Slide 1: Geneva MidCap Event
GENEVA MIDCAP EVENT December 1-2, 2021
Slide 2: Agenda
Agenda TeraPlast: a high-performance company 2020-2021: shift in strategy An ambitious view of the future Conclusions
Slide 3: Long history of pioneering
Long history of pioneering TeraPlast Group is one of the largest Romanian entrepreneurial groups with 125 years of tradition, extensive expertise in polymer processing industry and an annual turnover of over EUR 100 million. The Group has a proven track record of solid growth and innovation. 2021 •M
Slide 4: We perform both on the market and on the Bucharest Stock Exchange
We perform both on the market and on the Bucharest Stock Exchange Shareholding structure Legal entities Controlling shareholder: Mr. Dorel Goia, also Chairman of the Board 20,11% Dorel Goia 46,83% We have performed during 3Q21, with +43% in turnover, +30% in EBITDA and +39% in net profit We are one
Slide 5: TRP evolution on the stock exchange – key figures last 12M
TRP evolution on the stock exchange – key figures last 12M Total value 3rd 141 mln Average of most traded stock in the reference index 569.652 EUR EUR in the last 12M / day of BSE in the last 12M Shares traded Trades Average of 801 mln 101k 402 in the last 12M transactions / day in the last 12M Trad
Slide 6: The implementation of the strategy in 2021
The implementation of the strategy in 2021 Closing of the Window profiles Upgraded within business FTSE Russell from transaction We are connected to the markets we MicroCap to Small operate on and the sustainable Cap (& All Cap) Closing of the Steel division development trends. transaction Acquired
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 market and PVC compounds market in Romania, on BSE since 2008. • 2021 investment plan: EUR 20 mln in expanding the production capacities for interior sewerage, PE- Xa systems and water & ga
Slide 8: Market leader on multiple segments
Market leader on multiple segments Installation Compounds Rigid PVC recycling TeraPlast Industrial Park TeraPlast Industrial Park TeraPlast Industrial Park Romania Romania Romania Leader on the PVC exterior Leader on the Romanian market The largest producer of micronized sewerage market with a 34% m
Slide 9: Business model snapshot
Business model snapshot Client structure - 9M 2021 The Group has good reputation among its clients and suppliers being recognized as a trustworthy, strategic business partner Constructors Others 0,3% 1% DYI ➢ Tight credit risk monitoring internal & external (insurance) 14% ➢ Effective purchasing pol
Slide 10: Expansion works in progress
Expansion works in progress Own distribution & production sites Expansion works The total production surface of the Group: • Total surface: 323.223m2 • Construction: 89.240 m2 (production and storage Bistrița Sărățel P. Neamț halls) Oradea Năsăud • Concrete platforms: 131.389m2 Sighișoara Out of whi
Slide 11: What drives us
What drives us TeraPlast Group is one of the largest Romanian entrepreneurial groups with 125 years of tradition and a proven track record of innovation and development in the polymer processing field. Our mission is to develop efficient solutions for people and the environment through innovation an
Slide 12: A responsible company, dedicated to sustainability (1/5)
A responsible company, dedicated to sustainability (1/5) 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 bill
Slide 13: A responsible company, dedicated to sustainability (2/5)
A responsible company, dedicated to sustainability (2/5) TeraPlast Recycling PVC can be recycled up to We have invested 8 times 4 mln Without losing its properties EUR so far And reached 1.875kg 31.000t of CO2 are saved per each in annual processing 1.000kg of rigid PVC recycled capacity
Slide 14: A responsible company, dedicated to sustainability (3/5)
A responsible company, dedicated to sustainability (3/5) The PV plant Sums up over Which means over 7.000 12.000 modules m2 in surface And helps us save It ensures cca. 660t 11,45% of CO2 annually of the total energy needed The PV modules will be installed on the new buildings in the Industrial Park
Slide 15: A responsible company, dedicated to sustainability (4/5)
A responsible company, dedicated to sustainability (4/5) Digital transformation We take advantage of digitalization to optimize our production processes, to intensify our customer ERP multi-module systems: RPA (robotics process relations & create efficient Warehouse Management automation by UI Path)
Slide 16: A responsible company, dedicated to sustainability (5/5)
A responsible company, dedicated to sustainability (5/5) Community & Product development We support sports activities like We are involved in a dual- We support the reward of the the local handball team, tennis education program with a academic performance of the and running competitions. local high
Slide 17: Long history of pioneering
Long history of pioneering We have industry-specialized colleagues that carry out the internalized R&D activity. We also have an internal testing laboratory, accredited by RENAR – the national Accreditation Body. Through the R&D activity, TeraPlast marked a series of premieres in terms of uniqueness
Slide 18: 2020-2021: shift in strategy
2020-2021: shift in strategy 2020 - the year when TeraPlast Group had the best results and adapted its strategy to benefit from the new market opportunities in the long-term starting 2021 by commiting to become the largest polymer processor in Central & Eastern Europe* *excluding Poland
Slide 19: 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 20: 2020: a year with outstanding results
2020: a year with outstanding results Evolution of the production volumes in 2020 TeraPlast Group production • Installation business line reached maximum 2020 vs. capacity 2019 • We remain the largest compounds producer in the region and the only producer of HFFR compounds Pipes (PVC; PP; PE) M* >19
Slide 21: Strategic repositioning to become largest polymer processor in CEE
Strategic repositioning to reach our objective of being the largest polymer processor in Central and Eastern Europe* by implementing our accelerated growth business model Delivering Reaching Leading position Organic and M&A double-digit the EBITDA on the markets before the Steel growth growth we act
Slide 22: Opportunities
Opportunities 54,5% 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, of which 50% a treatment station in 2020* are imports 55,8% 1,88 bln EUR Budgeted for infrastructure Of the resident population in Roma
Slide 23: Excellent results are maintained during the first 9M of 2021
Excellent results are maintained during the first 9M of 2021
Slide 24: Double digit growth during 9M21
Double digit growth during 9M21 „Overall, we have maintained our upward trend and EBITDA MARGIN keep a double-digit growth rate, in spite of the less favorable market conditions compared to previous quarters.” 14.3% (9M/2020: 15.8%) +39% +43% +30% +35% NET PROFIT TURNOVER EBITDA OPERATING PROFIT 8.8
Slide 25: Equilibrated evolution of the segments
Equilibrated evolution of the segments The results of the Installation business line (TeraPlast) were influenced by raw material costs and a change in demand in a market in search of a new trend. Disturbances were observed mainly due to the extended period of implementation of the indexation of cons
Slide 26: Q3/2021 | Summary P&L
Q3/2021 | Summary P&L Total Plastic Total Plastic Installations and recycling FY'2020 FY'2021B Var % 9M'20 9M'21 Var % EUR '000 Net Sales 81.905 131.180 60% 64.086 91.843 43% Other operating income 553 684 24% 396 457 15% Total Operating Income 82.458 131.864 60% 64.482 92.299 43% Raw materials, con
Slide 27: We maintained the organic growth of the turnover
We maintained the organic growth of the turnover Evolution of the consolidated turnover Q3 2021 vs Q3 2020 amount in mil EUR + 4,0% + 0,2% + 45,5% + 9,3% 0,1 2,3 + 8,5% 5,7 + 23,6% 5,2 14,6 92 64 Sale price Services Volume
Slide 28: Q3/2021 | Summary P&L by Segments
Q3/2021 | Summary P&L by Segments Total Plastic Installations and recycling Compounds Windows&Doors Flexible Packaging 9M'20 9M'21 Var % 9M'20 9M'21 Var % 9M'20 9M'21 Var % 9M'20 9M'21 Var % 9M'20 9M'21 Var % EUR '000 Net Sales 64.086 91.843 43% 47.764 61.258 28% 10.962 22.002 101% 5.360 6.389 19% -
Slide 29: Cash flow statement Q3/2021
Cash flow statement Q3/2021 Summary of cash flow statement (9M 2021) in mil.EUR amountSummary of cash flow statement (9M 2021) amount in mil.EUR Net Profit 10,0m 57% NetNet Profit profit adjustments 10,0m 3,3m 57% Net profit (+) Operating adjustments profit before changes in working 3,3m (+) Operati
Slide 30: Q3/2021 | Summary- BS Accounts
Q3/2021 | Summary- BS Accounts Trade NWC SOFP Summary 30.sept.21 31.dec.20 Var abs Var % • DSO is impacted by price Tangible assets (incl leasing) 45,9m 34,5m 11,4m 33% increases throughout the year; Real estate investments 1,0m 0,8m 0,3m 35% • Customer financing is a Intangible and GoodWill 0,4m 0,
Slide 31: An ambitious view of the future
An ambitious view of the future
Slide 32: 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 active on the construction market for the Ins
Slide 33: Risks and challenges
Risks and challenges Market wise Business wise • The continuous pandemic context could • The most abrupt raw material restore the market uncertainty and can price increase in the last 5 years bring up problems in the logistic chain that accelerates the recycling Implementing our strategy investments
Slide 34: 2021 budget
2021 budget +60% ➢ The growth in 2021 is based on: TURNOVER ➢ Increase in production capacities for TeraPlast by implementing the state aid co-financed projects 131,2 MLN. EUR ➢ Starting up the production of TeraBio Pack and integration (2020: 81,9 MLN. EUR) of Somplast +63% EBITDA 18,4 MLN. EUR The
Slide 35: 2021 budget
2021 budget EBITDA Bridge 2019 – 2021 TeraPlast, Plastics Division KEY POINTS Plastics division • Sustained profitability despite the crisis; • Low maintenance capex (EUR 1 mln/year due to use of latest technology). • EBITDA Margin of 13,7% for the plastics division is superior to Group average of 1
Slide 36: Plan to recover the EBITDA of EUR 26,97 million after the transactions
Plan to recover the EBITDA of EUR 26,97 million after the transactions The businesses that exited the Group contributed by more than half to the 2020 EBITDA and in the following The M&A activity that period we will focus on Plastics The potential of the projects to follows aims at identifying operat
Slide 37: Conclusions
Conclusions TeraPlast: a company with outstanding performance on both the polymer products market and the capital market. We have long-term partnerships in the areas of raw The group aims the development materials and utilities, and a global footprint in supplier 1 of the business through both inves
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: Disclaimer
Disclaimer This presentation does not, and is not intended to, constitute or form part of, and should not be construed as, constituting or forming part of, any actual offer to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares issued by the TeraPlast SA or any o
Slide 40: ©2021 TeraPlast SA. All rights reserved.
©2021 TeraPlast SA. All rights reserved.