Teraplast Sa · BVB:TRP
Teraplast Sa — European MidCap Event 2021
36 slides from Teraplast Sa's conference presentation, October 2021
Slide 1: European MidCap Event
EUROPEAN MIDCAP EVENT October 21-22, 2021
Slide 2: Agenda
Agenda TeraPlast: a high-performance company 2020-2021: shift in strategy An ambitious view of the future Conclusions
Slide 3: Long history of pioneering
Long history of pioneering 2021 •Market cap over 2020 EUR 554 mln •Sale of the Steel •Over EUR 32 mln 2017 division in expanding the •Sale of the production •Politub capacities and 2011 acquisition window profiles business new business •Relocation to the •The Group segments inaugurates the •Somplast
Slide 4: We perform both on the market and on the Bucharest Stock Exchange
We perform both on the market and on the Bucharest Stock Exchange We have performed during 1H21, with +37% in turnover, +45% in EBITDA and +68% in net profit We are the best-performing stock from the BET index in the last 12 months (+296%) Market capitalization (18.10.2021): EUR 554 mln BVB:TRP 2020
Slide 5: The implementation of the strategy in 2021
The implementation of the strategy in 2021 Closing of the Window profiles Upgraded within business transaction We are connected to the markets we FTSE Russell from MicroCap to Small operate on and the sustainable Cap (& All Cap) Closing of the development trends. Steel division transaction Acquired
Slide 6: TeraPlast Group has a diversified structure with multiple synergies
TeraPlast Group has a diversified structure with multiple synergies • Leader of the Romanian exterior sewerage market and PVC compounds market in Romania, on BSE since 2008. • 2021 investment plan: EUR 20 mln in expanding the production capacities for interior sewerage, PE- Xa systems and water & ga
Slide 7: Market leader on multiple segments (1/2)
Market leader on multiple segments (1/2) Installation PVC Compounds Rigid PVC recycling TeraPlast Industrial Park TeraPlast Industrial Park TeraPlast Industrial Park Romania Romania Romania Leader Leader The largest producer of on the PVC exterior on the Romanian market micronized recycled PVC in se
Slide 8: Market leader on multiple segments (2/2)
Market leader on multiple segments (2/2) Biodegradable Polyethylene Windows & Doors packaging packaging TeraPlast Industrial Park Năsăud, Romania Bistrița, Romania Romania Sighișoara, Romania 2021 investment Exporter, polyethylene Over 69% annual worth 12 mil EUR to become packaging portfolio export
Slide 9: Expansion works in progress
Expansion works in progress Own distribution & production sites Expansion works The total production surface of the Group: • Total surface: 316.849m2 Bistrița • Construction: 83.513 m2 (production and Sărățel P. Neamț storage halls) Oradea Năsăud • Concrete platforms: 233.335m2 Sighișoara Out of whi
Slide 10: What drives us
What drives us TeraPlast Group is one of the largest Romanian entrepreneurial groups with 125 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 innovation an
Slide 11: A responsible company, dedicated to sustainability (1/5)
A responsible company, dedicated to sustainability (1/5) We save We save We implement a paperless 62 000 tons 660 tons culture of CO2 annualy of CO2 annualy By generating over Through automations, By the activity of 11% of the reducing the number of TeraPlast Recycling necessary energy physical bill
Slide 12: A responsible company, dedicated to sustainability (2/5)
A responsible company, dedicated to sustainability (2/5) TeraPlast Recycling PVC can be recycled up to We have invested 8 times 4 mln Without losing its properties EUR so far And reached 1.875kg 31.000t of CO2 are saved per each in annual processing 1.000kg of rigid PVC recycled capacity
Slide 13: A responsible company, dedicated to sustainability (3/5)
A responsible company, dedicated to sustainability (3/5) The PV plant Sums up over Which means over 7.000 12.000 modules m2 in surface And helps us save It ensures cca. 660t 11,45% of CO2 annually of the total energy needed The PV modules will be installed on the new buildings in the Industrial Park
Slide 14: A responsible company, dedicated to sustainability (4/5)
A responsible company, dedicated to sustainability (4/5) Digital transformation We take advantage of digitalization to optimize our production processes, to intensify our customer ERP multi-module systems: RPA (robotics process relations & create efficient Warehouse Management automation by UI Path)
Slide 15: A responsible company, dedicated to sustainability (5/5)
A responsible company, dedicated to sustainability (5/5) Community & Product development We support sports activities like We are involved in a dual- We support the reward of the the local handball team, tennis education program with a academic performance of the and running competitions. local high
Slide 16: 2020-2021: shift in strategy
2020-2021: shift in strategy 2020 - the year when TeraPlast Group had the best results and adapted its strategy to benefit from the new market opportunities in the long-term starting 2021 by commiting to become the largest polymer processor in Central & Eastern Europe* *excluding Poland
Slide 17: The Group's strategy adaptation reflects the market opportunities
The Groups’ strategy adaptation reflects the market opportunities Market evolution Strategy adaptation Reasoning • Construction market: a market • Diversification & consolidation: • Directing the resources to Strategic segments with where the delivery time and quality expanding by 50% the production
Slide 18: 2020: a year with outstanding results
2020: a year with outstanding results Evolution of the production volumes in 2020 TeraPlast Group production • Installation business line reached maximum 2020 vs. capacity 2019 • We remain the largest compounds producer in the region and the only producer of HFFR compounds Pipes (PVC; PP; PE) M* >19
Slide 19: Strategic repositioning to become largest polymer processor in CEE
Strategic repositioning to reach our objective of being the largest polymer processor in Central and Eastern Europe* by implementing our accelerated growth business model Delivering Reaching Leading position Organic and M&A double-digit the EBITDA on the markets before the Steel growth growth we act
Slide 20: Opportunities
Opportunities 54,5% 300 mln EUR Of the resident population in Romania is is worth the flexible packaging connected to a sewerage network that has market in Romania, of which 50% a treatment station in 2020* are imports 55,8% 1,88 bln EUR Budgeted for infrastructure Of the resident population in Roma
Slide 21: Excellent results are maintained during the first half of 2021
Excellent results are maintained during the first half of 2021
Slide 22: Excellent results are maintained during 1H21
Excellent results are maintained during 1H21 „With an EBITDA of EUR 8,7 million and a margin of 15,7%, at half-year we are on track with reaching the QUANTITATIVE 2021 budget. For the rest of the year, we will have GROWTH additional positive impact from the commissioning of 20,4% further investments
Slide 23: Excellent results are maintained during 1H21
Excellent results are maintained during 1H21 The raw materials crisis, manifested not only through increase in prices, but through lack of availability as well, determined the increase in demand for the recycled material that can successfully replace the virgin resource. The Compounds business line
Slide 24: Organic growth of the turnover
Organic growth of the turnover Group consolidated turnover evolution 1H/2021 vs 1H/2020 amount in mln EUR + 42,2% + 0,2% + 3,8% + 8,5% 1,5 0,06 ❑ Increase in sale price due to the increase in + 11,9% 3,3 raw materials prices. + 17,8% 4,6 ❑ 20,4% increase in volumes (Volume + Mix). 6,9 ❑ We developed
Slide 25: 1H21 P&L summary
1H21 P&L summary All amounts in thousand EUR, unless otherwise stated
Slide 26: 1H21 P&L summary by Segments
H21 P&L summary by Segments www.teraplast.ro Total Plastic Installations and recycling Compounds Windows&Doors Flexible Packaging 6M'20 6M'21 Var % 6M'20 =6M'21 Var % 6M'20 6M'21 Vai EUR '000 Net Sales 40,538 55,685 37% 30,135 37,186 23% 7,194 13,180 83% 3,210 4,063 27% - 1,256 100% Other operating
Slide 27: An ambitious view of the future
An ambitious view of the future
Slide 28: Development plan and objectives
Development plan and objectives 2021/22 Objectives Development plan • We actively study acquisition opportunities in Consolidating or reaching the first Romania and abroad position on the Group’s segments • Completion of the production capacity expansion active on the construction market for the Ins
Slide 29: Risks and challenges
Risks and challenges Market wise Business wise • The continuous pandemic context could • The most abrupt raw material restore the market uncertainty and can price increase in the last 5 years bring up problems in the logistic chain that accelerates the recycling Implementing our strategy investments
Slide 30: 2021 budget
2021 budget +60% ➢ The growth in 2021 is based on: TURNOVER ➢ Increase in production capacities for TeraPlast by implementing the state aid co-financed projects 131,2 MLN. EUR ➢ Starting up the production of TeraBio Pack and integration (2020: 81,9 MLN. EUR) of Somplast +63% EBITDA 18,4 MLN. EUR The
Slide 31: 2021 budget: EBITDA Bridge 2019-2021
2021 budget EBITDA Bridge 2019 – 2021 TeraPlast, Plastics Division KEY POINTS Plastics division • Sustained profitability despite the crisis; • Low maintenance capex (EUR 1 mln/year due to use of latest technology). • EBITDA Margin of 13,7% for the plastics division is superior to Group average of 1
Slide 32: Plan to recover the EBITDA of EUR 26,97 million after the transactions
Plan to recover the EBITDA of EUR 26,97 million after the transactions The businesses that exited the Group contributed by more than half to the 2020 EBITDA and in the following The M&A activity that period we will focus on Plastics The potential of the projects to follows aims at identifying operat
Slide 33: Conclusions
Conclusions TeraPlast: a company with outstanding performance on both the construction materials market and the capital market 2020 was the year with the best results for TeraPlast Group and the 1H21 results offer a good perspective on meeting the budget The adaptation of our strategy has ambitious
Slide 34: 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 35: 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 36: ©2021 TeraPlast SA. All rights reserved.
©2021 TeraPlast SA. All rights reserved.