WIENERBERGER AG (a joint stock corporation under the laws of Austria, registered number FN 77676f) as Issuer
EUR 500,000,000 programme for the issuance of debt instruments (the “Programme”)
This document constitutes a base prospectus (the “ Prospectus ”) of Wienerberger AG for the purposes of Article 5.4 of Directive 2003/71/EC (the “ Prospectus Directive ”) in respect of non-equity securities within the meaning of Art. 22 No. 6 (4) of the Commission Regulation (EC) No. 809/2004 of April 29, 2004 (“Non-Equity Securities ”).
Under the Programme, Wienerberger AG (the “Issuer”) may from time to time issue notes (the “Notes ”) denominated in any currency agreed between the Issuer and the relevant Dealer (as defined below). The maximum aggregate nominal amount of all Notes from time to time outstanding under the Programme will not exceed EUR 500,000,000 (or its equivalent in other currencies calculated as described in the Programme Agreement described herein).
In relation to notes issued under this Programme, application was made to the Commission de Surveillance du Secteur Financier (“CSSF ”) of the Grand-Duchy of Luxembourg (“Luxembourg ”) in its capacity as competent authority (the “Competent Authority ”) under the Luxembourg Act on Securities Prospectuses ( loi relative aux prospectus pour valeurs mobilières ) (the “Luxembourg Act ”) for approval of this Prospectus.
Application has been made to list Notes to be issued under the Programme on the official list of the Luxembourg Stock Exchange and to admit Notes to trading on the regulated market of the Luxembourg Stock Exchange ( Bourse de Luxembourg ). In order to be able to conduct a public offer and/or a listing on the Vienna Stock Exchange in relation to certain issues of Notes, the Issuer applied for a notification pursuant to Article 19 of the Luxembourg Act for an offer of such Notes in the Republic of Austria (“Austria ”) and/or a listing of the Programme and/or such Notes on the second regulated market of the Vienna Stock Exchange ( Wiener Börse ) during a period of 12 months from the date of this Prospectus. However, Notes may also be issued under the Programme which are listed on a stock exchange other than the Vienna Stock Exchange or which are not listed on any stock exchange.
Offers to the public in Austria will only be made following the CSSF’s delivery to the competent authority of Austria of, inter alia , a certificate of approval pursuant to Article 18 of the Prospectus Directive attesting that this Prospectus was drawn up in accordance with the Prospectus Directive. The Issuer may from time to time arrange for a notification into other jurisdictions under Article 19 of the Luxembourg Act.
An investment in the Notes carries a high degree of risk. Prospective investors should be aware that an investment in the Notes involves a risk and that, if certain risks, in particular those described in the chapter “Risk Factors” beginning on page 12 occur, the investors may lose all or a very substantial part of their investment. The Notes should be bought and traded only by persons knowledgeable in investment matters.
This document does not constitute an offer to sell, or the solicitation of an offer to buy Notes in any jurisdiction where such offer or solicitation is unlawful. The Notes have not been and will not be registered under the United States Securities Act of 1933, as amended (the “ Securities Act ”). Subject to certain exceptions, the Notes may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the Securities Act). This Prospectus was approved by the CSSF, was filed with the CSSF and will be published in electronic form on the website of the Luxembourg Stock Exchange ( www.bourse.lu ) and on the website of the Issuer (www.wienerberger.com) and will be available free of charge at the specified office of the Issuer.
Arrangers and Dealers
Erste Group Bank AG Raiffeisen Zentralbank Österreich AG
The date of this Prospectus is March 24, 2010
Wienerberger AG, with its corporate seat in Vienna, Austria, accepts responsibility for the information contained in this Prospectus. To the best of the knowledge and belief of the Issuer (having taken all reasonable care to ensure that such is the case) the information contained in this Prospectus is in accordance with the facts and does not omit anything likely to affect the import of such information.
This Prospectus is to be read in conjunction with all documents which are deemed to be incorporated herein by reference (see “ Documents Incorporated by Reference ”) and, in relation to any Series of Notes, together with the relevant final terms (the “Final Terms ”). This Prospectus should be read and construed on the basis that such documents are incorporated and form part of the Prospectus.
No person is or was authorized to give any information which is not contained in or not consistent with this Prospectus or any other document entered into in relation to the Programme or any information supplied by the Issuer or such other information as in the public domain and, if given or made, such information must not be relied upon as having been authorized by the Issuer or the Dealers.
Neither any arranger nor any dealer nor any other person mentioned in this Prospectus, excluding the Issuer, is responsible for the information contained in this Prospectus, or any Final Terms or any other document incorporated herein by reference, and accordingly, and to the extent permitted by the laws of any relevant jurisdiction, none of these persons accepts any responsibility for the accuracy and completeness of the information contained in any of these documents.
This Prospectus as well as any Final Terms reflect the status as of their respective dates of issue. The delivery of this Prospectus or any Final Terms and the offering, sale or delivery of any Notes may not be taken as an implication that the information contained in such documents is accurate and complete subsequent to their respective dates of issue or that there has been no adverse change in the financial situation of the Issuer since such date or that any other information supplied in connection with the Programme is accurate at any time subsequent to the date on which it is supplied or, if different, the date indicated in the document containing the same.
The distribution of this Prospectus and any Final Terms and the offering, sale and delivery of Notes in certain jurisdictions may be restricted by law. Persons into whose possession this Prospectus or any Final Terms come are required to inform themselves about and observe any such restrictions. For a description of the restrictions applicable in the United States of America and the European Economic Area, see - “Selling Restrictions ”. In particular, the Notes have not been and will not be registered under the Securities Act or with any securities regulatory authority of any state or other jurisdiction of the United States; subject to certain exceptions, the Notes may not be offered or sold within the United States of America or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the Securities Act).
This Prospectus was prepared on the basis that, except to the extent sub-paragraph (ii) below may apply, any offer of Notes in any Member State of the European Economic Area which implemented the Prospectus Directive (2003/71/EC) (each, a “Relevant Member State ”) will be made pursuant to an exemption under the Prospectus Directive, as implemented in that Relevant Member State, from the requirement to publish a prospectus for offers of Notes. Accordingly, any person making or intending to make an offer in that Relevant Member State of Notes which are the subject of an offering contemplated in this Prospectus as completed by Final Terms in relation to the offer of those Notes may only do so (i) in circumstances in which no obligation arises for the relevant Issuer or any Dealer to publish a prospectus pursuant to Article 3 of the Prospectus Directive or supplement a prospectus pursuant to Article 16 of the Prospectus Directive, in each case, in relation to such offer, or (ii) if a prospectus for such offer was approved by the competent authority in that Relevant Member State or, where appropriate, approved in another Relevant Member State and notified to the competent authority in that Relevant Member State and (in either case) published, all in accordance with the Prospectus Directive, provided that any such prospectus was subsequently completed by Final Terms which specify that offers may be made other than pursuant to Article 3(2) of the Prospectus Directive in that Relevant Member State and such offer is made in the period beginning and ending on the dates specified for such purpose in such prospectus or final terms, as applicable. Except to the extent sub-paragraph (ii) above may apply, neither the Issuer nor any Dealer have authorized, nor do they authorise, the making of any
(ii) offer of Notes in circumstances in which an obligation arises for the Issuer or any Dealer to publish or supplement a prospectus for such offer.
This Prospectus contains statements regarding the market position of Wienerberger. Unless specified otherwise, such statements regarding the Wienerberger’s market or competitive position are based on the group’s internal market research.
Where information was sourced from a third party, Wienerberger confirms that this information was accurately reproduced and that as far as Wienerberger is aware and is able to ascertain from information published by that third party, no facts were omitted which would render the reproduced information inaccurate or misleading. Where such information was included in this Prospectus, the source is indicated.
This Prospectus and any Final Terms may not be used for the purpose of an offer or solicitation by anyone in any jurisdiction in which such offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation.
IN CONNECTION WITH THE ISSUE OF ANY TRANCHE OF NOTES, THE DEALER OR DEALERS (IF ANY) NAMED AS THE STABILISING MANAGER(S) (OR PERSONS ACTING ON BEHALF OF ANY STABILISING MANAGER(S)) IN THE APPLICABLE FINAL TERMS MAY OVER-ALLOT NOTES (PROVIDED THAT THE AGGREGATE PRINCIPAL AMOUNT OF NOTES ALLOTTED DOES NOT EXCEED 105 PER CENT OF THE AGGREGATE PRINCIPAL AMOUNT OF THE RELEVANT TRANCHE OF NOTES) OR EFFECT TRANSACTIONS WITH A VIEW TO SUPPORTING THE MARKET PRICE OF THE NOTES AT A LEVEL HIGHER THAN THAT WHICH MIGHT OTHERWISE PREVAIL. HOWEVER, THERE IS NO ASSURANCE THAT THE STABILISING MANAGER(S) (OR PERSONS ACTING ON BEHALF OF A STABILISING MANAGER) WILL UNDERTAKE STABILISATION ACTION. ANY STABILISATION ACTION MAY BEGIN ON OR AFTER THE DATE ON WHICH ADEQUATE PUBLIC DISCLOSURE OF THE TERMS OF THE OFFER OF THE RELEVANT TRANCHE OF NOTES IS MADE AND, IF BEGUN, MAY BE ENDED AT ANY TIME, BUT IT MUST END NO LATER THAN THE EARLIER OF 30 DAYS AFTER THE ISSUE DATE OF THE RELEVANT TRANCHE OF NOTES AND 60 DAYS AFTER THE DATE OF THE ALLOTMENT OF THE RELEVANT TRANCHE OF NOTES. ANY STABILISATION ACTION OR OVER-ALLOTMENT MUST BE CONDUCTED BY THE RELEVANT STABILISING MANAGER(S) (OR PERSON(S) ACTING ON BEHALF OF ANY STABILISING MANAGER(S)) IN ACCORDANCE WITH ALL APPLICABLE LAWS AND RULES.
The legally binding language of this Prospectus is the English language; except for the Terms and Conditions of the Notes for specific Series where the legally binding language will be specified in the applicable Final Terms and except for certain documents incorporated by reference herein as set out under “Incorporation by Reference”.
The Issuer has undertaken, in connection with the listing of the Notes on the official list of the Luxembourg Stock Exchange and admission to trading on the “regulated market of the Luxembourg Stock Exchange ” which is a regulated market for the purposes of Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004 on markets in financial instruments amending Council Directives 85/611/EEC and 93/6/EEC and Directive 2000/12/EC of the European Parliament and of the Council and repealing Council Directive 93/22/EEC, that if, while Notes of the Issuer are outstanding and listed on the official list of the Luxembourg Stock Exchange and are admitted to trading on the regulated market of the Luxembourg Stock Exchange, there shall occur any adverse change in the business or financial position of the Issuer or any change in the information set out under “Terms and Conditions of the Notes”, that is material in the context of issuance under the Programme which is not reflected in this Prospectus (or any of the documents incorporated by reference in this Prospectus) the Issuer, as the case may be, will prepare or procure the preparation of a supplement to this Prospectus or, as the case may be, publish a new Prospectus for use in connection with any
(iii) subsequent issue by the Issuer of Notes to be listed on the official list of the Luxembourg Stock Exchange and admitted to trading on the regulated market of the Luxembourg Stock Exchange.
Series of Notes may be rated or unrated. Where a Series of Notes is rated, it will be rated by Moody’s Investor Services and/or Standard & Poor’s Ratings Services, a division of the McGraw-Hill Companies and/or Fitch Ratings Limited and such rating will be specified in the relevant Final Terms. A rating is not a recommendation to buy, sell or hold Notes and may be subject to suspension, reduction or withdrawal at any time by the assigning rating agency.
(iv) TABLE OF CONTENTS
SUMMARY...... 4 RISK FACTORS...... 12 GENERAL DESCRIPTION OF THE PROGRAMME...... 23 TERMS AND CONDITIONS OF THE NOTES...... 25 FINAL TERMS...... 43 SELECTED CONSOLIDATED FINANCIAL DATA ...... 56 INFORMATION ABOUT THE ISSUER ...... 58 BUSINESS OF THE WIENERBERGER GROUP ...... 62 TAXATION...... 71 SUBSCRIPTION AND SELLING RESTRICTIONS...... 75 GENERAL INFORMATION...... 77 GLOSSARY OF TECHNICAL TERMS...... 78 GERMAN TRANSLATION OF THE SUMMARY...... D-1
(v) In this Prospectus, unless the context otherwise requires,
• “Company” or “Issuer” refers to Wienerberger AG;
• “Wienerberger Group”, the “Group” or “Wienerberger” refer to Wienerberger AG and its consolidated subsidiaries at the relevant time;
• “IFRS” refers to International Financial Reporting Standards, including International Accounting Standards (“IASs”) and interpretations published by the International Accounting Standards Board, as adopted by the EU.
FORWARD-LOOKING STATEMENTS
This Prospectus contains certain forward-looking statements relating to the Group’s business, financial condition, results of operations and strategies, and the industry in which it operates. Forward-looking statements concern future circumstances and results and include other statements that are not historical facts, sometimes identified by the words “might”, “will”, “should”, “believes”, “expects”, “predicts”, “intends”, “projects”, “plans”, “estimates”, “aims”, “foresees”, “anticipates”, “targets”, “seeks”, “pursues”, “goal” and similar expressions. Such statements reflect the Group’s current views with respect to future events and are subject to risks and uncertainties. In this Prospectus, forward-looking statements include, inter alia , statements relating to the Group’s implementation of its strategic initiatives, the development of aspects of the Group’s results of operations, the Group’s competitive position, certain financial targets the Group has set for itself, the Group’s expectations relating to the impact of risks that affect its business, including those set forth below under “ Risk Factors ”, future developments in the building materials industry (including demand and prices), the Group’s future business development, financial condition and economic performance, and general economic trends and developments.
The Group bases these forward-looking statements on its current plans, estimates, projections and expectations. These statements are based on certain assumptions that, although reasonable at this time, may prove to be erroneous. Investors should not place undue reliance on these forward-looking statements. Many factors could cause the Group’s actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. These factors include, inter alia , changes in general economic and business conditions, levels of demand and pricing, changes and volatility in currency exchange rates and interest rates, changes in housing starts or residential construction markets, changes in raw material and product prices and inability to pass price increases on to customers, changes in governmental policy, laws and regulations and political and social conditions, changes in the competitive environment, the success of the Group’s recent acquisitions and divestitures, natural disasters and adverse weather conditions, other factors that are discussed in more detail under “ Risk Factors ” below; and factors that are not known to the Group at this time.
Should one or more of these factors or uncertainties materialize, or should the assumptions underlying the forward looking statements included in this Prospectus prove incorrect, events described in this Prospectus might not occur or actual results may deviate materially from those described in this Prospectus as anticipated, believed, estimated or expected, and the Group may not be able to achieve its financial targets and strategic objectives. Other than as required by law, the Company does not intend, and does not assume any obligation, to update the forward-looking statements set forth in this Prospectus.
PRESENTATION OF FINANCIAL AND OTHER INFORMATION
Financial statements - documents incorporated by reference
The audited consolidated financial statements of the Company as of, and for the years ended, December 31, 2009 and 2008 in the English language (including the notes thereto, the “Consolidated Financial Statements”) extracted from the Wienerberger Annual Report 2009 and the Wienerberger
1 Annual Report 2008, respectively, as set out below, are incorporated by reference into this Prospectus and are defined herein as the “Documents Incorporated by Reference”. This Prospectus should be read and construed in conjunction with the Documents Incorporated by Reference which have been previously published and which have been filed with the CSSF and shall form part of this Prospectus.
The Company has prepared the German language Consolidated Financial Statements in accordance with IFRS. The Audited Annual Consolidated Financial Statements 2008 in German language were audited by KPMG Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft, Porzellangasse 51, A-1090 Vienna, Austria and the Audited Annual Consolidated Financial Statements 2009 in German language were audited by KPMG Wirtschaftsprüfungs- und Steuerberatungs GmbH, each certified public auditors and members of the Austrian Chamber of Chartered Accountants (Kammer der Wirtschaftstreuhänder ). The Consolidated Financial Statements are translations of the original German language documents.
Cross reference list
The Documents Incorporated by Reference are available at the Company’s registered office during usual business hours for twelve months from the date of publication of this Prospectus, see “Documents Available for Inspection” . The Consolidated Financial Statements may also be inspected on Wienerberger’s website (www.wienerberger.com) under the icons “Investor Relations”, “Reports & Presentations” and “Reports” as follows:
• Wienerberger Annual Report 2009: the audited annual consolidated financial statements as of, and for the year ended, December 31, 2009 (the “Audited Annual Consolidated Financial Statements 2009”): income statement, page 100; statement of comprehensive income, page 101; cash flow statement, page 102; balance sheet, changes in equity statement and table of non-current assets, pages 103-107; segment reporting, pages 108-109; notes to the consolidated financial statements, pages 110-159; independent auditor’s report, page 160;
• Wienerberger Annual Report 2008: the audited annual consolidated financial statements as of, and for the year ended, December 31, 2008 (the “Audited Annual Consolidated Financial Statements 2008”): income statement, page 100; statement of comprehensive income, page 100; cash flow statement, page 101; balance sheet, changes in equity statement and table of non-current assets, pages 102-105; segment reporting, pages 106-107; notes to the consolidated financial statements, pages 108-151; independent auditor’s report, page 152.
Rounding adjustments
As is customary in commercial accounting, some numerical figures (including percentages) in this Prospectus were rounded to the nearest whole number or tenth of a million (euro). As a result, figures shown as totals in some tables may not be the exact arithmetic aggregation of the rounded figures that precede them. Percentages cited in the text, however, were calculated using the actual values rather than the rounded values. Accordingly, in certain cases it is possible that the percentages in the text differ from percentages based on the rounded values.
Market and industry data and ratings
This Prospectus includes information regarding market share, market position and industry data for the Group’s lines of business, which consists of estimates based on data and reports compiled by third parties and on the Group’s knowledge of its sales and markets. Such third party sources include the Brick Industry Association (“BIA”) and the 2009 Corruption Perception Index issued by Transparency International. In many cases there is no readily available external information (whether from trade associations, government bodies or other organizations) to validate market-related analyses and estimates, requiring the Company to rely on internally developed estimates. The Company believes that such data are useful in helping investors understand the industry in which the Group operates and the Group’s position within the industry.
2 In addition, this Prospectus presents the Group’s credit ratings from Standard & Poor’s Rating Services, a division of The McGraw-Hill Companies, Inc. (“Standard & Poor’s”) and Moody’s Investors Service, Inc. (“Moody’s”).
The Company confirms that the information provided by third parties was accurately reproduced. So far as the Company is aware and was able to ascertain from information published by such third parties, no facts were omitted which would render the reproduced information inaccurate or misleading. However, the Company has not independently verified such data. Therefore, neither the Company nor the Managers assume any responsibility for the correctness of any market share, market position, industry or other data included in this Prospectus. In addition, while the Company believes its internal research to be reliable, such research was not verified by any independent sources.
DOCUMENTS AVAILABLE FOR INSPECTION
Copies of the following documents will be available at the Company’s registered office at Wienerberg City, Wienerbergstraße 11, A-1100 Vienna, Austria (Tel: +43 (1) 601 92 - 497), during usual business hours for as long as the Programme remains in effect or any Notes shall be outstanding:
• the Articles of Association of Wienerberger AG;
• the Consolidated Financial Statements, and
• the Prospectus, any document incorporated by reference therein and any Final Terms prepared in connection with the issue of Notes under the Programme.
These documents and any other information displayed on the Company’s website do not form a part of this Prospectus nor are they incorporated by reference in this Prospectus, unless explicitly otherwise stated in this Prospectus.
3 SUMMARY
The following summary must be read as an introduction to this Prospectus, and any decision to invest in the Notes issued under the Programme should be based on a consideration of this Prospectus as a whole, including the information and Documents Incorporated by Reference, the matters set out under “Risk Factors” and the relevant Final Terms. Civil liability attaches to those persons who have tabled this summary, including any translation thereof, and applied for its notification, but only if this summary is misleading, inaccurate or inconsistent when read together with the other sections of this Prospectus. Where a claim relating to the information contained in this Prospectus is brought before a court, a plaintiff investor might, under the national legislation of the relevant member state of the European Economic Area, have to bear the costs of translating this Prospectus and the relevant Final Terms before legal proceedings are initiated. In the event that such legal proceedings are initiated in an Austrian court, a German translation of the Prospectus and the relevant Final Terms will be required, and the costs thereof will have to be borne initially by the plaintiff investor and ultimately by the party held to be responsible in the legal proceedings.
Summary in respect of the Notes
Issuer ...... Wienerberger AG (the “Company”)
Arrangers and Dealers ...... Erste Group Bank AG, Raiffeisen Zentralbank Österreich Aktiengesellschaft
Paying Agent ...... Erste Group Bank AG
Specified Currencies ...... Notes may be issued in any currency agreed by the Issuer and the relevant Dealer(s) as specified in the applicable Final Terms.
Denominations of Notes ...... Notes will be issued in such denominations as may be agreed between the Issuer and the relevant Dealer(s) and as specified in the applicable Final Terms, save that the minimum denomination of the Notes will be EUR 1,000 (or nearly equivalent in another currency).
Form of Notes...... Notes may only be issued in bearer form. Notes will be represented by a modifiable global Note in bearer form, without interest coupons, in a principal amount equal to the aggregate principal amount of such Notes (“Modifiable Global Note”).
Notes in definitive form and interest coupons will not be issued.
Status of the Notes...... The Notes will constitute unsecured and unsubordinated obligations of the Issuer ranking pari passu among themselves and pari passu with all other unsecured and unsubordinated obligations of the Issuer.
4 Interest...... The Notes bear a fixed interest income throughout the entire term of the Notes. Interest will be payable on such basis as may be agreed between the Issuer and the relevant Dealer(s), as specified in the applicable Final Terms. The yield of the Notes will be calculated by using conventional methods. The relevant method will be specified in the applicable Final Terms.
Maturities ...... Such maturities as may be agreed between the Issuer and the relevant Dealer(s), as specified in the applicable Final Terms.
Redemption ...... Notes cannot be redeemed prior to their stated maturity (except for taxation reasons, in the course of purchases by the Issuer in the open market or otherwise, or upon the occurrence of an Event of Default).
Taxation...... Principal and interest shall be payable without deduction or withholding for or on account of any present or future taxes, duties or governmental charges of any nature whatsoever imposed, levied or collected by or on behalf of the country where the Issuer is resident or by or on behalf of any political subdivision or authority therein having power to tax (together “Withholding Taxes”), unless such deduction or withholding is required by law. In such event, the Issuer will, subject to the exceptions set out in the Terms and Conditions, pay such additional amounts as shall be necessary in order that the net amounts received by the Holders of the Notes after such withholding or deduction shall equal the respective amounts of principal and interest which would otherwise have been receivable in respect of the Notes in the absence of such withholding or deduction.
Negative Pledge...... The final Terms and Conditions of the Notes will contain a negative pledge provision as set out in the Terms and Conditions of the Notes.
Events of Default...... The final Terms and Conditions of the Notes will provide for events of default entitling Holders to demand immediate redemption of the Notes as set out in the Terms and Conditions of the Notes.
Cross Default...... The final Terms and Conditions of the Notes will provide for cross default provisions as set out in the Terms and Conditions of the Notes.
Change of Control ...... The final Terms and Conditions will contain a change of control clause.
Governing Law...... The Notes and all other documentation relating to the Programme are governed by Austrian law.
Jurisdiction ...... Exclusive place of jurisdiction for any legal proceedings arising under the Notes is Vienna to the extent possible under mandatory Austrian consumer protection laws.
5 Clearance and Settlement ...... Notes will be accepted for clearing through one or more Clearing Systems as specified in the applicable Final Terms. These systems include those operated by Clearstream Banking AG, Frankfurt am Main, (“CBF”), Clearstream Banking, société anonyme, Luxembourg, (“CBL”), Euroclear Bank S.A./N.V. (“Euroclear”) and Oesterreichische Kontrollbank Aktiengesellschaft (“OeKB”).
Listing and Admission to Trading ...... Application was made to list Notes to be issued under the Programme on the official list of the Luxembourg Stock Exchange and to admit to trading on the regulated market of the Luxembourg Stock Exchange. The Programme provides that Notes may be listed on other or further stock exchanges as may be agreed between the Issuer and the relevant Dealer(s) in relation to each issue. Notes may further be issued under the Programme which will not be listed on any stock exchange.
Available documents ...... Copies of the Prospectus, documents incorporated therein by reference and any Final Terms (if the respective Notes are listed on the official list of the Luxembourg Stock Exchange and are admitted to trading on the regulated market of the Luxembourg Stock Exchange) can be found on the website of the Luxembourg Stock Exchange (www.bourse.lu) and on the website of the Issuer (www.wienerberger.com) and are (in all cases) available free of charge, as well as the articles of incorporation of the Issuer, during normal business hours at the specified office of the Paying Agent(s).
Summary in respect of the Issuer
Issuer ...... Wienerberger AG with its registered seat in Vienna and its business address at Wienerberg City, Wienerbergstraße 11, A- 1100 Vienna, Austria, registered with the commercial register under FN 77676 f, is the holding company of the Wienerberger Group.
Organizational structure of the Group ...... The Group set up a geographic segmentation in order to reflect the Group’s regional focus which gives responsibility to local operating management for all core products manufactured within a country. The Group operates in the following five segments: Central-East Europe, Central-West Europe, North-West Europe and North America, each including all or part of the Group’s core operations (bricks, clay roof tiles and pavers) in the respective geographic areas, and Investments and Other which comprises the Group headquarters and related costs, the Wienerberger brick business in India and certain non-core activities of the Group.
6 Business of the Wienerberger Group ...... The Group’s core business is the manufacturing of products for use in masonry, for facades, roofs and paving. In these market segments, Wienerberger concentrates primarily on four product groups: clay blocks, facing bricks, clay and concrete roof tiles and clay and concrete pavers. Products are marketed under the Group’s brand name “Wienerberger” and the brands “Porotherm” and “Poroton” (Germany only) for clay blocks, “Terca” and “General Shale” for facing bricks and clay pavers, “Koramic” for clay roof tiles, “Semmelrock” for concrete pavers and “Arriscraft” for manufactured stone. In addition, the Group holds a 50% interest in a plastic pipe joint venture with Solvay, Pipelife International GmbH (“Pipelife”), a 25% interest in Tondach Gleinstätten AG, a clay roof tile producer (“Tondach Gleinstätten”) and a 50% interest in Bramac, a concrete tile producer (“Bramac”).
Wienerberger’s primary geographic areas of activity are Europe (excluding the Iberian Peninsula) and Northern America. As of December 31, 2009, the Group operated 227 plants in 27 countries with 11,646 employees. Wienerberger generated revenues of EUR 1,816.9 million and an operating EBITDA of EUR 208.6 million in 2009.
7 Summary consolidated financial data
The following information and data were extracted from, and are only a summary of, the Consolidated Financial Statements which are incorporated into this Prospectus by reference. Potential investors are encouraged to read the entire Prospectus, including the Consolidated Financial Statements and the other financial information included in the Prospectus.
Year ended December 31, 2009 2008 (audited, except as otherwise noted) (in EUR million)
Consolidated Statement of Income Data Revenues ...... 1,816.9 2,431.4 Cost of goods sold ...... (1,305.9) (1,585.6) Gross profit...... 511.0 845.8 Selling and administrative expenses ...... (510.4) (617.4) Other operating expenses...... (41.2) (35.7) Other operating income ...... 59.5 47.2 Operating profit before non-recurring items ...... 19.0 239.8 Costs, impairment charges and write-offs related to restructuring...... (153.7) (55.0) Impairment charges to goodwill ...... (123.3) (16.7) Addition to provision for an impending antitrust penalty...... 0.0 (10.0) Operating profit after non-recurring items...... (258.1) 158.1 Interest and similar income...... 20.9 41.0 Interest and similar expenses...... (58.7) (83.1) Other financial results including income from investments in associates ...... 0.3 7.1 Income taxes...... 36.9 (19.8) Profit after tax...... (258.7) 103.3 Thereof attributable to minority interest ...... (1.9) 3.4 Thereof share attributable to hybrid capital holders 32.5 32.5 Thereof attributable to equity holders...... (289.3) 67.5
Other Financial Data Operating EBITDA ...... 208.6 440.1 Operating EBIT ...... 19.0 239.8 Capital employed...... 2,816.8 3,252.2 Capital expenditure and acquisitions ...... 134.2 505.6 Earnings per share (in EUR)...... (3.17) 0.81 Adjusted earnings per share before impairment charges to goodwill and non- recurring items (in EUR) ...... (0.34) 1.69 Declared or paid dividend per share for the period (in EUR)...... 0.00 0.00 Group ROCE (unaudited)...... 0.2% 6.2% WACC...... 7.1% 7.0%
Consolidated Cash Flow Data Gross cash flow ...... 52.5 300.9 Cash flows from operating activities ...... 290.9 262.8 Cash flows from investing activities...... (111.5) (474.6) Cash flows from financing activities ...... 63.3 125.1
Consolidated Balance Sheet Data...... Non-current assets ...... 2,763.7 3,046.1 Current assets ...... 1,323.7 1,337.8 Total assets...... 4,087.4 4,383.9 Equity...... 2,547.0 2,497.2 Non-current provisions and liabilities...... 1,125.8 1,324.8 Current provisions and liabilities...... 414.6 561.9 Total equity and liabilities ...... 4,087.4 4,383.9
8
Summary of the risk factors
Before deciding to purchase the Notes issued under the Programme, investors should carefully consider certain risks. The trading price of the Notes could decline, the Company may not be able to fulfill its obligations under the Notes if any of these or other risks materialize and investors could lose all or part of their investment. These risks, which are presented in detail in the section “ Risk Factors ” below, include in particular:
Risks relating to the Notes
• Investors bear the risk of their investment decision.
• Market price risk: The price of the Notes may decline.
• Credit risk: The Issuer’s creditworthiness may deteriorate and the Issuer may become insolvent.
• An illiquid market for the Notes or a suspension of trading in the Notes could adversely affect the market price of the Notes.
• Holders of Notes denominated in foreign currencies are exposed to currency risks.
• Investors may not be able to reinvest their proceeds of the Notes at equal conditions.
• Transaction costs and fees may reduce the yield of the Notes.
• Investors have to rely on the Clearing System’s procedures to receive payments under the Notes.
• Ratings of Notes may not adequately reflect investment risks and may further be suspended, downgraded or withdrawn.
• The Issuer and the Dealers may engage in transactions which are not in the interest of noteholders or conflicts of interest may arise between the Issuer and the noteholders for other reasons.
• Investors may be required to pay taxes and other charges or duties.
• The Issuer discourages investors from financing their purchases of Notes by means of a loan.
• It may not be lawful for prospective investors to purchase the Notes.
Recent macroeconomic trends and associated risks
Risks relating to the industry
• The Group is subject to the cyclicality of the building materials industry, which is driven by a number of macroeconomic factors.
• The Group operates in a seasonal industry.
9 • Within its brick, roof tile and pavers activities, the Group competes with producers of brick substitute products and with other brick, roof tile and pavers manufacturers.
• The Group is subject to antitrust regulations and the risk of enforcement actions in each of the countries in which it operates, which could result in fines and/or other sanctions that may severely limit the Group’s ability to grow in certain markets and/or its ability to continue its ongoing operations in such markets at current levels.
Strategic risks relating to the Group’s business
• The Group’s cost cutting program may not result in the expected cost savings and cash flow increase.
• A goodwill impairment could have a significant impact on the Group’s income and equity.
• Economic, political, regulatory and local business risks associated with international sales and operations could adversely affect the Group’s business, particularly in Eastern Europe.
• The Company does not control some of the companies of which it is a shareholder and actions taken by such companies may not be aligned with the strategy and interests of the Group.
Operational risks
• The Group may experience a business interruption, production curtailment or loss of assets.
• Increased energy costs or energy supply disruptions could have a material impact on the Group’s results of operations.
Financial risks relating to the Group’s business
• The capital intensive nature of the Group’s business requires significant amounts of financing. In addition, the Group must comply with financial covenants contained in some of its credit agreements which limit its flexibility. Failure to obtain required financing and the necessity of compliance with financial covenants could impair the Group’s operations.
• Downgrades in the rating or a decline in the credit metrics of the Group, its inability to obtain new financing and covenants in existing financing agreements could increase refinancing costs and impair the Group’s liquidity and profitability.
• Because many of the Group’s subsidiaries operate in currencies other than the Euro, adverse changes in foreign exchange rates relative to the Euro could materially adversely affect the Group’s reported earnings and cash flow.
• A significant default by a financial institution counterparty or a customer may adversely affect the Group’s business, results of operations and financial condition.
• Movements in interest rates may increase the Group’s interest expense.
Geographical risks relating to the Group’s business
10 • Economic instability in the jurisdictions where the Group operates, in particular in Eastern and Southeastern Europe may adversely affect the Group’s business, results of operations and financial condition.
Risks related to the environment
• The Group is subject to stringent environmental and health and safety laws, regulations and standards which result in costs related to compliance and remediation efforts that may adversely affect the Group’s business, results of operations and financial condition.
• Changes in building laws, regulations and standards could materially adversely affect the Group’s business, results of operations and financial condition.
• Changes in the European Union emissions trade certificate regulations and other local emissions allowance systems could lead to reduced free emissions allocations and limited free transferability of emissions allowances and would increase the Group’s production costs.
11 RISK FACTORS
Prospective investors should carefully review the following risk factors in conjunction with the other information contained in this Prospectus before making an investment in the Notes issued under the Programme. If these risks materialize, individually or together with other circumstances, they may have a material adverse effect on the Wienerberger Group’s business, results of operations and financial condition. In the Group’s opinion, the risks described below are the most significant risks of which it is currently aware, but the list does not purport to be exhaustive, and the risks described are not the only risks to which the Group is exposed. Additional risks not currently known to the Group or that it currently believes are immaterial may also adversely affect its business, results of operations and financial condition. Should any of these risks materialize, the trading price of the Notes could decline, the Company may not be able to fulfill its obligations under the Notes and investors could lose all or a part of their investment. The order in which the individual risks are presented does not provide an indication of the likelihood of their occurrence nor of the severity or significance of the individual risks.
Risks relating to the Notes
Investors bear the risk of their investment decision.
Potential investors in Notes issued under the Programme must determine the suitability of such investment in the light of their own circumstances, in particular their financial resources, investment expectations, knowledge and experience in financial and business matters and the long-term commitment regarding the invested capital. Each investor should consult a professional adviser regarding the risks associated with the Notes before making an investment decision.
Market price risk: The price of the Notes may decline.
The development of the market prices of the Notes depends on various factors, such as changes of market interest rate levels, the policies of central banks, overall economic developments, inflation rates, the lack of or excess demand for the relevant type of Notes, market liquidity and the time remaining to the maturity date. The holders of Notes are therefore exposed to the risk of an unfavourable development of the market prices of their Notes which materializes if the holders sell the Notes prior to the final maturity of such Notes. If a noteholder decides to hold the Notes until final maturity, the Notes will be redeemed at the amount set out in the relevant Final Terms.
Credit risk: The Issuer’s creditworthiness may deteriorate and the Issuer may become insolvent.
The Issuer’s creditworthiness has a significant effect on the development of the market price of the Notes. If the Issuer’s creditworthiness deteriorates, this may result in declining market prices of the issued Notes and, consequently, losses for noteholders, who sell the Notes prior to the final maturity.
In case of insolvency, the Issuer may not be able to fulfill its obligations under the Notes and investors could lose all or a part of their investment. The Notes are not covered by the statutory bank deposit insurance scheme.
An illiquid market for the Notes or a suspension of trading in the Notes could adversely affect the market price of the Notes.
Application was made to list the Programme on the official list of the Luxembourg Stock Exchange and to admit the Programme to trading on the regulated market of the Luxembourg Stock Exchange. Regardless of whether the Programme and the Notes to be issued under the Programme are listed or not, there can be no assurance that a liquid secondary market for the Notes will develop or, if it does develop, that it will continue. In an illiquid market, investors might not be able to sell their Notes at any time at fair market prices. The possibility to sell the Notes might additionally be restricted by country- specific impediments.
Furthermore, the CSSF is authorized to suspend or request the relevant regulated market on which
12 securities are admitted to trading to suspend such securities from trading due to various reasons (e.g. if, in its opinion, the respective issuer’s situation is such that continued trading would be detrimental to the investors’ interest). The CSSF is further authorized to instruct the Luxembourg Stock Exchange to suspend trading in an issuer’s securities in connection with measures taken against market manipulation and insider trading. The Luxembourg Stock Exchange must suspend trading in securities which no longer comply with the rules of the regulated market unless such step would likely cause significant damage to investors’ interests or the orderly functioning of the market. If the Luxembourg Stock Exchange does not do so, the CSSF could demand the suspension of trading in securities if it is in the interest of the orderly functioning of the market and does not impair investors’ interests. Any suspension of trading in the Notes could adversely affect the price of the Notes.
Holders of Notes denominated in foreign currencies are exposed to currency risks.
A holder of a Note denominated in a foreign currency is exposed to the risk of changes in currency exchange rates which may affect the yield of such Note. A change in the value of any foreign currency against the Euro, for example, will result in a corresponding change in the Euro value of a Note denominated in a currency other than Euro. If the underlying exchange rate falls and the value of the Euro correspondingly rises, the price of the Note expressed in Euro falls. In addition, government and monetary authorities may impose (as some have done in the past) exchange controls that could adversely affect an applicable currency exchange rate. As a result, investors may receive less interest or principal than expected, or no interest or principal at all.
Investors may not be able to reinvest their proceeds of the Notes at equal conditions.
In case of sales before maturity, redemption at maturity or early redemption of the Notes, there is no assurance that investors are able to reinvest the proceeds in comparable Notes with an at least equal yield. The same applies to interest payments.
Transaction costs and fees may reduce the yield of the Notes.
Purchasing, depositing and selling Notes can cause commissions, fees and other transaction costs. The cost burden can substantially reduce the yield of the Notes and may, in case of small transaction values, be above-average. Potential investors are advised to inform themselves about such costs before purchasing or selling Notes.
Investors have to rely on the Clearing System’s procedures to receive payments under the Notes.
The Notes are represented by a Global Note, which is kept in custody by or on behalf of the Clearing System (OekB, CBF, CBL or Euroclear). The Clearing System will settle purchases and sales of the Notes and maintain records of the beneficial interests in the Global Notes. Noteholders will only be able to trade their beneficial interest through and receive payments via the Clearing System. As a consequence, noteholders have to rely on the Clearing System’s procedures for transfer, payment and communication with the Issuer to receive payments under the Notes. The Issuer has no responsibility or liability for the records relating to, or payments made in respect of, beneficial interests in the Global Notes.
Ratings of Notes may not adequately reflect investment risks and may further be suspended, downgraded or withdrawn.
A rating of Notes, if any, may not adequately reflect all risks of the investment in such Notes. Equally, ratings may be suspended, downgraded or withdrawn. Such suspension, downgrading or withdrawal may have an adverse effect on the market value and trading price of the Notes. A credit rating is not a recommendation to buy, sell or hold securities and may be revised or withdrawn by the rating agency at any time.
13 The Issuer and the Dealers may engage in transactions which are not in the interest of noteholders, or conflicts of interest may arise between the Issuer and the noteholders for other reasons.
The interests of the Issuer and the noteholders are not identical and future transactions of the Issuer directly or indirectly affecting the Notes (e.g. further debt emissions) may have a negative influence on the development of the Notes’ trading price. The Issuer is not obliged to notify the noteholders of such transactions and therefore advises noteholders to keep themselves informed on trading price developments.
In addition, certain of the Dealers and their affiliates have engaged, and may in the future engage, in investment banking and/or commercial banking transactions and may perform services for the Issuer and its affiliates in the ordinary course of business, which may also affect the Notes.
Investors may be required to pay taxes and other charges or duties.
Potential investors of the Notes should be aware that they may be required to pay taxes or other documentary charges or duties in accordance with the laws and practices of the country where the Notes are transferred to or other jurisdictions and should consult their own independent tax advisers, if they are in any doubt as to their tax position.
The Issuer discourages investors from financing their purchases of Notes by means of a loan.
Current payments under the Notes may be below any possible loan interest rates. There is no assurance that the yield or the redemption price of the Notes will be sufficient to pay back loan obligations (including interest). Purchases of Notes financed by loans substantially increase the risk of losses and are generally to be discouraged.
It may not be lawful for prospective investors to purchase the Notes.
Neither the Issuer, the Dealers nor any of their respective affiliates has or assumes responsibility for the lawfulness of the acquisition of the Notes by a prospective purchaser, under the laws of the jurisdiction of its incorporation or the jurisdiction in which it operates, or its compliance with any applicable laws, regulation or regulatory policy. A prospective purchaser may not rely on the Issuer, the Dealers or any of their respective affiliates in connection with its determination as to the legality of its acquisition of the Notes.
Recent macroeconomic trends and associated risks
The financial crisis that followed the breakdown of the U.S. sub-prime mortgage market in summer 2007 led to a worldwide economic downturn. In 2009, the downward movement in economic growth continued in the Group’s main markets – with a large number of countries being affected by a recession – and, consequently, an increase in unemployment and inflation. Growth, if any, is expected to remain weak in most of these countries in 2010 and the recessionary economic climate may have a continuing adverse effect on the worldwide economic development.
The uncertain economic environment and negative developments in the housing market have resulted in a significant decline in the Group’s sales and earnings in 2008 and 2009. The Group cannot exclude the continuation of this negative trend or that further negative events may unfold in connection with the ongoing global economic downturn. In addition, the construction sector has been facing ongoing declines in residential housing construction activity, which is the fundamental driver of demand for the Group’s products. The adjustment process is particularly acute in those countries which experienced the largest housing market downturns following the credit boom years, such as the United States and the United Kingdom.
As a result, the Group may face a further decrease in demand for its products, which, combined with high fixed costs, may result in overcapacities and declining margins. These factors if they materialize, are likely to have a material adverse effect on the Group’s business, results of operations and financial
14 condition.
Risks relating to the industry
The Group is subject to the cyclicality of the building materials industry, which is driven by a number of macroeconomic factors.
The Group operates in the cyclical building materials industry, which is affected by the level of construction activity, including residential housing construction and renovation, as well as other trends, which in turn are influenced by a number of factors beyond the Group’s control, including:
• performance of national economies in the 27 countries in which the Group operates, as well as the markets into which the Group exports its products;
• policies of transnational institutions, such as the European Commission or the European Central Bank, that influence the performance of national economies in many of the countries in which the Group operates;
• monetary and other government policies in each of the countries in which the Group operates that have the effect of encouraging or discouraging residential housing construction, such as long-term interest rates, tax policies, policies encouraging labor mobility and migration, availability of financing, subsidies, and safety regulations that encourage and/or discourage the use of certain materials and products; and
• the level of demand in residential construction activity, which in turn is influenced by macroeconomic factors, demographic trends and consumer confidence.
Unfavorable developments with respect to any or all of these factors can have a significant impact on the demand for the Group’s products, both in terms of decreased volumes and price levels.
Because the building materials industry is cyclical, periods of high demand are typically followed by downturns. As the building materials industry is characterized by a high fixed cost base, a decrease in volumes and resulting overcapacities and/or a decrease in prices can have a highly negative impact on the Group’s operating margins and earnings. The U.S. market has been experiencing a sharp decline in residential construction activity, which began in 2005 and which has been exacerbated by the financial and economic crisis. The European markets were hit by the economic downturn in late 2007 with recessionary trends continuing to persist. These conditions have resulted in declining sales volumes and prices and overcapacities in some markets, and have negatively affected the Group’s operations. The current production overcapacities could lead to price pressure in some or all of the Group’s markets should demand for bricks and roof tiles not recover to increase capacity utilization in the medium term. Even if performance in these markets improves, prices and sales volumes might not recover to their historic levels.
There can be no assurance that additional and/or continuing economic slowdowns in markets important to the Group’s operations will not have an increasingly negative impact on the Group’s business, results of operations and financial condition.
The Group operates in a seasonal industry.
The building materials industry in general and the brick and roof tile industries in particular, are subject to seasonal fluctuations in sales, with greater sales volume occurring during the main construction season from May through October. The Group’s revenues tend to correspond to such seasonal variation, with higher revenues in the second and third quarters and with inventory build-up and increased working capital in the first and fourth quarters. In addition, severe adverse weather conditions such as rain, extreme cold or snow can reduce demand by disrupting or curtailing outdoor construction activity or render transport or delivery of the Group’s products to its customers impossible, thus materially affecting the Group’s sales volumes and, consequently, its results of operations.
15 Within its brick, roof tile and pavers activities, the Group competes with producers of brick substitute products and with other brick, roof tile and pavers manufacturers.
Bricks compete with other building products that the Group does not produce. Facing bricks compete with other materials that can be used for the cladding of a house, such as vinyl, plasters, renders, wood, stucco, natural stone, aluminum siding, glass and other materials, depending on local traditions, available raw materials, local taste and the price of substitute products. Furthermore, the Group’s success in the facing brick markets depends in part on its ability to anticipate and respond to changing fashion trends and consumer preferences in a timely manner. Accordingly, any failure by the Group to identify and respond to emerging trends could materially adversely affect consumer acceptance of the Group’s facing brick products. Clay blocks compete with other products in a broader market for materials used in the construction of load-bearing walls and non load-bearing inner walls. Possible substitute products include aerated concrete blocks, prefabricated concrete panels, cast concrete, calcium silicate and timber, depending on local traditions, available raw materials, the price of substitute products and, significantly, technical characteristics such as thermal and sound insulation, load-bearing capacity, frost protection and water proofing capacity, the specifications for which are often mandated by local, national and EU regulations. More generally, buildings constructed with bricks also compete with prefabricated houses. In addition to competition from producers of brick substitute products, the Group continually faces competition by other brick, roof tile and pavers manufacturers in the markets in which it operates. Most of the brick manufacturers that compete with the Group are local in nature. The primary competitive factors are product range, technical properties, price, quality, manufacturing flexibility, availability, delivery time, logistics and customer service. The relative importance of these factors depends on the characteristics of particular products and particular markets.
In its roofing operations, the Group faces competition from manufacturers of substitute products as well as other clay and concrete roof tile producers. Roof tiles are used only for pitched roofs and are not suited for flat roofs. Therefore, to the extent flat roofs become more popular in any of the Group’s markets, the demand for roof tiles would likely decrease. With respect to pitched roofs, clay and concrete roof tiles compete with substitute products such as fiber cement slates, natural slates, metal coverings and other products. In Belgium, The Netherlands, France, Germany, Poland and Switzerland, the Group produces only clay roof tiles. In these markets, the trend is generally in favor of clay products. However, there is a risk that clay roof tiles will be substituted with, e.g. natural slates, fiber cement slates and metal coverings. In Austria and Eastern Europe, the Group manufactures clay and concrete roof tiles. Substitute products could gain significant market shares from clay or concrete roof products, which would materially adversely affect the Group’s business, results of operations and financial condition.
In its paving operations, the Group faces competition from manufacturers of substitute products as well as other clay and concrete pavers producers. Wienerberger produces pavers as clinkers made of clay or concrete and slabs. These materials are used by homeowners as well as in public areas. Therefore, to the extent other materials (e.g. asphalt, wood, pebble) become more popular in these areas in any of the Group’s markets, the demand for pavers would likely decrease.
Any significant replacement of the Group’s building products in key markets by substitutes which the Group does not produce could materially adversely impact the Group’s market share and results of operations in these markets. Competitive pressures, including industry overcapacity, could lead to pricing pressures in the Group’s markets. Both could materially adversely affect the Group’s business, results of operations and financial condition.
The Group is subject to antitrust regulations and the risk of enforcement actions in each of the countries in which it operates, which could result in fines and/or other sanctions that may severely limit the Group’s ability to grow in certain markets and/or its ability to continue its ongoing operations in such markets at current levels.
The relevant antitrust authorities may qualify the Group’s position in some of its markets a dominant market position. Consequently, competition proceedings could be brought by one or more antitrust
16 authorities in one or more countries in which the Group operates. Such proceedings, if brought, could result in an order that levies a substantial fine against the certain affiliates and/or requires the Group to dispose of profitable operations. As a result, an enforcement action by antitrust authorities in one of the countries that contribute a relatively high percentage of the Group’s earnings may have a material adverse effect on the Group’s results of operations and its financial condition. For additional information regarding ongoing antitrust investigations to which the Group is subject, please see “Business—Legal proceedings and investigations ”.
In some of its current markets, including certain Eastern European markets, limitations imposed by antitrust laws might prevent the Group from achieving growth through projects which the Group at present due to cost cutting programs pursues only selectively. There can be no assurance that the antitrust authorities in the countries in which the Group operates or seeks to grow through selective projects, including the European Commission, will support the Group’s relevant market definition. Inability to grow through acquisitions due to antitrust law limitations may have a material adverse effect on the Group’s prospects.
Strategic risks relating to the Group’s business
The Group’s cost cutting program may not result in the expected cost savings and cash flow increase.
While in the past the Group pursued a growth strategy and made considerable investments in acquisitions and greenfield projects, the Group’s growth program was suspended in summer 2008 in response to reduced demand and negative forecasts for the housing market. In order to limit capital expenditures to maintenance investments, no new expansion projects were initiated and only those that are already in progress will be completed. Furthermore, the Group closed 27 plants and shut down 11 production lines on a temporary basis in summer 2008 and implemented a cost reduction program to reduce administrative and selling expenses. The costs for these measures totaled EUR 55 million in 2008, of which EUR 33 million represented cash costs and EUR 22 million special write-downs. In 2009, the Group continued its restructuring program by shutting down or mothballing 31 plants. These measures lead to restructuring costs of EUR 154 million (EUR 101 million write-downs, EUR 53 million cash costs) in 2009. Additionally, the Group cut its capital expenditure to a minimum, i.e. EUR 134 million in 2009, and reduced its working capital requirements. A reduction in inventories released approximately EUR 175 million in 2009.
Failure by the Group to achieve the expected cost savings and cash flow increase could adversely affect its ability to adapt to the reduced market environment and could have a material adverse effect on the Group’s results of operations. In addition, if the Group incorrectly estimates the timing or the extent of a potential recovery in the construction market, the delayed re-opening of closed or mothballed plants may result in an under-investment in the Group’s business. As a result, the Group may not have sufficient capacity to take advantage of future growth opportunities and may lose out to competition.
A goodwill impairment could have a significant impact on the Group’s income and equity.
An acquisition generates goodwill to the extent that the price paid by Wienerberger exceeds the fair value of the net assets acquired. The Group’s acquisitions in recent years generated substantial goodwill. Additional goodwill may arise as a result of further acquisitions. Under IFRS, goodwill and indefinite-lived intangible assets are not amortized but are subject to impairment tests annually or more frequently if warranted.
A goodwill impairment does not affect cash flow. However, a full write-down of goodwill on December 31, 2009 would have resulted in a charge to income and reduction in equity of approximately EUR 576 million. Downturns on sales and profitability can trigger impairment testing and lead to impairment charges: In 2009, the results of impairment tests indicated a need for impairment charges of EUR 123 million to goodwill.
17 Economic, political, regulatory and local business risks associated with international sales and operations could adversely affect the Group’s business, particularly in Eastern Europe.
The Group operates mainly in the European Union, countries in Eastern Europe outside the European Union, the United States and Canada. The economies of these countries are in different stages of socioeconomic development. As a result, the Group’s future results could be materially affected by a variety of factors, including:
• changes in a specific country’s or region’s political or economic conditions, particularly in the Eastern and Southeastern European markets in which the Group operates;
• potentially negative consequences from changes in tax laws;
• tightening of labor regulations;
• difficulty in managing international operations because of geographic distances as well as language and cultural differences;
• changes in regulatory requirements (including those affecting the use of raw materials, product requirements, environmental or safety and health standards or regulations regarding taxation of energy); and
• state-imposed restrictions on repatriation of profits, whether through tax policies or otherwise.
The Group’s overall performance as a global business depends, in part, upon its ability to succeed in these differing and sometimes fast-changing economic, regulatory, social and political environments.
The Company does not control some of the companies of which it is a shareholder and actions taken by such companies may not be aligned with the strategy and interests of the Group.
The Company does not have a controlling interest in some of the companies through which it conducts its business and may make future investments in companies in which it will not have a controlling interest. Some key matters, such as the approval of business plans and the timing and amount of cash distributions, require the consent of the other shareholders or may be approved by the other shareholders without the consent of the Company. Consequently, the strategy of such companies may not always be aligned with the Group’s interests. These and other limitations arising from investments in businesses the Company does not control may prevent the Company from achieving its objectives for these investments.
Operational risks
The Group may experience a business interruption, production curtailment or loss of assets.
Due to the high fixed-cost nature of the building materials business, interruptions in production at any facility may cause the productivity and results of operations to decline significantly during the affected period. The manufacturing processes of producers of building materials and related services are dependent upon critical pieces of equipment such as kilns, extruders, drying chambers, grinders and others. On occasion, this equipment may be out of service as a result of strikes, unanticipated failures, accidents or force majeure events. In addition, there is a risk that equipment or production facilities may be damaged or destroyed by such events.
Increased energy costs or energy supply disruptions could have a material impact on the Group’s results of operations.
The cost of energy used in the production of bricks and roof tiles represents a high percentage of the Group’s cost structure. In 2009, energy costs for the Group totaled EUR 259 million, or 14.3% of the Group’s revenues, and comprised primarily costs of natural gas and electricity. Any significant increase
18 in the market prices for these sources of energy would increase the Group’s operating costs and may negatively affect the Group’s results of operations, as the Group may not be in a position to pass the increased costs on to customers through price increases. The Group can hedge its exposure to energy price risk only partly as some markets are still regulated with regard to price levels. Since 2000, the Group’s results of operations have been negatively affected by significant increases in the price of natural gas and electricity. In addition, as electricity prices are expected to be liberalized in certain markets in which the Group operates, such as Eastern Europe, higher energy costs may continue to negatively affect the Group’s results of operations. Furthermore, energy supplies are subject to disruption in connection with blackouts and other occurrences, such as the suspension of Russian gas deliveries in January 2009. An interruption in gas supply may result in production shortfalls and could have a material adverse effect on the Group’s results of operations.
Financial risks relating to the Group’s business
The capital intensive nature of the Group’s business requires significant financing. In addition, the Group must comply with financial covenants contained in some of its credit agreements which limit its flexibility. Compliance with financial covenants could impair the Group’s operations.
The building materials industry is capital intensive. In order to continue to be competitive, the Group needs modern plants and equipment, which involves substantial capital expenditures for maintenance and potential expansion on greenfield operations.
The Group has historically funded capital expenditures and acquisitions with internally generated cash flows, bank loans, senior and hybrid bonds, and proceeds from the sale of non-operating assets and, in a few instances, has financed acquisitions through the issuance of new shares. In the future, the Group intends to continue using these sources of financing subject to their availability. Should the Group be unable to finance its capital expenditures and acquisitions in the contemplated manner, the Group’s business, results of operations and financial condition could be materially adversely affected.
Downgrades in the rating or a decline in the credit metrics of the Group, its inability to obtain new financing and covenants in existing financing agreements could increase refinancing costs and impair the Group’s liquidity and profitability.
The Group’s long-term debt and issuer ratings were downgraded by Moody’s to Ba1 in June 2009, with a stable outlook since September 2009. Standard & Poor’s downgraded the Group’s long term debt and issuer ratings to BB in March 2010 and kept the negative outlook. Possible future downgrades in the financial rating of the Group could impair the Group’s ability to refinance and have a material adverse effect on the Group’s business, results of operations and financial condition.
A portion of the Group’s cash flow from operations is dedicated to the payment of interest on its indebtedness and will not be available for other purposes. If the Group’s credit metrics were to decline, the interest it pays under some of its credit facilities would increase, leading to an increase in the cost of additional financing that the Group may need, thereby negatively affecting the Group’s business, results of operations and financial condition.
The Group continues to depend on future financing and refinancing in the credit and capital markets and may not always be successful in securing such financing. Access to financing is dependent on a variety of financial, macroeconomic and other factors, which are beyond the Group’s control. It is possible that the Group’s liquid funds and existing undrawn committed lines of credit will not be sufficient to cover the Group’s refinancing and operational needs and that the Group will not obtain additional financing on favorable terms or at all.
Covenants contained in the Group’s financing arrangements (e.g. maximum leverage ratios, minimum net worth and interest cover ratios) could equally limit the Group’s ability to finance its future operations and capital needs. If the Group breaches such covenants and is unable to cure the breach or obtain a waiver from the lenders, it could be in default under the terms of the respective arrangement. A default under any single financing arrangement could result in a default under other financing
19 arrangements and could cause lenders under such other arrangements to accelerate such financing arrangements, in which case amounts under those arrangements would become due as well. In addition, in an event of default, the lenders under the Group’s credit lines could terminate their commitments to extend credit to it or cease making loans, and the Group could be forced into bankruptcy or liquidation. This would have an immediate material adverse effect on the Group’s liquidity and may have a material adverse effect on the Group’s business, results of operations and financial condition.
Because many of the Group’s subsidiaries operate in currencies other than the Euro, adverse changes in foreign exchange rates relative to the Euro could materially adversely affect the Group’s reported earnings and cash flow.
A significant portion of the Group’s revenues and expenses from subsidiaries originate in currencies other than the Euro from countries outside the Euro zone, including the United States, Canada, Poland, Hungary, Bulgaria, the Czech Republic, Croatia, Romania, Russia, Estonia, Denmark, Sweden, Norway, the United Kingdom and Switzerland. For the year ended December 31, 2009, approximately 43% of the Group’s revenues were denominated in currencies other than the Euro, predominantly the Eastern European currencies (22%) and the U.S. dollar (7%). As a result, adverse changes in the exchange rates used to translate foreign currencies into Euro, the Group’s reporting currency, may impact the Group’s results of operations or financial position as reported in Euro.
A significant default by a financial institution counterparty or a customer could adversely affect the Group’s business, results of operations and financial condition.
Cash deposits and other financial instruments held with or through financial institutions entail credit risk represented by the loss that would be recognized should the financial institution counterparty fail to perform as contracted. In addition, the Group faces credit risk in the normal course of business with customers who buy its products. The current economic and financial uncertainty has lead to an increase in credit risk due to the deterioration of creditworthiness of a number of financial institutions and customers. A significant default by the Group’s financial counterparties or customers could have a material adverse effect on the Group’s business, results of operations and financial condition.
Movements in interest rates may increase the Group’s interest expense.
Approximately 36% of the interest on the Group’s finance debt is indexed at a spread to benchmark rates such as the Europe Interbank Offered Rate, “Euribor”, and the London Interbank Offered Rate, “Libor”. Such variable interest rates are associated with the risk of increasing interest rates while the risk associated with fixed interest rates lies in a possible decline in interest rate levels. As of 2009, for example, a parallel upward shift of 100 basis points in interest rates would reduce profit after tax by approximately EUR 0.2 million. As a consequence, movements in interest rates can have a material impact on the Group’s interest expense in respect to its indebtedness and may have a material adverse effect on the Group’s results of operations and financial condition.
Geographical risks relating to the Group’s business
Economic instability in the jurisdictions where the Group operates, in particular in Eastern and Southeastern Europe may adversely affect the Group’s business, results of operations and financial condition.
The countries in Eastern and Southeastern Europe have political, economic and legal systems that are in different stages of transformation towards EU standards. Political or economic disruption or changes in laws and their application may harm the Group’s production sites and business activities. This may impair the value of these investments. In 2009, the Group generated 22% of its revenues in Eastern Europe, where risks of gross domestic product (“GDP”) volatility, foreign exchange instability, foreign exchange controls, inflation and political instability may be higher than in the more developed countries in which the Group operates.
Many European, but in particular Eastern European countries have been severely hit by the financial
20 market and economic crisis. As of yet, the Group cannot ascertain if and when the economy will recover again. Were any of the following factors, which have been characteristic for the economy in some or all states of Eastern and Southeastern Europe at various times during recent years, to recur, this could have a negative influence on the investment climate in Eastern Europe and may have a negative impact on the Group’s business, results of operations and financial condition:
• restrictions on transfers of hard currency outside of the countries within Eastern Europe;
• significant declines in the gross domestic product;
• high levels of inflation;
• unstable local currencies;
• high government debt relative to GDP;
• a weak banking system providing limited liquidity to domestic enterprises;
• significant use of barter transactions and illiquid promissory notes to settle commercial transactions;
• widespread tax evasion;
• growth of a black and grey market economy;
• pervasive capital flight;
• corruption and extensive penetration of organized crime into the economy;
• significant increases in unemployment and underemployment; and
• impoverishment of a large portion of the population.
Risks related to the environment
The Group is subject to stringent environmental and health and safety laws, regulations and standards which result in costs related to compliance and remediation efforts that may adversely affect the Group’s business, results of operations and financial condition.
The Group is subject to a broad and increasingly stringent range of environmental and health and safety laws, regulations and standards in the jurisdictions in which it operates. This results in significant compliance costs and exposes the Group to liability. Environmental claims or the failure to comply with any present or future regulations could result in the assessment of damages or imposition of fines against the Group, suspension of production or a cessation of operations. New regulations could require the Group to acquire costly equipment, refit existing plants or redesign products or to incur other significant expenses. The laws, regulations and standards relate to, among other things, air noise emissions, carbon dioxide (“CO 2”) emissions, sulfur flue gas emissions, waste water discharges, avoidance of soil and groundwater contamination, regulations on silica, the use and handling of hazardous materials, waste disposal practices and standards relating to construction materials.
Generally, many of the Group’s manufacturing sites have a history of industrial use: Soil and groundwater contamination occurred in the past at a limited number of sites. Such contamination might occur or be discovered at other sites in the future and the Group may face remediation liabilities and legal proceedings concerning environmental matters. As the Group expanded into the Eastern European countries, it both acquired and built plants on existing industrial sites. In many cases, very limited information, if any, was available with regard to environmental pollution on those sites.
21 The Group’s landfills (exhausted clay pits used as garbage disposal) in Austria, which were viewed as potentially presenting a risk, were sold to the ANC Privatstiftung (“ANC Foundation”), a private foundation. However, because laws and regulations may hold prior owners of property liable for discovered environmental damage, there can be no assurance that the Group will not be liable for remediation costs or potential future claims related to the real estate sold to the ANC Foundation. Other jurisdictions in which the Group operates provide for a legal obligation to recultivate exhausted clay pits. There can be no assurance that the Group’s recultivation provisions will be sufficient to cover all future costs, especially in some Eastern European countries where regulatory policy on recultivation is still evolving, so that provisions may need to be revised as local policy develops. Recultivation costs significantly exceeding established provisions might have a material adverse effect on the Group’s business, results of operations and financial condition.
The Group cannot predict environmental matters with certainty, and the Group’s budgeted amounts and established reserves may not be adequate for all purposes. In addition, the development or discovery of new facts, events, circumstances or conditions, including future decisions to close plants, which may trigger remediation liabilities, and other developments such as changes in law or increasingly strict enforcement could result in increased costs and liabilities, prevent or restrict some of the Group’s operations and have a material adverse effect on the Group’s business, results of operations and financial condition.
Changes in building laws, regulations and standards could materially adversely affect the Group’s business, results of operations and financial condition.
The Group is subject to a broad and increasingly stringent range of building laws, regulations and standards in the jurisdictions in which it operates. The laws, regulations and standards cover both the technical standards that need to be met and the procedures that need to be followed and relate to, among other things, structure, fire safety, toxic substances, ventilation, hygiene, drainage and waste disposal and electrical safety. This results in significant compliance costs and exposes the Group to liability. Additional legal requirements could be adopted in the future that would render compliance more burdensome. New regulations could require the Group to acquire costly equipment, refit existing plants or redesign products or to incur other significant expenses. The failure to comply with any present or future regulations or standards could result in the assessment of damages or imposition of fines against the Group or the loss of market shares. As a consequence, any change in building laws, regulations and standards could materially adversely affect the Group’s business, results of operations and financial condition.
Changes in the European Union emissions trade certificate regulations and other local emissions allowance systems could lead to reduced free emissions allocations and limited free transferability of emissions allowances and would increase the Group’s production costs.
The Group’s kilns produce substantial amounts of CO2, a gas believed to be partly responsible for the greenhouse effect. In most countries where the Group operates, regulations taxing or limiting CO 2 emissions have been enacted. Such regulations could increase the Group’s production costs resulting from the necessary purchase of emissions allowances or the implementation of emissions reduction measures or due to increased energy prices. Therefore, regulations on CO 2 could negatively impact the production cost of the Group’s plants, adversely affecting the Group’s business and results of operations. In January 2005, the European Union implemented an emissions trading system, under which any CO 2 emissions beyond the free allocation must be covered by additional CO 2 allowances that must be purchased from third parties. The national allocation plans for the second phase of the emissions trading system (2008-2012) foresee a reduction of emission allowances, which could lead to a significant underallocation of certificates to the Group. Beyond 2012, further reductions of allowances are expected and the allocation of allowances may no longer be free of charge. Unless the Group is able to pass the rise in costs on to its customers, a significant underallocation of certificates to the Group and/or the introduction of a fee for emission allowances might have a material adverse effect on the Group’s business, results of operations and financial condition.
22 GENERAL DESCRIPTION OF THE PROGRAMME
General
Under this EUR 500,000,000 Debt Issuance Programme, Wienerberger AG may from time to time issue notes (the “Notes”) to one or more of the Dealer(s) (as defined herein) in any currency agreed between the Issuer and the Dealer(s). The maximum aggregate principal amount of the Notes from time to time outstanding under the Programme will not exceed EUR 500,000,000 (or nearly equivalent in another currency). The Issuer may increase the amount of the Programme in accordance with the terms of the Programme Agreement from time to time.
The Notes will be issued in series (each a “Series ”). Each Series may be issued in tranches (each a “Tranche ”) being intended to be interchangeable with all other Notes of the same Series issued on the same or different issue dates. The specific terms of each Tranche (which will be supplemented, where necessary, with supplemental terms and conditions and, save in respect of the issue date, issue price, first payment of interest and principal amount of the Tranche, will be identical to the terms of other Tranches of the same Series) will be set out in the relevant Final Terms to this Prospectus (a “Final Terms ”). The Final Terms will be displayed on the website of the Luxembourg Stock Exchange (www.bourse.lu) (if the respective Notes are listed on the official list of the Luxembourg Stock Exchange and admitted to trading on the regulated market of the Luxembourg Stock Exchange).
Issue Procedure
General
The Issuer and the relevant Dealer(s) will agree on the terms and conditions applicable to each particular Tranche of Notes (the “Conditions ”). The Conditions will be constituted by the Terms and Conditions of the Notes set forth below (the “Terms and Conditions ”) as completed, modified, replenished or replaced by the provisions of the Final Terms (the “Final Terms ”). The Final Terms relating to each Tranche of Notes will specify:
− whether the Conditions are to be Long-Form Conditions or Integrated Conditions (each as described and defined below); and
− whether the Conditions will be in the German language or the English language or the German language and the English language (and, if both, whether the German language version or the English language version is controlling).
As to whether Long-Form Conditions or Integrated Conditions will apply, the Issuer anticipates that:
− Long-Form Conditions will generally be used for Notes sold on a non-syndicated basis and which are not publicly offered.
− Integrated Conditions will generally be used for Notes sold and distributed on a syndicated basis. Integrated Conditions will be required where the Notes are to be publicly offered, in whole or in part, or are to be distributed, in whole or in part, to non-professional investors.
As to the controlling language of the respective Conditions, the Issuer anticipates that, in general, subject to any stock exchange or legal requirements applicable from time to time, and unless otherwise agreed between the Issuer and the relevant Dealer:
− in the case of Notes sold and distributed on a syndicated basis, German will be the controlling language.
− in the case of Notes publicly offered, in whole or in part, in the Federal Republic of Germany (“Germany”) or in the Republic of Austria (“Austria”), or distributed, in whole or in part, to nonprofessional investors in Germany or Austria, German will be the controlling language. If, in the
23 event of such public offer or distribution to non-professional investors, however, English is chosen as the controlling language, a German language translation of the Conditions will be available from the principal offices of the Paying Agent and Wienerberger AG, as specified on the back cover of this Prospectus.
Long-Form Conditions
If the Final Terms specify that Long-Form Conditions are to apply to the Notes, the provisions of the applicable Final Terms and the Terms and Conditions, taken together, shall constitute the Conditions (the “Long-Form Conditions”). Such Conditions will be constituted as follows:
− the blanks in the provisions of the Terms and Conditions which are applicable to the Notes will be deemed to be completed by the information contained in the Final Terms as if such information were inserted in the blanks of such provisions;
− the Terms and Conditions will be modified, replenished or replaced by the text of any provisions of the Final Terms modifying, replenishing or replacing, in whole or in part, the provisions of the Terms and Conditions;
− alternative or optional provisions of the Terms and Conditions as to which the corresponding provisions of the Final Terms are not completed or are deleted will be deemed to be deleted from the Terms and Conditions; and
− all instructions and explanatory notes set out in square brackets in the Terms and Conditions and any footnotes and explanatory text in the Final Terms will be deemed to be deleted from the Terms and Conditions.
Where Long-Form Conditions apply, each global note representing the Notes of the relevant Series will have the Final Terms and the Terms and Conditions attached.
Integrated Conditions
If the Final Terms specify that Integrated Conditions are to apply to the Notes, the Conditions in respect of such Notes will be constituted as follows:
− all of the blanks in all applicable provisions of the Terms and Conditions will be completed according to the information contained in the Final Terms and all non-applicable provisions of the Terms and Conditions (including the instructions and explanatory notes set out in square brackets) will be deleted; and/or
− the Terms and Conditions will be otherwise modified, replenished or replaced, in whole or in part, according to the information set forth in the Final Terms (the “Integrated Conditions”).
Where Integrated Conditions apply, the Integrated Conditions alone will constitute the Conditions. The Integrated Conditions will be attached to each global note representing Notes of the relevant Series.
24 TERMS AND CONDITIONS OF THE NOTES
ANLEIHEBEDINGUNGEN TERMS AND CONDITIONS § 1 § 1 EMITTENTIN, GESAMTNENNBETRAG UND ISSUER, AGGREGATE PRINCIPAL STÜCKELUNG AMOUNT AND DENOMINATION Diese Serie von Schuldverschreibungen (die This Series of Notes (the “Notes”) of “Schuldverschreibungen”) der Wienerberger AG Wienerberger AG (the “Issuer”) is being issued (die “Emittentin”) wird in [EUR] im in [EUR] in the aggregate principal amount of Gesamtnennbetrag von [ Gesamtnennbetrag [insert aggregate principal amount ] (in words: einfügen ] (in Worten: [ Gesamtnennbetrag in [insert aggregate principal amount in words ]) Worten einfügen ]) in einer Stückelung von je in denominations of [ insert Specified [Festgelegte Stückelung einfügen ] (die Denominations ] (the “Specified “Stückelung”) gemäß diesen Anleihebedingungen Denomination”) pursuant to these terms and (die “Anleihebedingungen”) begeben. conditions (the “Terms and Conditions”).
§ 2 § 2 FORM, VERBRIEFUNG, CLEARINGSYSTEM FORM, REPRESENTATION, CLEARING UND ISIN SYSTEM AND ISIN (1) Inhaberschuldverschreibungen . Die (1) Bearer Notes . The Notes are being issued Schuldverschreibungen lauten auf den in bearer form. Inhaber. (2) Globalurkunde . Die Schuldverschreibungen (2) Global Note . The Notes are entirely werden zur Gänze durch eine veränderbare represented by a modifiable global note Globalurkunde (Sammelurkunde gemäß § 24 (global note pursuant to § 24 lit b Depot lit b Depotgesetz) (die “Globalurkunde”) Act) (the “Global Note”). The Global Note verbrieft. Die Globalurkunde ist von den shall be signed by the authorized Vertretern der Emittentin firmenmäßig representatives of the Issuer and shall be gezeichnet und ist von der gemäß diesen authenticated by the appointed Paying Anleihebedingungen bestellten Zahlstelle Agent. The right to have definitive Notes mit einer Kontrollunterschrift versehen. Der or interest coupons issued is excluded. Anspruch auf Ausfolgung einzelner Schuldverschreibungen oder einzelner Zinsscheine ist ausgeschlossen. (3) Clearing System . Die Globalurkunde wird (3) Clearing System . Each Global Note will be solange von einem oder im Namen eines kept in custody by or on behalf of the Clearingsystems verwahrt, bis sämtliche Clearing System until all obligations of the Verbindlichkeiten der Emittentin aus den Issuer under the Notes have been satisfied. Schuldverschreibungen erfüllt sind. “Clearing System” means [if more than “Clearingsystem” bedeutet [ bei mehr als one Clearing System insert: each of] the einem Clearingsystem einfügen: jeweils] following: [Clearstream Banking AG, folgendes: [Clearstream Banking AG, Frankfurt am Main] [Clearstream Banking, Frankfurt am Main] [Clearstream Banking, société anonyme, Luxembourg] [Euroclear société anonyme, Luxemburg] [Euroclear Bank S.A./N.V. Brussels, as operator of the Bank S.A./N.V. Brüssel, als Betreiberin des Euroclear System (Euroclear)] [Oester- Euroclear Systems (Euroclear)] [Oester- reichische Kontrollbank Aktiengesellschaft reichische Kontrollbank Aktiengesellschaft (OeKB)] [,] [and] [ specify other Clearing (OeKB)] [,] [und] [ anderes Clearingsystem System ] as well as each successor. angeben ] sowie jeder Funktionsnachfolger. (4) Anleihegläubiger . Den Inhabern der (4) Holder of Notes . The holders of Notes (the Schuldverschreibungen (die “Anleihe- “Holders”) hold proportionate co- gläubiger”) stehen Miteigentumsanteile an ownership interests in the Global Note, der Globalurkunde zu, die gemäß den which are transferable pursuant to the
25 Allgemeinen Geschäftsbedingungen der general terms and conditions of OeKB and OeKB und außerhalb der Republik outside of Austria exclusively pursuant to Österreich ausschließlich gemäß den the conditions of the Clearing System. Vorschriften des Clearingsystems übertragen werden können. (5) ISIN . Die Wertpapierkennnummer (5) ISIN . The ISIN Code (International (International Securities Identification Securities Identification Number or ISIN) Number oder ISIN) lautet [ISIN einfügen ]. is [ insert ISIN ]. § 3 § 3 STATUS STATUS
Die Schuldverschreibungen begründen nicht The obligations under the Notes constitute besicherte, unbedingte und nicht nachrangige unsecured, unconditional and unsubordinated Verbindlichkeiten der Emittentin, die untereinander obligations of the Issuer ranking pari passu und mit allen anderen gegenwärtigen oder among themselves and with all other present or künftigen nicht besicherten und nicht nachrangigen future unsecured and unsubordinated obligations Verbindlichkeiten der Emittentin gleichrangig sind, of the Issuer except for any obligations preferred mit Ausnahme von Verbindlichkeiten, die nach by mandatory law. geltendem zwingenden Recht vorrangig sind. § 4 § 4 NEGATIVVERPFLICHTUNG NEGATIVE PLEDGE
Solange Schuldverschreibungen ausstehen, So long as any Notes have not been redeemed,
(a) wird die Emittentin kein dingliches (a) the Issuer will not create or permit to Sicherungsrecht, keine Hypothek, subsist any mortgage, charge, Belastung, Verpfändung, oder eine pledge, lien or other form of andere Belastung oder Sicherungsrecht encumbrance or security interest (“Sicherheit”) über ihr Unternehmen, (“Security”) upon the whole or any gegenwärtiges oder zukünftiges part of its undertaking, assets or Vermögen oder Einkünfte, zur Gänze revenues present or future to secure oder teilweise, schaffen oder erlauben, any Relevant Debt, or any guarantee dass solche fortbestehen, um eine of or indemnity in respect of any Relevante Verbindlichkeit oder eine Relevant Debt, Garantie oder Schadloshaltungs- verpflichtung im Hinblick auf eine Relevante Verbindlichkeit zu sichern;
(b) wird die Emittentin dafür sorgen, dass (b) the Issuer will procure that no other niemand eine Sicherheit, über sein person creates or permits to subsist Unternehmen, gegenwärtiges oder any Security upon the whole or any zukünftiges Vermögen oder Einkünfte, part of the undertaking, assets or zur Gänze oder teilweise, schafft oder revenues present or future of that erlaubt, dass eine solche bestehen other person to secure (i) any of the bleibt, um (i) eine Relevante Issuer’s Relevant Debt or any Verbindlichkeit der Emittentin oder Material Subsidiary’s Relevant Debt, einer Wesentlichen Tochter- or any guarantee of or indemnity in gesellschaft, oder eine Garantie oder respect of any of the Issuer’s Schadloshaltungsverpflichtung im Relevant Debt or any Material Hinblick auf eine Relevante Subsidiary’s Relevant Debt, or (ii) Verbindlichkeit der Emittentin oder where the person in question is a einer Wesentlichen Tochtergesellschaft Material Subsidiary, any of the zu besichern, oder (ii) sofern die Relevant Debt of any person other
26 betroffene Person eine Wesentliche than that Material Subsidiary, or any Tochtergesellschaft ist, eine Relevante guarantee of or indemnity in respect Verbindlichkeiten einer Person, die of any such Relevant Debt and keine Wesentliche Tochtergesellschaft ist, oder eine Garantie von oder Schadloshaltungsverpflichtung für eine solche Relevante Verbindlichkeit, zu besichern, und
(c) wird die Emittentin dafür sorgen, dass (c) the Issuer will procure that no other niemand eine Garantie oder person gives any guarantee of, or Schadloshaltungserklärung für eine indemnity in respect of, any of its Relevante Verbindlichkeit abgibt, Relevant Debt,
außer, die Verpflichtungen der unless, at the same time or prior Emittentin aus den Schuldver- thereto, the Issuer’s obligations schreibungen werden gleichzeitig oder under the Notes (i) are secured bereits zuvor (i) in gleicher Weise und equally and rateably therewith or anteilsmäßig gesichert oder erhalten benefit from a guarantee or eine Garantie oder Schadloshaltungs- indemnity in substantially identical verpflichtung zu im wesentlichen terms thereto, as the case may be, or gleichartigen Konditionen, oder (ii) (ii) have the benefit of such other erhalten den Vorteil einer solchen security, guarantee or indemnity. anderen Sicherheit, Garantie oder Schadloshaltung.
“Wesentliche Tochtergesellschaft” bedeutet zu “Material Subsidiary” means, at any particular jeder Zeit eine Tochtergesellschaft der Emittentin, time, a Subsidiary of the Issuer (i) whose (i) deren Umsatzerlöse oder deren Gesamt- revenues (consolidated in the case of a vermögen (jeweils konsolidiert im Falle, dass eine Subsidiary which itself has Subsidiaries) or Tochtergesellschaft ihrerseits eine Tochter- whose total assets (consolidated in the case of a gesellschaft hat) nicht weniger als 5% der Subsidiary which itself has Subsidiaries) konsolidierten Gesamtumsatzerlöse bzw. des represent not less than 5% of the total konsolidierten Gesamtvermögens der Emittentin consolidated revenues or, as the case may be, zusammen mit ihren konsolidierten Tochter- consolidated total assets of the Issuer and its gesellschaften darstellen, wobei die jeweiligen consolidated Subsidiaries taken as a whole, all as Berechnungen mit Hinblick auf die, zum jeweiligen calculated respectively by reference to the then Zeitpunkt, zuletzt geprüften Jahresabschlüsse der latest audited accounts (consolidated or, as the Tochtergesellschaft (konsolidiert oder nicht case may be, unconsolidated) of the Subsidiary konsolidiert) und die zuletzt geprüften, and the then latest audited consolidated accounts konsolidierten Jahresabschlüsse der Emittentin und of the Issuer and its consolidated Subsidiaries, or ihrer konsolidierten Tochtergesellschaften (ii) to which is transferred the whole or durchgeführt werden, oder (ii) der der gesamte oder substantially the whole of the undertaking and im Wesentlichen der gesamte Betrieb und das assets of a Subsidiary of the Issuer which gesamte Vermögen einer Tochtergesellschaft der immediately before the transfer is a Material Emittentin übertragen wird, vorausgesetzt die Subsidiary. übertragende Tochtergesellschaft war zum Zeitpunkt der Übertragung ihrerseits eine Wesentliche Tochtergesellschaft.
“Relevante Verbindlichkeit” bedeutet jede “Relevant Debt” means any present or future gegenwärtige oder zukünftige Verbindlichkeit in indebtedness in the form of, or represented by, der Form von oder verkörpert durch Anleihen, bonds, notes, debentures, loan stock or other Schuldverschreibungen, Renten, securities which are for the time being, or are
27 Obligationsanleihen oder andere Wertpapiere, capable of being, quoted, listed or ordinarily welche zu diesem Zeitpunkt an einer dealt in on any stock exchange, over-the-counter Wertpapierbörse, außerbörslich oder in anderen or other securities market (for the avoidance of Wertpapiermärkten notieren oder ordentlich doubt, this does not include loans); and gehandelt werden oder ordentlich notieren oder gehandelt werden könnten (zur Klarstellung: dies beinhaltet nicht Kredite); und
“Tochtergesellschaft” bedeutet ein Unternehmen, “Subsidiary” means, at any particular time, a das zum jeweiligen Zeitpunkt mittelbar oder company which is then directly or indirectly unmittelbar unter beherrschendem Einfluss der controlled, or more than 50 per cent. of whose Emittentin steht oder dessen Nennkapital (oder issued equity share capital (or equivalent) is then gleichwertiges) zu mehr als 50% im beneficially owned, by the Issuer and/or one or wirtschaftlichen Eigentum des Emittenten und/oder more of its Subsidiaries. For a company to be einer oder mehrerer seiner Tochtergesellschaften “controlled” by another means that the other steht. Unter “beherrschendem Einfluss” eines (whether directly or indirectly and whether by anderen Unternehmens zu stehen bedeutet, dass das the ownership of share capital, the possession of andere Unternehmen (gleichgültig, ob mittelbar voting power, contract or otherwise) has the oder unmittelbar, durch Eigentum von Nennkapital, power to appoint and/or remove all or the durch den Besitz von Stimmrechten, vertraglich majority of the members of the Board of oder auf sonst andere Weise) das Recht hat, alle Directors or other governing body of that oder die Mehrheit der Vorstandsmitglieder oder company or otherwise controls or has the power eines anderen Leitungsorgans des beherrschten to control the affairs and policies of that Unternehmens zu ernennen und/oder sie company. abzuberufen, oder auf andere Weise beherrschenden Einfluss auszuüben, oder die Möglichkeit hat, die Angelegenheiten und Zielsetzungen des Unternehmens zu bestimmen.
§ 5 § 5 ZINSEN INTEREST
[(1) Zinssatz und Zinszahlungstage . Die [(1) Rate of Interest and Interest Payment Schuldverschreibungen werden bezogen auf Dates . The Notes shall bear interest on ihren Nennbetrag verzinst, und zwar vom their principal amount from (and [Verzinsungsbeginn einfügen ] (ein- including) [ insert Interest Commence- schließlich) bis zum Fälligkeitstag (wie in ment Date ] to (but excluding) the § 6(1) definiert) (ausschließlich) mit jährlich Maturity Date (as defined in § 6 (1)) at the [Zinssatz einfügen ]. Die Zinsen sind rate of [ insert Rate of Interest ] per cent nachträglich am [ Fixzinstermin(e) per annum. Interest shall be payable in einfügen ] eines jeden Jahres zahlbar (jeweils arrears on [insert Fixed Interest Date or ein Zinszahlungstag). Die erste Zinszahlung Dates ] in each year (each such date, an erfolgt am [ ersten Zinszahlungstag Interest Payment Date). The first payment einfügen ] [ sofern der erste Zins- of interest shall be made on [ insert First zahlungstag nicht der erste Jahrestag des Interest Payment Date ] [ if First Interest Verzinsungsbeginns ist, einfügen : und Payment Date is not first anniversary of beläuft sich auf [ die anfänglichen Interest Commencement Date insert : Bruchteilzinsbeträge je festgelegte and will amount to [insert Initial Broken Stückelung einfügen ].] [ Sofern der Amount for smallest Specified Fälligkeitstag kein Fixzinstermin ist, Denomination ]]. [ If the Maturity Date einfügen : Die Zinsen für den Zeitraum vom is not a Fixed Interest Date insert : [den letzten dem Fälligkeitstag Interest in respect of the period from vorausgehenden Fixzinstermin einfügen ] [insert Fixed Interest Date preceding (einschließlich) bis zum Fälligkeitstag the Maturity Date ] (inclusive) to the
28 (ausschließlich) belaufen sich auf [ die Maturity Date (exclusive) will amount to abschließenden Bruchteilzinsbeträge je [insert Final Broken Amount for festgelegte Stückelung einfügen ].] smallest Specified Denomination ].]
(2) Auflaufende Zinsen . Falls die Emittentin die (2) Accrual of Interest . If the Issuer fails to Schuldverschreibungen bei Fälligkeit nicht redeem the Notes when due, the Notes zurückzahlt, endet die Verzinsung der shall not cease to bear interest on the due Schuldverschreibungen nicht am Tag der date, but on the date when the principal Fälligkeit, sondern erst zu dem Zeitpunkt, an amount and interest from or in connection dem Kapital und Zinsen aus oder im with the Notes is made available to the Zusammenhang mit den Schuld- Clearing System. Interest shall continue to verschreibungen dem Clearingsystem zur accrue on the outstanding principal Verfügung gestellt worden sind. Die amount from the due date (inclusive) to Verzinsung des ausstehenden Nennbetrages the day on which the Notes are redeemed vom Tag der Fälligkeit an (einschließlich) (exclusive) at the statutory default rate bis zum Tag der Rückzahlung der established by § 1000 ABGB. Schuldverschreibungen (ausschließlich) erfolgt zum gesetzlich gemäß § 1000 ABGB festgelegten Satz für Verzugszinsen. (3) Berechnung der Zinsen für Teile von (3) Calculation of Interest for Partial Zeiträumen . Sofern Zinsen für einen Periods . If interest is required to be Zeitraum von weniger als einem Jahr zu calculated for a period of less than a full berechnen sind, erfolgt die Berechnung auf year, such interest shall be calculated on der Grundlage des Zinstagequotienten (wie the basis of the Day Count Fraction (as nachfolgend definiert). defined below).]
(4) Zinstagequotient . Zinstagequotient bedeutet (4) Day Count Fraction . Day Count Fraction die tatsächliche Anzahl der Tage im means the actual number of days in the relevanten Zeitraum ab dem letzt- relevant period from the preceding Interest vorangegangenen Zinszahlungstag (oder, Payment Date (or, if there is no preceding wenn es keinen solchen gibt, dem Interest Payment Date, the Issue Date) Emissionstag) (jeweils einschließlich) bis (each inclusive) to the relevant payment zum relevanten Zahltag (ausschließlich) date (exclusive) divided by the number of geteilt durch die Anzahl der Tage (365 bzw. days (365 or 366) in the period from the 366) im Zeitraum vom letzten preceding Interest Payment Date (or, if Zinszahlungstag (oder, wenn es keinen there is no preceding Interest Payment solchen gibt, dem Emissionstag) (jeweils Date, the Issue Date) (each inclusive) to einschließlich) bis zum nächstfolgenden the following Interest Payment Date Zinszahlungstag (ausschließlich) (exclusive) (Actual/Actual (ICMA)). (Actual/Actual (ICMA)). § 6 § 6 RÜCKZAHLUNG REDEMPTION (1) Rückzahlung bei Endfälligkeit . Soweit nicht (1) Redemption at Maturity . Unless zuvor bereits ganz oder teilweise previously redeemed in whole or in part or zurückgezahlt oder angekauft und entwertet, purchased and cancelled, the Notes shall werden die Schuldverschreibungen zu ihrem be redeemed at their Final Redemption Rückzahlungsbetrag am [ Festgelegten Amount on [ insert specified Maturity Fälligkeitstag einfügen ] (der “Fällig- Date ] (the “Maturity Date”). The Final keitstag”) zurückgezahlt. Der Rückzahlungs- Redemption Amount shall be its principal betrag entspricht dem Nennbetrag. Die amount. The Notes may not be redeemed Schuldverschreibungen können durch die at the option of the Issuer other than in Emittentin nur in Übereinstimmung mit accordance with this § 6. diesem § 6 zurückgezahlt werden.
29 (2) Rückzahlung aus steuerlichen Gründen . Die (2) Redemption for taxation reasons . The Schuldverschreibungen können jederzeit zur Notes may be redeemed at the option of Gänze, jedoch nicht teilweise, nach Wahl der the Issuer in whole, but not in part, at any Emittentin, mit einer Kündigungsfrist von time, on giving not less than 30 nor more nicht weniger als 30 und nicht mehr als 60 than 60 days’ notice to the Holders (which Tagen gegenüber den Schuldverschreibungs- notice shall be irrevocable), at their Early inhabern (mit unwiderruflicher Benach- Redemption Amount, if (i) the Issuer has richtigung) zum Vorzeitigen or will become obliged to pay additional Rückzahlungsbetrag zurückgezahlt werden, amounts as provided or referred to in wenn (i) die Emittentin verpflichtet ist oder § 9(1) as a result of any change in, or verpflichtet sein wird, zusätzliche Beträge, amendment to, the laws or regulations of wie in § 9(1) vorgesehen oder auf die in Austria or any political subdivision or any § 9(1) hingewiesen wird, zu bezahlen, sofern authority thereof or therein having power diese Zahlung das Ergebnis einer to tax, or any change in the application or Veränderung oder Abänderung von Gesetzen official interpretation of such laws or oder Rechtsvorschriften in Österreich oder regulations, and (ii) such obligation einer politischen Untereinheit oder einer cannot be avoided by the Issuer taking ihrer Behörden, welche die Befugnis hat, reasonable measures available to it. Steuern einzuheben, ist, oder eine Änderung in der Anwendbarkeit oder offiziellen Auslegung von solchen Gesetzen und Rechtsvorschriften erfolgt, und (ii) diese Verpflichtung durch die Emittentin nicht durch die Ergreifung von vernünftigen Maßnahmen, die ihr zur Verfügung stehen, abgewendet werden kann.
(3) Eine solche Benachrichtigung über die (3) No such notice of redemption shall be Rückzahlung soll nicht früher als 90 Tage given earlier than 90 days prior to the vor dem frühesten Termin, an dem die earliest date on which the Issuer would be Emittentin verpflichtet wäre, solche obliged to pay such additional amounts zusätzlichen Beträge zu bezahlen, erfolgen, were a payment in respect of the Notes falls eine Zahlung im Hinblick auf die then due. Schuldverschreibungen dann fällig ist.
(4) Vor der Veröffentlichung einer Bekanntgabe (4) Prior to the publication of any notice of der Rückzahlung gemäß diesem § 6 soll die redemption pursuant to this § 6, the Issuer Emittentin an die Zahlstelle eine von zwei shall deliver to the Paying Agent a zeichnungsberechtigten Vertretern der certificate signed by two authorized Emittentin unterzeichnete Bestätigung signatories of the Issuer stating that the liefern, in welcher festgehalten wird, dass Issuer is entitled to effect such redemption die Emittentin berechtigt ist, die and setting forth a statement of facts Rückzahlung durchzuführen und in der eine showing that the conditions precedent to Darstellung der Tatsachen enthalten ist, the right of the Issuer so to redeem have wonach die aufschiebenden Bedingungen im occurred, and an opinion of independent Hinblick auf das Recht der Emittentin, die legal advisers of recognised standing to Teilschuldverschreibungen zurückzuzahlen, the effect that the Issuer has or will eingetreten sind, sowie ein Gutachten eines become obliged to pay such additional unabhängigen anerkannten Rechtsanwalts amounts as a result of such change or dahingehend, dass die Emittentin verpflichtet amendment. ist oder sein wird, solche zusätzlichen Beträge als Ergebnis einer solchen Änderung oder Abänderung zu bezahlen.
Der “Vorzeitige Rückzahlungsbetrag” einer “Early Redemption Amount” of a Note shall be Schuldverschreibung entspricht dem the Final Redemption Amount, including interest
30 Rückzahlungsbetrag zuzüglich bis zum Tag accrued to the date (exclusive) of early (exklusive) der vorzeitigen Rückzahlung redemption. aufgelaufener Zinsen.
§ 7 § 7 ZAHLSTELLE PAYING AGENT
(1) Bestellung . Die anfänglich bestellte (1) The initial Paying Agent is: Zahlstelle lautet wie folgt: Erste Group Bank AG Erste Group Bank AG Graben 21 Graben 21 1010 Wien 1010 Vienna (2) Änderung der Bestellung oder Abberufung . (2) Variation or Termination of Appointment . Die Emittentin behält sich das Recht vor, The Issuer reserves the right at any time to jederzeit die Bestellung der Zahlstelle zu vary or terminate the appointment of the ändern oder zu beenden und eine andere Paying Agent and to appoint another Zahlstelle zu bestellen. Die Emittentin wird Paying Agent. The Issuer shall at all times zu jedem Zeitpunkt eine Zahlstelle maintain a Paying Agent [ in the case of unterhalten [ im Fall von Schuld- Notes listed on a stock exchange insert : verschreibungen, die an der Wiener Börse and so long as the Notes are listed on the notiert sind, einfügen : [und] solange die Luxembourg Stock Exchange], a Paying Schuldverschreibungen an der Luxemburger Agent with a specified office in the Börse notiert sind, eine Zahlstelle mit European Economic Area and/or in such bezeichneter Geschäftsstelle im other place as may be required by the Europäischen Wirtschaftsraum und/oder an rules of such stock exchange. Any solchen anderen Orten unterhalten, die die variation, termination, appointment or Regeln dieser Börse verlangen]. Eine change shall only take effect (other than in Änderung, Abberufung, Bestellung oder ein the case of insolvency, when it shall be of sonstiger Wechsel der Zahlstelle wird nur immediate effect) after not less than 30 wirksam (außer im Insolvenzfall, in dem nor more than 45 days’ prior notice eine solche Änderung sofort wirksam wird), thereof shall have been given to the sofern die Gläubiger hierüber gemäß § 14 Holders in accordance with § 14. vorab unter Einhaltung einer Frist von mindestens 30 und nicht mehr als 45 Tagen informiert wurden. (3) Beauftragte der Emittentin . Die Zahlstelle (3) Agents of the Issuer . The Paying Agent handelt ausschließlich als Beauftragte der acts solely as agent of the Issuer and does Emittentin und übernimmt keinerlei not have any obligations towards the Verpflichtungen gegenüber den Anleihe- Holders. No relationship of agency or trust gläubigern. Es wird kein Auftrags- oder shall be constituted between the Paying Treuhandverhältnis zwischen ihr und den Agent and the Holders. Anleihegläubigern begründet. § 8 § 8 ZAHLUNGEN PAYMENTS
(1) Zahlung von Kapital . Zahlungen von Kapital (1) Payment of Principal . Payment of auf die Schuldverschreibungen erfolgen nach principal in respect of Notes shall be Maßgabe des nachstehenden Absatzes (6) made, subject to paragraph (6) (Payment (Zahltag) an das Clearingsystem oder dessen Date), to the Clearing System or to its Order zur Gutschrift auf den Konten der order for credit to the accounts of the jeweiligen Kontoinhaber des Clearing- relevant account holders of the Clearing
31 systems. System.
(2) Zahlung von Zinsen . Die Zahlung von (2) Payment of Interest . Payment of interest Zinsen auf Schuldverschreibungen erfolgt on Notes shall be made, subject to nach Maßgabe von Absatz (6) (Zahltag) an paragraph (6) (Payment Date), to the das Clearingsystem oder dessen Order zur Clearing System or (if applicable) to its Gutschrift auf den Konten der jeweiligen order for credit to the relevant account Kontoinhaber des Clearingsystems. holders of the Clearing System.
(3) Zahlungsweise . Vorbehaltlich geltender (3) Manner of Payment . Subject to applicable steuerlicher und sonstiger gesetzlicher fiscal and other laws and regulations, Regelungen und Vorschriften erfolgen zu payments of amounts due in respect of the leistende Zahlungen auf die Notes shall be made in EUR. Schuldverschreibungen in EUR. (4) Erfüllung . Die Emittentin wird durch (4) Discharge . The Issuer shall be discharged Leistung von Zahlungen aus den by payment to, or to the order of, the Schuldverschreibungen an das Clearing Clearing System. A payment shall be System oder dessen Order von ihrer deemed in due time, if it is credited to the Zahlungspflicht befreit. Eine Zahlung aus account of the Paying Agent on the due den Schuldverschreibungen gilt als date. rechtzeitig, wenn sie am Fälligkeitstag auf dem Konto der bestellten Zahlstelle einlangt. (5) Depotführende Stelle . Die Gutschrift der (5) Custodian Bank . Principal and interest on Zins- und Tilgungszahlungen erfolgt über the Notes will be credited through the die jeweilige für den Inhaber der individual custodian banks of the Holders. Schuldverschreibungen depotführende Stelle. (6) Zahltag. Fällt der Fälligkeitstag einer (6) Payment Business Day . If the date for Zahlung in Bezug auf eine payment of any amount in respect of any Schuldverschreibung auf einen Tag, der kein Note is not a Payment Business Day then Zahltag ist, dann hat der Gläubiger keinen the Holder shall not be entitled to payment Anspruch auf Zahlung vor dem nächsten until the next such day in the relevant Zahltag am jeweiligen Geschäftsort. Der place. It shall not be entitled to further Gläubiger ist nicht berechtigt, weitere Zinsen interest or other payment in respect of oder sonstige Zahlungen aufgrund dieser such delay. Verspätung zu verlangen. Für diese Zwecke bezeichnet “Zahltag einen For these purposes, “Payment Business Tag” (außer einem Samstag oder Sonntag) Day” means a day (other than a Saturday an dem das Clearingsystem sowie alle or a Sunday) on which the Clearing betroffenen Bereiche des Trans-European System and all relevant parts of the Trans- Automated Real-time Gross Settlement European Automated Real-time Gross Express Transfer System (TARGET2) Settlement Express Transfer System betriebsbereit sind, um die betreffende (TARGET2) are operational to forward Zahlung abzuwickeln. the relevant payment.
§ 9 § 9 STEUERN TAXATION (1) Alle in Bezug auf die (1) All payments of principal and interest in Schuldverschreibungen an die Gläubiger respect of the Notes to the Holders shall zahlbaren Kapital- oder Zinsbeträge werden be made free and clear of, and without ohne Einbehalt oder Abzug an der Quelle für withholding or deduction for, any taxes, oder wegen gegenwärtiger oder zukünftiger duties, assessments or governmental Steuern, Abgaben oder Gebühren bzw. charges of whatever nature imposed,
32 Veranlagungen gleich welcher Art gezahlt, levied, collected, withheld or assessed by die von Österreich oder einer politischen or within Austria or any authority therein Untergliederung oder einer Steuerbehörde or thereof having power to tax, unless im Wege des Einbehalts oder des Abzugs such withholding or deduction is required auferlegt, einbehalten oder erhoben werden, by law. In that event, the Issuer shall pay es sei denn, ein solcher Einbehalt oder such additional amounts (the “Additional Abzug ist gesetzlich vorgeschrieben. In Amounts”) as shall result in receipt by the diesem Fall wird die Emittentin diejenigen Holders of such amounts as would have zusätzlichen Beträge (“Zusätzliche Beträge”) been received by them had no such zahlen, die erforderlich sind, damit die den withholding or deduction been required, Gläubigern zufließenden Nettobeträge nach except that no Additional Amounts shall diesem Einbehalt oder Abzug jeweils den be payable with respect to any Notes if: Beträgen an Kapital und Zinsen entsprechen, die ohne einen solchen Einbehalt oder Abzug oder Einbehalt von den Gläubigern erhalten worden wären; jedoch sind solche Zusätzlichen Beträge nicht zu zahlen, falls:
(a) diese auf andere Weise als durch (a) these are to be paid otherwise than Abzug oder Einbehalt an der Quelle by withholding or deduction at the aus Zahlungen auf die source of payments under the Notes; Schuldverschreibungen zu entrichten or sind; oder
(b) ein Gläubiger, der zur Republik (b) a Holder who has no relationship to Österreich eine andere aus steuerlicher the Republic of Austria other than Sicht relevante Verbindung hat, als den the mere holding of the Notes, and is bloßen Umstand, dass er Inhaber der thus liable to pay duties and taxes; or Schuldverschreibungen ist oder dies zum Zeitpunkt des Erwerbs der Schuldverschreibungen war, der Abgaben- oder Steuerpflicht unterliegt; oder
(c) diese gemäß § 95 Einkommensteuer- (c) these are being withheld in the gesetz in der Republik Österreich von Republic of Austria by a paying einer Zahlstelle einbehalten werden; agent pursuant to § 95 Austrian oder Income Tax Act (Einkommensteuer- gesetz ); or
(d) diese nicht zahlbar wären, wenn der (d) these were not payable had the Anleihegläubiger den Anspruch auf die Holder duly claimed the respective betreffende Zahlung von Kapital oder payment of principal or interest Zinsen ordnungsgemäß innerhalb von within 30 days after the maturity 30 Tagen nach dem jeweiligen date of the respective payment was Fälligkeitstag geltend gemacht hätte; due; or oder (e) diese nach Zahlung durch die (e) these are withheld or deducted after Emittentin im Rahmen des Transfers an payment by the Issuer in the course die jeweiligen Gläubiger abgezogen of the transfer to the relevant Holder; oder einbehalten werden; oder or
(f) diese aufgrund eines (f) these could be reclaimed pursuant to Doppelbesteuerungsabkommens oder a double taxation treaty or the fiscal den Steuergesetzen der Republik laws of the Republic of Austria or be Österreich rückerstattbar wären oder dischargeable at the source due to
33 aufgrund gemeinschaftsrechtlicher community law (EU) provisions; or Bestimmungen (EU) an der Quelle entlastbar wären; oder
(g) diese aufgrund oder infolge eines (g) these are imposed or levied pursuant internationalen Vertrages, dessen Partei to or as a consequence of an die Republik Österreich ist oder einer international treaty to which the Verordnung oder Richtlinie aufgrund Republic of Austria is a party or a oder infolge eines solchen regulation or a directive on the basis internationalen Vertrages auferlegt of or as a consequence of such oder erhoben werden; oder international treaty; or
(h) diese von einer auszahlenden Stelle (h) these were withheld or deducted by a aufgrund der vom Rat der disbursement agent pursuant to Europäischen Union am 3. Juni 2003 Council Directive 2003/48/EC of erlassenen Richtlinie im Bereich der June 3, 2003 on the taxation of Besteuerung von Zinserträgen savings income in the form of (Richtlinie 2003/48/EG des Rates) interest payments or due to statutory einbehalten oder abgezogen wurden, or administrative provisions enacted oder aufgrund von Rechts- und for the implementation of this Verwaltungsvorschriften, welche zur directive; or Umsetzung dieser Richtlinien erlassen wurden; oder
(i) diese von einer auszahlenden Stelle (i) these are withheld or deducted by a einbehalten oder abgezogen werden, disbursement agent, if such payment wenn die Zahlung von einer anderen could have been effected by another auszahlenden Stelle ohne den Einbehalt disbursement agent without such oder Abzug hätte vorgenommen withholding or deduction; or werden können; oder
(j) ihnen ein Gläubiger nicht unterläge, (j) these would not have to be paid by a sofern er zumutbarerweise Steuer- Holder if it could have obtained tax freiheit oder eine Steuererstattung oder exemption, tax restitution or tax eine Steuervergütung hätte erlangen rebate in a reasonable way; or können; oder
(k) jegliche Kombination der Absätze (a)- (k) any combination of items (a)-(j). (j).
§ 10 § 10 KÜNDIGUNG EVENTS OF DEFAULT
(1) Kündigungsgründe . Jeder Anleihegläubiger (1) Events of Default . Each Holder shall be ist berechtigt, seine Schuldverschreibungen entitled to declare his Notes due and zu kündigen und deren sofortige demand immediate redemption thereof at Rückzahlung zum Vorzeitigen the Early Redemption Amount and in case Rückzahlungsbetrag und im Fall von Absatz of paragraph (i) at the Increased (i) zum Erhöhten Rückzahlungsbetrag zu Redemption Amount, in the event that: verlangen, falls: (a) die Emittentin Kapital oder Zinsen (a) the Issuer has failed to pay principal nicht innerhalb von 14 Tagen nach dem or interest within 14 days, following jeweiligen Fälligkeitstag zahlt; oder the due date for payment; or
34 (b) die Emittentin die ordnungsgemäße (b) the Issuer breaches any provision of Erfüllung oder Beachtung einer the Notes and such breach has not Verpflichtung aus den been remedied within 45 days after Schuldverschreibungen unterlässt und the Paying Agent has received such diese Unterlassung länger als 45 Tage notification from a Holder; or nachdem die Zahlstelle hierüber eine Benachrichtigung von einem Anleihegläubiger erhalten hat fortdauert; oder
(c) (i) irgendeine gegenwärtige oder (c) (i) any other present or future zukünftige Verbindlichkeit der indebtedness of the Issuer or any of Emittentin oder einer ihrer its Subsidiaries for or in respect of Tochtergesellschaften für oder in moneys borrowed or raised becomes, Bezug auf ausgeliehene oder or becomes capable of being aufgenommene Gelder fällig und declared, due and payable prior to its zahlbar wird, oder vor der angegebenen stated maturity by reason of any Fälligkeit durch ein tatsächliches oder actual or potential default, event of mögliches Versäumnis oder ähnliches default or the like (howsoever (wie auch immer beschrieben) für fällig described), or (ii) any such und zahlbar erklärt werden kann, oder indebtedness of the Issuer or any of (ii) irgendeine Verbindlichkeit der its Subsidiaries is not paid when due Emittentin oder einer ihrer or, as the case may be, within any Tochtergesellschaften bei Fälligkeit applicable grace period, or (iii) the oder innerhalb einer anwendbaren Issuer or any of its Subsidiaries fails Nachfrist nicht bezahlt wird, oder (iii) to pay when due any amount payable die Emittentin oder eine ihrer by it under any present or future Tochtergesellschaften bei Fälligkeit guarantee for, or indemnity in fällige Beträge, zahlbar von ihr unter respect of, any moneys borrowed or gegenwärtigen oder zukünftigen raised provided that the aggregate Garantien oder Schadloshaltungen in amount of the relevant indebtedness, Bezug auf ausgeliehene oder guarantees and indemnities in aufgenommene Gelder nicht bezahlt, respect of which one or more of the vorausgesetzt, dass die Summe der events mentioned above in this betroffenen Verbindlichkeiten, paragraph (c) have occurred equals Garantien und Schadloshaltungen, or exceeds EUR 10,000,000 or its hinsichtlich derer ein oder mehrere equivalent (on the basis of the Ereignisse in diesem Absatz (c) middle spot rate for the relevant eingetreten sind, den Betrag von currency against the Euro as quoted EUR 10.000.000 oder dem Gegenwert by any leading bank on the day on (auf der Basis des mittleren Devisen- which this paragraph operates); or Kassa-Kurses für die betreffende Währung gegen den Euro durch die Berechnung einer führenden Bank am jenem Tag) entspricht oder übersteigt; oder
(d) die Emittentin oder eine wesentliche (d) the Issuer or a Material Subsidiary Konzerngesellschaft ihre Zahlungen suspends payments or publicly einstellt oder ihre Zahlungsunfähigkeit announces its illiquidity or over- oder Überschuldung allgemein bekannt indebtedness, or offers its creditors a gibt, oder ihren Gläubigern eine general arrangement for the payment allgemeine Regelung zur Bezahlung of its obligations; or ihrer Schulden anbietet; oder (e) ein Gericht ein Insolvenzverfahren (e) any order shall be made by a court to gegen die Emittentin oder eine open insolvency proceedings against
35 wesentliche Konzerngesellschaft the Issuer or one a Material eröffnet oder ein solches Subsidiary or such insolvency Insolvenzverfahren mangels proceedings are declined for lack of kostendeckenden Vermögens abgelehnt cost covering assets; or wird; oder (f) die Emittentin oder eine wesentliche (f) the Issuer or a Material Subsidiary Konzerngesellschaft (i) ihre (i) ceases all or substantially all of its Geschäftstätigkeit ganz oder im business operations, which does not Wesentlichen einstellt, wobei die comprise the mothballing of plants Einmottung von Werken mit der with the possibility to re-open such Möglichkeit diese wieder zu eröffnen plants, or (ii) sells or disposes of its keine Einstellung der assets or the substantial part thereof, Geschäftstätigkeit darstellt, oder (ii) ihr or (iii) concludes agreements, which gesamtes Vermögen oder den are not at arm’s length, with wesentlichen Teil ihres Vermögens affiliated companies as defined by anderweitig abgibt oder veräußert, oder the Austrian Commercial Code (iii) nicht fremdübliche Geschäfte mit (UGB ), and this, in each case, has a verbundenen Unternehmen im Sinne material adverse effect on its des UGB abschließt, und sich jeweils economic, financial and profit die Vermögens-, Finanz- und situation; or Ertragslage der Emittentin dadurch wesentlich verschlechtert; oder
(g) die Emittentin oder eine wesentliche (g) the Issuer or a Material Subsidiary Konzerngesellschaft in Liquidation enters into liquidation; or tritt; oder
(h) die Emittentin gegen eine ihrer (h) the Issuer violates its obligations Verpflichtungen nach § 4 dieser pursuant to § 4 of these Terms and Anleihebedingungen verstößt; oder Conditions; or (i) ein Kontrollwechsel (wie unten (i) a change of control (as defined definiert) erfolgt. Die Emittentin wird below) occurs. The Issuer will einen Kontrollwechsel unverzüglich announce a change of control gemäß § 14 bekannt machen. Eine immediately pursuant to § 14. A Kündigung nach diesem Unterabsatz Holder may declare Notes due (i) ist nur gültig, wenn die pursuant to this subparagraph (i) entsprechende Kündigungserklärung only if the notice pursuant to gemäß Absatz (3) innerhalb von 30 paragraph (3) occurs within 30 days Tagen nach der Bekanntmachung des from the announcement of the Kontrollwechsels erfolgt. change of control. Als wesentliche Konzerngesellschaft im A Material Subsidiary pursuant to this Sinne dieses § 10 gilt ein § 10 is a subsidiary (in the sense of § 15 Konzernunternehmen (iSd § 15 AktG) der Austrian Stock Corporation Act) of the Emittentin, dessen Umsatz im letzten Issuer, the turnover of which in the Geschäftsjahr mehr als 10% des preceding business year exceeded 10% of konsolidierten Konzernumsatzes der the Issuer’s consolidated turnover. Emittentin erreicht. Als Kontrollwechsel im Sinne dieses § 10 A Change of Control will be deemed to gilt, wenn eine Person oder mehrere have occurred if any person or persons Personen, die abgestimmt handeln, oder acting in concert or any third person or einer oder mehrere Dritte, die im Auftrag persons acting on behalf of such person(s) einer solchen Person oder Personen handeln, at any time acquire(s) directly or zu irgendeinem Zeitpunkt mittelbar oder indirectly a controlling participation unmittelbar eine kontrollierende Beteiligung pursuant to the Austrian Takeover Act
36 im Sinne des österreichischen (participation exceeding 30% of the voting Übernahmegesetzes (Beteiligung von mehr shares) which triggers a mandatory take als 30% der stimmberechtigten Aktien), die over bid. ein Pflichtangebot auslöst, erworben hat oder haben.
Der “Erhöhte Rückzahlungsbetrag” einer “Increased Redemption Amount” of a Schuldverschreibung entspricht dem Note shall be the Early Redemption Vorzeitigen Rückzahlungsbetrag oder, falls Amount or, if greater, the Make-Whole höher, dem Abgezinsten Marktpreis (wie Amount (as defined below) of the Notes nachstehend definiert) der plus accrued interest until the date of Schuldverschreibungen zuzüglich bis zum redemption (exclusive). Rückzahlungstag (ausschließlich) aufgelaufener Zinsen. Der “Abgezinste Marktpreis” wird von der The “Make-Whole Amount” will be Zahlstelle errechnet und entspricht der calculated by the Paying Agent, and will Summe (i) der auf den Rückzahlungstag equal the sum of (i) the Present Values (as Abgezinsten Werte (wie nachstehend defined below) on the date of redemption definiert) des Nennbetrages der of the principal amount of the Notes and Schuldverschreibungen und (ii) der bis zum (ii) the remaining scheduled payments of Fälligkeitstag (ausschließlich) verbleibenden interest on the Notes to but excluding the vorgesehenen Zinszahlungen auf die Final Maturity Date. Schuldverschreibungen. Die “Abgezinsten Werte” werden von der The “Present Values” will be calculated Zahlstelle errechnet, indem der Nennbetrag by the Paying Agent by discounting the der Schuldverschreibungen und bis zum principal amount of the Notes and the Fälligkeitstag verbleibende Zinszahlungen remaining interest payments to the Final auf die Schuldverschreibungen auf jährlicher Maturity Date on an annual basis, Basis, unter Zugrundelegung eines Jahres assuming a 365-day year or a 366-day mit 365 bzw. 366 Tagen und der Zahl der year, as the case may be, and the actual tatsächlich in dem Jahr verstrichenen Tage number of days elapsed in such year and und der Angepassten Vergleichbaren using the Adjusted Comparable Yield (as Rendite (wie nachstehend definiert) defined below) plus 0.5%. zuzüglich 0,5%, abgezinst werden.
Die “Angepasste Vergleichbare Rendite” The “Adjusted Comparable Yield” will be entspricht der am Rückzahlungs- the yield at the Redemption Calculation Berechnungstag (wie nachstehend definiert) Date (as defined below) on the Euro bestehenden Rendite einer von der benchmark security selected by the Paying Zahlstelle, im Einvernehmen mit der Agent, after consultation with the Issuer, Emittentin, ausgewählten Euro-Referenz- as having a maturity comparable to the Anleihe mit einer mit der verbleibenden remaining term of the Notes to the Final Laufzeit der Schuldverschreibungen bis zum Maturity Date that would be utilised, at Fälligkeitstag vergleichbaren Laufzeit. Dabei the time of selection and in accordance handelt es sich um die Rendite einer solchen with customary financial practice, in Euro-Referenz-Anleihe, die im Zeitpunkt der pricing new issues of corporate debt Auswahlentscheidung und entsprechend der securities of comparable maturity to the üblichen Finanzmarktpraxis zur Final Maturity Date. Preisbestimmung bei Neuemissionen von Unternehmensanleihen mit einer mit dem Zeitraum bis zum Fälligkeitstag vergleichbaren Laufzeit verwendet würde. “Rückzahlungs-Berechnungstag” ist der “Redemption Calculation Date” means the dritte Geschäftstag nach dem Tag an dem die third Business Day after the day on which
37 Emittentin den Kontrollwechsel gemäß § 14 the Issuer announced the change of bekannt gemacht hat. control pursuant to § 14. (2) Quorum . Das Kündigungsrecht erlischt, falls (2) Quorum . The right to declare Notes due der Kündigungsgrund vor wirksamer shall terminate if the situation giving rise Ausübung des Rechts nach diesem Absatz to it has been cured before the right is geheilt wurde. In den Fällen der exercised. In the events specified in Unterabsätze (f), (g), (h) oder (i) des subparagraphs (f), (g), (h) or (i) of Absatzes (1) wird eine Kündigung, sofern paragraph (1), any notice declaring Notes nicht zugleich einer der in den Unterabsätzen due shall, unless at the time such notice is (a), (b), (c), (d) oder (e) des Absatzes (1) received any of the events specified in bezeichneten Kündigungsgründe vorliegt, subparagraphs (a), (b), (c), (d) or (e) of erst wirksam, wenn bei der Zahlstelle paragraph (1) entitling Holders to declare Kündigungserklärungen von their Notes due has occurred, become Anleihegläubigern im Nennbetrag von effective only when the Paying Agent has mindestens 15% der dann ausstehenden received such notices from the Holders of Schuldverschreibungen eingegangen sind. In at least 15% in the principal amount of allen anderen Fällen wird die Kündigung mit Notes then outstanding. Otherwise the Zugang der Mitteilung der Kündigung notice declaring Notes due shall become gemäß Absatz (3) wirksam. effective upon receipt of the notice pursuant to paragraph (3).
(3) Benachrichtigung . Alle Mitteilungen der (3) Notices . Any notices of the Holders Anleihegläubiger an die Zahlstelle, addressed to the Paying Agent, in insbesondere eine Kündigung der particular any notice declaring Notes due Schuldverschreibungen gemäß Absatz (1), in accordance with paragraph (1) above sind schriftlich in deutscher oder englischer shall be made by means of a written Sprache per Einschreiben an die Zahlstelle declaration in the German or English zu übermitteln. Mitteilungen werden language delivered by hand or registered (vorbehaltlich des Absatzes (2)) mit Zugang mail to the Paying Agent. an die Zahlstelle wirksam. Der Mitteilung ist Notwithstanding paragraph (2), notices ein Nachweis darüber beizufügen, dass der become effective upon receipt by the betreffende Anleihegläubiger zum Zeitpunkt Paying Agent. The notice shall be der Mitteilung Inhaber der betreffenden accompanied by a proof that such Holder Schuldverschreibungen ist. Der Nachweis at the time of such notice is a holder of the kann durch eine Bescheinigung der relevant Notes. The proof can be a Depotbank oder auf andere geeignete Weise certificate of the custodian bank or in any erbracht werden. other appropriate manner.
§ 11 § 11 VERJÄHRUNG PRESCRIPTION
Ansprüche auf die Zahlung von Zinsen verjähren Entitlement to payment of interest prescribes nach drei Jahren, Ansprüche auf die Zahlung von three years, entitlement to payment of principal Kapital verjähren nach dreißig Jahren ab Fälligkeit. prescribes thirty years after the date when such payment was due.
§ 12 [ BEI KEINER BEABSICHTIGTEN § 12 [ IF NOT INTENDED TO BE LISTED BÖRSENOTIERUNG EINFÜGEN : KEINE] ON A STOCK EXCHANGE, INCLUDE : NO] BÖRSENOTIERUNG STOCK EXCHANGE LISTING
[Bei beabsichtigter Börsenotierung einfügen : Es [If intended to be listed on a stock exchange, ist beabsichtigt, die Zulassung der include : It is intended to apply for listing of the Schuldverschreibungen zum Handel im Notes in the [ include segment ] of the [ include [Marktsegment einfügen ] an der [ Börse
38 einfügen ] zu beantragen.] stock exchange .]
[Bei keiner beabsichtigter Börsenotierung [If intended to be listed on a stock exchange, einfügen : Eine Zulassung der include : It is not intended to apply for listing of Schuldverschreibungen zum Handel einer the Notes on a stock exchange.] Wertpapierbörse ist nicht beabsichtigt.]
§ 13 § 13 BEGEBUNG WEITERER FURTHER ISSUES, PURCHASES AND SCHULDVERSCHREIBUNGEN, ANKAUF, CANCELLATION ENTWERTUNG
(1) Begebung weiterer Schuldverschreibungen . (1) Further Issues . The Issuer may – in Die Emittentin ist – neben der Emission addition to the issuance of Notes which do weiterer Schuldverschreibungen, die mit not form a single Series with the Notes – diesen Schuldverschreibungen keine from time to time, without the consent of einheitliche Serie bilden – berechtigt, the Holders, issue further Notes having the jederzeit ohne Zustimmung der same terms and conditions as the Notes in Anleihegläubiger weitere Schuld- all respects (or in all respects except for verschreibungen mit gleicher Ausstattung the issue date, interest commencement (gegebenenfalls mit Ausnahme des Tages date and/or issue price) so as to form a der Emission, des Verzinsungsbeginns und single Series with the Notes. The Issuer is des Ausgabepreises) in der Weise zu free to issue further notes. emittieren, dass sie mit diesen Schuldverschreibungen eine einheitliche Serie bilden. In der Begebung weiterer Anleihen ist die Emittentin frei. (2) Ankauf . Die Emittentin ist berechtigt, (2) Purchases . The Issuer may at any time Schuldverschreibungen im Markt oder purchase Notes in the open market or anderweitig zu jedem beliebigen Preis zu otherwise and at any price. Notes kaufen. Die von der Emittentin erworbenen purchased by the Issuer may, at the option Schuldverschreibungen können nach Wahl of the Issuer, be held, resold or der Emittentin von ihr gehalten, surrendered to the Paying Agent for weiterverkauft oder bei der Zahlstelle cancellation. zwecks Entwertung eingereicht werden. (3) Entwertung . Sämtliche vollständig (3) Cancellation . All Notes redeemed in full zurückgezahlten Schuldverschreibungen sind shall be cancelled forthwith and may not unverzüglich zu entwerten und können nicht be reissued or resold. wieder emittiert oder wieder verkauft werden. § 14 § 14 MITTEILUNGEN NOTICES
[Im Fall von öffentlichen Angeboten und [In the case of public placements and Privatplatzierungen, die gelistet sind, private placements, which are listed, einfügen: insert: (1) Bekanntmachung . Alle die Schuldver- (1) Publication . All notices concerning the schreibungen betreffenden Mitteilungen an Notes will be published in [ insert place die Anleihegläubiger sind im [ Ort und and name of media of publication ] or, if Medium der Bekanntmachung einfügen ] it ceases to be published, in any other
39 oder, falls diese ihr Erscheinen einstellt, in daily newspaper published in [ insert einer anderen Tageszeitung mit Verbreitung place ]. Any notice so given will be in ganz [ Verbreitungsort einfügen ] zu deemed to have been validly given on the veröffentlichen. Jede derartige Mitteilung date of such publication. gilt mit dem Tag der Veröffentlichung als wirksam erfolgt. (2) Mitteilungen an das Clearingsystem . (2) Notification to Clearing System . Unabhängig von der Verpflichtung zur Notwithstanding the publication Veröffentlichung nach Absatz (1), gelten, requirement pursuant to paragraph (1), if falls die Schuldverschreibungen zum Handel the Notes are listed on a stock exchange, an einem geregelten Markt zugelassen all notices to the Holders shall be deemed werden, sämtliche Mitteilungen an die to be validly effected, if the are published Anleihegläubiger als ordnungsgemäß by electronic means within the European bekannt gemacht, wenn sie durch eine Union and the country of the relevant elektronische Mitteilungsform mit regulated market where the Notes are Verbreitung innerhalb der Europäischen listed, through electronic publication, so Union und dem Staat des jeweiligen long as the listing continues and the rules geregelten Marktes, an der Schuldver- of the relevant stock exchange so require. schreibungen notiert sind, durch Each such notification will be deemed to elektronische Veröffentlichung ver- have been validly given on the date of öffentlicht werden, solange diese Notierung such publication; if notification is required fortdauert und die Regeln der jeweiligen in more than by more than on electronic Börse dies erfordern. Jede derartige means, the day when the notice is first Mitteilung gilt mit dem Tag der ersten published by all such required electronic Veröffentlichung als bekannt gemacht; falls means, shall be relevant.] eine Veröffentlichung in mehr als einer elektronischen Mitteilungsform vorge- schrieben ist, ist der Tag maßgeblich, an dem die Bekanntmachung erstmals in allen erforderlichen elektronischen Mitteilungs- formen erfolgt ist.]
[Im Fall von Privatplatzierungen, die [In the case of private placements, nicht gelistet sind, einfügen: which are not listed insert: (1) Bekanntmachung . Alle die Schuldver- (1) Publication . All notices concerning the schreibungen betreffenden Mitteilungen an Notes addressed to the noteholders shall die Anleihegläubiger sind in schriftlicher be addressed to them in written form.] Form an diese direkt zu richten.]
§ 15 § 15 ANWENDBARES RECHT, GERICHTSSTAND, APPLICABLE LAW, PLACE OF TEILNICHTIGKEIT JURISDICTION AND PARTIAL INVALIDITY (1) Anwendbares Recht. Form und Inhalt der (1) Governing law . The form and contents of Schuldverschreibungen sowie die Rechte the Notes and the rights and obligations of und Pflichten der Anleihegläubiger und der the Holders and the Issuer shall be Emittentin bestimmen sich in jeder Hinsicht governed exclusively by, and construed in nach österreichischem Recht. Erfüllungsort accordance with, Austrian law. Place of ist Wien. performance is Vienna. (2) Gerichtsstand . (2) Jurisdiction.
40 (a) Für alle Rechtsstreitigkeiten aus oder (a) For all legal disputes which arise im Zusammenhang mit den Schuld- out of or in connection with the verschreibungen (einschließlich all- Notes (including any disputes in fälliger Streitigkeiten im Zusammen- connection with non-contractual hang mit außervertraglichen obligations, which arise out of or in Schuldverhältnissen, die sich aus oder connection with the Notes) the im Zusammenhang mit den Schuld- court competent for commercial verschreibungen ergeben) ist das für disputes in Vienna, inner city, shall Handelssachen jeweils zuständige exclusively be competent to the Gericht in Wien, Innere Stadt, extent permissible under applicable ausschließlich zuständig, soweit dies Austrian mandatory consumer nach den anwendbaren zwingenden protection laws. Konsumentenschutzgesetzen zulässig ist. (b) Für alle Rechtsstreitigkeiten eines (b) For all legal disputes of a consumer Verbrauchers aus oder im Zusammen- and the Issuer arising out of or in hang mit den Schuldverschreibungen connection with the Notes (einschließlich allfälliger Streitig- (including any and all disputes in keiten im Zusammenhang mit connection with non-contractual außervertraglichen Schuldver- obligations arising out of or in hältnissen, die sich aus oder im connection with the Notes) at the Zusammenhang mit den Schuld- consumer’s option the competent verschreibungen ergeben) gegen die court where it or the Issuer is Emittentin ist nach Wahl des domiciled, or another competent Verbrauchers das sachlich und örtlich court on the basis of statutory legal zuständige Gericht am Wohnsitz des provisions, shall be competent. Verbrauchers oder am Sitz des Emittenten oder ein sonstiges, aufgrund der gesetzlichen Be- stimmungen zuständiges Gericht zuständig. Der für Rechtsstreitigkeiten eines The general place of jurisdiction Verbrauchers bei Zeichnung der for consumers in Austria due to Schuldverschreibungen gegebene all- subscription of the Notes remains gemeine Gerichtsstand in Österreich upheld, if the consumer after bleibt auch dann erhalten, wenn der subscription transfers its place of Verbraucher nach Zeichnung seinen abode abroad and Austrian legal Wohnsitz ins Ausland verlegt und rulings are enforceable in such österreichische gerichtliche Ent- jurisdiction. scheidungen in diesem Land vollstreckbar sind. (3) Teilnichtigkeit. Sollten irgendwelche (3) Partial Invaliditiy . If a provision in these Bestimmungen dieser Bedingungen ganz Terms and Conditions becomes legally oder teilweise rechtsunwirksam sein oder invalid, in whole or in part, the remaining werden, so bleiben die übrigen Be- provisions shall remain in effect. Invalid stimmungen dieser Bedingungen in Kraft. provisions shall pursuant to the purpose of Unwirksame Bestimmungen sind dem Sinn these Terms and Conditions be replaced und Zweck dieser Bedingungen by valid provisions that come as close as entsprechend durch wirksame Be- legally possible from an economic point stimmungen zu ersetzen, die in ihren of view to invalid provision. wirtschaftlichen Auswirkungen denjenigen der unwirksamen Bestimmungen so nahe kommen wie rechtlich möglich.
41 (4) Sprache. [Diese Emissionsbedingungen sind (4) Language . [These Terms and Conditions in deutscher Sprache abgefasst. Eine are written in the German language and Übersetzung in die englische Sprache ist provided with an English language beigefügt. Der deutsche Text ist bindend und translation. The German text shall be maßgeblich. Die Übersetzung in die controlling and binding. The English englische Sprache ist unverbindlich.] oder language translation is provided for [Diese Emissionsbedingungen sind in convenience only.] or [These Terms and englischer Sprache abgefasst. Eine Conditions are written in the English Übersetzung in die deutsche Sprache ist language and provided with a German beigefügt. Der englische Text ist bindend language translation. The English text und maßgeblich. Die Übersetzung in die shall be controlling and binding. The deutsche Sprache ist unverbindlich.] German language translation is provided for convenience only.]
42 FINAL TERMS
If Notes, which are issued by Wienerberger AG under this EUR 500,000,000 Debt Issuance Programme, are listed on a regulated market or offered to the public in one or more member states of the European Economic Area, the relevant Final Terms will be made available at Wienerberger AG’s registered office at Wienerberg City, Wienerbergstraße 11, 1100 Vienna, Austria.
Muster – Endgültige Bedingungen Form of Final Terms
[Datum] [Date] Endgültige Bedingungen Final Terms
[Bezeichnung der betreffenden Serie der Schuldverschreibungen] [Title of relevant Series of Notes]
begeben aufgrund des issued pursuant to the
EUR 500.000.000 Emissionsprogramms Debt Issuance Programme
der of
Wienerberger AG
Ausgabepreis: [ ●]% Issue Price: [ ●]%
Emissionstag: [ ●] Issue Date: [ ●]
ISIN: [ ●]
Diese Endgültigen Bedingungen enthalten Angaben zur Emission von Schuldverschreibungen unter dem EUR 500.000.000 Emissionsprogramm der Wienerberger AG (das Emissionsprogramm). Vollständige Informationen über Wienerberger AG und das Angebot der Schuldverschreibungen sind nur verfügbar, wenn die Endgültigen Bedingungen und der Prospekt vom [●] 2010 über das Emissionsprogramm (der Prospekt), welcher ein Basisprospekt im Sinne der Prospektrichtlinie (Richtlinie 2003/71/EC (die “Prospektrichtlinie”)) ist, zusammengenommen werden. Kopien des Prospekts sowie (gegebenenfalls) jedes Nachtrags zum Prospekt sind am Sitz der Wienerberger AG, Wienerbergstraße 11, 1100 Wien, Österreich erhältlich. These Final Terms contain information regarding the issuance of Notes under the EUR 500,000,000 Debt Issuance Programme of Wienerberger AG (the Debt Issuance Programme). Full information on
43 Wienerberger AG and the offer of the Notes are only available on the basis of the combination of these Final Terms and the Prospectus dated March 24, 2010 on the Debt Issuance Programme (the Prospectus), which is a base prospectus pursuant to the Prospectus Directive (Directive 2003/71/EC (the “Prospectus Directive”). Copies of the Prospectus and supplements thereto, if any, can be obtained at the registered office of Wienerberger AG at Wienerberg City, Wienerbergstraße 11, 1100 Vienna, Austria.
[Im Falle einer Emission, die kein öffentliches Angebot von Wertpapieren im Sinne des Artikel 2 Absatz 1 lit (b) der Prospektrichtlinie darstellt einfügen: Die vorliegende Serie von Schuldverschreibungen ist nicht Gegenstand eines öffentlichen Angebots von Wertpapieren im Sinne des Artikel 2 Absatz 1 lit (b) der Prospektrichtlinie.] [In case of an issuance which is not a public offer of securities pursuant to Article 2, paragraph 1 (b) of the Prospectus Directive, include: This Series of Notes is not subject to a public offer of securities pursuant to Article 2, paragraph 1 (b) of the Prospectus Directive.]
Teil I: Emissionsbedingungen Part I: Terms and Conditions
[Im Fall von nicht konsolidierten Emissionsbedingungen einfügen: [Insert in case of Long-Form Conditions :
Dieser Teil I der Endgültigen Bedingungen ist im Sinne des Artikel 5.4 der Prospektrichtlinie in Verbindung mit den Anleihebedingungen der Schuldverschreibungen (die “Anleihebedingungen”) zu lesen, die in der Fassung des Prospekts vom 24. März 2010 über das Emissionsprogramm enthalten sind. Begriffe, die in den Anleihebedingungen definiert sind, haben, falls die Endgültigen Bedingungen nicht etwas anderes bestimmen, die gleiche Bedeutung, wenn sie in diesen Endgültigen Bedingungen verwendet werden. This part I of the Final Terms in accordance with Article 5.4 of the Prospectus Directive is to be read in conjunction with the Terms and Conditions of the Notes (the “Terms and Conditions”) set forth in the Prospectus pertaining to the Programme dated March 24, 2010. Capitalised Terms used in these Final Terms and not otherwise defined in these Final Terms shall have the meaning specified in the Terms and Conditions.
Bezugnahmen in diesen Endgültigen Bedingungen auf Paragraphen und Absätze beziehen sich auf die Paragraphen und Absätze der Anleihebedingungen. All references in these Final Terms to numbered sections and sub-paragraphs are to sections and sub- paragraphs of the Terms and Conditions.
Sämtliche Bestimmungen der Anleihebedingungen, die sich auf Variablen dieser Endgültigen Bedingungen beziehen und die weder angekreuzt noch ausgefüllt werden oder die gestrichen werden, gelten in den auf die Schuldverschreibungen anwendbaren Anleihebedingungen als gestrichen.] All provisions in the Terms and Conditions corresponding to items in these Final Terms which are either not selected or completed or which are deleted shall be deemed to be deleted from the terms and conditions applicable to the Notes.]
EMITTENTIN, GESAMTNENNBETRAG UND STÜCKELUNG (§ 1) ISSUER, AGGREGATE PRINCIPAL AMOUNT AND DENOMINATION (§1)
Emittentin Wienerberger AG Issuer
44 Serie [●]
Tranche [●]
Format der Emissionsbedingungen 1 Form of Terms and Conditions 1
Nicht-konsolidierte Emissionsbedingungen Long-Form
Konsolidierte Emissionsbedingungen Integrated
Verbindliche Sprache □ Deutsch □ Englisch Binding Language □ German □ English
Festgelegte Währung EUR Specified Currency
Gesamtnennbetrag [●] Aggregate Principal Amount
Gesamtnennbetrag in Worten [●] Aggregate Principal Amount in Notes
Festgelegte Stückelung [●] Specified Denomination
FORM, VERBRIEFUNG, CLEARINGSYSTEM UND ISIN (§ 2) FORM, REPRESENTATION, CLEARING SYSTEM AND ISIN (§ 2)
Form Form
Verbriefung Representation
1 Die Form der Emissionsbedingungen ist in Abstimmung mit der Emittentin festzulegen. Es ist vorgesehen, dass nicht-konsolidierte Emissionsbedingungen für Inhaberschuldverschreibungen verwendet werden, die auf nicht syndizierter Basis verkauft und die nicht öffentlich zum Verkauf angeboten werden. Konsolidierte Emissionsbedingungen werden in der Regel für Inhaberschuldverschreibungen verwendet, die auf syndizierter Basis verkauft und vertrieben werden. Konsolidierte Emissionsbedingungen sind erforderlich, wenn die Schuldverschreibungen insgesamt oder teilweise an nicht berufsmäßige oder gewerbliche Investoren verkauft werden. 1 To be determined in consultation with the Issuer. It is anticipated that Long-Form Conditions will generally be used for Notes in bearer form sold on a non-syndicated basis and which are not publicly offered. Integrated Conditions will generally be used for Notes in bearer form sold and distributed on a syndicated basis. Integrated Conditions will be required where the Notes are to be distributed, in whole or in part, to non-professional investors.
45
Clearingsystem Clearing System
Oesterreichische Kontrollbank Aktiengesellschaft Am Hof 4 1011 Wien Österreich
Clearstream Banking AG Neue Börsenstraße 1 60487 Frankfurt am Main Deutschland
Clearstream Banking, société anonyme 42 Avenue JF Kennedy 1855 Luxembourg Luxembourg
Euroclear Bank S.A./N.V., as Operator of the Euroclear System 1 Boulevard du Roi Albert II 1210 Brüssel Belgien
sonstige (angeben) (insert) others
ISIN [●]
ZINSEN (§ 5) INTEREST (§ 5)
Fixverzinsliche Schuldverschreibungen Fixed Rate Notes
Zinssatz und Zinszahlungstage Rate of Interest and Interest Payment Dates
Verzinsungsbeginn [●] Interest Commencement Date
Zinssatz [●]% per annum Rate of Interest
46 Fixzinstermin(e) [●] Fixed Interest Date(s)
Erster Zinszahlungstag [●] First Interest Payment Date
Anfängliche(r) Bruchteilzinsbetrag(-beträge) (für die festgelegte [●] Stückelung) Initial Broken Amount(s) (per Specified Denomination)
Fixzinstermin, der dem Fälligkeitstag vorangeht [●] Fixed Interest Date preceding the Maturity Date
Abschließende(r) Bruchteilzinsbetrag(-beträge) (für jede [●] festgelegte Stückelung) Final Broken Amount(s) (per Specified Denomination)
RÜCKZAHLUNG (§ 6) REDEMPTION (§ 6)
Rückzahlung bei Endfälligkeit Final Redemption
Fälligkeitstag [●] Maturity Date
Rückzahlungsbetrag Final Redemption Amount
Nennbetrag Principal Amount
Rückzahlungsbetrag (für die festgelegte Stückelung) [●] Final Redemption Amount (per denomination)
Kündigungsrecht der Inhaber der Schuldverschreibungen Termination by Holders of Notes
Kündigungsrecht der Emittentin Issuer Put Right
ZAHLSTELLE (§ 7) PAYING AGENT (§ 7)
Zahlstelle(n)/bezeichnete Geschäftsstelle(n) [●] Paying Agents/specified office
47
BÖRSENOTIERUNG (§ 12) LISTING (§ 12)
Marktsegment Market segment
EU geregelter Markt EU regulated market
Euro MTF
anderes Marktsegment (angeben) [●] other market segment (insert)
Börse Stock exchange
Luxemburger Börse Luxemburg Stock Exchange
andere Börse (angeben) [●] other stock exchange (insert)
MITTEILUNGEN (§ 14) NOTICES (§ 14)
Ort und Medium der Bekanntmachung Place and medium of publication
Amtsblatt der Wiener Zeitung
Sonstige (angeben) [●] Other (insert)
Verbreitungsort Place of publication
Österreich Austria
Sonstige (angeben) [●] Other (insert)
Anwendbares Recht Österreich
48 Applicable law Austria
Teil II: Andere Angaben Part II: Other information
Interessen von Seiten natürlicher und juristischer Personen, die an [Einzelheiten einfügen] der Emission/dem Angebot beteiligt sind [Include details] Interest of natural and legal persons involved in the issue/offer
Gründe für das Angebot / Verwendung der Emissionserlöse 2 [Einzelheiten einfügen] Reasons for the offer / Use of proceeds 2 [Include details]
Geschätzter Nettobetrag der Erträge Estimated net proceeds
Geschätzte Gesamtkosten der Emission Estimated total expenses of the issue
Wertpapierkennnummern Securities Identification Numbers
ISIN Code
Common Code
Wertpapierkennnummer (WKN) Securities Code
Sonstige Wertpapierkennnummer Other securities code
Rendite [●] Yield
Berechnungsmethode der Rendite 3 Method of calculation of yield 3
ICMA Methode: Die ICMA Methode ermittelt den effektiven Zinssatz von Schuldverschreibungen unter Berücksichtigung der täglichen Stückzinsen.
2 Siehe auch “Use of Proceeds” auf Seite 77 des Prospekts. 2 See also “Use of Proceeds” on page 77 of the Prospectus. 3 Nicht erforderlich bei Schuldverschreibungen mit einer Stückelung von mindestens EUR 50.000. 3 Not required for Notes with a denomination of at least EUR 50,000.
49 ICMA method: The ICMA method computes the effective interest rate of Notes on the basis of daily interest.
Andere Methoden (angeben) [●] Other methods (insert)
Angaben über Beschlüsse, Ermächtigungen und Genehmigungen, [●] die die Grundlage für die erfolgte bzw. noch zu erfolgende Schaffung der Schuldverschreibungen und/oder deren Emission bilden. Information regarding the resolutions, approvals and authorizations on the basis of which the Notes were or are to be created and/or issued.
Erwarteter Emissionstermin [●] Expected date of issuance
Verkaufsbeschränkungen Selling restrictions
Es gelten die im Prospekt wiedergegebenen Verkaufsbeschränkungen The Selling Restrictions set out in the Prospectus shall apply
Zusätzliche Verkaufsbeschränkungen (angeben) [Keine] [Einzelheiten einfügen] Additional selling restrictions (insert) [None] [Include details]
Besteuerung Taxation
Angaben über: Information regarding
- die an der Quelle einbehaltene Einkommensteuer auf die [Keine] [Einzelheiten einfügen] Wertpapiere, [None] [Include details] - income tax on securities withheld at the source
- ob die Emittentin die Verantwortung für die Einbehaltung der Steuern an der Quelle übernimmt - whether the Issuer assumes responsibility for deduction of taxes at the source hinsichtlich des Herkunftslands des Emittenten und des Landes [Keine] [Einzelheiten einfügen] bzw. der Länder, in dem bzw. denen das Angebot unterbreitet [None] [Include details] oder die Zulassung zum Handel beantragt wird. 4
4 Soweit nicht bereits im Emissionsprogramm Prospekt beschrieben. Nur bei Schuldverschreibungen mit einer Stückelung von weniger als EUR 50.000 anwendbar. 50 the home country of the Issuer and the country or countries in which the offer will be made or the listing to trading will be applied for. 4
Beschränkungen der freien Übertragbarkeit der Wertpapiere [Keine] [Einzelheiten einfügen] Restrictions of transferability of securities [None] [Include details]
Bedingungen und Voraussetzungen für das Angebot 5 Conditions and qualfications of the issuance 5
Bedingungen, denen das Angebot unterliegt Conditions of the issuance
Gesamtsumme der Emission/des Angebots. Ist der Betrag nicht festgelegt, Beschreibung der Vereinbarungen und des Zeitpunkts für die Ankündigung des endgültigen Angebotsbetrags an das Publikum Aggregate of the issuance/the offer. If the amount is not fixed, description of agreements and date for publication of the final offered amount to the public
Frist – einschließlich etwaiger Änderungen – während der das Angebot gilt und Beschreibung des Antragsverfahrens Time period, including any possible amendments, during which the offer will be open
Beschreibung des Prozesses für die Umsetzung des Angebots Description of the application process Beschreibung der Möglichkeit zur Reduzierung der Zeichnungen und der Art und Weise der Erstattung des zu viel gezahlten Betrags an die Zeichner A description of the possibility to reduce subscriptions and the manner for refunding excess amount paid by applicants
Einzelheiten zum Mindest- und/oder Höchstbetrag der Zeichnung (entweder in Form der Anzahl der Schuldverschreibungen oder des aggregierten zu investierenden Betrags) Details of the minimum and/or maximum amount of application, (whether in number of Notes or aggregate amount to invest)
4 Unless described in the Prospectus. Only appliccable in relation to Notes with a denomination of less than EUR 50.000. 5 Die Unterpunkte 5.1.1, 5.1.3 - 5.1.8, 5.2 und 5.4.1 von Anhang V sind im Regelfall nicht anwendbar. Bei jeder Emission mit einer festgelegten Stückelung von weniger als EUR 50.000 (Anhang V) hat die Emittentin jedoch zu entscheiden, ob einer der genannten Unterpunkte anwendbar ist, und falls ja, die entsprechenden Einzelheiten einzufügen. 5 Subparagraphs 5.1.1, 5.1.3 - 5.1.8, 5.2 and 5.4.1 of Annex V are not applicable in the standard case. Upon issuance of Notes with a denomination of less than EUR 50.000 (Annex V) the Issuer nevertheless has to decide, if any of the subparagraphs is applicable and, if so, include the relevant details.
51
Methode und Fristen für die Bedienung der Schuldverschreibungen und ihre Lieferung Method and time limits for paying up the Notes and for delivery of the Notes
Vollständige Beschreibung der Art und Weise und des Termins, auf die bzw. an dem die Ergebnisse des Angebots offen zu legen sind Complete description of the manner and date in which results of the offer are to be made public
Verfahren für die Ausübung eines etwaigen Vorzugsrechts, die Übertragbarkeit der Zeichnungsrechte und die Behandlung der nicht ausgeübten Zeichnungsrechte. The procedure for the exercise of any right of pre-emption, the negotiability of subscription rights and the treatment of subscription rights not exercised.
Angabe der verschiedenen Kategorien der potentiellen Investoren, denen die Schuldverschreibungen angeboten werden. Erfolgt das Angebot gleichzeitig auf den Märkten in zwei oder mehreren Ländern und wurde/wird eine bestimmte Tranche einigen dieser Märkte vorbehalten, Angabe dieser Tranche. Information regarding different categories of potential investors, whom the Notes are offered. If the offer is made simultaneously on markets in two or more countries and a particular tranche is allotted any of these markets, information regarding the tranche.
Verfahren zur Meldung des den Zeichnern zugeteilten Betrages und Angabe, ob eine Aufnahme des Handels vor dem Meldeverfahren möglich ist Process for notification to applicants of the amount allotted and indication whether dealing may begin before notification is made
Preis, zu dem die Schuldverschreibungen angeboten werden / Methode, mittels derer der Angebotspreis festgelegt wird und Angaben zum Verfahren für die Offenlegung sowie der Kosten und Steuern, die speziell dem Zeichner oder Käufer in Rechnung gestellt werden. Issue price of the Notes / method pursuant to which the issue price will be fixed and information regarding the publication of the costs and taxes which are in particular charged to the subscriber.
Name und Anschrift des Koordinators/der Koordinatoren des gesamten Angebots oder einzelner Teile des Angebots und – sofern der Emittentin oder dem Bieter bekannt – Angaben zu den Plazeuren in den einzelnen Ländern des Angebots Name and details of the coordinator(s) of the offer or individual parts of the offer and – to the extent known to the Issuer –
52 information of the dealers in the individual countries of the offer
Nicht syndiziert [●] not syndicated
Syndiziert [●] syndicated
Datum des Übernahmevertrages 6 Date of Subscription Agreement 6
Einzelheiten bezüglich des Bankenkonsortiums einschließlich der Art der Übernahme 7 Management details and method of subscription 7
Plazeur/Bankenkonsortium (Name(n) und Adresse(n) angeben) [●] Dealer/Managers (insert name(s) and adress(es))
feste Zusage [●] firm commitment
Keine feste Zusage/zu den bestmöglichen Bedingungen no firm commitment/at market conditions
Angabe der Hauptmerkmale der Vereinbarungen, einschließlich [●] der Quoten Information regarding main provisions of agreements, including subscribed amounts
(Wird die Emission nicht zur Gänze übernommen) Erklärung [●] zum nicht abgedeckten Teil (If issuance is not subscribed in full) information regarding the amount not subscribed
Provisionen 8 Fees 8
Management- und Übernahmeprovision (angeben) [●] Management/Underwriting Commission (specify)
6 Nur erforderlich bei syndizierten Emissionen und Schuldverschreibungen mit einer Stückelung von weniger als EUR 50.000. 6 Only required in relation with syndicated issuances and Notes with a denomination of less than EUR 50.000. 7 Nicht erforderlich bei Schuldverschreibungen mit einer Stückelung von mindestens EUR 50.000. 7 Not required in relation with syndicated issuances and Notes with a denomination of less than EUR 50.000. 8 Nicht erforderlich bei Schuldverschreibungen mit einer Stückelung von mindestens EUR 50.000. 8 Not required in relation with syndicated issuances and Notes with a denomination of less than EUR 50.000. 53 Verkaufsprovision (angeben) [●] Selling Concession (specify)
Zulassung zum Handel und Handelsregeln Admission to trading and terms of trading
Börsenzulassung(en) [Ja] [Nein] Admission(s) to trading [Yes] [No]
Wiener Börse [Marktsegment angeben] Vienna Stock Exchange [insert market segment]
Sonstige (Einzelheiten einfügen, inklusive Marktsegment) [●] Others (include details, including market segment)
Erwarteter Termin der Zulassung 9 Expected date of admission 9
Geschätzte Gesamtkosten für die Zulassung zum Handel 10 Estimated aggregate costs for admission to trading 10
Name und Anschrift der Institute, die aufgrund einer bindenden [nicht anwendbar]/ [Einzelheiten Zusage als Intermediäre im Sekundärhandel tätig sind und einfügen] Liquidität mittels Geld- und Briefkursen zur Verfügung stellen, [not applicable]/ [include details] und Beschreibung der Hauptbedingungen der Zusage 11
Name and address of the banks which operate as market makers and provide liquidity through bid and ask prices and description of the main conditions of such agreement 11
Andere relevante Bestimmungen (einfügen) [●] Other relevant conditions (include)
[Börsenzulassung: 12 [Admission to trading: 12
Erklärung zur Funktion etwaiger Berater, die in der [nicht anwendbar]/ [Einzelheiten Wertpapierbeschreibung genannt werden einfügen] Statement regarding the capacity of counsels, referred to in the [not applicable]/ [include details]
9 Nur auszufüllen, sofern bekannt. 9 Only to be completed, if information available. 10 Nur erforderlich bei syndizierten Emissionen und Schuldverschreibungen mit einer Stückelung von weniger als EUR 50.000. 10 Only required in relation with syndicated issuances and Notes with a denomination of less than EUR 50.000. 11 Nicht erforderlich bei Schuldverschreibungen mit einer Stückelung von mindestens EUR 50.000. 11 Not required in relation with syndicated issuances and Notes with a denomination of less than EUR 50.000. 12 Nur in derjenigen Fassung der Endgültigen Bedingungen einzufügen, die der betreffenden Börse, bei der die Schuldverschreibungen zugelassen werden sollen, vorgelegt wird. 12 To be included only in those Final Terms which are to be supplied to the relevant stock exchange where the Notes are to be issued. 54 securities note
Angabe weiterer Informationen in der Wertpapierbeschreibung, [nicht anwendbar]/ [Einzelheiten die von gesetzlichen Abschlussprüfern teilweise oder vollständig einfügen] 13 geprüft wurden und über die die Abschlussprüfer einen [not applicable]/ [include details] 13 Prüfungsbericht erstellt haben. Reference to information contained in the securities note, which was partly or in whole audited by the statutory auditors and regarding which the auditors have issued an audit report.
Die vorstehenden Endgültigen Bedingungen enthalten die Angaben, die für die Zulassung dieser Emission von [Tag der Begebung der Schuldverschreibungen einfügen] erforderlich sind. The above Final Terms comprise the details required to list this issue dated [insert date of issuance].
VERANTWORTLICHKEIT RESPONSIBILITY
Die Emittentin übernimmt die Verantwortung für die in diesen Endgültigen Bedingungen enthaltenen Informationen, wie in der Erklärung zur Verantwortlichkeit auf Seite 2 des Prospekts bestimmt. Hinsichtlich der hierin enthaltenen und als solche gekennzeichneten Informationen von Seiten Dritter gilt Folgendes: (i) Die Emittentin bestätigt und übernimmt die Verantwortung dafür, dass diese Informationen zutreffend wiedergegeben worden sind und – soweit es der Emittentin bekannt ist und sie aus den von diesen Dritten zur Verfügung gestellten Informationen ableiten konnte – keine Fakten weggelassen wurden, die die reproduzierten Informationen unzutreffend oder irreführend gestalten würden; (ii) die Emittentin hat diese Informationen nicht selbstständig überprüft und übernimmt keine Verantwortung für ihre Richtigkeit. The Issuer accepts responsibility for the information contained in these Final Terms as set out on page 2 of the Prospectus, provided that, with respect to any information included herein and specified to be sourced from a third party (i) the Issuer confirms that any such information has been accurately reproduced and as far as the Issuer is aware and is able to ascertain from information available to it from such third party, no facts have been omitted, the omission of which would render the reproduced information inaccurate or misleading and (ii) the Issuer has not independently verified any such information and accepts no responsibility for the accuracy thereof.
Wienerberger AG als Emittentin as Issuer
(Name in Blockbuchstaben und Funktionsbezeichnung) (Name and title in block letters)
(Name in Blockbuchstaben und Funktionsbezeichnung) (Name and title in block letters)
13 Reproduktion des Berichts oder mit Erlaubnis der zuständigen Behörden Zusammenfassung des Bericht. 13 Reproduction of the report or with the consent of the competent authorities summary of the report.
55 SELECTED CONSOLIDATED FINANCIAL DATA
The following selected consolidated financial data of the Wienerberger Group have been derived from the Consolidated Financial Statements, which are incorporated into this Prospectus by reference as of and for the years ended December 31, 2009 and 2008. For more detailed information on the Group’s financial information, please refer to these Consolidated Financial Statements.
Year ended December 31, 2009 2008 (audited, except as otherwise noted) (in EUR million)
Consolidated Statement of Income Data Revenues ...... 1,816.9 2,431.4 Cost of goods sold ...... (1,305.9) (1,585.6) Gross profit...... 511.0 845.8 Selling and administrative expenses ...... (510.4) (617.4) Other operating expenses...... (41.2) (35.7) Other operating income ...... 59.5 47.2 Operating profit before non-recurring items ...... 19.0 239.8 Costs, impairment charges and write-offs related to restructuring...... (153.7) (55.0) Impairment charges to goodwill ...... (123.3) (16.7) Addition to provision for an impending antitrust penalty...... 0.0 (10.0) Operating profit after non-recurring items...... (258.1) 158.1 Interest and similar income...... 20.9 41.0 Interest and similar expenses ...... (58.7) (83.1) Other financial results including income from investments in associates ...... 0.3 7.1 Income taxes...... 36.9 (19.8) Profit after tax...... (258.7) 103.3 Thereof attributable to minority interest ...... (1.9) 3.4 Thereof share attributable to hybrid capital holders 32.5 32.5 Thereof attributable to equity holders...... (289.3) 67.5
Other Financial Data Operating EBITDA ...... 208.6 440.1 Operating EBIT ...... 19.0 239.8 Capital employed...... 2,816.8 3,252.2 Capital expenditure and acquisitions ...... 134.2 505.6 Earnings per share (in EUR)...... (3.17) 0.81 Adjusted earnings per share before impairment charges to goodwill and non- recurring items (in EUR) ...... (0.34) 1.69 Declared or paid dividend per share for the period (in EUR)...... 0.00 0.00 Group ROCE (unaudited)...... 0.2% 6.2% WACC...... 7.1% 7.0%
Consolidated Cash Flow Data Gross cash flow ...... 52.5 300.9 Cash flows from operating activities ...... 290.9 262.8 Cash flows from investing activities...... (111.5) (474.6) Cash flows from financing activities ...... 63.3 125.1
Consolidated Balance Sheet Data...... Non-current assets ...... 2,763.7 3,046.1 Current assets ...... 1,323.7 1,337.8 Total assets ...... 4,087.4 4,383.9 Equity...... 2,547.0 2,497.2 Non-current provisions and liabilities...... 1,125.8 1,324.8 Current provisions and liabilities...... 414.6 561.9 Total equity and liabilities ...... 4,087.4 4,383.9
56 Segment reporting
The Group’s operations are divided into five primary reporting segments: (i) Central-East Europe; (ii) Central-West Europe; (iii) North-West Europe; (iv) North America; and (v) Investments and Other. Additionally, secondary segment reporting is used by management to collect additional information on the Group’s product groups: wall, facade, roofing systems, pavers and other.
The following table sets forth certain income statement and balance sheet data as of and for the years ended December 31, 2009 and 2008 broken down according to the primary segments of the Group:
Year ended December 31, 2009 2008 (audited) (in EUR million)
Central-East Europe Third party revenues ...... 579.4 895.0 Operating EBITDA...... 108.8 262.0 Operating EBIT...... 44.8 193.4 Capital employed ...... 787.7 854.9
Central-West Europe (1) Third party revenues ...... 373.2 414.3 Operating EBITDA...... 32.3 42.6 Operating EBIT...... (2.4) 4.6 Capital employed ...... 373.0 481.5
North-West Europe (1) Third party revenues ...... 713.4 886.0 Operating EBITDA...... 102.5 144.0 Operating EBIT...... 37.1 73.2 Capital employed ...... 1,131.4 1,297.1
North America Third party revenues ...... 149.0 234.3 Operating EBITDA...... (13.3) 15.1 Operating EBIT...... (35.4) (4.0) Capital employed ...... 488.4 583.2
Investments and Other Third party revenues ...... 0.9 0.5 Operating EBITDA...... (21.7) (23.5) Operating EBIT...... (25.2) (27.3) Capital employed ...... 36.3 35.4
Total third party revenues...... 1,815.9 2,430.1 Intra-Group sales to non-consolidated Group companies...... 1.0 1.3
Total revenues ...... 1,816.9 2,431.4
(1) Comparative figures for the financial year 2008 have been reclassified to reflect the transfer of the cross border activities in Germany and The Netherlands from the North-West Europe segment to the Central-West segment as of January 1, 2009.
The following table sets forth the Group’s revenues in the financial years 2009 and 2008 broken down according to the secondary segments of the Group:
Year ended December 31, 2009 2008 (audited) (in EUR million) Wall...... 617.2 911.0 Facade...... 546.5 764.4 Roofing systems...... 455.2 538.1 Pavers...... 197.5 217.4 Others...... 0.5 0.5 Wienerberger Group...... 1,816.9 2,431.4
There has been no material adverse change in the prospects of the Issuer or significant change in the financial or trading position of the Group since December 31, 2009.
57 INFORMATION ABOUT THE ISSUER
Legal and commercial name
Wienerberger AG is a stock corporation established under Austrian law for an indefinite period, with its registered seat in Vienna, registered with the commercial register at the Commercial Court Vienna under FN 77676 f and its business address at Wienerberg City, Wienerbergstraße 11, 1100 Vienna, Austria. The Company was founded in 1819 as “Wienerberger Ziegel-Fabriks und Bau-Gesellschaft” and first registered in the commercial register on April 10, 1869. The Company’s as well as the Group’s commercial name is Wienerberger. The Company may be reached at its business address, by phone (+43 (1) 60192-463) or on its website under www.wienerberger.com. The Company’s financial year is identical with the calendar year.
Share capital and major shareholders
In September 2009, the Company increased its share capital by placing 33,579,075 new shares, representing 40% of the existing share capital. Following completion of the capital increase, the Company has a stated and fully-paid share capital of EUR 117,526,764, divided into 117,526,764 no- par value ordinary voting bearer shares ( auf Inhaber lautende Stückaktien ), each representing a calculated notional amount of EUR 1.00 of the share capital. The Company’s shares are listed on the Official Market, assigned to trading in the prime market segment, of the Vienna Stock Exchange.
As of July 31, 2008, Dodge & Cox reported a holding of 10.09% of the Company’s issued share capital. The remaining shares are held by various investment funds and individuals holding below 5% each. To management’s best knowledge, there are no arrangements, the operation of which may at a subsequent date result in a change of control in the Issuer.
Articles of Association and corporate purpose
The Company’s business objectives as stated in section 2 of its Articles of Association include:
• exercise of holding company functions related to companies under its control as a corporate group in accordance with section 15 of the Stock Corporation Act. The object of business of these group companies comprises in particular the production, purchase and sale of all types of building materials, the pursuance of activities in the construction sector and the operation of filling stations;
• acquisition of and investment in other companies and corporations, in particular industrial companies, with the same or similar object of business as well as the establishment of branches and subsidiaries in Austria and other countries;
• performance of administrative, management and consulting duties (in particular in the areas of organization, data processing, insurance, etc.) for other companies and corporations;
• automatic processing of personal data;
• trade in goods of all kinds.
The Company is entitled to engage in any and all transactions that are deemed necessary or expedient for realizing the objects of business, in particular transactions in the areas that are similar or related to the objects of its business.
Management
The Company has a two-tier board structure, consisting of a Management Board ( Vorstand ) and a Supervisory Board ( Aufsichtsrat ). The members of the Management Board and the Supervisory Board may be contacted at the Company’s registered office at Wienerberg City, Wienerbergstraße 11, 1100
58 Vienna, Austria.
Management Board
Members of the Management Board are appointed by the Supervisory Board for a maximum period of five years and may be re-appointed. Only those persons may be appointed to the Management Board who have not reached their 65th birthday on the date of appointment or reappointment. Pursuant to the Articles of Association of the Company, the Management Board consists of up to four members.
The Management Board is responsible for the executive management and represents the Company vis- à-vis third parties. If the Management Board consists of more than one member, the Company is represented either by two members of the Management Board acting jointly, or by any one member of the Management Board acting together with an authorized signatory holding a general power of attorney ( Prokurist ). Subject to statutory restrictions, the Company may also be represented by two authorized signatories.
The following are the names and functions of the Company’s Management Board members and their principal business activities performed outside the Company with respect to potential conflicts of interest:
Name Function Principal business activities performed outside the Company Heimo Scheuch ...... Member, Member of the supervisory board of Soravia Group AG and Sto AG; vice-president of Chief Executive CERAMUNIE (European Ceramic Association), president of TBE (European Tiles and Officer (CEO) Bricks Federation).
Willy Van Riet ...... Member, None. Chief Financial Officer (CFO)
Johann Windisch ...... Member, None. Chief Operating Officer (COO)
Supervisory Board
The Supervisory Board consists of three to ten members elected by the shareholders’ meeting (Hauptversammlung ). In addition, the Company’s works council has a right to delegate one third of the Supervisory Board members under Austrian co-determination rules. The Supervisory Board is responsible for supervising the management and internal controls of the Company.
The following are the names and functions of the Company’s Supervisory Board members and their principal business activities performed outside the Company with respect to potential conflicts of interest:
Name Function Principal business activities performed outside the Company
Friedrich Kadrnoska ...... Chairman Member of the executive board of Privatstiftung zur Verwaltung von Anteilsrechten, managing director of A&I Beteiligung und Management GmbH, chairman of the supervisory boards of Österreichisches Verkehrsbüro AG and Allgemeine Baugesellschaft – A. Porr Aktiengesellschaft, chairman of the supervisory boards of Wiener Börse AG and CEESEG AG, member of the supervisory boards of Porr Technobau und Umwelt AG, Porr Projekt und Hochbau Aktiengesellschaft, card complete Service Bank AG and UniCredit S.p.A. and member of the administrative boards of conwert Immobilien Invest SE and Wiener Privatbank SE.
Christian Dumolin ...... Vice-Chairman Managing director and president of Koramic Investment Group NV as well as management positions in various other Koramic Group companies, honorary member of the Council of Regency of the Belgian National Bank, member of the advisory board Belgium of C.V.C. Capital Partners Benelux, member of the board of trustees of the Belgian Corporate Governance Institute, member of the supervisory boards of the Belgian Banking, Finance and Insurance Commission (CBFA) and USG People, member of the management boards of Verbond van Belgische Ondernemingen and Vitalo Industries, member of the general board of Vlerick Leuven Gent Management School, member of the local board Kortrijk of VOKA Kamer van Koophandel West-Vlaanderen and director of
59 Name Function Principal business activities performed outside the Company
De Palingbeek, De Steeg Investments, E&L Real Estate, Flanders International Airport, Hallex, Holim, Lamifil, Lessius NV, Lessius Ventures, Levimmo NV, Mercapital Sociedad de Capital Inversion BV, Rec-Les, Sobikor, Spector Photo Group and Vlaamse jonge ondernemingen.
Karl Fink ...... Member Member of the management boards of Wiener Städtische Wechselseitige Versicherungsanstalt Vermögensverwaltung, chairman of the supervisory boards of TBIH Financial Services Group N.V., ZPAD Bulstrad, Ray Sigorta (Turkey) and VIG Re zajistovna (Czech Republic), vice-chairman of the supervisory boards of Bulgarski Imoti Versicherung AG, Bulgarski Imoti Lebensversicherung AG, Donau Versicherung AG Vienna Insurance Group, Kooperativa genossenschaftliche Versicherung AG (Prague), TU Compensa S.A. (Warsaw), TU nZ Compensa S.A. (Warsaw) and TU InterRisk (Warsaw), member of the supervisory boards of AT&S Austria Technologie & Systemtechnik AG and VIG Polska Sp. Z o.o. (Warsaw) and chairman of Sektion Industrieversicherung des Verbandes der Versicherungsunternehmen Österreichs.
Peter Johnson ...... Member Chairman of the board of DS Smith PLC, director of SSL International plc.
Harald Norasek ...... Member Chairman of the management board of Österreichisches Verkehrsbüro AG, managing director of Fontana Sporthotel Gesellschaft m.b.H., Ruefa Reisen Direktbuchung GmbH, Verkehrsbüro Finanzmanagement GmbH and Verkehrsbüro Touristik GmbH, chairman of the supervisory board of Verkehrsbüro Hotellerie GmbH, vice-chairman of the supervisory boards of Verkehrsbüro-Ruefa Reisen GmbH and Verkehrsbüro Business Travel GmbH, member of the supervisory boards of DDSG – BLUE DANUBE SCHIFFAHRT GMBH, Kärnten Verkauf Incoming GmbH, RUEFA Utazasy Iroda Kft., Cestovna kancelaria RUEFA CS sro., Cetovni kancelar RUEFA REISEN sro., Ruefa Reisen Biuro Podrozy Sp.z.o.o. and Motel One Central & East Europe GmbH and member of the administrative board of conwert Immobilien Invest SE.
Claus Raidl ...... Member President of the General Council of Oesterreichische Nationalbank, chairman of the management boards of Böhler-Uddeholm AG, voestalpine AG and Ernst-Krenek-Institut- Privatstiftung, vice-chairman of the supervisory boards of voestalpine Bahnsysteme GmbH and BÖHLER Schmiedetechnik GmbH and member of the supervisory boards of Wiener Börse AG, voestalpine Automotive GmbH, voestalpine Profilform GmbH, voestapline Stahl GmbH, BÖHLER Edelstahl GmbH and Academia Scientiarume et Artium European Privatstiftung.
Wilhelm Rasinger ...... Member Managing director of Inter-Management Unternehmensberatung Gesellschaft m.b.H. and “Am Klimtpark” LiegenschaftsverwaltungsgesmbH, Chairman of IVA - Interessenverband für Anleger, member of the supervisory boards of Erste Group Bank AG and CEE Immobilien Development AG.
Franz Rauch ...... Member Managing director of Franz Rauch GmbH, F&R Industriebeteiligungen GmbH, Esola Beteiligungsverwaltungs GmbH, Ewana Beteiligungsverwaltungs GmbH, vice-chairman of the supervisory boards of UniCredit Bank Austria AG, Österreichische Bundesbahnen- Holding Aktiengesellschaft, Rail Cargo Austria Aktiengesellschaft, ÖBB-Personenverkehr Aktiengsellschaft and Treibacher Industrie AG, and member of the supervisory boards of Vorarlberger Kraftwerke AG, Fohrenburg Beteiligungs-AG, Vorarlberger Illwerke AG, Hirschmann Automotive GmbH and Buy-Out Central Europe II Beteiligungs-Invest AG.
Rupert Bellina ...... Member (1) None.
Claudia Krenn ...... Member (1) None.
Gerhard Seban ...... Member (1) None.
Klaus Sauer ...... Member (1) None.
(1) Works council representative.
Conflicts of interest
There are no potential conflicts of interest between the duties of the Management Board and Supervisory Board members to the Company and their private interests or other duties.
Corporate Governance
In accordance with the Articles of Association, the Supervisory Board has established an Audit Committee ( Prüfungsausschuss ) which is responsible for the audit and preparation of the approval of
60 the financial statements and consolidated financial statements of the Company, the preparation of a proposal for the distribution of profits, the review of the management report and for monitoring the efficiency of the Company’s internal control system (Internes Kontrollsystem – IKS). Furthermore, the Audit Committee prepares the proposal for the election of the Company’s auditor by the Shareholders’ Meeting. One member of the Audit Committee must be a financial expert with special knowledge and practical experience in finance, accounting and reporting ( Finanzexperte ). Persons who were members of the Management Board, executives or auditors of the Company or persons having certified the consolidated financial statements of the Company within the last three years may not be financial expert or chairman of the Audit Committee. The current members of the Audit Committee are Harald Nograsek, Wilhelm Rasinger and Karl Sauer.
The Company currently complies in full with all “L-Rules” and “C-Rules” of the Corporate Governance Code (“CGC”). The CGC was published by the Austrian Working Group on Corporate Governance, a group of private organizations and individuals in 2002 and was amended most recently in January 2010. The CGC primarily applies to Austrian stock market-listed companies that undertake to adhere to its principles. The CGC is based on statutory provisions of Austrian corporate law, securities law and capital markets law (“Legal Requirements”, “L-Rules”). In addition, the CGC contains rules considered to be a part of common international practice, such as the principles set out in the OECD Principles of Corporate Governance and the recommendations of the European Commission. Non-compliance with some of these rules must be explained (“Comply or Explain”, “C-Rules”). The CGC also contains rules that are voluntary and do not require explanation in the case of deviations (“Recommendation”, “R- Rules”).
61 BUSINESS OF THE WIENERBERGER GROUP
Overview
The Group’s core business is the manufacturing of products for use in masonry, facades, roofs and paving. In these market segments, Wienerberger concentrates primarily on four product groups: clay blocks, facing bricks, clay and concrete roof tiles and clay and concrete pavers. Products are marketed under the Group’s brand name “Wienerberger” and the brands “Porotherm” and “Poroton” (Germany only) for clay blocks, “Terca” and “General Shale” for facing bricks and clay pavers, “Koramic” for clay roof tiles, “Bramac” for concrete roof tiles, “Semmelrock” for concrete pavers and “Arriscraft” for manufactured stone. In addition, the Group participates in a plastic pipe joint venture, Pipelife.
Management estimates that the Group is the largest producer of bricks in the world. In clay blocks, the Group is the leading global producer and in facing bricks the Group is the leading producer in Europe and the United States (co-leader with Boral), according to management estimates. In 2009, brick activities accounted for 64% of Group revenues and 62% of Group EBITDA.
Wienerberger is the largest manufacturer of clay roof tiles in Europe, according to management estimates. In 2009, roof tile activities accounted for 25% of Group revenues and 37% of Group EBITDA.
Pavers accounted for 11% of Group revenues and 11% of Group EBITDA in 2009.
Wienerberger’s primary geographic areas of activity are Europe (excluding the Iberian Peninsula and Greece) and Northern America. As of December 31, 2009, the Group operated 227 plants in 27 countries with 11,646 employees. Wienerberger generated revenues of EUR 1,816.9 million and an operating EBITDA of EUR 208.6 million in 2009.
Products
Clay blocks
Clay blocks are used for load-bearing exterior and interior walls, as well as for non load-bearing partition walls or fillwork. A wall made of clay blocks is normally not seen after completion because it is covered with plaster or paneling. The technical advantages and features of walls made from clay blocks include high load bearing compressive strength, good thermal insulation and heat accumulation, sound insulation, high fire resistance (non-flammable) and moisture regulating capacity.
Wienerberger clay blocks are sold under the “Porotherm” brand (“Poroton” in Germany), and are optimized to meet special applications and requirements. Examples are thick clay blocks for exterior walls, which deliver good thermal insulation, special heavy clay blocks for improved sound insulation and seismic-resistant bricks for safe construction in earthquake zones. The Wienerberger clay block system also includes brick lintels and brick ceiling systems, which make it possible to build an entire house out of bricks.
Facing bricks
Facing bricks are used in visible brick architecture: facades and interior walls are made from or covered with these bricks. A wall made of facing bricks is a design element, and also provides good protection from the weather. Facing bricks can be used in a wide range of decorative applications: for example interior walls, exterior enclosures, arches or chimney cappings. They can also be combined together in prefabricated elements for fast construction. Especially in the area of non-residential construction, brick architecture can therefore play an important role in modern, economic building.
Wienerberger facing bricks are sold under the “Terca” brand in Europe and “General Shale” in the United States. They offer a wide range of design alternatives through the combination of colors, shapes and surface structures. The development of new colors, surface structures and special shaped bricks
62 plays an important role. In addition, Wienerberger markets manufactured stone under the “Arriscraft” brand. The Group’s goal is to meet the design requirements of architects and builders, and progress with the times.
Roofing systems
Clay roof tiles are used primarily to cover pitched roofs. They not only provide sustainable protection for houses from the weather, but also represent an important design element for architects. Clay roof tiles are not only used in new construction, but also to a large extent in the renovation of existing buildings.
Wienerberger clay roof tiles are sold under the “Koramic” brand. They are available in a wide variety of forms (pressed or plain tiles), colors and surfaces (natural, glazed, sanded or engobed). For each type of tile, Wienerberger offers a complete line of special tiles and accessories such as ridge tiles and verge tiles. Through its 50% holding in Bramac, the Wienerberger Group also produces concrete tiles that are used to cover pitched roofs, primarily in Austria and the southeast region of Europe.
Pavers
Wienerberger produces pavers made of clay or concrete and slabs. These materials are used by homeowners (for driveways, paths, terraces and garden design), as well as in public areas (for sidewalks, open areas and pedestrian zones).
Wienerberger offers pavers in a large range of shapes, colors and surface structures. The Group markets its clay pavers under the “Terca” brand and its concrete pavers under the Semmelrock brand. “Semmelrock” concrete pavers also permit the spatial structuring and design of garden landscapes, for example with products for slopes, planters and fencing systems.
Organization and business segments
The Company is the holding company of the Group which directly or indirectly holds all participations of the Group as shown in the Consolidated Financial Statements. The Company does not have any operating activities and, therefore, depends on the performance of the members of the Wienerberger Group.
The Group has set up a geographic segmentation in order to reflect the Group’s regional focus which gives responsibility to local operating management for all core products manufactured within a country. The Group operates in the following five segments: Central-East Europe, Central-West Europe, North- West Europe and North America, each including all or part of the Group’s core operations (bricks, clay roof tiles and pavers) in the respective geographic areas, and Investments and Other which comprises the Group headquarters and related costs, the Wienerberger brick business in India and certain non-core activities of the Group. These non-core activities include the 50/50 plastic pipe joint venture Pipelife (consolidated at equity) and real estate. The diagram below sets forth the Group’s segments as of December 31, 2009, and third party revenues per segment for the financial year 2009.
63
(1) As of December 31, 2009, the segment Central-East Europe contains operations in Poland, the Czech Republic, Hungary, Romania, Slovakia, Croatia, Finland, the Baltics, Slovenia, Russia, Ukraine, Bulgaria, Serbia, Macedonia and Bosnia-Herzegovina in addition to those in Austria. (2) Tondach’s revenues are not included in segment revenues. Tondach is consolidated at equity. (3) As of January 1, 2009, cross-border trading sales in The Netherlands and Germany are reported in the segment Central-West Europe (previously North-West Europe). (4) Pipelife’s revenues are not included in segment revenues. Pipelife is consolidated at equity.
Central-East Europe
Central-East Europe covers the mature home market of Austria and the markets in Poland, the Czech Republic, Hungary, Romania, Slovakia, Croatia, Finland, the Baltics, Slovenia, Serbia, Macedonia, Bulgaria and Russia where the Group has built or is currently building production facilities. In Bosnia- Herzegovina and the Ukraine, the Group has sales-only operations. In Central-East Europe, the Group primarily manufactures clay blocks and lintels as well as girders and bricks for ceilings. Clay blocks are mainly sold under the trademark name “Porotherm”. The Group also manufactures facing bricks in Austria and Hungary and roof tiles in Poland. In addition, the Group has two roof-tile joint ventures (Bramac and Tondach Gleinstätten), which produce and market concrete and clay roof tiles in Central and Eastern Europe. Furthermore, the Group has a majority interest (75%) in Semmelrock which produces concrete pavers and slabs used in garden and outdoor construction in Austria, Bulgaria, Croatia, Hungary, the Czech Republic, Slovakia, Poland and Romania. In January 2009, Semmelrock obtained approval by the Austrian cartel authorities for the combination of its Austrian pavers activities in a joint venture with Ebenseer, according to management estimates the largest producer of concrete pavers in Austria.
Since the early 1990s, countries in Central and Eastern Europe have undergone political and economic reforms which boosted income levels and created a middle class wanting to improve their standard of accommodation. This has fuelled the growth in the residential construction market. The Group’s Central-East European operations have been characterized by higher profit margins than the rest of the Group due to a combination of lower costs and strong market positions. However, the countries in the Group’s Central-East Europe segment have been hit particularly hard by the economic downturn beginning in late 2008 and recessionary trends continue to persist. The building markets have suffered from a decrease in demand, primarily because bank financing has become less available and more expensive for homebuilders and property developers. While management expects no imminent
64 upswing, it is confident that there are long-term opportunities in the region and intends to use the current decline and the resulting market pressures to further strengthen its positions.
Bricks are a well known and widely used building product in Central and Eastern Europe. The extent of bricks being used for load-bearing walls is similar throughout the region, with clay blocks being the leading material for wall construction in most markets, followed by aerated concrete blocks. A significant portion of the region’s residential construction market utilizes the do-it-yourself (“DIY”) method of construction. Because the DIY method involves low labor costs, which can comprise a significant portion of the total cost of handling bricks, the use of clay blocks compared to substitute products is widespread in this geographic area. Facing bricks have a small share of the total cladding market in Central and Eastern Europe except for Northern Poland.
The Group entered the Central and Eastern European brick business in 1990 by purchasing four plants from the Hungarian government. Since then, the Group has expanded its operations through acquisitions and greenfield projects to become according to management estimates the leader in the Central and Eastern European brick market. Apart from local brick producers who usually operate one to three brick plants and selected regional groups, in Central and Eastern Europe the Group competes with a number of major Western European aerated concrete product manufacturers such as Ytong and Fels/Hebel, both part of the Xella group.
The Group started its roofing activities in 1972, by entering into the Bramac joint venture with Braas (now Monier), an international building materials producer. Management estimates that Bramac is a leading producer of concrete roof tiles in Austria and Eastern Europe, operating a total of 12 plants in 12 countries. Day to day business of this joint venture is conducted by independent management, whereas strategic decisions are made by the supervisory board, consisting of four members, two from the Group and two from Monier.
The Group also owns a 25% interest in Tondach Gleinstätten, a leading clay roof tile producer in Central-East Europe (according to management estimates), with 19 production facilities throughout Eastern Europe and Austria. The remaining percentage is owned by the Olbrich and Garside families (50%) and Monier (25%).
Furthermore, the Group as of December 31, 2009, produces concrete pavers at 20 plants in Austria, Bulgaria, Croatia, Hungary, Poland, Slovakia, Czech Republic and Romania through Semmelrock and clay pavers at five plants in The Netherlands and one plant in Germany.
Distribution in Central and Eastern Europe is usually done through wholesalers or sales to retail dealers. The clay required for production is usually quarried in clay pits owned by the plants. Energy, in the form of natural gas, coal or saw dust, is generally procured on a local level.
Central-West Europe and North-West Europe
Western European activities are split into two segments: Central-West Europe and North-West Europe. Central-West Europe covers the mature markets of Germany, Switzerland and Italy. North-West Europe contains operations in The Netherlands, Belgium, France, the United Kingdom, Denmark, Norway and Sweden. The Group operates plants in each of those markets. The split of Western Europe into two segments reflects the fact that these segments differ in terms of construction methods and materials used in wall construction. With regard to cladding materials, facing bricks are predominant in The Netherlands, Belgium, Northern France, Northern Germany, Denmark and the United Kingdom. Clay blocks for load bearing walls are mainly used in Germany, Switzerland, France, Belgium and Italy.
Germany is the dominant country in the Group’s Western European operations primarily due to the size of the Group’s German operations. In Western Europe the Group manufactures molded and extruded facing bricks, clay blocks, ceilings, clay pavers and chimney systems. Facing bricks are sold under the trademarks “Terca” and “Desimpel” and clay blocks are sold under the trademarks “Porotherm”, “Poroton” and certain other trademarks. Roof titles are sold under the brand name “Koramic”.
65 The Group entered the Western European brick market in 1986 through the acquisition of the German Oltmanns Group with one facing and three clay block plants. In order to expand its business in Western Europe, in 1996 the Group acquired Terca, according to management estimates a leading manufacturer of facing bricks as well as clay blocks in Belgium and The Netherlands, from Koramic Builing Products N.V. At that time, Terca operated seven facing and four clay block plants in Belgium, eight facing brick plants and one windowsills plant in The Netherlands, three facing brick plants in France and two facing brick plants in Germany. To further expand its market reach in Northern Europe, the Group acquired the brick manufacturing operations of Optiroc in January 2001, with a total of eight facing brick plants in Denmark, Norway, Sweden, Finland and Estonia, and sales-only operations in the United Kingdom. In order to optimize its operations during the economic downturn, the Group closed certain plants in 2001.
In February 2002, the Group acquired the Continental European operations of Hanson Bricks to strengthen its market position in Western Europe through the addition of 23 brick plants of which 21 were located in Western Europe. The acquisition of the Continental European operations of Hanson Bricks added significant capacity to the Group’s facing brick production facilities.
In 2003, Wienerberger acquired a 50% stake in Koramic Roofing, according to management estimates one of the largest producers of clay roof tiles in Europe with leading positions in a number of markets, for a consideration of EUR 212 million. One year later, the Group exercised its options to purchase the remaining 50% and invested a further EUR 223.9 million for this purpose. Through this acquisition, Wienerberger advanced to number one in clay roof tiles in Europe and established roofing systems as a second core business (according to management estimates). Under the brand name “Koramic” (“ZZ Wancor” in Switzerland), the Group today operates 20 clay roof tile production sites in Germany, Switzerland, France, Belgium, The Netherlands, Poland and the United Kingdom. From these sites, tiles are exported to other countries, including the United Kingdom and Scandinavia.
In September 2004, the Group entered the market in the United Kingdom by acquiring thebrickbusiness, according to management estimates a leading manufacturer in the United Kingdom, with nine plants, for a consideration (including debt) of EUR 128.1 million. The Group also acquired a brick plant near London.
In June 2007, Wienerberger acquired Korevaar, an independent producer of pavers and facing bricks located in The Netherlands, which, at the time of the acquisition was the third largest producer of clay pavers in The Netherlands, according to management estimates. Korevaar operates plants in Schipperswaard and Zennewijnen and conducts trading business under the “Bos & Vermeer” brand.
In July 2007, Wienerberger acquired Baggeridge Brick, a British company listed on the London stock exchange, by means of a tender offer, for a total consideration of GBP 99.4 million. Baggeridge Brick, with headquarters in Sedgley near the city of Birmingham, operates four production plants in the Midlands and one in the south of England, manufacturing facing bricks, pavers and products for facades. In addition, Baggeridge Brick has significant excess raw material reserves and one undeveloped site near Birmingham with planning permission for future production. These assets are of strategic value to Wienerberger for future growth projects in the United Kingdom.
In 2008, Wienerberger acquired a 74% stake in Sandtoft, according to management estimates the largest independent roof tile producer in the United Kingdom. The company is headquartered near Leeds and distributes clay, concrete and slate roofing systems nationwide from four plants in northern England.
In 2009, Wienerberger, in the form of an asset deal, acquired the insolvent German clay block producer Rimmele and took over 28 of its employees. The acquired assets include a brick plant and a clay pit with substantial raw material reserves.
Management estimates that the Group is a market leader in Western Europe, holding the European leadership position in clay blocks as well as facing bricks and clay roof tiles. Competition in Western Europe has generally been stable. In the cladding market, most competition comes from other facing brick producers, such as CRH, HeidelbergCement, Röben and smaller local companies. In the masonry
66 market, the Company competes with a number of small local brick producers as well as international companies, including the Xella group (Ytong and Hebel).
Distribution in Western Europe is usually done through sales to wholesalers and retail dealers. The clay required for brick production is usually quarried in clay pits owned by plants, in the case of facing bricks part of the clay is bought on the market in order to produce different colors. Energy, in the form of natural gas, coal or oil, is generally procured at a local level in close coordination with the Group’s central international procurement department.
North America
The United States are the largest market for facing bricks worldwide. In the United States, production of facing bricks is, to a large extent, concentrated in the Southeast, Southwest and Midwest. According to the BIA, facing bricks accounted for 25% of the total U.S. residential facade market in 2008, with vinyl having the largest market share (32%).
The Group entered the U.S. market in 1999 through the acquisition of General Shale, at the time according to management estimates the second largest U.S. facing brick manufacturer based on volumes. In 2000, it expanded its presence in the U.S. facing brick market through the acquisition of Cherokee Sanford and Darlington.
In 2006, the Group took over Robinson Brick with one facing brick and three concrete block plants.
In July 2007, Wienerberger acquired all operating units of Arriscraft. The company, with headquarters in Cambridge, Ontario (Canada), operates three production sites in Cambridge, Saint-Étienne-des-Grés, Quebec (Canada), and Fort Valley, Georgia (United States). It is according to management estimates the largest producer of manufactured stone in North America, which is a growing niche product for wall cladding. The acquisition of Arriscraft marked an important milestone in Wienerberger’s growth strategy in North America by expanding the Group’s product portfolio to include manufactured stone and expanding the Group’s regional coverage to include Canada.
In the United States, the Group manufactures facing bricks, concrete blocks for walls and pavers. With the acquisitions of Robinson Brick and Arriscraft, the Group’s product portfolio was expanded to include thin bricks, building stone and manufactured stone.
In the United States, the top five brick producers account for an estimated 65% of the total market capacity. Apart from various smaller local manufacturers, the Group competes mainly with four major producers of facing bricks: Boral, ACME Bricks, HeidelbergCement and Glen Gery (CRH). Of the five producers of facing bricks in the United States, management believes that the Group is the largest together with Boral.
The Group distributes its products in the United States both through sales to retailers and through direct distribution to end users. In the past years, the Group increased its direct distribution network by investing in distributors because direct distribution allows the Group to be closer to the market. The clay required for the brick production is usually quarried in clay pits owned by the plants. In the United States, the Group uses mainly coal dust and saw dust in addition to natural gas as energy sources for its kilns. The lower cost for these materials compared to natural gas gives the Group a certain cost advantage.
Investments and Other
The Investments and Other segment comprises the Group’s headquarters and related costs, the Wienerberger brick business in India and the non-core activities of the Group. These non-core activities include Pipelife and real estate.
Pipelife, which management estimates is the fourth largest European manufacturer of plastic pipes based on revenues, was negatively affected by the economic crisis in 2008 and 2009. Significant drops
67 in demand and pricing pressure, above all in the United States, Central and Eastern Europe, France, Ireland and Iberia led to a slump in revenues and profits. As a reaction to the recessionary business climate, Pipelife implemented an extensive cost saving and working capital reduction program in all countries. In 2009, Pipelife generated total revenues of EUR 699 million and an operating EBITDA of EUR 60 million. As of December 31, 2009, Pipelife is active in 28 countries and operates 29 plants. Since 2004, Pipelife has been consolidated at equity and classified as a financial investment. It is managed independently and neither draws on the Company’s funding nor benefits from guarantees issued by the Company. Pipelife aims at achieving profitable growth with a focus on Europe, as well as increasing market shares of sewer, soil & waste, electro, products for hot and cold use and agricultural pipes. The acquisitions and start-up of new production lines in recent years together with innovations, gave Pipelife a sound market position in the sewage, water, gas and cable segments, which was further strengthened in 2009.
In addition, the Group owns a portfolio of real properties that are not required for operational purposes.
Principal markets
In analyzing its existing core brick and roof tiles businesses, the Group distinguishes between three types of markets – growth markets, new markets and mature markets – and has a different strategic focus in each of the markets, reflecting each market’s individual dynamics.
Growth markets
Although they have been hit hard by the current recession, the Group views – from a long-term perspective – the Eastern European countries as its major growth markets in addition to the United States. Some of the markets in the region generated revenue increases even in 2008. In 2009, all countries saw lower revenues in CEE. After the end of the current economic downturn, Wienerberger expects to benefit from substantial opportunities in this region, with the brick and roof market driven by the need to upgrade and expand the region’s housing stock and potential positive effects of the further transition of Eastern European economies towards Western European levels of housing starts.
The United States is the world’s largest facing brick market and is characterized by above-average population growth, making it a strategic market for the Group. Nevertheless, in 2008 and 2009 the Group recorded a significant decrease in revenues in the United States due to a sharp drop in new residential construction. Furthermore, massive housing unit stockpiles are expected to put stress on the new residential construction market for some time albeit the absolute number of housing stock has come down over the past months. In the United States, the Group’s strategy is to maintain or achieve the leading position in the regions in which it operates and to increase margins through the adaption of production capacities to sales and the further development of the Group’s own distribution capabilities by way of strategic investments in local brick distributors.
New markets
The Group targets new markets in countries in which bricks hold a high market share and where management believes that there are attractive growth prospects. The potential to gain a leading position in new markets over the medium term is also an important consideration. The Group has built a plant in India and continuously investigates other markets for future expansion.
Mature markets
The Group views all its other markets as mature markets and expects low overall market growth in these markets in the medium term. In some of these markets (such as France), however, the Group sees potential for growth in the medium term through the continued promotion of clay as the material of choice and a substitute for other building materials (such as concrete) in residential housing construction. The strategy in mature markets is for constant optimization of operations via internal improvements in order to maximize free cash flow generation for reinvestment.
68 Trend information
In addition to weather, which is an important external factor determining demand, the construction sector (in particular residential construction, which accounts for approximately 74% of brick demand worldwide according to management estimates) is subject to typical macroeconomic drivers such as GDP growth rate, consumer spending, confidence levels and, to a lesser extent, long-term interest rates (i.e., mortgage rates). As a consequence, the global financial crisis and the resulting deterioration in the general economic environment have resulted in a significant decline in the Group’s sales and earnings in 2008 and 2009 and led Wienerberger to adjust its previous strategy and now consider maintaining a healthy financial base and protecting liquidity as its most important goals.
The main elements of the Group’s new strategy are the maximization of cash flows to protect liquidity and effective marketing activities. The former entails four focus areas: active capacity management and the reduction of personnel and maintenance costs, active working capital management, the reduction of administrative and selling expenses and the limitation of investments. The latter involves the improvement of products, customer service and technological efficiency to safeguard and expand the Group’s market positions.
Wienerberger has launched an extensive optimization and restructuring program in summer 2008. In 2008 and 2009, measures under this program included the permanent closure and mothballing of plants (27 in 2008 and 31 in 2009), adjustment of personnel numbers, reduction of non-personnel costs and utilization of additional opportunities for synergy in the Group.
In addition to these economic challenges, Wienerberger faces an increasingly complex regulatory framework: The Group is subject to numerous environmental and health and safety laws, regulations and standards, the number of which has increased over the past years, in particular in the European Union and the United States where the Group operates important facilities. Furthermore, such laws have become more stringent in the past years and have been interpreted more strictly by the authorities. This trend is expected to continue and could result in increasing expenditures incurred by the Group to establish compliance with new regulations.
Recent developments and future investments
In 2009, Wienerberger reduced capital expenditure to EUR 134 million, of which maintenance capital expenditure amounted to EUR 63 million and growth capital expenditure to EUR 71 million (2008: EUR 506 million, thereof EUR 98 million for maintenance and EUR 407 million growth investments). The Group intends to further reduce capital expenditure to approximately EUR 120 million in 2010, of which maintenance capital expenditure will amount to EUR 95 million, which the Group considers to be the necessary minimum maintenance investments to replace parts of the plant equipment in order to keep the plants in a good technical shape.
Currently, all new expansion projects have been put on hold to focus on cash flow maximization and management does not have immediate plans to enter new markets or start new expansion projects but believes there is potential for selective bolt-on expansion. Due to a certain time lag in the implementation of the new strategy and in particular the optimization and restructuring program, the Group is in the start-up phase of some expansion projects that were initiated before summer 2008. This is, for instance, the case in India, where operations have started at a new plant, and France, where the construction of a new clay block plant in Durtal was started in 2009 and will result in further investments in 2010. Apart from such projects, there are currently no principal future investments on which the Company’s management bodies have already made firm commitments.
Investments in progress will be financed by cash-flow and cash at bank. In addition, the Group, in September 2009, increased its capital by placing 33,579,075 new ordinary shares, representing 40% of the existing share capital, the proceeds of which (approximately EUR 320 million) were used to repay debt in order to reinforce the Company’s financial flexibility.
69 Material contracts
In the usual course of its business, Wienerberger enters into numerous contracts with various other entities. Wienerberger has not, however, entered into any material contracts outside the ordinary course of its business, which could result in any Group member being under an obligation or entitlement that is material to the Issuer’s ability to meet its obligations to noteholders in respect of the Notes being issued.
Legal proceedings and investigations
The Company and its subsidiaries are party to certain lawsuits and administrative proceedings before various courts and governmental agencies arising from the ordinary course of business involving various contractual, labor and other matters. Legal risks arising from increasingly strict environmental, health and safety standards may result in penalties or claims for damages if these standards are not met. For example, in 2009 the Italian authorities launched an investigation into possible environmental hazards at Wienerberger plants; the investigation has not produced any results to date. During the 12 months preceding the date of this Prospectus there were no governmental, legal or arbitration proceedings (including any such proceedings which are pending or threatened of which the Issuer is aware), which may have, or have had in the recent past, significant effects on the financial position or profitability of Wienerberger AG or the Group.
In a decision issued in December 2008, the German cartel office levied an administrative fine of approximately EUR 42 million against Wienerberger GmbH (former Koramic Dachprodukte GmbH & Co KG), a wholly owned German subsidiary, for alleged price agreements in violation of fair competition. The company immediately appealed this decision. Based on the advice of the Company’s lawyers, the fine and costs for legal proceedings are not expected to total more than approximately EUR 10 million. A provision was therefore established for this amount in 2008. A court decision is not expected in the short term.
The Group is cooperating with the competent authorities and emphasizes that agreements in restraint of trade violate the corporate policies of the Wienerberger Group, are expressly prohibited through internal guidelines and perpetrators face sanctions. Management frequently emphasizes that price-fixing agreements or any other anti-competitive behavior do not comply with its business practices and corporate policies.
70 TAXATION
Taxation in Austria
The following is a brief summary of certain Austrian tax aspects in connection with the Notes. It does not claim to fully describe all Austrian tax consequences of the acquisition, ownership, disposition or redemption of the Notes nor does it take into account the noteholders’ individual circumstances or any special tax treatment applicable to the noteholder. It is not intended to be, nor should it be construed to be, legal or tax advice. Prospective investors should consult their own professional advisors as to the particular tax consequences of the acquisition, ownership, disposition or redemption of the Notes.
This summary is based on Austrian law as in force when drawing up this prospectus. The laws and their interpretation by the tax authorities may change and such changes may also have retroactive effect. It cannot be ruled out that the Austrian tax authorities adopt a view different from that outlined below.
Austrian residents
Income derived from the Notes by individuals with a domicile or their habitual abode in Austria or corporate entities having their corporate seat or place of management in Austria is taxable in Austria pursuant to the Austrian income tax act ( Einkommensteuergesetz ) or the Austrian corporate income tax act ( Körperschaftsteuergesetz ).
Generally, income arising from the Notes should qualify as income from debt-securities ( Kapitalerträge aus Forderungswertpapieren ). Income from debt-securities includes (i) interest payments as well as (ii) income, if any, realized upon (early) redemption of the Notes (which is the difference between the issue price and the (early) redemption amount - for Notes with regular coupons an exemption applies if such difference does not exceed a threshold of to 2%) or (iii) income realized upon sale of the Notes (accrued interest).
If income from debt-securities is paid out by a paying agent ( kuponauszahlende Stelle ) located in Austria, it is subject to 25% Austrian withholding tax ( Kapitalertragsteuer-KESt ). The paying agent is the bank, including an Austrian branch of a foreign bank or investment firm, which pays out such income to the holder of the Notes.
Austrian resident individuals
For individuals the 25% withholding tax constitutes a final taxation ( Endbesteuerung ), no matter whether they act as private investors or hold the Notes as business property. Final taxation means that no further income tax will be assessed and the income is not to be included in the noteholder’s income tax return.
Where there is no deduction of Austrian withholding tax because the income from the Notes is not received in Austria (not paid out by a paying agent located in Austria) Austrian resident noteholders will have to declare the income from the Notes in their income tax returns pursuant to the Austrian income tax act. A special 25% income tax rate is applicable.
Individuals whose regular personal income tax rate is lower than 25% may opt for taxation of the income from the Notes at such regular personal income tax rate. In this case, the withholding tax will be credited against the personal income tax liability and the excess amount refunded. Expenses incurred by an individual noteholder in connection with income derived from Notes qualifying for final taxation or the special 25% income tax rate are in neither case deductible.
Income derived from Notes which are not offered to the public within the meaning of sec 97 and 37 para 8 of the Austrian income tax act is taxable at the respective noteholder’s normal progressive personal income tax rate amounting up to 50% and the Austrian withholding tax would be credited against the noteholder’s personal income tax liability.
71 Upon the sale of the Notes accrued interest realised upon such sale is taxed as income from debt- securities being subject to withholding tax as set out above. For private investors, any additional capital gain on the disposal of the Notes is taxable if the disposal takes place within one year after the date of the acquisition of the Notes pursuant to Sec 30 Income Tax Act (Spekulationsgeschäft - speculative transaction). Such speculative gain is taxed at normal progressive income tax rates amounting up to 50% if the total of such speculative gain exceeds 440 Euro per year. Losses from speculative transactions can only be set off against gains of the same calendar year. If the Notes qualify as business assets, capital gains on the disposal are taxable irrespective of the date of the disposal at normal progressive income tax rates.
Special rules apply if a noteholder transfers his residence or deposit account outside of Austria.
Austrian resident corporate investors
Corporate noteholders deriving business income from the Notes may avoid the application of Austrian withholding tax by filing a declaration of exemption ( Befreiungserklärung ) pursuant to Sec 94 no. 5 Austrian income tax act with the paying agent. Income including any capital gain derived from the Notes by corporate noteholders is subject to Austrian corporate income tax at the general rate of 25%. There is, inter alia, a special tax regime for Private Foundations established under Austrian law (Privatstiftungen ).
Non-residents
Income including any capital gain derived from the Notes by individuals who do not have a domicile or their habitual abode in Austria or by corporate investors who do not have their corporate seat or their place of management in Austria (“non-residents”) is not taxable in Austria provided that the income is not attributable to an Austrian permanent establishment (for withholding tax under the EU Savings Directive see below).
Thus, non-resident noteholders – in case they receive income from the Notes through a paying agent located in Austria – may avoid the application of Austrian withholding tax if they evidence their non resident-status vis-à-vis the paying agent by disclosing their identity and address pursuant to the provisions of the Austrian income tax guidelines The provision of evidence that the noteholder is not subject to Austrian withholding tax is the responsibility of the noteholder.
If any Austrian withholding tax is deducted by the paying agent the tax withheld shall be refunded to the non-resident noteholder upon his application which has to be filed with the competent Austrian tax authority within five calendar years following the date of the imposition of the withholding tax.
Where non-residents receive income from the Notes as part of business income taxable in Austria (e.g. permanent establishment), they will be, in general, subject to the same tax treatment as resident investors.
EU Savings Directive
The EU Council Directive 2003/48/EC on taxation of savings income in the form of interest payments (“Savings Directive”) provides for an exchange of information between the authorities of EU member states regarding interest payments made in one member state to beneficial owners who are individuals and resident for tax purposes in another member state. Austria has implemented the Savings Directive by way of the EU withholding tax act ( EU-Quellensteuergesetz ) which provides for a withholding tax rather than for an exchange of information. Such EU withholding tax is levied on interest payments within the meaning of the EU withholding tax act made by a paying agent located in Austria to an individual resident for tax purposes in another member state of the European Union or certain dependent and associated territories. Further, withholding tax will be deducted - on a pro rata temporis basis - in case of changes of the individual’s withholding tax status such as changes of his country of residence or transfer of his securities to a deposit account outside of Austria. The EU withholding tax currently amounts to 20% and will amount to 35% with effect as of 1 July 2011.
72 No EU withholding tax is deducted if the EU-resident noteholder provides the paying agent with a certificate drawn up in his name by the tax office of his member state of residence. Such certificate has to indicate, among other things, the name and address of the paying agent as well as the bank account number of the noteholder or the identification of the Notes (Sec 10 EU Withholding Tax Act).
Other taxes
There should be no transfer tax, registration tax or similar tax payable in Austria by noteholders as a consequence of the acquisition, ownership, disposition or redemption of the Notes. The sale and purchase of Notes is not subject to Austrian stamp duty provided that no other transaction potentially taxable under the Austrian Stamp Duty Act ( Gebührengesetz ) such as a loan or credit agreement or an assignment is entered into for which a document ( Urkunde ) within the meaning of the stamp duty act is executed. The Austrian inheritance and gift tax ( Erbschafts- und Schenkungssteuer ) was abolished with effect as of 1 August 2008. However, gifts from or to Austrian residents have to be notified to the tax authorities within a three-month notification period. There are certain exemptions from such notification obligation, e.g. for gifts among relatives that do not exceed an aggregate amount of € 50,000 per year or gifts among unrelated persons that do not exceed an aggregate amount of € 15,000 within five years.
Taxation in Luxembourg
The following summary is of a general nature and is included herein solely for information purposes. It is based on the laws presently in force in Luxembourg, though it is not intended to be, nor should it be construed to be, legal or tax advice. Prospective investors in the Notes should therefore consult their own professional advisers as to the effects of state, local or foreign laws, including Luxembourg tax law, to which they may be subject.
Withholding tax
Non-resident holders of Notes
Under Luxembourg general tax laws currently in force and subject to the laws of June 21, 2005 (the “Laws”) mentioned below, there is no withholding tax on payments of principal, premium or interest made to non-resident holders of Notes, nor on accrued but unpaid interest in respect of the Notes, nor is any Luxembourg withholding tax payable upon redemption or repurchase of the Notes held by non- resident holders of Notes.
Under the Laws implementing the Savings Directive and ratifying the treaties entered into by Luxembourg and certain dependent and associated territories of EU member states (the “Territories”), payments of interest or similar income made or ascribed by a paying agent established in Luxembourg to or for the immediate benefit of an individual beneficial owner or a residual entity, as defined by the Laws, which is a resident of, or established in, an EU member state (other than Luxembourg) or one of the Territories will be subject to a withholding tax unless the relevant recipient has adequately instructed the relevant paying agent to provide details of the relevant payments of interest or similar income to the fiscal authorities of his/her/its country of residence or establishment, or has provided a tax certificate issued by the fiscal authorities of his/her/its country of residence in the required format to the relevant paying agent. Where withholding tax is applied, it will be levied at a rate of 15% during the first three-year period starting July 1, 2005, at a rate of 20% for the subsequent three-year period and at a rate of 35% thereafter. Responsibility for the withholding of the tax will be assumed by the Luxembourg paying agent. Payments of interest under the Notes coming within the scope of the Laws would at present be subject to withholding tax of 20%.
Resident holders of Notes
Under Luxembourg general tax laws currently in force and subject to the law of December 23, 2005 as amended (the “Law”) mentioned below, there is no withholding tax on payments of principal, premium or interest made to Luxembourg resident holders of Notes, nor on accrued but unpaid interest in respect
73 of Notes, nor is any Luxembourg withholding tax payable upon redemption or repurchase of Notes held by Luxembourg resident holders of Notes.
Under the Law, payments of interest or similar income made or ascribed by a paying agent established in Luxembourg to or for the immediate benefit of an individual beneficial owner who is a resident of Luxembourg or a residual entity that secures interest payments on behalf of such individuals (unless such entity has opted to be treated as UCITS recognized in accordance with the Council Directive 85/611/EEC or for the exchange of information regime) will be subject to a withholding tax of 10%. Such withholding tax will be in full discharge of income tax if the beneficial owner is an individual acting in the course of the management of his/her/its private wealth. Responsibility for the withholding of the tax will be assumed by the Luxembourg paying agent. Payments of interest under the Notes coming within the scope of the Law would be subject to withholding tax of 10%.
Pursuant to the Luxembourg law of December 23, 2005 as amended by the law of July 17, 2008, Luxembourg resident individuals, acting in the course of their private wealth, can opt to self-declare and pay a 10% tax on interest payments made after December 31, 2007 by paying agents (defined in the same way as in the Savings Directive) located in an EU member state other than Luxembourg, a member state of the European Economic Area other than an EU member state or in one of the Territories.
74 SUBSCRIPTION AND SELLING RESTRICTIONS
Underwriting
The Notes may be issued on a continuing basis and underwritten by one or more of the Dealers and any additional Dealer appointed under the Programme Agreement from time to time by the Issuer. Notes may be distributed by way of public or private placements and, in each case, on a syndicated or non- syndicated basis. The method of distribution of each Tranche will be specified in the applicable Final Terms.
Notes may be sold from time to time by the Issuer to any one or more of the Dealers. The arrangements under which Notes may from time to time be agreed to be sold by the Issuer to, and purchased by, Dealers are set out in the Programme Agreement. The Programme Agreement provides, inter alia, for the resignation or termination of appointment of existing Dealers and for the appointment of additional or other Dealers. A Subscription Agreement (a form of which is set out in the Programme Agreement) will be concluded in connection with each issuance of Notes under the Programme. The Subscription Agreement will typically be dated on or about the date of the applicable Final Terms and provides, inter alia, for the form and terms and conditions of the Notes, the price at which such Notes will be purchased by the Dealer(s) and the commissions or other agreed deductibles (if any) payable or allowable by the Issuer in respect of such purchase.
General
Each Dealer has represented, warranted and undertaken that it has complied and will comply with all applicable laws and regulations in each country or jurisdiction in or from which it purchases, offers, sells or delivers Notes or possesses, distributes or publishes the Prospectus or any related offering material and will obtain any consent, approval or permission required by it for the purchase, offer, sale or delivery by it of Notes under the laws and regulations in force in any jurisdiction to which it is subject or in which it makes such purchases, offers, sales or deliveries and neither any of the Issuer nor any other Dealer shall have any responsibility therefor. With regard to each Tranche, the relevant Dealer will be required to comply with such other additional restrictions as the Issuer and the relevant Dealer shall agree and as shall be set out in the Final Terms.
European Economic Area
Public Offer Selling Restriction under the Prospectus Directive
In relation to each Member State of the European Economic Area which has implemented the Prospectus Directive (each, a “Relevant Member State ”), each Manager has represented and agreed that with effect from and including the date on which the Prospectus Directive is implemented in that Relevant Member State (the “Relevant Implementation Date ”) it has not made and will not make an offer of Notes which are the subject of the offering contemplated by this Prospectus to the public in that Relevant Member State other than the offers contemplated in this Prospectus in Austria, from the date falling one business day after the Prospectus has been approved by the competent authority in Luxembourg, notified to the relevant competent authority and published in accordance with the Prospectus Directive as implemented in Austria until the end of the Public Offer Period, except that it may, with effect from and including the Relevant Implementation Date, make an offer of Notes to the public in that Relevant Member State:
(a) to legal entities which are authorized or regulated to operate in the financial markets or, if not so authorized or regulated, whose corporate purpose is solely to invest in securities;
(b) to any legal entity which has two or more of (1) an average of at least 250 employees during the last financial year; (2) a total balance sheet of more than EUR 43,000,000; and (3) an annual net turnover of more than EUR 50,000,000, as shown in its last annual or consolidated accounts;
(c) to fewer than 100 natural or legal persons (other than qualified investors as defined in the
75 Prospectus Directive) subject to obtaining the prior consent of the Managers; or
(d) in any other circumstances falling within Article 3(2) of the Prospectus Directive, provided that no such offer of Notes shall require the Issuer or any Manager to publish a prospectus pursuant to Article 3 of the Prospectus Directive or supplement a prospectus pursuant to Article 16 of the Prospectus Directive.
For the purposes of this provision, the expression an “offer of Notes to the public ” in relation to any Notes in any Relevant Member State means the communication in any form and by any means of sufficient information on the terms of the offer and the Notes to be offered so as to enable an investor to decide to purchase or subscribe the Notes, as the same may be varied in that Member State by any measure implementing the Prospectus Directive in that Member State and the expression “Prospectus Directive” means Directive 2003/71/EC and includes any relevant implementing measure in each Relevant Member State.
United States
The Notes have not been and will not be registered under the Securities Act and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons except in certain transactions exempt from the registration requirements of the Securities Act. Terms used in this paragraph have the meanings given to them by Regulation S.
Each Dealer has agreed that it will not offer or sell the Notes (a) as part of their distribution at any time or (b) otherwise until 40 days after the later of the completion of the distribution of an identifiable tranche of which such Notes are a part, as determined and certified to the Principal Paying Agent by such Dealer (or, in the case of an identifiable tranche of Notes sold to or through more than one Dealer, by each of such Dealers with respect to Notes of an identifiable tranche purchased by or through it, in which case the Principal Paying Agent shall notify such Dealer when all such Dealers have so certified), within the United States or to, or for the account or benefit of, U.S. persons and that it will have sent to each dealer to which it sells any Notes during the distribution compliance period a confirmation or other notice setting forth the restrictions on offers and sales of the Notes within the United States or to, or for the account or benefit of, U.S. persons. Terms used in pending sentence have the meanings given to them by Regulation S under the Securities Act.
In addition, until 40 days after the commencement of the offering of any identifiable tranche of Notes, an offer or sale of Notes within the United States by any dealer that is not participating in the offering may violate the registration requirements of the Securities Act.
United Kingdom
Each Manager has represented and agreed that:
(a) it has only communicated or caused to be communicated and will only communicate or cause to be communicated an invitation or inducement to engage in investment activity (within the meaning of Section 21 of the FSMA) received by it in connection with the issue or sale of any Notes in circumstances in which Section 21(1) of the FSMA does not apply to the Issuer or any of the Guarantors; and
(b) it has complied and will comply with all applicable provisions of the FSMA with respect to anything done by it in relation to any Notes in, from or otherwise involving the United Kingdom.
76 GENERAL INFORMATION
Authorization
The establishment of the Programme was duly authorized by a resolution of the Managing Directors of the Issuer dated March 24, 2010.
Listing
Application was made to list Notes under the Programme on the official list of the Luxembourg Stock Exchange and to admit to trading such Notes on the regulated market of the Luxembourg Stock Exchange. However, Notes may be issued under the Programme which will not be listed on the Luxembourg Stock Exchange or any other stock exchange or which will be listed on such stock exchange as the Issuer and the relevant Dealer(s) may agree as specified in the relevant Final Terms.
Clearing Systems
The Notes were accepted for clearance through Euroclear and CBL and may be accepted for clearance through other or further clearing systems. The appropriate common code, the International Securities Identification Number (ISIN), the Austrian Securities Code (WKN) (if any) and/or any other or further security code (if any) relating to the Notes will be specified in the relevant Final Terms. The relevant Final Terms shall specify such other clearing system which accepted the relevant Notes for clearance together with any further appropriate information. Settlement arrangements will be agreed between the Issuer and the relevant Dealer(s) and in relation to each Tranche. The address of Euroclear is Euroclear Bank SA/NV, 1 Boulevard du Roi Albert II, B-1210 Brusssels and the address of Clearstream, Luxembourg is Clearstream Banking, 42 Avenue JF Kennedy, L-1855 Luxembourg.
U.S. Tax
The Notes will contain the following legend: “Any United States person who holds this obligation will be subject to limitations under the United States income tax laws, including the limitations provided in Sections 165(j) and 1287(a) of the Internal Revenue Code.”
Managers transacting with the Issuer
Certain of the Managers and their affiliates have engaged, and may in the future engage, in investment banking and/or commercial banking transactions with, and may perform services to the Issuer and its affiliates in the ordinary course of business.
Post Issuance Information
The Issuer will not provide any post issuance information, except if required by any applicable laws and regulations.
Use of proceeds
The Issuer intends to use the net proceeds of the issue of the Notes for general corporate purposes.
77 GLOSSARY OF TECHNICAL TERMS
Acquisitions Expenditure for the purchase of a company or share in a company (vs. investment)
ANC Foundation ANC Privatstiftung
Arriscraft Arriscraft International Income Fund
Baggeridge Brick Baggeridge Brick plc
BIA Brick Industry Association
Bolt-on projects Construction of new plants, plant-upgrades or smaller acquisitions in existing markets, that carry synergy potential through the integration with existing operations
CBF Clearstream Banking AG, Frankfurt am Main
CBL Clearstream Banking, société anonyme, Luxembourg
CGC The Austrian Code of Corporate Governance
Clay blocks Bricks made of burned clay, which are normally used as perforated bricks under plaster
Clay roof tiles Roof tiles made of clay, in various shapes and colors
CO 2 Carbon dioxide
Consolidated The audited consolidated financial statements of the Company as of, and for Financial the years ended, December 31, 2009, 2008 and 2007 Statements
CSSF Commission de Surveillance du Secteur Financier of the Grand-Duchy of Luxembourg
DIY Do-it-yourself
EBIT Earnings before interest and taxes
EBITDA Earnings before interest, tax, depreciation, and amortization
Euroclear Euroclear Bank S.A./N.V.
Facing bricks External brick layer of two-layer non-load bearing exterior walls for buildings (face wall – air layer below/above insulation – rear wall)
GBP British Pound
GDP Gross domestic product
IASs International Accounting Standards
IFRS International Financial Reporting Standards, including IASs
78 Investments Additions to plant, property and equipment and intangible assets
Luxembourg Act Luxembourg Act on Securities Prospectuses ( loi relative aux prospectus pour valeurs mobilières )
Moody’s Moody’s Investors Service, Inc.
Notes Notes issued from time to time by Wienerberger AG under the EUR 500,000,000 Debt Issuance Programme
OeKB Oesterreichische Kontrollbank Aktiengesellschaft
Paver Product made of clay or concrete, which is used in the design of gardens and public areas
Pipelife Pipelife International GmbH
Programme EUR 500,000,000 Debt Issuance Programme
Sandtoft Sandtoft Roof Tiles Ltd
Securities Act United States Securities Act of 1933
Standard & Poor’s Standard & Poor’s Rating Services, a division of The McGraw-Hill Companies, Inc.
Stock Exchange Act Austrian Stock Exchange Act ( Börsegesetz )
Semmelrock Semmelrock International GmbH
Terca Terca Bricks, N.V.
USD, U.S. dollar, $ United States Dollar
79
GERMAN TRANSLATION OF THE SUMMARY
ZUSAMMENFASSUNG
Diese Zusammenfassung muss als Einleitung zum Prospekt verstanden werden, und jede Entscheidung zur Anlage in die Schuldverschreibungen, die im Rahmen dieses Programms begeben werden, sollte sich auf eine Prüfung des gesamten Prospekts, einschließlich der durch Verweis aufgenommenen Dokumente, der unter „Risikofaktoren“ dargelegten Inhalte und der jeweiligen Endgültigen Bedingungen stützen. Diejenigen Personen, die diese Zusammenfassung, einschließlich jedweder Übersetzungen davon, vorgelegt und deren Meldung beantragt haben, können haftbar gemacht werden, jedoch nur für den Fall, dass diese Zusammenfassung irreführend, unrichtig oder widersprüchlich ist, wenn sie zusammen mit den anderen Teilen des Prospekts gelesen wird. Für den Fall, dass vor Gericht Ansprüche aufgrund der in diesem Prospekt enthaltenen Informationen geltend gemacht werden, könnten die als Kläger auftretenden Anleger in Anwendung der einzelstaatlichen Rechtsvorschriften der Mitgliedsstaaten des EWR die Kosten für die Übersetzung des Prospekts und der jeweiligen Endgültigen Bedingungen vor Prozessbeginn zu tragen haben. Für den Fall, dass solche Ansprüche vor einem österreichischen Gericht geltend gemacht werden, wird eine deutsche Übersetzung des Prospekts und der jeweiligen Endgültigen Bedingungen erforderlich sein, und die Kosten hierfür müssen zunächst von dem als Kläger auftretenden Anleger und schließlich von der im Rechtsstreit unterliegenden Partei getragen werden.
Zusammenfassung hinsichtlich der Schuldverschreibungen
Emittentin...... Wienerberger AG (die “Gesellschaft”)
Arrangeure und Plazeure ...... Erste Group Bank AG, Raiffeisen Zentralbank Österreich Aktiengesellschaft
Zahlstelle ...... Erste Group Bank AG
Angegebene Währungen ...... Die Schuldverschreibungen können in jeder zwischen der Emittentin und den (dem) jeweiligen Plazeur(en) vereinbarten und in den anwendbaren Endgültigen Bedingungen angegebenen Währung ausgegeben werden.
Stückelung der Schuldverschreibungen ...... Die Schuldverschreibungen werden in den zwischen der Emittentin und den (dem) jeweiligen Plazeur(en) vereinbarten und in den anwendbaren Endgültigen Bedingungen angegebenen Stückelungen begeben; die Mindeststückelung der Schuldverschreibung ist EUR 1.000 (oder der am ehesten entsprechende Wert in einer anderen Währung).
Beschreibung der Die Schuldverschreibungen können nur auf den Inhaber Schuldverschreibungen ...... lauten. Die Schuldverschreibungen werden durch eine auf Inhaber lautende veränderliche Globalurkunde ohne Zinskupon, deren Nennbetrag dem aggregierten Nennbetrag dieser Schuldverschreibungen entspricht, verbrieft (“Veränderliche Globalurkunde”).
Schuldverschreibungen in endgültiger Form und Zinskupons werden nicht ausgegeben.
D-1 Status der Schuldverschreibungen ...... Die Schuldverschreibungen werden nicht besicherte, unbedingte und nicht nachrangige Verbindlichkeiten der Emittentin begründen, die untereinander und mit allen anderen gegenwärtigen oder künftigen nicht besicherten und nicht nachrangigen Verbindlichkeiten der Emittentin gleichrangig sind.
Zinsen...... Die Schuldverschreibungen sind über die gesamte Laufzeit mit einem fixen Zinssatz verzinst. Die Zinszahlungen erfolgen auf Basis des zwischen der Emittentin und den (dem) jeweiligen Plazeur(en) Vereinbarten, wie in den anwendbaren Endgültigen Bedingungen festgelegt. Der Zinsertrag wird mit herkömmlichen Methoden ermittelt. Die jeweilige Berechnungsmethode wird in den anwendbaren Endgültigen Bedingungen angegeben.
Laufzeit...... Die Laufzeiten werden zwischen der Emittentin und den (dem) jeweiligen Plazeur(en) vereinbart und in den anwendbaren Endgültigen Bedingungen festgelegt.
Rückzahlung...... Die Schuldverschreibungen können nicht vor der angegebenen Endfälligkeit zurückgezahlt werden (außer aus steuerlichen Gründen, im Fall eines Rückkaufs durch die Emittentin auf dem freien Markt oder andere Weise oder bei Eintritt eines Kündigungsgrunds).
Besteuerung...... Kapital und Zinsen werden ohne Einbehalt oder Abzug an der Quelle für oder wegen gegenwärtiger oder zukünftiger Steuern, Abgaben oder Gebühren bzw. Veranlagungen gleich welcher Art gezahlt, die von Österreich oder einer politischen Untergliederung oder einer Steuerbehörde im Wege des Einbehalts oder des Abzugs auferlegt, einbehalten oder erhoben werden, es sei denn, ein solcher Abzug oder Einbehalt ist gesetzlich vorgeschrieben. In diesem Fall wird die Emittentin, abgesehen von den in den Anleihebedingungen festgelegten Ausnahmen diejenigen zusätzlichen Beträge zahlen, die erforderlich sind, damit die den Gläubigern zufließenden Nettobeträge nach diesem Einbehalt oder Abzug jeweils den Beträgen an Kapital und Zinsen entsprechen, die ohne einen solchen Einbehalt oder Abzug oder Einbehalt von den Gläubigern erhalten worden wären.
Negativerpflichtung...... Die endgültigen Anleihebedingungen der Schuldverschreibungen werden eine Negativverpflichtung wie in den Anleihebedingungen der Schuldverschreibungen enthalten.
Kündigung (Default) ...... Die endgültigen Anleihebedingungen der Schuldverschreibungen werden in den Anleihebedingungen der Schuldverschreibungen festgelegte Kündigungsgründe vorsehen, die Anleihegläubiger zur sofortigen Rückzahlung der Schuldverschreibungen berechtigen.
D-2 Cross Default...... Die endgültigen Anleihebedingungen der Schuldverschreibungen werden eine Cross Default Bestimmung wie in den Anleihebedingungen der Schuldverschreibungen enthalten.
Change of Control ...... Die endgültigen Anleihebedingungen werden eine Change of Control Klausel enthalten.
Anwendbares Recht...... Die Schuldverschreibungen und die gesamte Dokumentation, die sich auf das Programm bezieht, unterliegen österreichischem Recht.
Gerichtsstand...... Ausschließlicher Gerichtsstand für alle Rechtsstreitigkeiten in Zusammenhang mit den Schuldverschreibungen ist Wien, soweit das nach zwingenden österreichischen Konsumentenschutzbestimmungen möglich ist.
Clearance und Abwicklung ...... Die Schuldverschreibungen werden bei einem oder mehreren Clearingsystemen zum Clearing angenommen, wie in den anwendbaren Endgültigen Bedingungen festgelegt. Zu diesen Clearingsystemen gehören Clearstream Banking AG, Frankfurt am Main („CBF“), Clearstream Banking, société anonyme, Luxemburg („CBL“), Euroclear Bank S.A./N.V. („Euroclear“) und Oesterreichische Kontrollbank Aktien- gesellschaft („OeKB“).
Zulassung zur Notierung und zum Handel ...... Es wurde ein Antrag zur Zulassung der Schuldverschreibung zum Amtlichen Handel der Börse Luxemburg und zur Zulassung zum Handel an dem geregelten Markt der Börse Luxemburg gestellt. Das Programm sieht vor, dass die Schuldverschreibungen entsprechend der zwischen der Emittentin und den (dem) jeweiligen Plazeur(en) für jede Emission getroffenen Vereinbarung zum Handel an weiteren Börsen zugelassen werden können. Des Weiteren können Schuldverschreibungen unter diesem Programm ausgegeben werden, die nicht zum Handel an einer Börse zugelassen sind.
Einsehbare Dokumente ...... Kopien des Prospekts und durch Verweis in diesen aufgenommene Dokumente sowie die Endgültigen Bedingungen sind (wenn die jeweiligen Schuldverschreibungen zum Amtlichen Handel der Börse Luxemburg und zum Handel an dem geregelten Markt der Börse Luxemburg zugelassen sind) auf der Webseite der Luxemburger Börse (www.bourse.lu) und der Webseite der Emittentin (www.wienerberger.com ) zu finden und, wie die Satzung der Emittentin, jedenfalls während der üblichen Geschäftszeiten an der angegebenen Geschäftsadresse der Zahlstelle(n) kostenlos erhältlich
Zusammenfassung hinsichtlich der Emittentin
Emittentin...... Wienerberger AG mit Sitz in Wien und der Geschäftsanschrift Wienerberg City, Wienerbergstraße 11, A-1100 Wien, Österreich, eingetragen im Handelsregister unter FN 77676 f, ist die Holding-Gesellschaft der Wienerberger Gruppe.
D-3 Organisationsstruktur der Gruppe ...... Die Gruppe hat eine geographische Segmentierung, um den regionalen Schwerpunkt wiederzuspiegeln, was.
Die Gruppe ist in den folgenden fünf Segmenten tätig: Die geographischen Bereiche Zentral-Osteuropa, Zentral- Westeuropa, Nord-Westeuropa, Nordamerika, die jeweils alle oder einen Teil der Kernaktivitäten der Gruppe (Ziegel, Dachziegel und Flächenbefestigung) beinhalten, und das Segment Beteiligungen und Sonstiges, das die Holding und die ihr anrechenbaren Kosten, die Ziegelaktivitäten in Indien sowie bestimmte Nicht-Kernaktivitäten der Gruppe umfasst.
Geschäftstätigkeit der Wienerberger Gruppe:...... Das Kerngeschäft der Gruppe ist die Fertigung von Produkten zur Verwendung in Wandarbeiten, Fassaden, Dächern und Flächenbefestigungen. In diesen Marksegmenten konzentriert sich Wienerberger hauptsächlich auf vier Produktgruppen: Hintermauerziegel, Vormauerziegel, Tondachziegel und Betondachziegel und Pflasterklinker und Betonsteine. Die Produkte werden unter der Gruppenmarkenbezeichnung „Wienerberger“ und Hintermauerziegel unter den Marken „Porotherm“ und „Poroton“ (nur in Deutschland), Vormauerziegel und Pflasterklinker unter „Terca“ und „General Shale“, Tondachziegel unter„Koramic“, Betonsteine unter „Semmelrock“ und Kunststeine unter „Arriscraft“ vermarktet. Außerdem hält die Gruppe einen 50% Anteil an der Kunststoffrohr-Joint Venture mit Solvay, Pipelife International GmbH (“Pipelife”), einen 25% Anteil am Tondachziegelproduzenten Tondach Gleinstätten AG („Tondach Gleinstätten“) und einen 50% Anteil am Betondachziegelproduzenten Bramac („Bramac“).
Wienerbergers geographische Hauptmärkte sind Europa (mit Ausnahme der iberischen Halbinsel) und Nordamerika. Zum 31. Dezember 2009 betrieb die Gruppe 227 Werke in 27 Ländern mit 11.646 Arbeitnehmern. Im Jahr 2009 erzielte Wienerberger einen Umsatz von EUR 1.816,9 Millionen und ein operatives EBITDA von EUR 208,6 Millionen.
D-4 Zusammenfassung der Konzernfinanzdaten
Die nachstehenden Daten und Informationen wurden den Konzernabschlüssen, welche per Verweis in den Prospekt aufgenommen wurden, entnommen und stellen nur eine Zusammenfassung davon dar. Potentielle Investoren sollten den gesamten Prospekt, einschließlich die Konzernabschlüsse und die übrigen Finanzinformationen in diesem Prospekt lesen, bevor sie eine Investitionsentscheidung treffen.
Geschäftsjahr zum 31. Dezember 2009 2008 (geprüft, sofern nicht anders angegeben) (in EUR Millionen)
Konzern Gewinn- und Verlustrechnung Umsatzerlöse ...... 1.816,9 2.431,4 Herstellkosten...... (1.305,9) (1.585,6) Bruttoergebnis vom Umsatz ...... 511,0 845,8 Vertriebskosten, Verwaltungskosten ...... (510,4) (617,4) Sonstige betriebliche Aufwendungen ...... (41,2) (35,7) Sonstige betriebliche Erträge...... 59,5 47,2 Betriebsergebnis vor nicht-wiederkehrenden Posten ...... 19,0 239,8 Restrukturierungskosten und Wertminderungen von Sachanlagen ...... (153,7) (55,0) Firmenwertabschreibung ...... (123,3) (16,7) Dotierung einer Rückstellung für eine drohende Kartellstrafe ...... 0,0 (10,0) Betriebsergebnis nach nicht-wiederkehrenden Posten ...... (258,1) 158,1 Zinsertrag ...... 20,9 41,0 Zinsaufwand...... (58,7) 83,1 Sonstiges Finanzergebnis, inklusive Ergebnisübernahme von assoziierten Unternehmen ...... 0,3 7,1 Ertragssteuern...... 36,9 (19,8) Ergebnis nach Ertragssteuern...... (258,7) 103,3 Davon Ergebnis der Minderheiten...... (1,9) 3,4 Davon auf Hybridkapitalbesitzer entfallender Anteil...... 32,5 32,5 Davon Ergebnis der Muttergesellschaft...... (289,3) 67,5
Andere Finanzkennzahlen EBITDA operativ ...... 208,6 440,1 EBIT operativ...... 19,0 239,8 Capital Employed ...... 2.816,8 3.252,2 Investitionen und Akquisitionen...... 134,2 505,6 Ergebnis je Aktie (in EUR)...... (3,17) 0,81 Ergebnis je Aktie bereinigt um Firmenwertabschreibungen und nicht- wiederkehrende Aufwendungen und Erträge (in EUR)...... (0,34) 1,69 Vorgesehene bzw. ausbezahlte Dividende je Aktie für die Periode (in EUR) ...... 0,00 0,00 Konzern-ROCE (ungeprüft) ...... 0,2% 6,2% WACC...... 7,1% 7,0%
Konzern Cash-flow Daten Cash-flow aus dem Ergebnis ...... 52,5 300,9 Cash-flow aus laufender Tätigkeit...... 290,9 262,8 Cash-flow aus Investitionstätigkeit...... (111,5) (474,6) Cash-flow aus Finanzierungstätigkeit...... 63,3 125,1
Konzernbilanzdaten Langfristiges Vermögen ...... 2.763,7 3.046,1 Kurzfristiges Vermögen ...... 1.323,7 1.337,8 Summe Aktiva...... 4.087,4 4.383,9 Eigenkapital...... 2.547,0 2.497,2 Langfristige Rückstellungen und Verbindlichkeiten...... 1.125,8 1.324,8 Kurzfristige Rückstellungen und Verbindlichkeiten...... 414,6 561,9 Summe Aktiva/Passiva...... 4.087,4 4.383,9
D-5
Zusammenfassung der Risikofaktoren
Investoren sollten vor einer Entscheidung über den Erwerb von unter diesem Programm ausgegebenen Schuldverschreibungen, bestimmte Risiken sorgfältig abwägen. Der Preis der Schuldverschreibungen könnte fallen, die Gesellschaft könnte nicht fähig sein, ihre Verpflichtungen unter den Schuldverschreibungen zu erfüllen, wenn sich die genannten oder andere Risiken verwirklichen, und Investoren könnten ihr Kapital ganz oder teilweise verlieren. Diese Risiken, die im Detail im Kapitel Risikofaktoren ausgeführt sind, beinhalten insbesondere:
Risiken im Zusammenhang mit den Schuldverschreibungen
• Investoren tragen das Risiko ihrer Anlageentscheidung.
• Marktpreisrisiko: Der Preis der Schuldverschreibungen kann fallen.
• Kreditrisiko: Die Bonität der Emittentin kann sich verschlechtern und die Emittentin kann insolvent werden.
• Ein illiquider Markt für die Schuldverschreibungen oder eine Handelsaussetzung könnte den Preis der Schuldverschreibungen nachteilig beeinflussen.
• Inhaber von in fremden Währungen ausgegebenen Schuldverschreibungen sind Währungsrisiken ausgesetzt.
• Investoren können ihre Erträge aus den Schuldverschreibungen vielleicht nicht zu gleich guten Bedingungen wieder veranlagen.
• Transaktionskosten und Spesen können die Rendite der Schuldverschreibungen mindern.
• Investoren sind auf die Abwicklungsverfahren des Clearing Systems angewiesen, um Zahlungen aus den Schuldverschreibungen zu erhalten.
• Ratings der Schuldverschreibungen stellen die Investitionsrisiken vielleicht nicht angemessen dar und können außerdem ausgesetzt, heruntergestuft ( Downgrade ) oder zurückgezogen werden.
• Die Emittentin und die Platzeure können Transaktionen tätigen, die nicht im Interesse der Anleihegläubiger sind, oder es kann aus anderen Gründen zu Interessenskonflikten zwischen der Emittentin und den Inhabern von Schuldverschreibungen kommen.
• Investoren könnten verpflichtet sein, Steuern und andere Gebühren oder Spesen zu bezahlen.
• Die Emittentin rät von einem Kauf der Schuldverschreibungen auf Kredit ab.
• Der Erwerb von Schuldverschreibungen durch künftige Investoren könnte gegen das Gesetz verstoßen.
Aktuelle makroökonomische Entwicklungen und damit verbundene Risiken
Risiken im Zusammenhang mit dem Marktumfeld
D-6 • Die Gruppe ist der Zyklizität der Baustoffindustrie ausgesetzt, welche von verschiedenen makroökonomischen Faktoren abhängig ist.
• Die Gruppe agiert in einer saisonabhängigen Branche.
• In ihrem Ziegel-, Dachziegel und Flächenbefästigungsgeschäft steht die Gruppe im Wettbewerb mit Produzenten von Ersatzprodukten und mit anderen Ziegel-, Dachziegel und Pflasterklinker- oder Betonsteinproduzenten.
• Die Gruppe unterliegt in allen Ländern, in denen sie agiert, kartellrechtlichen Vorschriften und dem Risiko von Durchsetzungsmaßnahmen, welche in Strafen und/oder anderen Sanktionen resultieren können, die die Wachstumsfähigkeit der Gruppe in manchen Märkten und/oder ihre Fähigkeit, den laufenden Betrieb in solchen Märkten auf dem aktuellen Niveau aufrechtzuerhalten, stark einschränken können.
Strategische Risiken im Zusammenhang mit der Geschäftstätigkeit der Gruppe
• Das Kostensenkungsprogramm der Gruppe könnte nicht zu den gewünschten Kostenersparnissen führen.
• Firmenwertabschreibungen könnten bedeutende Auswirkungen auf Einnahmen und Eigenkapital der Gruppe haben.
• Wirtschaftliche, politische, regulatorische und lokale Geschäftsrisiken im Zusammenhang mit internationaler Produktions- und Vertriebstätigkeit könnten den Geschäftsbetrieb der Gruppe, vor allem in Osteuropa, beeinträchtigen.
• Manche der Unternehmen, an denen die Gesellschaft Anteile hält, kontrolliert die Gesellschaft nicht, und Handlungen solcher Unternehmen sind unter Umständen nicht mit der Strategie und den Interessen der Gruppe vereinbar.
Operationelle Risiken
• Die Gruppe kann Betriebsunterbrechungen, Produktionskürzungen oder Vermögensverluste erleiden.
• Erhöhte Energiekosten oder Energieversorgungsstörungen können wesentliche Auswirkungen auf das Geschäft und die Vermögens-, Finanz- und Ertragslage der Gruppe haben.
Finanzielle Risiken im Zusammenhang mit der Geschäftstätigkeit der Gruppe
• Das kapitalintensive Geschäft der Gruppe führt zu erheblichem Finanzierungsbedarf. Des Weiteren muss die Gruppe Bedingungen, die in manchen ihrer Kreditverträge enthalten sind, erfüllen, was ihre Flexibilität einschränkt. Der Nichterhalt der benötigten Finanzmittel und die Notwendigkeit der Einhaltung von Kreditbedingungen könnten die Geschäftstätigkeit der Gruppe beeinträchtigen.
• Verschlechterungen des Ratings oder der Kreditkennzahlen der Gruppe, ihre Unfähigkeit, erforderliche Neufinanzierungen zu erhalten und Bedingungen, die in bestehenden Finanzierungsverträgen enthalten sind, könnten ihre Refinanzierungskosten erhöhen und ihre Liquidität und Rentabilität beeinträchtigt.
D-7 • Da viele Tochtergesellschaften der Gruppe in anderen Währungen als dem Euro arbeiten, könnten nachteilige Veränderungen der ausländischen Wechselkurse gegenüber dem Euro die Betriebsergebnisse und den Cashflow der Gruppe erheblich beeinträchtigen.
• Ein signifikanter Verzug eines Kreditinstituts oder eines Kunden der Gruppe könnte das Geschäft und die Vermögens-, Finanz- und Ertragslage der Gruppe erheblich beeinträchtigen.
• Zinsänderungen könnten den Zinsaufwand der Gruppe erhöhen.
Geografische Risiken im Zusammenhang mit der Geschäftstätigkeit der Gruppe
• Wirtschaftliche Instabilität in den Ländern, in denen die Gruppe tätig ist, vor allem in Ost- und Südeuropa, könnte das Geschäft und die Vermögens-, Finanz- und Ertragslage der Gruppe beeinträchtigen.
Risiken im Zusammenhang mit der Umwelt
• Die Gruppe unterliegt strengen Umwelt-, Gesundheits- und Sicherheitsgesetzen, Verordnungen und Standards, deren Einhaltung zu Kosten führt, die das Geschäft und die Vermögens-, Finanz- und Ertragslage der Gruppe beeinträchtigen könnten.
• Änderungen in Baugesetzen, Verordnungen und Standards könnten das Geschäft und die Vermögens-, Finanz- und Ertragslage der Gruppe stark beeinträchtigen.
• Änderungen in den Emissionshandelzertifikaten der Europäischen Union und anderen lokalen Emissionssystemen könnte zu einer Reduktion oder Einschränkung der Übertragbarkeit der gratis zugewiesenen Emissionen führen und die Produktionskosten der Gruppe erhöhen.
D-8
ISSUER
Wienerberger AG Wienerberg City Wienerbergstraße 11 1100 Vienna Austria
ARRANGERS AND DEALERS
Erste Group Bank AG Raiffeisen Zentralbank Österreich AG Graben 21 Am Stadtpark 9 1010 Vienna 1030 Vienna Austria Austria
PAYING AGENT
Erste Group Bank AG Graben 21 1010 Vienna Austria
TRANSACTION COUNSEL
Cerha Hempel Spiegelfeld Hlawati Partnerschaft von Rechtsanwälten Parkring 2 1010 Vienna Austria
AUDITORS
KPMG Wirtschaftsprüfungs- und Steuerberatungs GmbH Porzellangasse 51 1090 Vienna Austria