Corticeira Amorim Sgps Sa · EURONEXT:COR
Corticeira Amorim Sgps Sa — Corticeira Amorim — FY2019 Earnings Presentation
48 slides from Corticeira Amorim Sgps Sa's earnings presentation, Mar 9, 2020
Slide 1: Corticeira Amorim FY2019
AMORIM Corticeira Amorim FY2019
Slide 2: In brief
In brief Acquisition of 50% of Vinolok. The historic association between cork and glass is expected to foster additional gains for premium and ultra- premium packaging of wines and spirits, in terms of sustainability, convenience and design. APwC study, commissioned by Amorim, concluded Neutrocork c
Slide 3: In brief
In brief Results of EY study commissioned by Amorim highlight products with positive impact on climate regulation: A natural cork stopper has anegative carbon A sparkling wine cork stopper has a negative carbon footprint. Considering the sequestration in the footprint. Considering the sequestration
Slide 4: In brief
In brief Launch of NDtech Sparkling, a cutting-edge Amorim Top Series launches a 100% natural quality control screening technology: the world’s capsulated cork stopper, developed in partnership first two-disc sparkling wine stopper with an with Cork Composite division, which combines cork individual
Slide 5: In brief
In brief Launch of WISE, anon PVC sustainable flooring WISE by Amorim won the Innovation Award for with a negative carbon footprint. WISE has an Architecture + Construction at BAU, the world’s innovative core (Cork Rigid Core), made of cork leading trade fair for architecture and building materials
Slide 6: In brief
In brief “Together Towards Sustainability’ was the motto of the 2™ edition of Architects@Amorim. FY2019 AMORIM 6
Slide 7: In brief
In brief Launch of Go4Cork, the circular brand that encompasses a wide range of products with strong design, performance and sustainability credentials aimed at the do-it-yourself segment. FY2019 ACMB2is Amorim Cork Composites’ latest multifunctional material, used as the primary decking solution fo
Slide 8: In brief
In brief Designed by Tom Dixon - The summer with cork in the Square: 1,900 Cork in the garden of the blocks of expanded cork agglomerate were used future of the Chelsea Flower to create Gardens of Stone, designed by the Show, in London. The Atelier Barbas Lopes for the programme. A project was award
Slide 9: In brief
In brief Houses designed by Frank Lloyd Wright classified as World Heritage sites by UNESCO In the interior of the Fallingwater house (Pennsylvania, 3 USA), cork’s naturalcolour complements Wright's specified palette of materials associated to the natural surroundings, providing acoustic insulation,
Slide 10: In brief
In brief Climate Change Leadership: as a founding member of The Porto Protocol CorticeiraAmorim is deeply committed to creating a sustainable future for generations to come. hange eadership Solutions for the Solutions for the ine Industry ine Industry “By sharing best practices and near-term solutio
Slide 11: In brief
In brief World Business Council for Sustainable Development Council Meetingin Lisbon As one of the speakers in the “Disrupt or be disrupted: Fostering Innovation for Change” session, CEO Antonio Rios de Amorim spoke about innovation for sustainability and Amorim’s innovation culture. Lead Transform
Slide 12: In brief
In brief Corticeira Amorim presents City Cortex Aresearch program devised in partnership with ExperimentaDesign that focuses on the intersection between contemporary urban contexts and cork. Creation of original projects for public or semi-public spaces in the city of New York, through the developme
Slide 13: In brief
In brief Invited architects and designers: Gabriel Calatrava (calxyz) Diller Scofidio & Renfro (dsrny.com) Sagmeister & Walsh (sagmeisterwalsh.com) Leong Leong (leong-leong.com) Philippe Starck (starck.com) Allthe architects and designers have had the opportunity to delve into the universe of cork,
Slide 14: In brief: years of history and permanent renewal
In brief 150 years of history and permanent renewal We started 2020 debuting a renewed visual identity that included a new logo. Both express AMORIM as a sober brand, cohesive and dynamic. An affirmation full of Strength, Attitude, Nature, Cork and Portugal. Reaffirming the values that represent us:
Slide 15: Integral Verticalization
Integral Verticalization CORTICEITRA AMORIM AMORIM AMORIM AMORIM AMORIM AMORIM FLORESTAL CORK CORK CORK CORK FLOORING COMPOSITES INSULATION eS si FY2019 AMORIM 15
Slide 16: Alignment with United Nations' SDG
Alignment with United Nations’ SDG Sustainability Strategy aligned with 12 Sustainable Development Goals Promote the Circular Economy environmental features of the product and the Energy Efficiency and Climate Change “Montado” Product Environmental Impact Promotion of the “Montado”, its Biodiversity
Slide 17: Sustainable by Nature
Sustainable by Nature 100% use of cork 63% energy produced from biomass 485 tons cork recycled Cork Recycling programs in 5 continents 2.9k students involved in environmental education initiatives =90% Waste recovery rate (non-cork) > 80% consumed materials from renewable sources >90% cork/cork prod
Slide 18: People, Planet and Profit
People, Planet and Profit Environmental, Social and Economic Impact: * 1,175 M€/year: total net value of Corticeira Amorim's contributions to society when considering ecosystem services induced by its activities (more than 7x higher than the estimated direct gross value added) + 2.17 production mult
Slide 19: 800.0 20.0% 700.0 15.0% 600.0 10.0% 500.0 400.0 5.0% 300.0 .0% 200.0 -5.0% 100.0
800.0 20.0% 700.0 15.0% 600.0 10.0% 500.0 400.0 5.0% 300.0 0.0% 200.0 -5.0% 100.0 0.0 -10.0%
Slide 20: Consolidated Results
AMORIM Consolidated Results
Slide 21: Key Facts & Figures
Key Facts & Figures Sales rose to 781.1 M€ (+2.4%): + Raw Materials: +9.8%; * Cork Stoppers: +4.7%; + Floor & Wall Coverings: -3.2%; + Composite Cork: +2.3%; + Insulation: +18.2%; Positive impact from FX:6.3 ME at sales level; EBITDA/Sales: 16.0% (FY18: 17.6%) * EBITDA of 124.7 ME; + Increased cork
Slide 22: 25.0% 20.0% 15.0% .0% 300 300 200 200 5.0% 100 100 0 0.0% 0
800 800 25.0% 700 700 20.0% 600 600 500 500 15.0% 400 400 10.0% 300 300 200 200 5.0% 100 100 0 0.0% 0
Slide 23: 200% 3.00 800.0 800.0 180% 700.0 2.50 700.0 160% 600.0 140% 600.0 2.00 120%
200% 3.00 800.0 800.0 180% 700.0 2.50 700.0 160% 600.0 140% 600.0 2.00 120% 500.0 500.0 100% 1.50 400.0 400.0 80% 300.0 300.0 1.00 60% 200.0 200.0 40% 0.50 100.0 100.0 20% 0.0 0.00 0.0 0%
Slide 24: Business Units
AMORIM Business Units
Slide 25: 600.0 500.0 400.0 300.0 200.0 100.0 0.0 600.0 25.0% 500.0 .0% 400.0 15.0% 300.0
600.0 500.0 400.0 300.0 200.0 100.0 0.0 600.0 25.0% 500.0 20.0% 400.0 15.0% 300.0 10.0% 200.0 5.0% 100.0 0.0% 0.0 -5.0%
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600.0 500.0 400.0 300.0 200.0 100.0 0.0 600.0 25.0% 500.0 20.0% 400.0 15.0% 300.0 10.0% 200.0 5.0% 100.0 0.0% 0.0 -5.0%
Slide 27: 600.0 500.0 400.0 300.0 200.0 100.0 0.0 600.0 25.0% 500.0 .0% 400.0 15.0% 300.0
600.0 500.0 400.0 300.0 200.0 100.0 0.0 600.0 25.0% 500.0 20.0% 400.0 15.0% 300.0 10.0% 200.0 5.0% 100.0 0.0% 0.0 -5.0%
Slide 28: 600.0 500.0 400.0 300.0 200.0 100.0 0.0 600.0 25.0% 500.0 .0% 400.0 15.0% 300.0
600.0 500.0 400.0 300.0 200.0 100.0 0.0 600.0 25.0% 500.0 20.0% 400.0 15.0% 300.0 10.0% 200.0 5.0% 100.0 0.0% 0.0 -100.0 -5.0%
Slide 29: 600.00 500.00 400.00 300.00 200.00 100.00 0.00 600.0 25.0% 00.0 20.0% 400.0 15.0% 300.0
600.00 500.00 400.00 300.00 200.00 100.00 0.00 600.0 25.0% 500.0 20.0% 400.0 15.0% 300.0 10.0% 200.0 5.0% 100.0 0.0% 0.0 -5.0%
Slide 30: 600.0 500.0 400.0 300.0 200.0 100.0 0.0 600.0 26.0% 500.0 .0% 400.0 16.0% 300.0
600.0 500.0 400.0 300.0 200.0 100.0 0.0 600.0 26.0% 500.0 21.0% 400.0 16.0% 300.0 11.0% 200.0 6.0% 100.0 1.0% 0.0 -4.0%
Slide 31: Key Financials
AMORIM Key Financials
Slide 32: Sales by Business Unit
Sales by Business Unit 13.6% 12.7% 1.5%, 1.8% Cork Stoppers Floor and Wall Coverings ™ Composite Cork » Insulation Cork m Raw Materials 2017 2018 2019 Raw Materials + Cork Stoppers 68.9% 71.6% 72.2% Floor and Wall Coverings 16.8% 14.2% 13.6% Composite Cork 12.9% 12.8% 12.7% Insulation Cork 1.4% 1.4%
Slide 33: Sales by geographic areas and currency
Sales to more than 100 countries Sales by geographic areas Sales by currency 7.0% 4.0% es 1.6% MEU* BUSA BRest of America Australdsia ™ Portugal “ Rest of Europe ™ Africa MEUR =USD =CLP DKK =ZAR AUD =GBP ™Others FY2019 AMORIM. 33
Slide 34: 25.0% 20.0% 15.0% 10.0% 5.0% 0 0.0%
800 25.0% 700 600 20.0% 500 15.0% 400 300 10.0% 200 5.0% 100 0 0.0%
Slide 35: EBITDA by BU
EBITDA by BU 124 02 1011 -25 181 Raw Materials Cork Stoppers Floor & Wall Composite Cork Insulation Cork Others Coverings Values in million euros. Consolidated EBITDA FY2019 AMORIM 35
Slide 36: EBITDA by BU
EBITDA by BU 160 140 4: 15.0 RS 12.4 120 : : ; 100 80 9 60 913 011 40 20 30.5 22.4 tga 0 x —— "- 61 3.2 ae 20 1 2018 201 Raw Materials m Cork Stoppers Floor and Wall Coverings ™ Composite Cork | Insulation Cork Others EBITDA/Sales (%) 2017 2018 2019 Raw Materials + Cork Stoppers 23.3% 22.3% 20.5% Fl
Slide 37: Key P&L Figures
Key P&L Figures 2019 2017 2018 2019 yoy w/olFRS IFRS 16 16 Sales 701.6 763.1 781.1 2.4% 781.1 - Gross Margin 373.5 386.5 387.4 0.2% 387.4 - Operating Costs (incl, depreciation) 269.5 283.8 297.8 5.0% 297.8 - EBITDA 133.6 134.0 124.7 -6.9% 123.3 14 Depreciation 29.6 31.3 35.2 12.5% 33.8 1.4 EBIT 104.
Slide 38: 500.0 50.0% 450.0 45.0% 400.0 40.0% 350.0 35.0% 300.0 30.0% 250.0 25.0% 200.0 20.0%
500.0 50.0% 450.0 45.0% 400.0 40.0% 350.0 35.0% 300.0 30.0% 250.0 25.0% 200.0 20.0% 150.0 15.0% 100.0 10.0% 50.0 5.0% - 0.0%
Slide 39: 500.0 450.0 25.0% 400.0 20.0% 350.0 300.0 15.0% 250.0 200.0 10.0% 150.0 100.0 5.0%
500.0 450.0 25.0% 400.0 20.0% 350.0 300.0 15.0% 250.0 200.0 10.0% 150.0 100.0 5.0% 50.0 - 0.0% 6,000 5,500 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000
Slide 40: Net Income
Net Income 124.7 5.6 : , 749 35.2 -16 -21 Es -12.0 -45 EBITDA Depreciation Non-recurrentresults Net financialresults Gains/(losses) of Income tax Non-controlling Net Income Associates interests ‘Values In million euros. FY2019 AMORIM. 40
Slide 41: Financial Position
Financial Position December 31, December 31, December 31, Dec. 31, 2019 IFRS16 2017 2018 2019 w/olFRS16 Net Goodwill 98 14.0 13.7 13.7 - Net Fixed Assets / Right of use 2279 259.6 2846 280.4 42 Net Working Capital * 359.0 4145 4274 427.4 - Other * 219 214 39.5 39.5 - Invested Capital 618.7 709.4 765
Slide 42: Net Debt
Net Debt 35.9 58.8 42 139.0 Net Debt IFRS 16 adoption Capex* Dividends Paid (Dec. 31, 2018) (Jan.1, 2019) “Includes 1.4 M due to IFRS 16 application Values in million euros. 13.2 46 -1248 v1 131 1611 Acquisitions Working Capital Needs, Taxes Other EBITDA Net Debt (Dec. 31,2019) FY2019 AMORIM 42
Slide 43: Ratios
Ratios 2016 2017 2018 2019 Net Debt / EBITDA* 0.29 0.69 1.04 1.29 EBITDA / Net Interest 108.6 135.9 108.0 88.2 Gearing 8.4% 20.2% 27.9% 29.9% NWC / Market capitalization 25.4% 26.4% 34.6% 28.4% NWC / Sales x 360 * 160.9 179.5 195.5 197.0 Free cash flow (FOF) 86.9 34.0 11.2 37.5 Capex 33.6 43.7 57.9
Slide 44: 0.550 150.0% 130.0% 0.450 110.0% 0.350 90.0% 0.250 70.0% 50.0% 0.150 30.0% 0.050 10.0%
0.550 150.0% 130.0% 0.450 110.0% 0.350 90.0% 0.250 70.0% 50.0% 0.150 30.0% 0.050 10.0% -0.050 -10.0%
Slide 45: Stock Market
Stock Market From: 2018-12-31 tee 2019-12-91, Zoom: 1D SD 1M 3M 1Y SY YTD MAX : FON Matin al Sy \ - eee | a PVN =~ 1 du. re { mens | wm ( somaan mms 1B 8 1M 3M AY BY YTD HK a ee b> Moa A) Le / NN yall, Fos rs vo ‘a con te : in war voy ra ce nov 5 2013 2014 2015 2016 2017 2018 2019 Qt. of shares trad
Slide 46: Shareholder Structure
Shareholder Structure Heirs of Américo Ferreira de Amorim Antonio Ferreira de Amorim Family Family 50% a) Amorim Investimentos e 50% a) Participagdes, SGPS, SA ie 10.32% 10.09% Lovee es CORTICEIRA AMORIM, SGPS, SA 28.59% Free-float a) held directly and indirectly FY2019 AMORIM. 46
Slide 47: Contact and disclaimer
AMORIM Ana Negrais de Matos, CFA Corticeira Amorim, SGPS, S.A. IRO Public Company T +351227 475 423 Ruade Meladas, 380: PO BOX 20 ana.matos@amorim.com 4536-902 Mozelos, Portugal www.amorim.com T +351 22 747 54 00 F +35122 7475407 corticeira.amorim@amorim.com Disclaimer: This documenthas been prepare
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