Slide 1: Romania Days
Romania Days March 3-4, 2021
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 of it
Slide 3: 2020 Highlights
GROUP OVERVIEW 2020 Highlights BET inclusion Free shares 1 TeraPlast’s shares were included in the reference index BET at the Bucharest Stock Exchange 2 1 share per 3,3 shares owned were granted to the shareholders 3 Steel division TeraPlast signed an agreement to sell its Steel division (TeraSteel
Slide 4: 2021 TeraPlast Group Structure
GROUP OVERVIEW 2021 TeraPlast Group Structure • Parent company of the Group → holds majority stakes in the Group’s subsidiaries • Listed on the Bucharest Stock Exchange since 2008 • Leading producer of PVC compounds and PVC, PE & PP installation systems • PVC and aluminum windows & doors producer •
Slide 5: Short history
GROUP OVERVIEW Short history Long history marked by pioneering, significant research & investment projects. TeraSteel DOO – the Serbian factory is inaugurated TeraPlast acquires the majority TeraPlast is founded as a TeraPlast goes public on the stake in Wetterbest company Bucharest Stock Exchange 1
Slide 6: TRP on the Bucharest Stock Exchange
GROUP OVERVIEW TRP on the Bucharest Stock Exchange Key Business performance for Plastics Division, 2019 12M vs 2020 12M Shareholder Structure Plastics (*) Turnover (mRON) Plastics (*) EBITDA (mRON) Plastic EBITDA Margin (%) vs 12M'19 vs 12M'19 vs 12M'19 vs 12M'19 vs 12M'19 Segment 12M'19 12M'20 12M'
Slide 7: Plastics Product Portfolio
GROUP OVERVIEW Plastics Product Portfolio Installation PVC Compounds Windows & Doors Rigid PVC recycling TeraPlast Industrial Park, TeraPlast Industrial Park, TeraPlast Industrial Park, Saratel, BN, Romania Bistrita, BN, Romania Saratel, BN, Romania Saratel, BN, Romania Complete systems for: • Regra
Slide 8: Plastics Product Portfolio
GROUP OVERVIEW Plastics Product Portfolio Biodegradable Flexible Polyethylene packaging packaging systems TeraPlast Industrial Park, Năsăud, BN, Romania Saratel, BN, Romania Năsăud, BN, Romania Flexible foils and packaging Sacks and bags with a • PE systems for water with applications in minimum 90%
Slide 9: Production units
GROUP OVERVIEW Production units PVC Factory (RO) PP Factory (RO) PE Factory (RO) 8 production lines 9 production lines 11 production lines 52.800 tons/year 3.800 tons/year 11.500 tons/year Current Group’s production units Windows & Doors Factory Recycling Factory (Plastics) (RO) (RO) 5 production li
Slide 10: Production sites
GROUP OVERVIEW Production sites ROMANIA TeraPlast Group’s production sites sum up 306.518 square meters in surface out of which 83.513 sqm of buildings. To the Industrial Park in Saratel an additional 13.794 sqm will be added in 2021, as follows: • 4.410 sqm for the new PE factory • 4.440 sqm for th
Slide 11: Distribution centers
GROUP OVERVIEW Distribution centers Romania Bistrita Our activity is assisted by the 6 distribution centers Piatra Oradea Neamt in Romania that sum up over 35.000sqm in surface. Brasov Deva All our distribution centers’ locations are rented. During 2020, our strategy included capitalizing on the war
Slide 12: 2020 Key results
GROUP OVERVIEW 2020 Key results PLASTICS DIVISION 2020 PLASTICS DIVISION 2019 +16% +56% TURNOVER EBITDA EBITDA TURNOVER EBITDA EBITDA MARGIN MARGIN 396,9 56,5 342,8 36,2 Mil. LEI Mil. LEI 14,2% Mil. LEI Mil. LEI 10,6% ➢ Results for the Plastics division that represents the continued operations of th
Slide 13: 2020 Key results
GROUP OVERVIEW 2020 Key results Evolution by production volumes of the continued operations ➢ The Installation business line was limited by the production capacities; of TeraPlast Group we were forced to decline client orders in 2020 and therefore we invest in increasing the capacities. 2020 vs. ➢ W
Slide 14: Steel Division Transaction
GROUP OVERVIEW Steel Division Transaction ➢ Buyer: Kingspan Group ➢ Leader on the high-performance insulation market ➢ Listed on the London Stock Exchange Plastics Division ➢ The transaction date was February 26 when RON 373 million were cashed by TeraPlast ➢ The money will be used for: ➢ Future inv
Slide 15: Window profiles transaction & Somplast acquisition
GROUP OVERVIEW Window profiles transaction & Somplast acquisition The sale of the window profiles business line Somplast acquisition ➢ Buyer: Dynamic Selling Group ➢ Acquired: 70% stake in the company ➢ Estimated value of the transaction: EUR 4,5 million ➢ Financed from the sale of the Brasov wareho
Slide 16: Management team
GROUP OVERVIEW Management team Experienced management team Board of Directors ➢ Our corporate culture promotes the professional development within the company. ➢ Many of our managers were promoted from Alexandru Stanean CEO TeraPlast Group Ioana Birta CFO TeraPlast Group positions within the Group’s
Slide 17: Construction sector in Romania
MARKET CONEXT Construction sector in Romania The construction sector in Romania kept its positive trend in 2020 compared to 2019. ➢ The total volume of the construction works registered a 15,9% increase compared to 2019. ➢ The positive evolution of the infrastructure works reflects in the increases
Slide 18: Opportunities - Infrastructure
MARKET CONTEXT Opportunities - Infrastructure 52.9% 35% 25% Of the resident population in Romania is Of the resident population in Romania is Of the total EUR 1,5 bln funds available connected to a sewerage network that has connected to the national natural gas for irrigation projects were spent a t
Slide 19: Opportunities – Flexible Packaging
MARKET CONTEXT Opportunities – Flexible Packaging The European Commission issued in 2015 a directive regarding the usage of plastic bags with the objective of reducing the plastic bags consumption from over 400 bags/person to 40 bags/person by 2025. This directive must be implemented in the national
Slide 20: Sustainability Reporting
SUSTAINABLE DEVELOPMENT Sustainability Reporting We constantly analyze our impacts and set our sustainability strategy based on the inclusiveness principle to ensure that the opinion of our stakeholders is included. Our sustainability reports are made in accordance with the GRI Standards, Core optio
Slide 21: Value Chain
SUSTAINABLE DEVELOPMENT Value Chain While carrying out our daily activity we consider the responsibility we have towards our entire value chain as well as to the environment and the communities. In our view, a healthy business goes beyond the financial performance. We pay attention to collaborate wi
Slide 22: Employees
SUSTAINABLE DEVELOPMENT Employees Our HR policy also aims at ensuring an objective remuneration in line with a Gender distribution Gender distribution in series of criteria like medium wage, level of expertise, comparison to similar Group level management positions. At the same time, it ensures that
Slide 23: Products, Community and Corporate Governance
SUSTAINABLE DEVELOPMENT Products, Community and Corporate Governance ➢ Active multi-level community involvement through the Building Romania Together CSR platform by three main areas: Education, Social, Health & Environment ➢ Implementing corporate governance best practices in order to raise the com
Slide 24: Financial Performance: P&L Summary and EBITDA Bridge
FINANCIAL PERFORMANCE Overview | P&L Summary 2020 | TeraPlast Group EBITDA Bridge 2019 – 2020 TeraPlast Group Total KEY POINTS Plastics Division - Largest contribution to the increase in EBITDA; - EBITDA margin of 14,2% of the Plastics Division is superior to the Group average of 12%. - Turnover of
Slide 25: Plans to reconstruct the 2020 EBITDA after the transactions
FINANCIAL PERFORMANCE Plans to reconstruct the 2020 EBITDA 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 carr
Slide 26: 2020 Balance Sheet | TeraPlast Group
FINANCIAL PERFORMANCE Overview | 2020 Balance Sheet | TeraPlast Group x TRP Group Restated (*) Steel Profiles KEY POINTS 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 3.68
Slide 27: 2021 Objectives: Challenges
2021 OBJECTIVES Challenges We celebrate 125 years since the Saxon craftsman Walter Schuster opened the ceramic tiles workshop in Bistrita. ➢ We enter the EUR 300 million market of biodegradable foils and bags where we aim to become market leaders by 2022. ➢ We face the most abrupt increase of the ra
Slide 28: We aim to be leaders in all businesses we operate in
2021 OBJECTIVES We aim to be leaders in all businesses we operate in ➢ The 2021 budgeted growth is based on: ➢ The increase of the production capacities for TeraPlast following the implementation of the state aid co-financed projects ➢ Spin-off of TeraPlast Folii Biodegradabile ➢ Somplast integratio
Slide 29: Plastics division 2021 Budget
2021 OBJECTIVES Plastics division | Continued operations | 2021 Budget 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 po
Slide 30: Installations & Recycling Details 2019-2021B
2021 OBJECTIVES Installations & Recycling | Details | 2019-2021B 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
Slide 31: New investment projects
2021 OBJECTIVES 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 mat
Slide 32: Development plan
2021 OBJECTIVES Development plan We will further develop by both investments and M&A ➢ We actively analyze such opportunities in Romania and abroad ➢ We will develop to become the leaders of the flexible packaging market ➢ We invest EUR 14 mln: EUR 12 mln in TeraPlast Folii Biodegradabile & EUR 2 ml
Slide 33: 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 34: 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