Teraplast Sa · BVB:TRP
Teraplast Sa — Investor Presentation (May 2024)
31 slides from Teraplast Sa's investor presentation, May 2024
Slide 1: Unlocking growth
Unlocking growth WN TeraPlast
Slide 2: TeraPlast Group structure in 2024
TeraPlast Group structure in 2024 Installation Compounds 1.114 Transaction closed in Employees at group level* January, consolidated in the Rigid PVC recycling Q1/2024 results 196.000 to Total production capacity of the Group** Flexible packaging Transaction closed on March PVC and Aluminum windows
Slide 3: Tradition & pioneering
Tradition & pioneering 125+ Investment worth over 80 mln LEI Years of tradition in a new stretch film factory & over 20 mln LEI in a photovoltaic 45 Years of polymer Sale of the Steel division; Sale of the window profiles plant processing expertise business; Somplast acquisition 2022- 15 Relocation
Slide 4: What drives us
What drives us TeraPlast Group is one of the largest Romanian entrepreneurial groups with almost 130 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 innova
Slide 5: The base of our vision
The base of our vision Clear, strong objectives Resilient business model › Double-digit annual growth both organically and › Strict monitoring of internal and external credit through M&A risk; reduced dependence through customer › Continuous investments for the integration of › Effective procurement
Slide 6: TRP on the capital market
TRP on the capital market TeraPlast is listed on the Bucharest Stock Exchange since July 2008. Our share (TRP) is included in the reference Shareholding structure as of Dec 31,2023 index of BSE and benefits from international exposure by also being included in the Small Cap & All Cap indices of FTSE
Slide 7: Geographical footprint
Geographical footprint Our products reach 22 European countries TeraPlast Group companies Sales outside Romania increased by Export markets 32%, from RON 23,2 million to RON 30,7 million. TeraPlast Group sales Q1/2024 External markets 17% Romania 83%
Slide 8: Key points of our business model
Key points of our business model Clients’ structure – 2023 The Group has good reputation among its clients and suppliers being recognized as a trustworthy, strategic business partner. ➢ Tight credit risk monitoring internal & external (insurance) ➢ Effective purchasing policy: broad supplier base ➢
Slide 9: The largest polymer processor in south-eastern Europe
The largest polymer processor in south-eastern Europe ➢ During 2022-2023 we commissioned the investments in expanding the production capacities and diversifying our business segments. ➢ Regional development ➢ Regional expansion to reduce the dependence on one market (RO) → acquisition of Wolfgang Fr
Slide 10: Our approach on sustainable development
Our approach on sustainable development These directions articulate how sustainable development is integrated into our businesses every day and how our mission to provide efficient solutions for people and the environment is embodied in medium and long-term strategic projects, such as: Clean water,
Slide 11: Efficient solutions for people and the environment
Efficient solutions for people and the environment The 21st century is the century of water. The main challenges we see in this context are: → Responsible exploitation of freshwater resources; → Rational rainwater management in terms of its separate collection and treatment from the wastewater; → Ef
Slide 12: Gri(n) Pipe
Gri(n) Pipe For this product, TeraPlast holds a number of intellectual property rights (patents, utility models) that protect the technical solutions used to produce the low-density (expanded) middle layer, using both 100% virgin materials (PVC K57 - 68) and and recycled materials. The use of recycl
Slide 13: CCF & sustainability rating
CCF & sustainability rating › The total emissions of greenhouse gases (GHG) are obtained at Group level by calculating the emissions resulting from the consumption of electricity, natural gas and fuels, in accordance with GHG Protocol. TeraPlast Group carbon 3,871 footprint in 2022 Tons CO2 eq. › Em
Slide 14: TeraPlast R&D
TeraPlast R&D 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 and innovati
Slide 15: About the acquisitions: Palplast Moldova
About the acquisitions: Palplast Moldova 6.700 sqm >1.300 to/year 25 The factory is located in the city of Călărași, Republic of Moldova, situated on both banks of the Bîc river, 67 km northwest of Chișinău, 59 km from the border with Romania, and 130 km from the border with Ukraine. It is an indust
Slide 16: About the acquisitions: Wolfgang Freiler Group
About the acquisitions: Wolfgang Freiler Group 1. Key information – the two factories 83.000 sqm >3.800 to/year 83 The factory is located in Nagykanizsa, southwestern Hungary, near the border with Croatia and Slovenia, 215 km from Budapest and 140 km from Zagreb. The industrial park has infrastructu
Slide 17: About the acquisitions: Wolfgang Freiler Group
About the acquisitions: Wolfgang Freiler Group 2. Key information – business overview Compact business model with modern production facilities. ✓Export-oriented history and entry into new markets, lean organizational structure, skilled and results-oriented team, consistent product quality, formation
Slide 18: Key premises for 2024
Key premises for 2024 ▪ We will pursue cautious organic growth following the experience of recent years. ▪ For infrastructure works, fueled by public and European funds, a positive evolution is expected. ▪ The share of main expenses in turnover will be similar to that of 2023. The same goes for the
Slide 19: 2024 Budget - segments
2024 Budget - segments Cifra de afaceri pe segmente Net sales EBITDA EBITDA pe segmente For this year, TeraPlast Group presents a budget with moderated organic growth, based on the prior years experience and the current macroeconomic context. The expectations are that several market segments will fa
Slide 20: 2024 Budget - quarters
2024 Budget - quarters ➢ The turnover as well as the EBITDA budgeted will increase consistently, which will be mainly the effects of the M&A operations and the new stretch film business. ➢ For the Installation segment, domestic infrastructure projects are expected to grow in 2024 as well. ➢ TeraGlas
Slide 21: Key information for 1Q24
Key information for 1Q24 General environment Segment evolution • Construction works decreased overall by • We remain the market leader in installations in 11.8% in the first 2 months of 2024 Romania and are the first-choice in projects compared to Jan-Feb 2023, according to led by industry leaders i
Slide 22: Substantial growth in turnover and EBITDA in 1Q24
Substantial growth in turnover and EBITDA in 1Q24 TURNOVER VOLUMES 176.8 MLN. LEI 23,355 TONS ➢ Turnover increased by 20% compared to Q1/2023 and exceeded the budget by 19%. +20% vs Q1/’23 (147.2 mln. LEI) +50% vs Q1/’23 (15,566 tons) ➢ EBITDA grew by 32% compared to Q1/2023. ➢ Quantitative sales we
Slide 23: 20% increase in turnover Q1 2024 vs Q1 2023
20% increase in turnover Q1 2024 vs Q1 2023 ➢ Price deflation in 2024 with 13% compared to 2023 is due to the decrease in raw material prices and in the cost of production, which have been amounts in mil RON transferred to the market. ➢ Installations and also recycled PVC volumes increased by almost
Slide 24: Q1 2024 Budget vs Results
Q1 2024 Budget vs Results ➢ Due to additional volumes of installations and stretch film, turnover is 20% above budget and Q1/2023. ➢ Gross margin decreased as a percentage (36% in Q1/'24 vs. 38% in Q1/'23) as part of the strategy to increase market share. ➢ Salaries and employee benefits has increas
Slide 25: Financial performance
Financial performance ➢ Public infrastructure works in the execution phase accelerated in the first part of this year and TeraPlast remains the first choice for these projects. ➢ It is essential that the allocation of funds for infrastructure works continues in the second half of the year, after the
Slide 26: Financial performance
Financial performance In Q1/2024, the TeraPlast Group recorded The significant Compounds sales We have reduced sales The segment has impressive growth, with an EBITDA margin of 6.7% increase in volumes on were stable with an by focusing on the doubled turnover, and a 20% increase in turnover, thanks
Slide 27: Financial performance
Financial performance Q1 2024| Balance-sheet summary Key aspects ➢ We completed the acquisition of the Freiler Group at the end of March, paying the full price of EUR 16.5 million. We are consolidating the results from April, with the holding included in Other non-current assets at 31-Mar- 24. ➢ Deb
Slide 28: Financial performance
Financial performance Q1 2024| Cash-flow summary Bridge 31 March 2024 ➢ Out of the CapEx of 54 million lei planned for this year, we paid 17 million lei, mainly for the last components of the second stretch film line and the improvement of TeraPlast production capacities. Significant investments to
Slide 29: Financial performance
Financial performance 2023| Balance-sheet summary Key aspects Investment payments were 104 million lei in 2023. For 2024, we plan to invest 53 million lei. This year we received 24 million lei in state aid. Next year we will collect 34 million lei. Net working capital will increase slightly in 2024
Slide 30: Financial performance
Financial performance 2023| CF summary Bridge 31 Dec 2023 Bridge 31 Dec 2023
Slide 31: Thank you!
WN TeraPlast & Thank you! erty ii |