25,565        | EUR          | 100.00%          | VK                           |       |
| Ammonit Vermögensverwaltungs GmbH                    | Hannover               | 25,000        | EUR          | 100.00%          | VK                           |       |
| Ammonit GmbH. & Co. KG                               | Hannover               | 2,500,000     | EUR          | 100.00%          | VK                           |       |
| Wienerberger S.p.A.                                  | Mordano                | 10,000,000    | EUR          | 100.00%          | VK                           |       |
| Fornaci Giuliane S.r.l.                              | Cormons                | 100,000       | EUR          | 30.00%           | EQ                           |       |
| Wienerberger NV                                      | Kortrijk               | 52,797,798    | EUR          | 100.00%          | VK                           |       |
| Company                                              | Headquarters           | Share capital | Currency     | Interest<br>in % | Type of<br>consolidation     | Notes |
| Deva-Kort NV                                         | Kortemark              | 247,894       | EUR          | 100.00%          | VK                           |       |
| TV Vanheede-Wienerberger                             | Kortrijk               | 0             | EUR          | 50.00%           | QU                           |       |
| Struxura BV                                          | Poperinge              | 20,000        | EUR          | 100.00%          | VK                           |       |
| Struxys BV                                           | Poperinge              | 18,600        | EUR          | 100.00%          | VK                           |       |
| Preflexibel NV                                       | Ninove                 | 312,000       | EUR          | 100.00%          | VK                           |       |
| Preflexibel France SAS                               | Salindres              | 370,000       | EUR          | 100.00%          | VK                           |       |
| Preflex France SAS                                   | Salindres              | 46,500        | EUR          | 100.00%          | VK                           |       |
| Wienerberger B.V.                                    | Zaltbommel             | 36,778,680    | EUR          | 100.00%          | VK                           |       |
| Van Hesteren & Janssens B.V.                         | Zaltbommel             | 363,024       | EUR          | 100.00%          | VK                           |       |
| BrickTrading Holland B.V.                            | Zaltbommel             | 18,000        | EUR          | 100.00%          | VK                           |       |
| German Brick Trading B.V.                            | Zaltbommel             | 249,700       | EUR          | 100.00%          | VK                           |       |
| Aberson B.V.                                         | Zwolle                 | 60,000        | EUR          | 100.00%          | VK                           |       |
| Aberson SmartBuild BV                                | Zwolle                 | 1             | EUR          | 100.00%          | VK                           |       |
| DEKO Beheer BV                                       | Elst                   | 18,000        | EUR          | 100.00%          | VK                           |       |
| Bricks BV                                            | Elst                   | 15,750        | EUR          | 100.00%          | VK                           |       |
| Bricks GBMH                                          | Rhede                  | 25,000        | EUR          | 100.00%          | VK                           |       |
| Deko Produkten BV                                    | Elst                   | 18,000        | EUR          | 100.00%          | VK                           |       |
| Deko Steenzagerij BV                                 | Elst                   | 18,000        | EUR          | 100.00%          | VK                           |       |
| Steinzentrale Nord Leeuwis GmbH                      | Rellingen              | 52,500        | EUR          | 100.00%          | VK                           |       |
| EXA IP B.V.                                          | The Hague              | 100.00        | EUR          | 50%              | EQ                           |       |
| Wienerberger Limited                                 | Cheadle                | 81,120,552    | GBP          | 100.00%          | VK                           |       |
| Galileo Brick Limited (in Liquidation)               | Cheadle                | 2,000,000     | GBP          | 100.00%          | VK                           |       |
| Chelwood Group Unlimited (in Liquidation)            | Cheadle                | 1             | GBP          | 100.00%          | VK                           |       |
| The Brick Business Limited (in Liquidation)          | Cheadle                | 900,002       | GBP          | 100.00%          | VK                           |       |
| Sandtoft Roof Tiles Limited                          | Cheadle                | 11,029        | GBP          | 100.00%          | VK                           |       |
| Building Product Design Limited                      | Sale                   | 612,720       | GBP          | 100.00%          | VK                           |       |
| Richmond GmbH                                        | Königswinter           | 25,000        | EUR          | 100.00%          | VK                           |       |
| WIENERBERGER PARTICIPATIONS SAS                      | Achenheim              | 36,000,000    | EUR          | 100.00%          | VK                           |       |
| WIENERBERGER SAS                                     | Achenheim              | 63,000,000    | EUR          | 100.00%          | VK                           |       |
| Briqueterie de Rouffach SAS                          | Achenheim              | 336,120       | EUR          | 100.00%          | VK                           |       |
| Egernsund Wienerberger A/S                           | Helsinge               | 11,765,882    | DKK          | 100.00%          | VK                           |       |
| Wienerberger AS                                      | Oslo                   | 43,546,575    | NOK          | 100.00%          | VK                           |       |
| Komproment Holding ApS                               | Støvring               | 126,000       | DKK          | 100.00%          | VKE                          |       |
| Komproment ApS                                       | Støvring               | 125,000       | DKK          | 100.00%          | VKE                          |       |
| Komproment Danish Building Design ApS                | Støvring               | 50,000        | DKK          | 100.00%          | VKE                          |       |
| Wienerberger AB                                      | Malmö                  | 17,550,000    | SEK          | 100.00%          | VK                           |       |
| Company                                              | Headquarters           | Share capital | Cur- rency   | Interest in %    | Type of consolida- tion      | Notes |
| Egernsund Tegl a.m.b.a.                              | Egernsund              | 9,000,000     | DKK          | 100.00%          | VK                           |       |
| General Shale Brick Inc.                             | Johnson City           | 1,000         | USD          | 100.00%          | VK                           |       |
| General Shale Building Materials, Inc.               | Johnson City           | 1,000         | USD          | 100.00%          | VK                           |       |
| Watsontown Brick Company                             | Watsontown             | 72,050        | USD          | 100.00%          | VK                           |       |
| Pipelife Jet Stream, Inc.                            | Siloam Springs         | 0             | USD          | 100.00%          | VK                           |       |
| Meridian Brick LLC                                   | Alpharetta             | 0             | USD          | 100.00%          | VK                           |       |
| Arriscraft Canada Inc.                               | Halifax                | 42,300,000    | CAD          | 100.00%          | VK                           |       |
| Meridian Brick Canada Ltd                            | Vancouver              | 1             | CAD          | 100.00%          | VK                           |       |
| Wienerberger EOOD                                    | Sofia                  | 12,500,000    | BGN          | 100.00%          | VK                           |       |
| Uspeh AD                                             | Sofia                  | 2,141,220     | BGN          | 99.66%           | VK                           |       |
| OOO "Wienerberger Kirpitsch"                         | Kiprevo                | 612,694,577   | RUB          | 100.00%          | VK                           |       |
| OOO "Wienerberger Kurkachi"                          | Kurkachi               | 568,418,785   | RUB          | 100.00%          | VK                           |       |
| Wienerberger OY AB                                   | Helsinki               | 1,000,000     | EUR          | 100.00%          | VK                           |       |
| Wienerberger AS                                      | Aseri                  | 1,540,736     | EUR          | 100.00%          | VK                           |       |
| UAB Wienerberger Statybine Keramika                  | Vilnius                | 2,925         | EUR          | 100.00%          | VK                           |       |
| Wienerberger India Private Limited                   | Bangalore              | 990,000,000   | INR          | 100.00%          | VK                           |       |
| WBI Industries Private Limited                       | Chennai                | 1,000,000     | INR          | 100.00%          | VK                           |       |
| PIPELIFE International GmbH                          | Wien                   | 29,000,000    | EUR          | 100.00%          | VK                           | 2)    |
| PIPELIFE Austria GmbH & Co KG                        | Wien                   | 4,360,370     | EUR          | 100.00%          | VK                           |       |
| Pipelife Logistik GmbH                               | Wien                   | 35,000        | EUR          | 100.00%          | VKE                          |       |
| PIPELIFE Austria GmbH                                | Wien                   | 36,337        | EUR          | 100.00%          | VK                           |       |
| Pipelife Always Part of your Life GmbH               | Wien                   | 35,000        | EUR          | 100.00%          | VK                           |       |
| Pipelife Pipes for Life GmbH                         | Wien                   | 35,000        | EUR          | 100.00%          | VK                           |       |
| Pipelife Belgium NV                                  | Kalmthout              | 510,926       | EUR          | 100.00%          | VK                           |       |
| Pipelife Bulgaria EOOD                               | Botevgrad              | 30,000        | BGN          | 100.00%          | VK                           |       |
| Pipelife Czech s r.o.                                | Otrokovice             | 202,971,000   | CZK          | 100.00%          | VK                           |       |
| PIPELIFE Deutschland Asset Management GmbH           | Bad Zwischenahn        | 26,000        | EUR          | 100.00%          | VK                           |       |
| PIPELIFE Deutschland GmbH & Co. KG                   | Bad Zwischenahn        | 5,000         | EUR          | 100.00%          | VK                           |       |
| PIPELIFE Deutschland Verwaltungs-GmbH                | Bad Zwischenahn        | 5,726,469     | EUR          | 100.00%          | VK                           |       |
| Pipelife Eesti AS                                    | Harjumaa               | 25,024        | EUR          | 100.00%          | VK                           |       |
| Pipelife Finland OY                                  | Oulu                   | 33,637        | EUR          | 100.00%          | VK                           |       |
| Company                                              | Headquarters           | Share capital | Cur<br>rency | Interest<br>in % | Type of<br>consolida<br>tion | Notes |
| Talokaivo Oy                                         | Vantaa                 | 2,000,000     | EUR          | 100.00%          | VK                           |       |
| PIPELIFE-HRVATSKA cijevni sustavi d.o.o.             | Sveta Nedelja          | 47,171,500    | HRK          | 100.00%          | VK                           |       |
| Vargon d.o.o                                         | Kukuljanovo            | 8,210,100     | HRK          | 79.67%           | VK                           |       |
| Pipelife Hungaria Kft.                               | Debrecen               | 3,123,520,000 | HUF          | 100.00%          | VK                           |       |
| QUALITY PLASTICS HOLDINGS LTD                        | Cork                   | 635,000       | EUR          | 100.00%          | VK                           |       |
| Cherry Blossom Avenue Limited                        | Cork                   | 343,503       | EUR          | 100.00%          | VK                           |       |
| Pipelife Ireland Solutions Limited                   | Cork                   | 487,500       | EUR          | 100.00%          | VK                           |       |
| Kenfern Investments Ltd (in Liquidation)             | Cork                   | 447           | EUR          | 100.00%          | OK                           | 1)    |
| Pipelife UK Ltd                                      | Corby                  | 244,001       | GBP          | 100.00%          | VK                           |       |
| FloPlast Limited                                     | Sittingbourne          | 30,000        | GBP          | 100.00%          | VK                           |       |
| Pipelife Latvia SIA                                  | Riga                   | 426,600       | EUR          | 100.00%          | VK                           |       |
| Soluforce B.V.                                       | Enkhuizen              | 10,000        | EUR          | 100.00%          | VK                           |       |
| Pipelife Nederland B.V.                              | Enkhuizen              | 11,344,505    | EUR          | 100.00%          | VK                           |       |
| Pipelife Finance B.V.                                | Enkhuizen              | 18,000        | EUR          | 100.00%          | VK                           |       |
| Inter Act B.V.                                       | Apeldoorn              | 1             | EUR          | 100.00%          | VK                           |       |
| Inter ACT industrial automation B.V.                 | Apeldoorn              | 20,000        | EUR          | 100.00%          | VK                           |       |
| TeleControlNet B.V.                                  | Apeldoorn              | 20,000        | EUR          | 100.00%          | VK                           |       |
| Inter Act GmbH.                                      | Nordhorn               | 25,000        | EUR          | 100.00%          | VK                           |       |
| Pipelife Norge AS                                    | Surnadal               | 50,000,000    | NOK          | 100.00%          | VK                           |       |
| QPS AS                                               | Levanger               | 400,000       | NOK          | 100.00%          | VK                           |       |
| Pipelife Polska S.A.                                 | Krokowa                | 112,243,963   | PLN          | 100.00%          | VK                           |       |
| Pipelife Romania S.R.L.                              | Bucuresti              | 7,323,115     | RON          | 100.00%          | VK                           |       |
| Pipelife Serbia d.o.o.                               | Beograd                | 168,493,895   | RSD          | 100.00%          | VK                           |       |
| Pipelife RUS LLC                                     | Zhukov                 | 104,458,072   | RUB          | 100.00%          | VK                           |       |
| Pipelife Hafab AB                                    | Haparanda              | 3,000,000     | SEK          | 100.00%          | VK                           |       |
| Pipelife Nordic AB                                   | Ölsremma               | 167,000,000   | SEK          | 100.00%          | VK                           |       |
| Pipelife Sverige AB                                  | Ljung                  | 3,600,000     | SEK          | 100.00%          | VK                           |       |
| Isoterm AB                                           | Stenkullen             | 200,000       | SEK          | 100.00%          | VK                           |       |
| Wideco Sweden AB                                     | Borås                  | 100,000       | SEK          | 85.00%           | VKE                          |       |
| Wideco France SAS                                    | Lyon                   | 21,000        | EUR          | 66.00%           | OKE                          | 1)    |
| Pipelife Slovenija d.o.o.                            | Trzin                  | 843,258       | EUR          | 100.00%          | VK                           |       |
| Pipelife Slovakia s r.o.                             | Piestany               | 6,700         | EUR          | 100.00%          | VK                           |       |
| Arili Plastik Sanayii A.S.                           | Pendik/Istanbul        | 39,616,800    | TRY          | 100.00%          | VK                           |       |
| Preflexibel Invest NV                                | Ninove                 | 1,200,000     | EUR          | 100.00%          | VK                           |       |
| Wienerberger Dach Beteiligungs GmbH                  | Wien                   | 500,000       | ATS          | 100.00%          | VK                           |       |
| WIBRA Tondachziegel Beteiligungs-GmbH                | Wien                   | 500,000       | ATS          | 100.00%          | VK                           |       |
| Tondach Beteiligungs GmbH                            | Wien                   | 200,000       | EUR          | 100.00%          | VK                           |       |
| Tondach Gleinstätten GmbH                            | Gleinstätten           | 500,000       | EUR          | 100.00%          | VK                           | 3)    |
| Wienerberger zRt.                                    | Budapest               | 5,000,000     | HUF          | 100.00%          | VK                           |       |
| Company                                              | Headquarters           | Share capital | Cur<br>rency | Interest<br>in % | Type of<br>consolida<br>tion | Notes |
| TONDACH Ingatlanhasznosító Zrt.                      | Budapest               | 5,000,000     | HUF          | 100.00%          | VK                           |       |
| TONDACH ROMANIA SRL                                  | Sibiu                  | 36,137,155    | RON          | 100.00%          | VK                           |       |
| Wienerberger s.r.o.                                  | České Budějovice 1     | 50,000,000    | CZK          | 100.00%          | VK                           |       |
| Cihelna Kinský, spol. s r. o.                        | Kostelec nad Orlicí    | 2,000,000     | CZK          | 68.80%           | VK                           |       |
| Wienerberger eurostroj, spol. s r. o.                | České Budějovice 1     | 32,100,000    | CZK          | 100.00%          | VK                           |       |
| Silike keramika, spol. s r.o                         | České Budějovice 1     | 100,000       | CZK          | 50.00%           | EQ                           |       |
| Wienerberger s.r.o.                                  | Zlaté Moravce          | 3,319,392     | EUR          | 100.00%          | VK                           |       |
| Wienerberger d.o.o.                                  | Karlovac               | 1,192,900     | EUR          | 100.00%          | VK                           |       |
| WIENERBERGER S.R.L.                                  | Bucuresti              | 39,147,100    | RON          | 100.00%          | VK                           |       |
| Wienerberger doo Kanjiza                             | Kanjiza                | 605,394,000   | RSD          | 100.00%          | VK                           |       |
| Wienerberger DOOEL Vinica                            | Vinica                 | 349,460,010   | MKD          | 100.00%          | VK                           |       |
| Wienerberger Anteilsverwaltung GmbH                  | Wien                   | 35,000        | EUR          | 100.00%          | VK                           |       |
| Tondach Holding GmbH                                 | Wien                   | 35,000        | EUR          | 100.00%          | VK                           |       |
| Wienerberger Industriebeteiligungsverwaltung<br>GmbH | Wien                   | 35,000        | EUR          | 100.00%          | VK                           |       |
| TMBP Technologies GmbH                               | Walbersdorf            | 11,159        | EUR          | 31.00%           | EQE                          |       |
|                                                      |                        |               |              |                  |                              |       |
| GreenBuild s.r.o.                                    | České Budějovice 1     | 500,000       | CZK          | 50.00%           | EQE                          |       |
| Wienerberger Finance Service B.V.                    | Zaltbommel             | 18,151        | EUR          | 100.00%          | VK                           |       |
| Wienerberger Finanz Service GmbH                     | Wien                   | 25,435,492    | EUR          | 100.00%          | VK                           |       |
| Wienerberger West European Holding GmbH              | Wien                   | 35,000        | EUR          | 100.00%          | VK                           |       |
| WiTa Social Business Venture Holding GmbH            | Wien                   | 35,000        | EUR          | 49.00%           | EQ                           |       |
| Dryfix GmbH                                          | Wien                   | 35,000        | EUR          | 100.00%          | VK                           |       |
| Wienerberger Gamma Asset Management GmbH             | Wien                   | 35,000        | EUR          | 100.00%          | VK                           |       |
| Steinzeug-Keramo GmbH                                | Frechen                | 18,408,000    | EUR          | 100.00%          | VK                           |       |
| Steinzeug - Keramo NV                                | Hasselt                | 9,400,000     | EUR          | 100.00%          | VK                           |       |
| Keramo-Wienerberger Immo NV                          | Hasselt                | 14,068,558    | EUR          | 100.00%          | VK                           |       |
| SOCIETA DEL GRES S.p.A.                              | Sorisole               | 2,000,000     | EUR          | 100.00%          | VK                           |       |
| Steinzeug Keramo s.r.o.                              | České Budějovice       | 40,000,000    | CZK          | 100.00%          | VK                           |       |
| Steinzeug - Keramo SARL                              | Marolles-en-Hurepoix   | 38,125        | EUR          | 100.00%          | VK                           |       |
| Steinzeug-Keramo Sp. z.o.o.                          | Piekary Slaskie        | 2,000,000     | PLN          | 100.00%          | VK                           |       |

{296}------------------------------------------------

Egernsund Wienerberger Production A/S Sonderborg 1,602,000 DKK 100.00% VK

{297}------------------------------------------------

{298}------------------------------------------------

{299}------------------------------------------------

*VK = Full consolidation VKE = first time full consolidation QU = Quota comsolidation EQ = At equity consolidation EQE = First time at equity consolidation OK = No consolidation OKE = First time no consolidation* 

*1) Immaterial* 

*2) Holding Company of the Pipelife Group* 

*3) Holding company of the Gleinstätten Group* 

*4) Subsidiary of Schlagmann Poroton GmbH & Co KG*

{300}------------------------------------------------

# <span id="page-300-0"></span>**Auditor's report**

# **Report on the Audit of the Consolidated Financial Statements**

### **Opinion**

We have audited the consolidated financial statements of Wienerberger AG, Vienna, and its subsidiaries (the Group), which comprise the consolidated balance sheet as at December 31, 2023, the consolidated income statement, the consolidated statement of comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the financial year then ended, and notes to the consolidated financial statements.

In our opinion, the accompanying consolidated financial statements comply with legal requirements and give a true and fair view of the consolidated financial position of the Group as at December 31, 2023, and its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU and the additional requirements under section 245a UGB.

### **Basis for Opinion**

We conducted our audit in accordance with Regulation (EU) No. 537/2014 and with the Austrian Generally Accepted Auditing Standards. Those standards require the application of the International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with laws and regulations applicable in Austria, and we have fulfilled our other professional responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained up to the date of our report is sufficient and appropriate to provide a basis for our opinion as of that date.

### **Key Audit Matters**

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

The following matters were of most significance for our audit:

- 1. Assessment of the carrying value of goodwill
- 2. Assessment of the carrying value of property, plant and equipment

### **1. Assessment of the carrying value of goodwill**

### Description and Issue

Goodwill represents a significant amount on the balance sheet (EUR 512 million). The carrying amounts of the assets of the respective cash generating units are compared to their recoverable amount, which represents the higher of fair value less costs of disposal or the value in use. An impairment loss is recognized when the recoverable amount is lower than the carrying amount. The value in use calculation involves significant estimates and forward-looking assumptions by management concerning the expected cash surpluses and the cost of capital. Small changes in the assumptions used in determining the value in use can result in materially different outcomes of the impairment tests.

Management describes the approach to assess the carrying value of goodwill and allocation of the goodwill to the respective cash generating units as well as the assumptions and valuation results in Note 22 "Non-current assets and impairment test".

{301}------------------------------------------------

The valuation model used for the impairment test necessitates a large number of input factors for the assessment of the market. In case of negative changes in the future development of the assumptions there is a risk that the goodwill is overstated. Due to the complexity of the valuation model and the dependence of the outcome of the impairment test on the management's assessment of the input factors this matter was of particular importance for our audit.

### Our Response

We have challenged the parameters used for the impairment testing with entity and industry specific information as well as market expectations from internal and external sources and have assessed the appropriateness of the valuation model. Furthermore, we gained an overview of the planning process and have critically reviewed the back testing performed by the management. We have assessed the consistency of the future cash flows used in the calculation by comparing them to the budgets approved by the supervisory board.

For the verification of the capital costs by the means of a comparative analysis, we have used internal experts.

### **2. Assessment of the carrying value of property, plant and equipment**

### Description and Issue

The carrying value of property, plant and equipment amounts to EUR 2.365 million, representing 43% of the total assets shown on the consolidated balance sheet of Wienerberger AG. Management assesses on an annual basis, or whenever triggering events are identified, whether the carrying value of property, plant and equipment is impaired. For purposes of the impairment testing within a division plants are aggregated to groups of cash generating units. The carrying amount of the assets is compared to the recoverable amount, which represents the higher of fair value less costs of disposal and the value in use. An impairment loss is recognized when the recoverable amount is lower than the carrying amount.

Management describes the approach to assess the carrying value of goodwill and allocation of the goodwill to the respective cash generating units as well as the assumptions and valuation results in Note 22 "Non-current assets and impairment test".

The impairment tests involve complex calculations and the assumptions include a degree of uncertainty regarding the future development of cash flows and discount rates. Minor changes in the assumptions can have a significant effect on the outcome of the impairment tests. Therefore, this matter was of particular importance for our audit.

### Our Response

We performed similar procedures to those described above in relation to property, plant and equipment impairment testing in respect of the key assumptions used in the impairment model. Therefore, we refer to the section above for further details.

### **Other Information**

Management is responsible for the other information. The other information comprises all information in the annual report, but does not include the consolidated financial statements, the consolidated management report and our auditor's report thereon. We obtained the consolidated corporate governance report and the consolidated non-financial report prior to the date of this auditor's report, the other parts of the annual report are expected to be made available to us after that date.

Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements, or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

If, based on the work we have performed on the other information that we obtained prior to the date of this auditor's report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

{302}------------------------------------------------

### **Responsibilities of Management and Audit Committee for the Consolidated Financial Statements**

Management is responsible for the preparation of the consolidated financial statements that give a true and fair view in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU, the additional requirements under section 245a UGB and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

The audit committee is responsible for overseeing the Group's financial reporting process.

### **Auditor's Responsibilities for the Audit of the Consolidated Financial Statements**

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Regulation (EU) No 537/2014 and with Austrian Generally Accepted Auditing Standards, which require the application of the ISAs, will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis on these consolidated financial statements.

As part of an audit in accordance with Regulation (EU) No 537/2014 and with Austrian Generally Accepted Auditing Standards, which require the application of the ISAs, we exercise professional judgement and maintain professional skepticism throughout the audit.

### We also:

- **›** Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- **›** Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control.
- **›** Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
- **›** Conclude on the appropriateness of the directors' use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Group to cease to continue as a going concern.
- **›** Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that gives a true and fair view.
- **›** We obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with the audit committee regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

{303}------------------------------------------------

We also provide the audit committee with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with the audit committee, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

### **Report on the Audit of the Consolidated Management Report**

Pursuant to statutory provisions, the consolidated management report is to be audited as to whether it is consistent with the consolidated financial statements and whether it has been prepared in accordance with the applicable legal requirements.

Management is responsible for the preparation of the consolidated management report in accordance with the Austrian Commercial Code.

We conducted our audit in accordance with laws and regulations applicable with respect to the consolidated management report.

### Opinion

In our opinion, the consolidated management report is prepared in accordance with the applicable legal requirements, includes appropriate disclosures according to section 243a UGB and is consistent with the consolidated financial statements.

### Statement

In the light of the knowledge and understanding of the Group and its environment obtained in the course of our audit of the consolidated financial statements, we have not identified material misstatements in the consolidated management report.

# **Other Matters which we are required to address according to Article 10 of Regulation (EU) No 537/2014**

We were appointed as auditors by the annual general meeting on May 5, 2023 and commissioned by the supervisory board on August 9, 2023 to audit the consolidated financial statements for the financial year ending December 31, 2023. We have been auditing the Group since the financial year ending December 31, 2017.

We confirm that our opinion expressed in the section "Report on the Audit of the Consolidated Financial Statements" is consistent with the additional report to the audit committee referred to in Article 11 of Regulation (EU) No 537/2014.

We declare that we did not provide any prohibited non-audit services referred to in Article 5(1) of Regulation (EU) No 537/2014 and that we remained independent of the Group in conducting the audit.

{304}------------------------------------------------

Engagement Partner The engagement partner responsible for the audit is Gerhard Marterbauer.

Vienna March 14, 2024

### Deloitte Audit Wirtschaftsprüfungs GmbH

 (signed by:) Mag. Gerhard Marterbauer m.p. Certified Public Accountant

This report is a translation of the audit report according to section 273 of the Austrian Commercial Code (UGB). The translation is presented for the convenience of the reader only. The German wording of the audit report is solely valid and is the only legally binding version. Section 281(2) UGB applies

{305}------------------------------------------------

{306}------------------------------------------------

# <span id="page-306-0"></span>SERVICE

{307}------------------------------------------------

# <span id="page-307-0"></span>**Glossary**

## **Explanatory Notes on Management Report and Financial Statements**

ADR (American Depository Receipt Deposit): certificates that confirm ownership of a foreign stock and are traded on US stock exchanges or over-the-counter as shares; US banks buy stock and issue ADR's in order to give foreign companies access to the US capital market

Asset coverage: Equity divided by non-current assets; indicates the percentage to which land, buildings, machinery etc. are covered by equity

ATX (Austrian Traded Index): Most important stock market index of Vienna Stock Exchange

Bearer shares: Shares that are not issued to a specific person; the rights to these securities accrue to the person holding them

Capital employed (CE): Equity plus interest-bearing debt (incl. net intercompany balance) less liquid funds and financial assets; the sum of capital engaged in a company

Clay block: Brick made of burned clay, used for load-bearing exterior monolithic or cavity walls as well as for interior walls

Clay roof tile: Roof tile made of burned clay in various shapes and colors

Common shares: Shares that carry full rights in a stock corporation (including participation in the Annual General Meetings, voting rights and dividend rights)

Corporate governance: Rules for the responsible management and control of companies that are set forth in the Austrian Corporate Governance Code

Covenant (financial): A clause in a credit agreement that obliges the borrower not to exceed or fall below a specific indicator

Cross currency swap: Agreement between contract partners to exchange cash flows in two different currencies over a certain period of time; a hedge against foreign currency fluctuations

Deferred taxes: The result of temporary differences in income recognition between tax law and the individual and consolidated financial statements prepared accounting to IFRS

Depreciation ratio: Depreciation (excluding impairment charges to goodwill and assets) as a percentage of revenues

Dividend yield: Ratio of the dividend per share paid out to the share price

EBIT (Earnings Before Interest and Tax): or operating profit

EBIT, operating: EBIT adjusted for impairment charges to goodwill and assets as well as the reversal of impairment charges to assets

EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization): or operating profit before depreciation and amortization = gross cash flow

EBITDA (operating): Operating profit before depreciation and amortization adjusted for income from the sale of non-core assets and structural adjustment costs

EBITDA margin: EBITDA divided by revenues

Equity method: Valuation method used for the consolidation of investments of between 20% and 50% in other companies

Equity ratio: Equity divided by total assets

{308}------------------------------------------------

Facing brick: Brick made of burned clay, used for external, non-load-bearing walls of buildings

Forward exchange contract: Foreign exchange transaction that is not realized at conclusion of the relevant contract, but at a later point in time; a hedge against exchange rate fluctuations

Free cash flow: Cash flow from operating activities less cash flow from investing activities plus growth capex; the amount of cash earned in the current year that is available for growth projects, dividends and the repayment of debt or share buy-backs

Free float company: Publicly traded corporation with a majority share of free float

GARP (Growth at a reasonable price) investor: investor who aims to identify those growth stocks that meet his/her criteria for buying at reasonable prices

Gearing: net debt divided by equity including non-controlling interests; an indicator of financial security

Goodwill: Surplus of the price paid for a company over the net assets acquired

Growth Investor: Growth investors are looking for companies growing at superior rates than the general marketplace, but are unwilling to pay the extremely high multiples associated with the hyper growth stocks

Hedging: Measures used in the management of financial risk to limit or avoid negative market changes in the areas of interest rates, foreign currency, market values or raw materials

Hybrid capital: Subordinated perpetual corporate bond, which is ranked between equity and debt as mezzanine capital

IFRS: International Financial Reporting Standards

Index Investor: Index investors generally create portfolios that are designed to match the composition of one or more of the broadbased indices; the performance and risk of the portfolio mirrors a section of the broader market

Interest cover: EBITDA divided by interest result; indicates the number of times operating income covers the interest result

Interest rate swap: Agreement to exchange cash flows with different terms over a specific period of time; these cash flows are based on fixed and variable interest rates; provides security against interest rate fluctuations

Investments: Additions to plant, property and equipment and intangible assets

Joint venture: Agreement by two or more companies to jointly operate a business enterprise

LLLD (Long Length Large Diameter Pipes): Pipes for industrial facilities with a diameter of up to 2.5 meters and a length of up to 600 meters

Long-term incentive (LTI) program: A long-term variable remuneration program for the Managing Board and key Group managers to synchronize management goals with shareholders' interests

Net debt: Net sum of financial liabilities – cash and cash at bank – securities and other financial assets – intercompany receivables and payables from financing

Net result: Profit after tax attributable to equity holders of the parent company

NF (Normalformat): Abbreviation; standard size of clay blocks (250 x 120 x 65 mm)

{309}------------------------------------------------

NOPAT (Net Operating Profit After Tax): or operating profit less taxes and adjusted taxes (tax effects from financial results)

P/E ratio (Price/Earnings ratio): an indicator for the market valuation of a stock

Paver: Product made of clay or concrete, used in the design of gardens and public spaces

PE: Polyethylene, a synthetic material

PP: Polypropylene, a synthetic material

PVC: Polyvinyl chloride, a synthetic material

Rating: Standardized evaluation of the credit standing of a company, which indicates the probability of insolvency or delayed payments

Return on equity: Profit after tax divided by equity, or the rate of return on shareholders' investments

ROCE after tax: Return on capital employed after tax, or NOPAT divided by average capital employed = net yield on capital employed

Self help program: Group-wide optimisation programme in the areas of: Manufacturing Excellence, Innovation and Organic Growth, Procurement, Supply Chain Management and Administration

Short-term Incentive (STI) Programm: A short-term variable remuneration program for the Managing Board and key Group managers to synchronize management goals with shareholders' interests

Translation risk: Arises from the conversion of foreign currency items on the balance sheet; these foreign exchange fluctuations are not offset by balance sheet items in the same currency

Treasury: Staff function to safeguard the financing, cash management and financial risk management of a company

UGB: "Unternehmensgesetzbuch" (the Austrian Company Code)

Value Investor: Value investors focus on buying companies at relatively low valuations on an absolute basis, in relation to the market or its peers, or in comparison to an individual stock's historical levels

WACC (Weighted average cost of capital): or the average price a company must pay on financial markets for equity and debt

WF (Waalformat): Abbreviation; standard size of a facing brick (210 x 100 x 50 mm)

{310}------------------------------------------------

# **Explanatory Note on Non-financial Indicators**

Average sick-leave days per employee: Excluding North America (figures not fully comparable due to special local legislation on sick-leave).

Average training hours per employee: Internal and external initial and further training measures per employee; relative to headcount.

CO₂ emissions from electricity: These CO₂ emissions refer to indirect emissions (Scope 2) from electricity (calculation according to market-based method) purchased by the entire Wienerberger Group.

CO2 emissions from primary energy sources: These CO2 emissions refer to direct fuel emissions (Scope 1); primarily relevant to ceramic production.

CO2 emissions from raw materials: (process emissions) These CO2 emissions refer to direct emissions (Scope 1) from raw materials in ceramic production.

CO₂e emissions versus CO₂ emissions: "Carbon dioxide equivalents" or "CO₂e" is a term used to describe the global warming potential (GWP) of various greenhouse gases in a single unit. Greenhouse gases such as methane, nitrous oxide, or chlorofluorocarbons (CFC) are of no relevance to Wienerberger's range of production. The absolute, direct CO₂ emissions (Scope 1) from our production processes are therefore to be equated with carbon dioxide equivalents. Indirect CO₂ emissions (Scope 2) from electricity are recorded as CO₂e (calculation according to market-based method). The absolute CO₂ emissions or the corresponding CO₂ indicators communicated in our reporting on climate protection thus always refer to emissions of carbon dioxide equivalents (CO₂e). This also applies to the new climate action target in our new Sustainability Program 2023.

Employee turnover in full-time equivalents: (Full Time Equivalents – FTE) Ratio of persons leaving the Wienerberger Group (termination by employee or employer, termination by mutual consent) to average number of employees in permanent employment. Excluding North America (figures not fully comparable due to special local legislation)

Housing unit for humanitarian projects Buildings: New construction/renovation of residential and non-residential buildings. Single-family home/apartment or predefined non-residential surface = one housing unit.

Infrastructure (connection to potable water or sewage): New construction/renovation: Connection of four housing units to potable water or connection to sewage, or connection of predefined surface in non-residential construction = one housing unit

Percentage of women: Calculation based on headcount

Specific CO₂ emissions: Specific CO₂ emissions refer to emissions from production caused by the sources of energy used (Scope 1) and are calculated on the basis of the absolute volume of CO₂ emissions in kg of CO₂ relative to the production output in tons. This value is shown as an index in % relative to the defined reference year, with the values of the reference year set at 100%.

Specific energy consumption: For the calculation of specific energy consumption, absolute energy consumption in kWh is related to the production volume in tons. Specific energy consumption is shown as an index in % relative to the defined reference year, the values of which are set at 100%.

Total energy consumption: Total energy consumption comprises energy consumed in production, excluding administration.

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# <span id="page-311-0"></span>**Financial Calendar**

| April 25, 2024    | Start of the quiet period                                         |
|-------------------|-------------------------------------------------------------------|
| April 27, 2024    | Record date for participation in the 155th Annual General Meeting |
| May 7, 2024       | 155th Annual General Meeting                                      |
| May 10, 2024      | Deduction of dividends for 2023 (ex-day)                          |
| May 13, 2024      | Record date for 2023 dividends                                    |
| May 15, 2024      | Payment day for 2023 dividends                                    |
| May 16, 2024      | Results for the First Quarter of 2024                             |
| July 24, 2024     | Start of the quiet period                                         |
| August 14, 2024   | Results for the First Half-Year of 2024                           |
| October 23, 2024  | Start of the quiet period                                         |
| November 12, 2024 | Results for the First Three Quarters of 2024                      |

### Information on the Company and the wienerberger Share

| Shareholder Telephone | +43 1 601 92 10221        |
|-----------------------|---------------------------|
| E-Mail                | investor@wienerberger.com |
| Internet              | www.wienerberger.com      |
| Vienna Stock Exchange | WIE                       |
| Thomson Reuters       | WBSV.VI; WIE-VI           |
| Bloomberg             | WIE AV                    |
| Datastream            | O: WNBA                   |
| ADR Level 1           | WBRBY                     |
| ISIN                  | AT0000831706              |

### wienerberger Online Annual Report 2023:

[annualreport.wienerberger.com/2023](http://annualreport.wienerberger.com/2023)

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| 2020   | 2021   | 2022   | 2023   |
|--------|--------|--------|--------|
| 3,355  | 3,971  | 4,977  | 4,224  |
|        | 694    | 1,021  | 811    |
| 558    | 694    | 1,026  | 783    |
| 17     | 17     | 21     | 19     |
| 192    | 420    | 721    | 477    |
| 149    | 374    | 688    | 424    |
| 100    | 312    | 569    | 335    |
| 397    | 421    | 598    | 258    |
| 201    | 280    | 353    | 272    |
| 882    | 1,134  | 1,079  | 1,215  |
| 2,594  | 3,248  | 3,493  | 3,822  |
| 50     | 53     | 44     | 46     |
| 5      | 11     | 17     | 8.5    |
| 6      | 15     | 239    | 134    |
| 8.9    | 12.2   | 18.1   | 11.3   |
| 16,619 | 17,624 | 19,078 | 18,913 |

| Corporate Data                    |         | 2013    | 20142)  | 2015    | 2016    | 20171)  | 20181)  | 2019    | 2020    | 2021    | 2022    | 2023    |
|-----------------------------------|---------|---------|---------|---------|---------|---------|---------|---------|---------|---------|---------|---------|
| Revenues                          | in MEUR | 2,663   | 2,834   | 2,972   | 2,974   | 3,120   | 3,305   | 3,466   | 3,355   | 3,971   | 4,977   | 4,224   |
| Operating EBITDA                  | in MEUR |         |         |         |         |         |         |         |         | 694     | 1,021   | 811     |
| EBITDA                            | in MEUR | 276     | 317     | 370     | 404     | 415     | 443     | 610     | 558     | 694     | 1,026   | 783     |
| EBITDA margin                     | in %    | 10      | 11      | 12      | 14      | 13      | 13      | 18      | 17      | 17      | 21      | 19      |
| EBIT                              | in MEUR | 65      | –165    | 163     | 191     | 179     | 240     | 363     | 192     | 420     | 721     | 477     |
| Profit before tax                 | in MEUR | –3      | –215    | 107     | 159     | 145     | 195     | 315     | 149     | 374     | 688     | 424     |
| Profit after tax                  | in MEUR | –8      | –230    | 70      | 115     | 141     | 147     | 263     | 100     | 312     | 569     | 335     |
| Free cash flow 8)                 | in MEUR | 93      | 134     | 135     | 246     | 179     | 273     | 286     | 397     | 421     | 598     | 258     |
| Total investments                 | in MEUR | 107     | 163     | 148     | 181     | 163     | 216     | 255     | 201     | 280     | 353     | 272     |
| Net debt                          | in MEUR | 539     | 622     | 534     | 632     | 566     | 632     | 871     | 882     | 1,134   | 1,079   | 1,215   |
| Capital employed                  | in MEUR | 2,768   | 2,592   | 2,570   | 2,460   | 2,459   | 2,537   | 2,912   | 2,594   | 3,248   | 3,493   | 3,822   |
| Gearing                           | in %    | 24      | 31      | 26      | 34      | 30      | 33      | 42      | 50      | 53      | 44      | 46      |
| Interest cover 4) 6)              | in %    | 1       | 2       | 4       | 6       | 5       | 6       | 9       | 5       | 11      | 17      | 8.5     |
| Return on equity                  | in %    | –0      | –12     | 3       | 6       | 7       | 8       | 13      | 6       | 15      | 239     | 134     |
| ROCE 4)                           | in %    | 1.3     | 2.7     | 4.5     | 5.8     | 7.3     | 7.5     | 10.6    | 8.9     | 12.2    | 18.1    | 11.3    |
| Ø Employees                       | in FTE  | 13,787  | 14,836  | 15,813  | 15,990  | 16,297  | 16,596  | 17,234  | 16,619  | 17,624  | 19,078  | 18,913  |
| Condensed Balance Sheet           |         | 2013    | 20142)  | 2015    | 2016    | 20171)  | 20181)  | 2019    | 2020    | 2021    | 2022    | 2023    |
| Non-current assets                | in MEUR | 2,610.0 | 2,433.8 | 2,426.3 | 2,355.0 | 2,290.3 | 2,377.7 | 2,727.0 | 2,475.7 | 3,036.1 | 3,176.3 | 3,300.4 |
| Inventories                       | in MEUR | 666.0   | 701.4   | 753.3   | 718.4   | 741.6   | 761.7   | 827.6   | 729.0   | 883.3   | 1,036.2 | 1,153.8 |
| Other assets                      | in MEUR | 935.4   | 695.8   | 512.0   | 563.8   | 627.9   | 603.6   | 578.0   | 1,122.3 | 984.4   | 986.7   | 1,014.4 |
| Total assets                      | in MEUR | 4,211.4 | 3,831.0 | 3,691.6 | 3,637.2 | 3,659.9 | 3,742.9 | 4,132.6 | 4,327.0 | 4,903.8 | 5,199.3 | 5,468.6 |
| Equity 7)                         | in MEUR | 2,254.2 | 1,986.5 | 2,054.2 | 1,849.0 | 1,911.2 | 1,939.1 | 2,076.8 | 1,749.0 | 2,149.1 | 2,450.4 | 2,657.7 |
| Provisions                        | in MEUR | 224.5   | 253.5   | 290.3   | 278.0   | 270.6   | 272.0   | 279.7   | 251.3   | 243.4   | 237.9   | 250.0   |
| Liabilities                       | in MEUR | 1,732.7 | 1,591.0 | 1,347.1 | 1,510.2 | 1,478.1 | 1,531.9 | 1,776.1 | 2,326.7 | 2,511.3 | 2,496.1 | 2,560.9 |
| Stock Exchange Data               |         | 2013    | 20142)  | 2015    | 2016    | 20171)  | 20181)  | 2019    | 2020    | 2021    | 2022    | 2023    |
| Earnings per share                | in EUR  | –0.34   | –2.26   | 0.31    | 0.70    | 1.05    | 1.15    | 2.18    | 0.79    | 2.75    | 5.17    | 3,17    |
| Adjusted earnings per share       | in EUR  | –0.40   | 0.03    | 0.35    | 0.76    | 1.19    | 1.23    | 2.18    | 1.79    | 2.84    | 5.34    | 3.33    |
| Dividend per share                | in EUR  | 0.12    | 0.15    | 0.20    | 0.27    | 0.30    | 0.50    | 0.60    | 0.60    | 0.75    | 0.90    | 0.90    |
| Dividend                          | in MEUR | 13.81   | 17.54   | 23.39   | 31.58   | 35.10   | 57.37   | 68.05   | 67.36   | 86.10   | 95.38   | 94.9    |
| Equity per Share 5)               | in EUR  | 15.3    | 12.9    | 13.4    | 13.5    | 14.1    | 14.4    | 16.1    | 15.5    | 19.0    | 22.3    | 25.2    |
| Share price at year-end           | in EUR  | 11.5    | 11.5    | 17.1    | 16.5    | 20.2    | 18.0    | 26.4    | 26.1    | 32.3    | 22.6    | 30.2    |
| Shares outstanding (weighted) 6)  | in Tsd. | 115,063 | 116,017 | 116,956 | 116,956 | 116,956 | 116,154 | 114,320 | 112,680 | 113,105 | 109,884 | 105,582 |
| Market capitalization at year-end | in MEUR | 1,354.5 | 1,345.1 | 2,008.5 | 1,938.6 | 2,370.5 | 2,115.5 | 3,074.0 | 3,004.1 | 3,725.2 | 2,520.7 | 3,377   |

# **Ten-Year Review**

1) Total investments and free cash flow were adjusted according to the new capex definition // 2) The figures for the year 2014 were restated in accordance with IAS 8 // 3) Profit after tax / Equity // 4) 2014 and

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Image /page/313/Figure/1 description: This image shows a bar chart titled "Revenues and Operating EBITDA Margin in MEUR and %." The x-axis shows the years 2021, 2022, and 2023. The y-axis on the left shows the percentage from 0% to 25%. The y-axis on the right shows the values in MEUR from 0 to 1200. The bar chart shows the revenues for each year: 3,971.3 in 2021, 4,976.7 in 2022, and 4,224.3 in 2023. A line chart shows the operating EBITDA margin for each year: 17.5% in 2021, 20.5% in 2022, and 19.2% in 2023.

Image /page/313/Figure/2 description: This image is a bar chart comparing Operating EBITDA and EBIT for the years 2021, 2022, and 2023. For 2021, Operating EBITDA is 693.9 and EBIT is 420.4. For 2022, Operating EBITDA is 1,020.9 and EBIT is 721.2. For 2023, Operating EBITDA is 810.8 and EBIT is 477.3.

**Operating EBITDA and EBIT** 

in MEUR

**Net Debt and Net Debt / EBITDA** in MEUR

Image /page/313/Figure/4 description: The image is a bar chart comparing net debt and net debt/EBITDA for the years 2021, 2022, and 2023. The net debt for 2021 is 1,134.5, for 2022 is 1,079.3, and for 2023 is 1,214.7. The net debt/EBITDA for 2021 is 1.6, for 2022 is 1.1, and for 2023 is 1.6.

**Earnings per Share** in EUR

Image /page/313/Figure/6 description: This image is a bar chart comparing IFRS and adjusted values for the years 2021, 2022, and 2023. In 2021, the IFRS value is 2.75 and the adjusted value is 2.84. In 2022, the IFRS value is 5.17 and the adjusted value is 5.34. In 2023, the IFRS value is 3.17 and the adjusted value is 3.33.

**ROCE after tax and WACC** in %

Image /page/313/Figure/8 description: The image is a bar chart comparing ROCE after tax and WACC for the years 2021, 2022, and 2023. For 2021, ROCE after tax is 12.2 and WACC is 6.3. For 2022, ROCE after tax is 18.1 and WACC is 7.8. For 2023, ROCE after tax is 11.3 and WACC is 8.2.

### **External Revenues by Segment Operating EBITDA by Segment Revenues by Product**

Image /page/313/Figure/10 description: The image shows a donut chart divided into three sections labeled 1, 2, and 3. The sections are arranged clockwise, starting with section 1 on the right, section 2 at the bottom left, and section 3 at the top left.

| 1 | Europe West   | 52% |
|---|---------------|-----|
| 2 | Europe East   | 28% |
| 3 | North America | 20% |

**Operating EBITDA by Segment**

Image /page/313/Figure/21 description: This image is a donut chart divided into three sections labeled 1, 2, and 3. Section 1 is in the lower right, section 2 is in the lower left, and section 3 is at the top.

| 1 | Europe West   | 47% |
|---|---------------|-----|
| 2 | Europe East   | 27% |
| 3 | North America | 26% |

### **Free Cash Flow and Total Investments** in MEUR

Image /page/313/Figure/16 description: This image is a bar chart comparing free cash flow and total investments across the years 2021, 2022, and 2023. In 2021, the free cash flow was 420.6, and the total investments were 279.8. In 2022, the free cash flow was 597.7, and the total investments were 352.6. In 2023, the free cash flow was 257.5, and the total investments were 271.6.

Image /page/313/Figure/18 description: This image is a donut chart divided into five sections, labeled 1, 2, 3, 4, and 5. The sections appear to be of varying sizes, with section 5 being the largest, followed by sections 2 and 3, then section 1, and finally section 4, which is the smallest.

| 1 | Wall 17%   |
|---|------------|
| 2 | Facade 30% |
| 3 | Roof 16%   |
| 4 | Surface 3% |
| 5 | Pipes 34%  |

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# <span id="page-314-0"></span>**Key Performance Indicators**

| Earnings Data                  |         | 2023    | 2022    | Chg. in % | 2021    |
|--------------------------------|---------|---------|---------|-----------|---------|
| Revenues                       | in MEUR | 4,224.3 | 4,976.7 | –15       | 3,971.3 |
| Operating EBITDA 1)            | in MEUR | 810.8   | 1,020.9 | –21       | 693.9   |
| EBITDA                         | in MEUR | 783.3   | 1,026.2 | –24       | 694.3   |
| Operating EBIT                 | in MEUR | 494.7   | 739.6   | –33       | 431.2   |
| Impairment charges to assets   | in MEUR | –17.3   | –18.4   | +6        | 0.0     |
| Impairment charges to goodwill | in MEUR | 0.0     | 0.0     | 0         | –10.7   |
| EBIT                           | in MEUR | 477.3   | 721.2   | –34       | 420.4   |
| Profit before tax              | in MEUR | 424.3   | 688.3   | –38       | 374.3   |
| Profit after tax 2)            | in MEUR | 334.4   | 567.9   | –41       | 310.7   |
| Free cash flow 3)              | in MEUR | 257.5   | 597.7   | –57       | 420.6   |
| Maintenance Capex              | in MEUR | 126.2   | 134.7   | –6        | 120.4   |
| Special Capex                  | in MEUR | 145.4   | 217.9   | –33       | 159.4   |
| ROCE                           | in %    | 11.3    | 18.1    | –         | 12.2    |
| Ø Employees                    | in FTE  | 18,913  | 19,078  | –1        | 17,624  |

| Balance Sheet Data |         | 2023    | 2022    | Chg. in % | 2021    |
|--------------------|---------|---------|---------|-----------|---------|
| Equity 4)          | in MEUR | 2,657.7 | 2,450.4 | +8        | 2,149.1 |
| Net debt           | in MEUR | 1,214.7 | 1,079.3 | +13       | 1,134.5 |
| Capital employed   | in MEUR | 3,822.5 | 3,492.9 | +9        | 3,248.1 |
| Total assets       | in MEUR | 5,468.6 | 5,199.3 | +5        | 4,903.8 |
| Gearing            | in %    | 45.7    | 44.0    | -         | 52.8    |

| Stock Exchange Data                               | 2023    | 2022    | Chg. in % | 2021    |
|---------------------------------------------------|---------|---------|-----------|---------|
| Earnings per share<br>in EUR                      | 3,17    | 5.17    | -39       | 2.75    |
| Adjusted earnings per share<br>in EUR             | 3.33    | 5.34    | -38       | 2.84    |
| Dividend per share<br>in EUR                      | 0.90    | 0.90    | 0         | 0.75    |
| Share price at end of period<br>in EUR            | 30.22   | 22.56   | +34       | 32.34   |
| Shares outstanding (weighted) 5)<br>in 1,000      | 105,582 | 109,884 | -4        | 113,105 |
| Market capitalization at end of period<br>in MEUR | 3,376.6 | 2,520.7 | +34       | 3,725.2 |

| Operating Segments 2023<br>in MEUR and % 6) | Europe<br>West | Europe<br>East | North<br>America | Group<br>eliminations | wienerberger   |
|---------------------------------------------|----------------|----------------|------------------|-----------------------|----------------|
| External Revenues                           | 2,193.1 (-13%) | 1,192.6 (-21%) | 837.7 (-11%)     |                       | 4,223.4 (-15%) |
| Revenues                                    | 2,220.4 (-13%) | 1,227.4 (-21%) | 843.1 (-11%)     | -66.7                 | 4,224.3 (-15%) |
| Operating EBITDA                            | 377.9 (-11%)   | 219.7 (-41%)   | 213.2 (-4%)      |                       | 810.8 (-21%)   |
| EBITDA                                      | 347.0 (-18%)   | 216.6 (-42%)   | 219.8 (-3%)      |                       | 783.3 (-24%)   |
| EBIT                                        | 168.7 (-34%)   | 127.5 (-54%)   | 181.1 (-3%)      |                       | 477.3 (-34%)   |
| Total investments                           | 122.4 (-33%)   | 103.9 (-12%)   | 45.2 (-12%)      |                       | 271.6 (-23%)   |
| Capital employed                            | 2,216.8 (+11%) | 1,060.5 (+14%) | 545.3 (-4%)      |                       | 3,822.5 (+9%)  |
| Ø Employees (in FTE)                        | 9,059 (-1%)    | 7,503 (+0%)    | 2,351 (-3%)      |                       | 18,913 (-1%)   |

*1) Adjusted for effects from sale of non-core assets as well as structural adjustments // 2) Attributable to equity holders of the parent company // 3) Cash flow from operating activities less cash flow from investing activities and cash outflows from the repayment of lease liabilities plus special capex and net payments made for the acquisition of companies // 4) Equity including non controlling interests // 5) Adjusted for treasury stock // 6) Changes in % to the comparable prior year period are shown in brackets // Explanatory notes to the report: Rounding differences may arise from automatic processing of data*

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# <span id="page-315-0"></span>**Adresses of Major Companies**

### Wienerberger AG

Wienerbergerplatz 1 1100 Vienna, Austria T +43 1 60 192 0 office@wienerberger.com [www.wienerberger.com](http://www.wienerberger.com)

### Semmelrock International GmbH

Wienerbergerplatz 1 1100 Vienna, Austria T +43 1 60 192 10901 international@semmelrock.com [www.wienerberger-building-solutions.com](http://www.wienerberger-building-solutions.com)

### Steinzeug-Keramo GmbH

Europaallee 63 50226 Frechen, Germany T +49 2234 507-0 info@steinzeug-keramo.com [www.pipelife.com](http://www.pipelife.com)

### Pipelife International GmbH

Wienerbergerplatz 1 1100 Vienna, Austria T +43 1 602 2030 0 info@pipelife.com [www.pipelife.com](http://www.pipelife.com)

### General Shale Brick, Inc.

3015 Bristol Highway Johnson City TN 37601, Tennessee, United States T +1 423 282 4661 office@generalshale.com [www.generalshale.com](http://www.generalshale.com)

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### <span id="page-316-0"></span>**IMPRINT**

### Media owner (publisher)

Wienerberger AG Wienerbergerplatz 1, 1100 Vienna, Austria T +43 1 601 92 0 F +43 1 601 92 10159

### Inquiries may be addressed to

The Managing Board: Heimo Scheuch, CEO Gerhard Hanke, CFO Solveig Menard-Galli, COO Europe East Harald Schwarzmayr, COO Europe West

### Concept

The Skills Group GmbH

Design All Channels Communication Austria GmbH

### Photos & Illustration

All Channels Communication, Daniel Hinterramskogler, Adobe Stock, Pixabay, Shutterstock, Wienerberger Ceramica Budowlana, Hiroyuki Oki, wienerberger,Brick Award, Pipelife

### Scientific consulting Sustainability Report

BZL Kommunikation und Projektsteuerung GmbH, Oyten (GER)

### Gender-sensitive formulation

In the interest of text flow and reader-friendliness, gender-specific differentiation has been predominantly avoided in this report. In the interest of equal treatment, the corresponding terms apply to all genders.

This Annual Report contains information and forecasts that relate to the future development of the wienerberger Group and its companies. These forecasts are estimates based on all the information available to us at this point in time. If the assumptions underlying these forecasts do not materialize or if risks – such as those referred to in the Risk Report – materialize, the actual results may differ from the results currently expected. This Annual Report does not, in any way whatsoever, constitute a recommendation to buy or sell Wienerberger AG securities. This Annual Report is also available in German. In case of doubt, the German version takes precedence.

If you want to learn more about wienerberger: Annual & quarterly reports as well as further information can be found on our website [www.wienerberger.com](http://www.wienerberger.com).

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