Teraplast Sa · BVB:TRP
Teraplast Sa — Investor Presentation (October 2020)
39 slides from Teraplast Sa's investor presentation, October 2020
Slide 1: TeraPlast Group
TeraPlast Group October, 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 of it
Slide 3: Table of Contents
TABLE OF CONTENTS GROUP OVERVIEW MARKET CONTEXT BUSINESS MODEL SUSTAINABLE DEVELOPMENT FINANCIAL PERFORMANCE IR CONTACT 3
Slide 4: Table of Contents
TABLE OF CONTENTS GROUP OVERVIEW MARKET CONTEXT BUSINESS MODEL SUSTAINABLE DEVELOPMENT FINANCIAL PERFORMANCE IR CONTACT 4
Slide 5: 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 6: Short History
GROUP OVERVIEW SHORT HISTORY Long history marked by pioneering, significant research & investment projects. TeraPlast Group invested over the years in research too, having 3 patents and 3 in progress. TeraSteel DOO – the Serbian TeraPlast is founded as a TeraPlast goes public on the factory is inaug
Slide 7: Product Portfolio
GROUP OVERVIEW PRODUCT PORTFOLIO By its product portfolio, TeraPlast Group covers all construction market segments. Rigid PVC Installation Window profiles PVC Compounds Windows & Doors recycling TeraPlast Industrial Park, TeraPlast Industrial Park, TeraPlast Industrial Park, TeraPlast Industrial Par
Slide 8: Product Portfolio
GROUP OVERVIEW PRODUCT PORTFOLIO By its product portfolio, TeraPlast Group covers all construction market segments. Sandwich Galvanized Self-supporting Complete panels steel purlins trapezoidal sheet roof systems TeraPlast Industrial Park, Baicoi, PH; Podari, DJ & Saratel, BN, Romania Bistrita, BN,
Slide 9: Geographical Footprint
GROUP OVERVIEW GEOGRAPHICAL FOOTPRINT TeraPlast Group’s exports represent 24% of its turnover in 2019 ➢ Which means around EUR 49 million in 2019 ➢ To 25 countries ➢ Covering a population of 19.5 million in Romania and 66 million in core CEE countries Assets ➢ 11 factories that sum up over 75.200 sq
Slide 10: Production Sites
GROUP OVERVIEW PRODUCTION SITES TeraPlast Group production sites sum up over 340.000 square meters in surface. SARATEL BISTRITA BAICOI PODARI 2007 2008 2019 2006 218.000 sqm 33.061 sqm 37.805 sqm 5.000 sqm 38.668sqm 10.968 sqm 14.355 sqm 1.121 sqm 1 factory 1 factory 6 factories 2 factories ROMANIA
Slide 11: Production Units
GROUP OVERVIEW PRODUCTION UNITS PVC Factory (RO) PP Factory (RO) PE Factory (RO) Recycling Factory (RO) 31 production lines 15 production lines 7 production lines 10 production lines 52.800 tons/year 3.800 tons/year 11.500 tons/year 12.000 tons/year Windows & Doors Factory Sandwich Panels Factory Ga
Slide 12: Distribution Centers & Showrooms
GROUP OVERVIEW DISTRIBUTION CENTERS & SHOWROOMS Hungary Romania Budapest Szolnok Bistrita Iasi Oradea Piatra Cluj Napoca Neamt Deva Brasov The Group distribution network includes Bucharest Podari • 3 showrooms Chiajna • 7 distribution centers that sum up over 12.300sqm in surface. State capital Grou
Slide 13: 2019 Key Figures
GROUP OVERVIEW 2019 KEY FIGURES TERAPLAST GROUP 2019 2019 Results 2017-2019 Evolution Revenue EBITDA million EUR million EUR +21% +41% +85% 205 172,9 REVENUE EBITDA NET 19,2 PROFIT 91,8 13,9 9,2 205 19,2 9,4 Mil. EUR Mil. EUR Mil. EUR 2017 2018 2019 2017 2018 2019 ➢ TeraPlast Group has closed in on
Slide 14: 2019 Key Figures
GROUP OVERVIEW 2019 KEY FIGURES TERAPLAST GROUP 2019 2019 Results Companies’ proportion in the consolidated revenue Revenue EBITDA million EUR 2019 2018 Evolution 3% 1% Revenue 76,9 62,9 25% TeraPlast EBITDA 7,8 4,4 80% 17% Revenue 65 56,3 18% 28% 37% 41% TeraSteel EBITDA 7,9 5,7 42% Revenue 56,9 47
Slide 15: 2020 Highlights
2020 HIGHLIGHTS 1 BET inclusion TeraPlast’s shares were included in the reference index BET at the Bucharest Stock Exchange 2 Free shares 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 RO & RS, Wetter
Slide 16: Q3 Key Figures – TeraPlast Group
Q3 KEY FIGURES – TERAPLAST GROUP JANUARY-SEPTEMBER 2020 JANUARY-SEPTEMBER 2019 +14% +46% TURNOVER EBITDA EBITDA TURNOVER EBITDA EBITDA MARGIN MARGIN 816,2 99,1 719,1 67,7 Mil. LEI Mil. LEI 12,1% Mil. LEI Mil. LEI 9,4% ➢ Organic growth of turnover and EBITDA ➢ The lifting of the state of emergency an
Slide 17: 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 ➢ 11 billion GBP market capitalization Division ➢ Estimated value of the Steel division (headline price): RON 410 million – net debt +/-
Slide 18: Table of Contents
TABLE OF CONTENTS GROUP OVERVIEW MARKET CONTEXT BUSINESS MODEL SUSTAINABLE DEVELOPMENT FINANCIAL PERFORMANCE IR CONTACT 18
Slide 19: Construction Sector in Romania
MARKET CONTEXT CONSTRUCTION SECTOR IN ROMANIA The construction sector in Romania kept its positive trend in the first 8 months of 2020 compared to the same period of 2019. By the adjusted series, the total volume of the construction works registered a 19,2% increase compares to the first 8 months of
Slide 20: Market Context Opportunities
MARKET CONTEXT OPPORTUNITIES 52.9% 35% 20% Of the resident population in Romania is Of the resident population in Romania is Of the total EUR 1 bln budget of the connected to a sewerage network that has connected to the national natural gas National Irrigation Program were spent a treatment station*
Slide 21: Table of Contents
TABLE OF CONTENTS GROUP OVERVIEW MARKET CONTEXT BUSINESS MODEL SUSTAINABLE DEVELOPMENT FINANCIAL PERFORMANCE IR CONTACT 21
Slide 22: Business Model TeraPlast Group
BUSINESS MODEL TERAPLAST GROUP Suppliers structure – Group level The Group has good reputation among its clients and suppliers being recognized as a trustworthy, strategic business partner 11% Chemicals supplier 1 ➢ Tight credit risk monitoring internal & external (insurance) Steel supplier 1 ➢ Effe
Slide 23: Employees
BUSINESS MODEL EMPLOYEES Annual evolution of no. of employees* ➢ All Group companies have trade representatives that work closely with the companies’ management in all matters regarding collective agreements (except for the Serbian facility). 500 478 401 ➢ Aggressive sales incentive scheme, bonus sy
Slide 24: Employees
BUSINESS MODEL EMPLOYEES Breakdown by activity TeraPlast TeraSteel TeraGlass Wetterbest 10% 8% 8% 7% 5% 8% 4% 15% 38% 5% 36% 19% 11% 55% 11% 33% 69% 13% 26% 19% Production Sales Production Sales Production Sales Production Sales Logistics Financial Logistics Financial Logistics Financial Logistics F
Slide 25: Management Team
BUSINESS MODEL MANAGEMENT TEAM Experienced management team Board of Directors Alexandru Stanean Ioana Birta Ioana Borza CEO TeraPlast Group CFO TeraPlast Group Group Marketing Director ➢ CEO since July 2018 ➢ CFO since June 2017 ➢ Marketing Director since ➢ In his 2nd mandate ➢ ACCA & CAFR member Ma
Slide 26: IT Infrastructure
BUSINESS MODEL IT INFRASTRUCTURE Integrated, flexible software solutions Integrated, flexible software solutions Highly reliable IT backbone creating operational and cost efficiencies ERP platforms main modules ➢ ERP multi module systems ▪ Most entities use SAP (integrated electronic invoicing syste
Slide 27: Table of Contents
TABLE OF CONTENTS GROUP OVERVIEW MARKET CONTEXT BUSINESS MODEL SUSTAINABLE DEVELOPMENT FINANCIAL PERFORMANCE IR CONTACT 27
Slide 28: Resource and Waste Management
SUSTAINABLE DEVELOPMENT RESOURCE AND WASTE MANAGEMENT As the largest Romanian construction materials manufacturer with 11 factories in 5 locations, clear resource and waste management procedures are vital in order to effectively manage the environmental impact of our activity ➢ The resource manageme
Slide 29: Products, Community and Corporate Governance
SUSTAINABLE DEVELOPMENT PRODUCTS, COMMUNITY AND CORPORATE GOVERNANCE ➢ Implementing corporate governance best practices in ➢ Photo-voltaic plant that will ensure cca 11.5% of the order to raise the company competitiveness on the necessary energy for the Saratel Industrial Park and will capital marke
Slide 30: Table of Contents
TABLE OF CONTENTS GROUP OVERVIEW MARKET CONTEXT BUSINESS MODEL SUSTAINABLE DEVELOPMENT FINANCIAL PERFORMANCE IR CONTACT 30
Slide 31: Net Sales by Segment
FINANCIAL PERFORMANCE NET SALES BY SEGMENT TeraPlast (TRP): • Still the most profitable company of the Group • The infrastructure works kept their positive trend that sustained the outstanding results of the Installation business line • Development plans include HFFR (Halogen Free, Fire Resistant) p
Slide 32: Profit & Loss Summary Plastic Division
FINANCIAL PERFORMANCE PROFIT & LOSS SUMMARY Plastic Division • Good perspectives for the infrastructure market evolution in the following 2 - 3 years • Leaders on the Installation and Compounds markets • Benefited from the raw materials acquisition strategy 32
Slide 33: Plastic Net Sales and EBITDA Bridge 9M'2020 vs 9M'2019
FINANCIAL PERFORMANCE PLASTIC | NET SALES AND EBITDA BRIDGE 9M’2020 VS 9M’2019 33
Slide 34: Profit & Loss Summary Steel Division
FINANCIAL PERFORMANCE PROFIT & LOSS SUMMARY Steel Division • Customary conditions for the transaction closing are on track • Estimated value of the Steel division (headline price): RON 410 million – net debt +/- adjustments on the working capital 34
Slide 35: Steel Net Sales and EBITDA Bridge 9M'2020 vs 9M'2019
FINANCIAL PERFORMANCE STEEL | NET SALES AND EBITDA BRIDGE 9M’2020 VS 9M’2019 35
Slide 36: Balance Sheet Summary
FINANCIAL PERFORMANCE BALANCE SHEET SUMMARY Investments in 2019 • We focused our investments in 2019 on the segments in need for margin improvement but also aimed to increase the overall capacity with great results visible throught 2020; NWC • The significant increase in NWC in 2018 is mainly driven
Slide 37: Net Working Capital and Cash Conversion Cycle
FINANCIAL PERFORMANCE NET WORKING CAPITAL AND CASH CONVERSION CYCLE FY 18 FY NWC 19 • The significant increase in NWC in 2018 is mainly driven by steel inventory purchases near the end of 2018 to support the increase in business at the beginning of 2019; • As a % of sales, NWC decreased each year as
Slide 38: Cash Flow Summary
FINANCIAL PERFORMANCE CASH FLOW SUMMARY Among the main drivers of improved liquidity in 2019: • improved margins across the main segments (Instalation & Sadwich Panels); • continuous improvements year over year of working capital (see relevant section below); • Support from shareholders: reinvested
Slide 39: Contact us
Contact us: IR Contact: Alexandra Sica investor.relations@teraplast.ro +40 741 270 439 www.teraplast.ro Bucharest Stock Exchange symbol: TRP ©2020 TeraPlast SA. All rights reserved. TeraPlast Industrial Park Saratel village, Sieu-Magherus commune Bistrita-Nasaud county, DN15A km 45+500 39
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