Corticeira Amorim Sgps Sa · EURONEXT:COR
Corticeira Amorim Sgps Sa — Corticeira Amorim — Q1 2019 Earnings Presentation
39 slides from Corticeira Amorim Sgps Sa's earnings presentation, 2019
Slide 1: Corticeira Amorim 1Q2019 Consolidated Results
Corticeira Amorim 1Q2019
Slide 2: Climate Change Leadership: founding member of The Porto Protocol
Climate Change Leadership: as a founding member Solutions for the Solutions forthe of The Porto Protocol Corticeira Amorim is deeply Wine Industry 2 Winendstey 5%) 7" March 2019 5%) 7% March 2019 committed to creating a sustainable future for PORTO : PORTO generations to come “By sharing best practi
Slide 3: Launch of WISE, a non-PVC sustainable flooring
Launch of WISE, a non PVC sustainable flooring with a negative carbon footprint. WISE has an innovative core (Cork Rigid Core), made of cork and recycled materials, 100% recyclable. > AMORIM WISE by Amorim cork flooring has won the Innovation Award for Architecture + Construction at BAU, the world’s
Slide 4: Helix adopted by Bronco Wine; Nielsen data on cork-sealed brands
AMORIM AMERICAN ,-— USA | CABERNET SAUVIGNON nielsen Helix™ has been adopted by Bronco Wine Latest data from Nielsen Scanning Statistics confirms Company’s Great American Wine Company rising dominance for cork-sealed brands for the Top (GAWC) for its California wines 100 Premium Brands in the USA. C
Slide 5: Cork applications in design and architecture
ARCO VIP Room lined and decorated with cork as part of an artistic creation designed by Lazaro Rosa- Violan. Skulpod igloo-shaped modular home created by Nouschka O€endsek and Ryan Ashworth AMORIM
Slide 6: Awards won by Corticeira Amorim
Corticeira Amorim has been honored with the Research/Innovation Award at the "Melhores do Ano 2018" Awards by Revista de Vinhos fo inovagAo / INVESTIGAGA @P) AMORIM Corticeira Amorim won the 2018 National Agriculture Award in the category of Large Corporations. The award is a joint initiative of Ban
Slide 7: Cork at Milan Design Week
> AMORIM Wallpaper: Handmade at Milan Design Week where cork shows its amazing potential for design. In a project exploring cork and glass, featured at the famous Wallpaper * Handmade X show. Opened for the Milan Design Week, The Manzoni, Tom Dixon Studio 's new restaurant, with custom cork tables b
Slide 8: In brief
In brief AMORIM Corticeira Amorim supported a new project by Universidade de Aveiro to create a biodegradable cork-based filament for 3D printing _ Eco-friendly router made » with cork, teamed up with Altice _ Labs. Its structure is 50% cork _ Has a much lower density than _ alternative materials an
Slide 9: In brief
> In brief AMORIM The Valmor Architecture Award was given to architect Jodo Lufs Carrilho da Graca, with his landmark project for the Lisbon Cruise Terminal. The building’s exoskeleton is made of a new material combining white concrete with cork, an innovative solution developed by Corticeira Amorim
Slide 10: Integral Verticalization
Integral Verticalization Corticeira Amorim, SGPS, S.A. @P AMORIM Floor and Wall Raw Materials Cork Stoppers . Coverings Composite Cork Insulation Cork \ a iw, 10
Slide 11: Waste recovery rate and FSC certification
Waste recovery rate (non-cork) packaging company in the world with FSC certification units with FSC certification 11
Slide 12: Alignment with United Nations' SDG
Alignment with United Nations’ SDG AMORIM Sustainability Strategy aligned with 12 Sustainable Development Goals Promote the Circular Economy environmental features of the Product andthe — Energy Efficiency and Climate Change “Montado” Product Environmental Impact Promotion of the “Montado’, its Biod
Slide 13: 0. . 0% 0. . 0% 0. . 0% 0. 0. 40 5.0% 0.
0. 0 80 . 0% 20 0. 0 70 . 0% 15 0. 0 60 . 0% 10 0. 0 50 0. 0 40 5.0% 0. 0 30 0.0% 0. 0 20 -5. 0 % 0. 0 10 0.0 -10.0% 13
Slide 14: Slide 14
Slide 15: Key Facts & Figures
Key Facts & Figures > AMORIM Sales rose to 202.3 ME (+9.2%); Raw Materials: +28.7%; Cork Stoppers: +11.3%; Floor & Wall Coverings: -2.6%; Composite Cork: +9.2%; Insulation: +26.5%; Positive impact from FX: total impact of 2.3 ME on sales (1Q18: -5.6 M€); at constant exchange rates, sales +79%; EBITD
Slide 16: +8.0% +9.2% 20.0% 15.0% 300 250 250 10.0% 200 200 150 150 5.0% 100
+8.0% +9.2% 500 500 20.0% 450 450 400 400 350 350 15.0% 300 300 250 250 10.0% 200 200 150 150 5.0% 100 100 50 50 0 0 0.0% 16
Slide 17: 500.0 300% 500.0 3.00 450.0 450.0 250% 2.50 400.0 400.0 350.0 350.0 200% 2.00
500.0 300% 500.0 3.00 450.0 450.0 250% 2.50 400.0 400.0 350.0 350.0 200% 2.00 300.0 300.0 250.0 150% 250.0 1.50 200.0 200.0 100% 1.00 150.0 150.0 100.0 100.0 50% 0.50 50.0 50.0 0.0 0% 0.0 0.00 17
Slide 18: Business Units
Business AMORIM Units
Slide 19: Raw Materials
+7.6% +28.7% 250.0 • • 200.0 • 150.0 100.0 • 50.0 • 0.0 250.00 25.0% 200.00 20.0% 150.00 15.0% 100.00 10.0% 50.00 5.0% 0.00 0.0% 19
Slide 20: Cork Stoppers
+14.1% +11.3% 250.0 • • 200.0 • 150.0 • 100.0 50.0 0.0 • 250.0 25.0% 200.0 • 20.0% 150.0 15.0% 100.0 10.0% 50.0 5.0% 0.0 0.0% 20
Slide 21: +15.4% +11.4% 250.0 200.0 150.0 100.0 50.0 0.0 250.0 25.0% 00.0 20.0% 150.0 15.0%
+15.4% +11.4% 250.0 200.0 150.0 100.0 50.0 0.0 250.0 25.0% 200.0 20.0% 150.0 15.0% 100.0 10.0% 50.0 5.0% 0.0 0.0% 21
Slide 22: Floor & Wall Coverings
250.0 - 10.1% - 2.6% 200.0 150.0 100.0 • • 50.0 0.0 • • • 28.0% 90.0 • 23.0% 70.0 18.0% 50.0 13.0% 30.0 8.0% 10.0 3.0% -10.0 -2.0% -30.0 -7.0% 22
Slide 23: Composite Cork
250.00 - 5.6% +9.2% • • 200.00 • 150.00 • 100.00 50.00 0.00 • • • 250.0 • 25.0% 200.0 20.0% 150.0 15.0% 100.0 10.0% 50.0 5.0% 0.0 0.0% 23
Slide 24: Insulation Cork
250.0 - 4.1% +26.5% • • 200.0 150.0 100.0 • 50.0 0.0 • 28.0% 90.0 23.0% 70.0 18.0% 50.0 13.0% 30.0 8.0% 10.0 3.0% -10.0 -2.0% -30.0 -7.0% 24
Slide 25: AMORIM
AMORIM
Slide 26: Sales mix by business unit
™CorkStoppers ™Floor and Wall Coverings ™Composite Cork ™Insulation Cork ™ Raw Materials 1917 1918 1919 Raw Materials + Cork Stoppers 66.5% 70.9% 72.2% Floor and Wall Coverings 18.4% 15.3% 13.8% Composite Cork 13.6% 12.6% 12.6% Insulation Cork 1.5% 1.3% 1.4% 100% 100% 100% 26
Slide 27: 25.0% 20.0% 15.0% 10.0% 5.0% 50 0 0.0% 27
500 450 25.0% 400 20.0% 350 300 15.0% 250 200 10.0% 150 100 5.0% 50 0 0.0% 27
Slide 28: EBITDA by BU
EBITDA by BU AMORIM 3.2 a 1.0 25 8.3 Raw Materials Cork Stoppers Floor & Wall Coverings Composite Cork Insulation Cork Others Consolidated EBITDA Values in million euros. 28
Slide 29: -5 -10
45 40 35 30 25 20 15 10 5 0 -5 -10 29
Slide 30: Key P&L Figures
> Key P&L Figu res AMORIM 1Q17 1Q 18 1919 qoq w/o a ° IFRS 16 Sales N.7 185.4 202.3 9.2% 202.3 - Gross Margin 95.0 100.0 102.7 2.8% 102.7 - Operating Costs (incl. depreciation) 69.5 71.2 771 8.3% 771 - EBITDA 33.6 36.8 34.8 5.6% 34.3 0.5 Depreciation 81 8.1 9.2 13.2% 87 0.4 EBIT 25.5 28.7 25.6 -10.9
Slide 31: 500.0 60.0% 450.0 50.0% 400.0 350.0 40.0% 300.0 250.0 30.0% 200.0 20.0% 150.0 100.0
500.0 60.0% 450.0 50.0% 400.0 350.0 40.0% 300.0 250.0 30.0% 200.0 20.0% 150.0 100.0 10.0% 50.0 - 0.0% 31
Slide 32: 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 5,000 4,000 3,000 2,000 1,000 - 32
Slide 33: Net Income
Net Income EBITDA Depreciation Values in million euros. Net financial costs 29 Gains/(losses) of Associates Income tax Non-controlling interests AMORIM 18.6 Net Income 33
Slide 34: Financial Position
> Financial Position AMORIM March 31, December31, March 31, December31, = March 31, Marche IFRS16 2017 2017 2018 2018 2019 w/o IFRS 16 Net Goodwill 0.0 9.8 14.4 14.0 Bo 3.9 - Net Fixed Assets / Right of use 195.1 227.9 223.3 259.6 270.4 262.8 7.6 Net Working Capital * 298.4 359.0 374.4 414.5 432.8 4
Slide 35: Net Debt
Net Debt Net Debt Capex (Dec. 31, 2018) Values in million euros. Working Capital Needs 09 Taxes 09 Other 34.8 EBITDA 134.1 Net Debt w/o IFRS 16 (Mar. 31, 2019) 7.6 [| IFRS 16 AMORIM 141.7 Net Debt (Mar. 31, 2019) 35
Slide 36: Ratios
Ratios @P AMORIM 1917 2017 1Q 18 2018 1919 Net Debt / EBITDA * 0.09 0.69 0.63 1.04 1.07 EBITDA / Net Interest 238.0 135.9 128.2 108.0 92.3 Gearing 2.6% 20.2% 17.9% 27.9% 27.3% NWC / Market capitalization 23.0% 26.4% 27.2% 34.6% 30.6% NWC /Sales x 360 160.1 179.5 182.0 195.5 192.5 Free cash flow (FCF
Slide 37: 0.550 0. % 0. % 0.450 0. % 0.350 . 0% 0.250 70 .
0.550 15 0. 0 % 13 0. 0 % 0.450 11 0. 0 % 0.350 90 . 0% 0.250 70 . 0% 50 . 0% 0.150 30 . 0% 0.050 10 . 0% -0. 0 50 -10.0% 37
Slide 38: Stock Market CORA.LS
@P Stock Market|CORA.LS AMORIM (Grnaane |} -[sooaanie (Gian | -[sonecore |} Price @ OR ebange 10358 daeat agro ke @ coR-io20 @ PROD ~i250% pee stare chart by anh cm cho arch com Seca = or een eae fea eco ee Be —_ oe ir pie sie ae Source: Euronext Source: Euronext 2013 2014 2015 2016 2017 2018 1919 Q
Slide 39: Contacts
AMORIM Cristina Amorim CFO tel.: #351227 475 425 cristina.amorim@amorim.com Ana Negrais de Matos, CFA IRO tel.: +351227 475 423 ana matos@corticeira amorim.com Corticeira Amorim, SGPS, S.A. Rua de Meladas, n° 380 . PO BOX 20 . 4536-902 MOZELOS PORTUGAL tel: +351 22 747 54 OO. Fax: +351 22 747 54 07