Teraplast Sa · BVB:TRP
Teraplast Sa — Investor Presentation (September 2024)
29 slides from Teraplast Sa's investor presentation, September 2024
Slide 1: Unlocking growth
Unlocking growth LAY TeraPlast
Slide 2: TeraPlast Group structure in 2024
TeraPlast Group structure in 2024 Installation Compounds 1.123 Consolidated starting Q1/2024 Employees at group level Rigid PVC recycling 196.000 to Total production capacity of the Group Flexible packaging Consolidated starting Q2/2024 PVC and Aluminum windows and doors Business lines 2
Slide 3: Tradition & pioneering
Tradition & pioneering 125+ Investment worth over 80 mln LEI in a new stretch film factory & over 20 Years of tradition mln LEI in a photovoltaic plant 45+ Years of polymer Sale of the Steel division; Sale of 2024 the window profiles business; processing expertise Somplast acquisition 2022- 16 Reloc
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: 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 6: Key points of our business model
Key points of our business model The Group has good reputation among its clients and suppliers being recognized as a Clients’ structure – 2023 trustworthy, strategic business partner. ➢ Tight credit risk monitoring internal & external (insurance) ➢ Effective purchasing policy: broad supplier base ➢
Slide 7: 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, followed by two acquisitions closed in the first quarter of 2024 – Wolfgang Freiler Group and Palplast Moldova – all
Slide 8: 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 9: 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 10: 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 11: CCF & sustainability rating
CCF & sustainability rating Highlights regarding our sustainable development performance in 2023: We participate in ESG rating initiatives → TeraPlast › TeraPlast Recycling reduced the amount of waste disposed of by 59% due to workflow optimizations and the rating by Sustainalytics available on BSE
Slide 12: 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 13: 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 14: 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 15: 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 16: Our performance in H1/2024
Our performance in H1/2024 TURNOVER QUANTITIES TeraPlast Group’s sales outside Romania 428 MLN. LEI 54.009 TONS doubled, from 48 mln LEI in H1 2023, to 100 mln LEI in H1 2024. +34% vs H1/’23 (320,5 mln. LEI) +57% vs H1/’23 (34.483 tons) EBITDA EBITDA MARGIN 26,9 MLN. LEI 6,3% +15% vs H1/’23 (23,3 ml
Slide 17: Key information H1 2024
Key information H1 2024 Segment evolution • The Installations segment had an organic growth of 16% compared to H1/2023, driven by demand for infrastructure projects. • The Wolfgang Freiler Group and Palplast Moldova contributed almost 40 million lei to the Group's results in H1/2024. • The Compounds
Slide 18: 33,5% increase in turnover H1 2024 vs H1 2023
33,5% increase in turnover H1 2024 vs H1 2023 ➢ Price deflation in 2024 with 12,7% 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 ov
Slide 19: H1 2024 Budget vs Results
H1 2024 Budget vs Results ➢ Due to additional volumes of installation, stretch film and M&A, turnover is 13% above budget and 34% above and H1/2023. ➢ Gross margin decreased as a percentage (35% in H1/'24 vs. 37% in H1/'23) as part of the strategy to increase market share. ➢ Salaries and employee be
Slide 20: Financial performance
Financial performance • Significant growth in turnover and volumes: TeraPlast Group recorded a 34% increase in turnover and 57% increase in volumes sold compared to H1/2023, driven by strategic investments and recent M&A. • EBITDA performance: EBITDA increased by 15%, although EBITDA margin fell to
Slide 21: Financial performance
Financial performance The increase in volumes Compounds sales We continued to focus The segment doubled In H1 2024, TeraPlast Group recorded significant growth in on Installations was increased, reflecting on non-retail projects, its turnover due to sales and volumes sold, supported by strategic inv
Slide 22: Financial performance
Financial performance H1 2024| Balance-sheet summary Key aspects ➢ Debt ratio will fall below 5 by the end of the year (Net debt: 346 million lei/ EBITDA: 72 million lei). ➢ Working capital up slightly due to acquisitions. 22 *Turnover and EBITDA from the last 12 months
Slide 23: Financial performance
Financial performance H1 2024| Cash-flow summary Bridge 30 June 2024 ➢ We paid 79 million lei for M&A - Freiler Group net of purchased cash. ➢ Out of the planned CapEx of 54 million lei planned for this year, we paid 24 million lei, mainly for the last components of the second stretch film line and
Slide 24: Financial performance
Financial performance 2023-2024B| 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
Slide 25: Financial performance
Financial performance 2023-2024B| CF summary Bridge 31 Dec 2023 Bridge 31 Dec 2023 25
Slide 26: Thank you!
WN TeraPlast & Thank you! erty ii |
Slide 27: About the acquisitions: Palplast Moldova
Annex.1 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 a
Slide 28: About the acquisitions: Wolfgang Freiler Group
Annex.2 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 infr
Slide 29: About the acquisitions: Wolfgang Freiler Group
Annex.3 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, f