Teraplast Sa · BVB:TRP
Teraplast Sa — Investor Presentation (February 2021)
39 slides from Teraplast Sa's investor presentation, February 2021
Slide 1: Efficient Solutions for People and the Environment
EFFICIENT SOLUTIONS FOR PEOPLE AND THE ENVIRONMENT
Slide 2: Contents
CONTENTS TeraPlast: a performing company 2020 – 2021: adaptation of the strategy An ambitious vision for the future Conclusions Appendixes
Slide 3: TeraPlast today
TeraPlast today The largest polymer processor in Central and Eastern BSE:TRP 2020 2021 Europe* Bloomberg: TRP RO (budget or YTD) Turnover (mln. lei) 396,2 636,2 (B) Total sites’ surface 316.500sqm, out of which over 83.500sqm of production and storage halls Market cap > 1,45 bln. lei (YTD) 6 distrib
Slide 4: Market leader on multiple segments (1/2)
Market leader on multiple segments (1/2) Installation PVC Compounds Rigid PVC recycling TeraPlast Industrial Park TeraPlast Industrial Park TeraPlast Industrial Park Romania Romania Romania Leader Leader The largest producer of on the PVC exterior on the Romanian market micronized recycled PVC in se
Slide 5: Market leader on multiple segments (2/2)
Market leader on multiple segments (2/2) Biodegradable Polyethylene Windows & Doors packaging packaging TeraPlast Industrial Park Năsăud, Romania Bistrița, Romania Romania 2021 investment Exporter, adds to the Over 60% annual worth 12 mil EUR to become biodegradable packaging exports, develops to be
Slide 6: Long history marked by pioneering
Long history marked by pioneering 2021 •Market cap over 2020 RON 1 bln •100% stake in •Over RON 160 2017 Wetterbest mln in expanding the production •The Serbian •Sale of the Steel capacities and 2011 Factory is division new business inaugurated; •Sale of the segments •Relocation to the window profil
Slide 7: TeraPlast Group has a diversified structure with multiple synergies
TeraPlast Group has a diversified structure with multiple synergies • Leader of the Romanian exterior sewerage (PVC) market • 2021 investment plan: EUR 20 mln to become the market leader on the water & gas networks and interior sewerage markets • Processing capacities of 96.000to of polymers – LEADE
Slide 8: A responsible company, dedicated to sustainability
A responsible company, dedicated to sustainability We save We save We implement a paperless 62 000 tons 660 tons culture of CO2 annualy of CO2 annualy By generating over Through automations, By the activity of 11% of the reducing the number of TeraPlast Recycling necessary energy physical billing an
Slide 9: 2020-2021: strategic adaptation
2020-2021: strategic adaptation 2020, the year when TeraPlast Group had the best results and adapted its strategy to benefit from new market opportunities on the long term, starting 2021
Slide 10: 2020 in brief
2020 in brief Strategy Operations Finance Update of the strategy to benefit from new Outstanding operational results at group level: Financial position, capital reserves and the market opportunities: investment program allowed the successful • Production start of the strategic repositioning: • Accel
Slide 11: The Group's strategy adaptation reflects the market opportunities
The Groups’ strategy adaptation reflects the market opportunities Market evolution Strategy adaptation Reasoning • Construction market: a market • Diversification & consolidation: • Directing the resources to Strategic segments with where the delivery time and quality expanding by 50% the production
Slide 12: 2020: a year with outstanding operational results
2020: a year with outstanding operational results 2020 production volumes evolution 2020 vs. 2019 Pipe (PVC; PP; PE) MLN >19,3 mln +19% Compounds TO >17,4 thousand +15% Rigid PVC recycling TO >9 thousand +19% Fittings & PCS. >11 mln +37% rotomolded prod. Windows & Doors PCS. >125 thousand +7% TeraPl
Slide 13: We have started the expansion projects
We have started the expansion projects Production sites Expansion works Total production sites of the Group: • Total surface: 316.849sqm • Constructions: 83.513sqm (production & storage halls) • Concrete platforms: 233.335sqm Of which, in 2021, 13.794sqm are built: • 4.410 sqm for the new PE factory
Slide 14: The key figures summarize the best year of TeraPlast Group
The key figures summarize the best year of TeraPlast Group TERAPLAST GROUP IN 2019 ➢ The results reflect the Plastics division activity in 2020 TURNOVER EBITDA EBITDA ➢ Sustained demand on infrastructure projects and compounds MARGIN ➢ Recycling was a key differentiator in the market 342,8 34,1 Mln.
Slide 15: Sustained profitability in spite of the crisis
Sustained profitability in spite of the crisis Bridge EBITDA 2019 – 2021 ASPECTE CHEIE TeraPlast, Plastics division Plastics division • Largest contribution at EBITDA increase; • EBITDA Margin of 13,7% for the plastics division is superior to Group average of 12%. • Turnover of 396,2 mln. lei (+16%)
Slide 16: Capital ratios & liquidity remained at attractive levels
Capital ratios & liquidity remained at attractive levels
Slide 17: New investment projects
New investment projects Installation & Recycling Packaging (foils) Total Floor H PVC&Fitting PE Pipes TRP Folii New projects (PE pipes) Investment (in EUR mln) €5,09 €3,13 €9,87 €11,84 €29,93 Annual turnover at maturity (mil EUR) €11,48 €4,74 €20,03 €15,62 €51,88 Annual EBITDA at maturity (mil EUR)
Slide 18: TeraPlast share performance reflects the business performance
TeraPlast share performance reflects the business performance TRP on the Bucharest Stock Exchange TRP share • +103,5% yield in 2020 • 6,2% dividend yield in 2020 • BET & FTSE Russell MicroCap and TotalCap inclusion (only 4 Romanian companies were accepted) • Over1 bln lei market cap threshold reache
Slide 19: An ambitious vision for the future
An ambitious vision for the future
Slide 20: A company with an ambitious vision
A company with an ambitious vision Mission Vision We aim to Development of efficient solutions for Values become people and the Becoming leaders on the leaders on environment markets we activate on the markets Tradition we activate Responsibility on Performance TeraPlast Group has 125 years of tradi
Slide 21: Development plan and objectives
Development plan and objectives 2021/22 Objectives Development plan • We actively study acquisition opportunities in Consolidating or reaching the first Romania and abroad position on the Group’s segments • Completion of the production capacity expansion for active on the construction market the Ins
Slide 22: Risks and challenges
Risks and challenges Market wise Business wise • The continuous pandemic context could • The most abrupt raw material price restore the market uncertainty and can increase in the last 5 years that bring up problems in the logistic chain accelerates the recycling investments Implementing our strategy
Slide 23: Opportunities
Opportunities 52.9% 300 mln EUR Of the resident population in Romania is is worth the flexible packaging connected to a sewerage network that has market in Romania a treatment station* 54.2% Of the resident population in Romania is 1,7 bln EUR connected to the sewerage network* Budgeted for infrastr
Slide 24: The Q1/2021 results are above the budget
The Q1/2021 results are above the budget TeraPlast Group, consolidated ➢ The increase in sales is due to both increase in quantities sold and the increase in sales prices. The quantity increase for TeraPlast is of 19%. ➢ The EBITDA margin of 16,2% is above the budgeted 14%. ➢ The doubling of the ope
Slide 25: Conclusions
Conclusions TeraPlast: a company with outstanding performance on both the construction materials market and the capital market 2020 is the year when TeraPlast Group registered the best results and Q1/2021 brought results above the budgeted figures offering a good perspective for meeting the budget T
Slide 26: Appendixes
www.teraplast.ro Appendixes 126. WAN TeraPlast
Slide 27: Digital transformation for cost and time efficiency
Digital transformation for cost and time efficiency We take advantage of digitalization not only to optimize our production processes and to intensify our customer relations and create efficient sales and administrative structures. Production is supported by fully integrated informatics system allow
Slide 28: Who is the team that implements the strategy
Who is the teams that implements the strategy ➢ Our corporate culture promotes the professional development within the company. ➢ Many of our managers were promoted from positions within the Group’s companies. ➢ We have highly specialized colleagues that have been working with us for over 20 or even
Slide 29: State aid projects evolution
Evoluția proiectelor de ajutor de stat ➢ We are half way in contracting the equipment and constructions for the investment projects. ➢ Equipment started to be put in service during Q1 and it continues in Q2. ➢ Most of the rest will be put in service during Q3 and Q4. ➢ The new PVC pipe production li
Slide 30: The results for Q1/2021 are above the budgeted figures
The results for Q1/2021 are above the budgeted figures Group companies ➢ The Installation & Recycling segment of TeraPlast reached TeraPlast & Total a turnover of RON 76,45 million and an EBITDA of RON amounts in lei, thousands TeraPlast TeraGlass 13,36 million, which represents 76% of the consolida
Slide 31: Summary - P&L Group 2020
Summary - P&L Group 2020 Discontinued Discontinued Continued operations operations #1 operations #2 TeraPlast Group Total Total Plastic Steel Division PVC Profiles segment Total Group Results RON '000 2019 2020 2019 2020 2019 2020 2019 2020 Net Sales 342.816 396.950 578.655 644.232 60.973 60.344 982
Slide 32: Plan to recover the EBITDA of 130 mln RON after the transactions
Plan to recover the EBITDA of 130 mln RON after the transactions The M&A activity that The businesses that exit the Group follows aims at identifying contributed by more than half to the the best opportunities to 2020 EBITDA and in the following The potential of the projects to carry out the set str
Slide 33: Balance sheet summary 2020 – Group TeraPlast
Balce sheet summary 2020 – Group TeraPlast x TRP Group Restated (*) Steel Profiles RON '000 x 2019 2020 2021b 2020 2020 x Intangibles & Goodwill x 1.341 1.066 920 42.406 46 Tangible assets x 154.914 169.819 288.807 109.188 10.118 Investment Property x 6.913 3.687 3.687 - - Other non-current assets x
Slide 34: Financial performance T1/2021 Summary P&L Total Plastic
FINANCIAL PERFORMANCE T1/2021 | Summary P&L | Total Plastic (Continuing Operations, excl Somplast) All amounts in thousand RON, unless otherwise stated
Slide 35: Financial performance Q1/2021 Summary P&L on Segments
FINANCIAL PERFORMANCE Q1/2021 | Summary P&L on Segments
Slide 36: 2021 Objectives
2021 OBJECTIVES KEY POINTS Installation & Recycling ▪ The improvement of EBITDA margin in 2020 is mainly due to the increase in volumes, the operational efficiency measures, the high demand in the market that allowed us to implement the price policies and the favorable variation of raw materials pri
Slide 37: 2021 Objectives
2021 OBJECTIVES Installation & Recycling Compounds I&R 2021 > detailed RON '000 2019 2020 2021b I&R 2020 I&R 2021 I&R Existent PVC Project PE Project Floor H Net Sales 249.740 291.565 448.777 291.565 448.777 365.637 48.546 26.466 8.128 Other operating income 436 1.858 2.086 1.858 2.086 967 584 231 3
Slide 38: Keep in touch
KEEP IN TOUCH Contact details Keep in touch with our IR team investor.relations@teraplast.ro +40 741 270 439 Stay updated https://investors.teraplast.ro Subscribe to our investor newsletter
Slide 39: The present material may not be reproduced, summarized or disclosed, in whole or in
The present material may not be reproduced, summarized or disclosed, in whole or in part, without the prior written authorization of TeraPlast SA. TeraPlast SA reserves its right to change the content and structure of the present material at any time without prior notice. While TeraPlast SA makes ev