Teraplast Sa · BVB:TRP
Teraplast Sa — Romania Investors Day London 2020
25 slides from Teraplast Sa's conference presentation, Feb 26, 2020
Slide 1: Romania Investors Day
Romania Investors Day London February 26-27, 2020
Slide 2: 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 3: Table of Contents
TABLE OF CONTENTS GROUP OVERVIEW – page 4 FINANCIAL PERFORMANCE – page 13 2020 BUDGET – page 19 IR CONTACT – page 25 3
Slide 4: TeraPlast Group Structure
GROUP OVERVIEW TERAPLAST GROUP STRUCTURE The largest Romanian construction materials manufacturer. BBG Ticker TRP RO BSE symbol: TRP Piping, fittings and other products made of PVC, PE and PP | PVC Compounds | PVC window profiles #1 on the exterior sewage market in Romania #1 on the PVC compounds ma
Slide 5: Product Portfolio Covers All Construction Market Segments
GROUP OVERVIEW PRODUCT PORTFOLIO PRODUCT PORTFOLIO COVERS ALL CONSTRUCTION MARKET SEGMENTS Installation Window profiles Compounds Rigid PVC Windows & Doors recycling Complete systems for: 3 window profiles systems: • Rigid PVC compounds • Granulated PVC • PVC Windows • Exterior sewage • 4 chambers •
Slide 6: Product Portfolio Covers All Construction Market Segments
GROUP OVERVIEW PRODUCT PORTFOLIO . PRODUCT PORTFOLIO COVERS ALL CONSTRUCTION MARKET SEGMENTS Sandwich Galvanized Self-supporting Complete panels steel purlins trapezoidal sheet roof systems • Polyurethane foam • 5 metallic roof tiles profiles • Z, C, U & Sigma • Corrugated sheet of sandwich panels •
Slide 7: Highlights
GROUP OVERVIEW HIGHLIGHTS Key Business performance 2018-2020B Shareholder Structure Shareholders 30.09.2019 D. Goia 46.83% KJK Balkan Holding Sarl 10.05% NN Pension Fund 6.66% Marley Magyarorszag 7.93% Free Float 28.53% ADTV (EUR '000) 1W 355.22 1M 239.69 3M 153.12 6M 75.83 12M 25.68 Market Making s
Slide 8: Geographical Footprint
GROUP OVERVIEW GEOGRAPHICAL FOOTPRINT TeraPlast Group’s exports represent 23% of its turnover in 2019 ➢ Which means around EUR 47 million in 2019 ➢ To over 25 countries ➢ Cover a population of 19.5 million in Romania and 66 million in core CEE countries Assets ➢ 11 factories that sum up over 75 200
Slide 9: Construction Sector in Romania
GROUP OVERVIEW CONSTRUCTION SECTOR IN ROMANIA¹ Evolution of construction works in RO Monthly evolution of construction works by construction objects 250,0 In 2019, the total construction works volume increased by 27,6% compared to 2018. 200,0 150,0 The biggest growth, by structure elements, was 100,
Slide 10: Romania
GROUP OVERVIEW ROMANIA Country highlights Main macro parameters¹ ➢ Full EU member since 2007 with a strategic positioning Key figures 2016A 2017A 2018A 2019F 2020F ➢ The 8th largest European country by population and GDP (€ bn) 170.4 187.5 202.1 217.3 235.0 2nd in CEE Population (m) 19.8 19.6 19.5 1
Slide 11: Management Team
GROUP OVERVIEW MANAGEMENT TEAM Experienced management team Board of Directors Mihaela Anca Alexandru Stanean Ioana Birta Ioana Borza Group HR Director CEO TeraPlast Group CFO TeraPlast Group Group Marketing Director ➢ HR Director since ➢ CEO since July 2018 ➢ CFO since June 2017 ➢ Marketing Director
Slide 12: ESG – Environmental, Social and Corporate Governance
GROUP OVERVIEW ESG – ENVIROMENTAL, SOCIAL AND CORPORATE GOVERNANCE Efficient solutions for people and the environment ➢ Women senior managers represent 37% of the Executive Team and 20% of the Board of Directors ➢ Sustainable development of the Group’s activity through: ➢ Photo-voltaic plant that wi
Slide 13: 2019 Key Figures
FINANCIAL PERFORMANCE 2019 KEY FIGURES TERAPLAST GROUP 2019 2019 Results Companies’ proportion in the consolidated revenue Revenue EBITDA eur, million 2019 2018 Evolution 3% 1% Revenue 76,9 62,9 25% 17% TeraPlast EBITDA 7,8 4,4 80% 28% 37% Revenue 65 56,3 18% 41% TeraSteel EBITDA 7,9 5,7 42% Revenue
Slide 14: Net Sales by Segment
FINANCIAL PERFORMANCE NET SALES BY SEGMENT Teraplast (TRP): • [Instalation] – as a market leader in 2019 for PVC Pipes, Teraplast was in the best position to win in NET SALES BY SEGMENT (AMOUNTS IN MEUR) the growing infrastructure market; 300.0 • [Compounds] – development plans includes HFFR (Haloge
Slide 15: EBITDA Bridge 2017 - 2019
FINANCIAL PERFORMANCE EBITDA BRIDGE 2017 - 2019 mEUR TRP Group EBITDA 2017 Δ type 9.22 The EBITDA increase of EUR 1.57 million (38% vs. 2017) is mainly driven by Instalation (TRP) Δ vs '17 (0.39) the overall increase in business (49% increase in net sales) with margins Compunds (TRP) Δ vs '17 0.14 s
Slide 16: Profit & Loss Summary
FINANCIAL PERFORMANCE PROFIT & LOSS SUMMARY P&L summary for the period 2017 2018 2019 2020B The main driver of group sales growth of Total Net Sales 92.4 172.9 205.0 261.7 87% in 2018 was the Total Operating Income 93.3 173.3 205.4 262.8 acquisition of Raw materials, consumables & merchandise (66.2)
Slide 17: Balance Sheet Summary
FINANCIAL PERFORMANCE BALANCE SHEET SUMMARY ASSETS 2017 2018 2019 2020B Non-current assets Investments in 2019 Property, plant and equipment 39.9 45.9 61.1 54.0 • We focused our investments in 2019 on the Investment properties 2.1 1.8 1.5 1.5 segments in need for margin improvement but Intangible as
Slide 18: Cash Flow Summary
FINANCIAL PERFORMANCE CASH FLOW SUMMARY 2017 2018 2019 Cash flows from operating activities Net profit before tax 4.7 5.6 9.8 Amortization, impairments and provisions 3.6 6.6 7.1 Impairment of current assets 0.3 0.3 0.2 Gains/(losses) from sale, disposal or fair value(0.0) measurement 0.2 of 0.1 ass
Slide 19: 2020 Perspectives
2020 BUDGET 2020 PERSPECTIVES ➢ 2020 focus will be on the ramp-up of the investments made in TeraPlast, Wetterbest and TeraGlass ➢ We have the highest expectations from Wetterbest and TeraGlass ➢ We’re anticipating an increase in the projects made from European Funds wich will keep the demand for in
Slide 20: Opportunities
2020 BUDGET OPPORTUNITIES 69.4% 35% of Romania’s population is connected to a water network* of Romania’s population is connected to a gas network** 52.7% 9.8 billion € of Romania’s population is connected to a sewage network* of the total EU funds allocated for large infrastructure projects (POIM)
Slide 21: 2020 Objectives
2020 BUDGET 2020 OBJECTIVES TERAPLAST GROUP 2020 2020 Budget Companies’ proportion in the consolidated revenue Revenue EBITDA eur, million 2020 2019 Evolution 4% 4% Revenue 94,3 76,9 24% TeraPlast EBITDA 10,6 7,8 37% Revenue 73,8 65 15% 36% 30% 35% 32% TeraSteel EBITDA 9,3 7,9 19% Revenue 82,9 56,9
Slide 22: Net Sales Growth (CAGR) / EBITDA Margin by Segment
2020 BUDGET NET SALES GROWTH (CAGR) / EBITDA MARGIN BY SEGMENT 2017 - 2019 2017 – 2020B 50.00% 50.00% 45.00% 45.00% Instalation 40.00% (TRP) 40.00% Instalation Sales CAGR 4Y - (2017 ** - 2020B) Sales CAGR 3Y - (2017 * - 2019) Roof (TRP) 35.00% 35.00% Sandwich Systems 30.00% panels (TRS) (WTB) 30.00%
Slide 23: Net Working Capital and Cash Conversion Cycle
2020 BUDGET NET WORKING CAPITAL AND CASH CONVERSION CYCLE (85) (65) (45) (25) (5) 15 35 55 75 95 Net working capital (mEUR) 40.0 38.1 30% CCC (89) 34.6 35.0 24% 25% FY DPO (75) 30.0 22% 20% 25.0 22.4 20.0 17% 15% 17 DIO (87) DSO (77) 15.0 10% 10.0 5% 5.0 - 0% 2,017 2,018 2,019 CCC (81) Net Working C
Slide 24: Net Sales and EBITDA Bridge 2020B vs 2019
2020 BUDGET NET SALES AND EBITDA BRIDGE 2020B VS 2019 10.0 Group Net profit (mEUR) 8.8 8.0 6.0 4.9 4.1 4.0 2.0 - 2017 2018 2019 24
Slide 25: Please contact us!
Please contact us! ©2020 TeraPlast SA. All rights reserved. IR Contact: Alexandra Sica TeraPlast Industrial Park investor.relations@teraplast.ro Saratel village, Sieu-Magherus commune +40 741 270 439 Bistrita-Nasaud county, DN15A km 45+500 www.teraplast.ro Bucharest Stock Exchange symbol: TRP 25