Teraplast Sa · BVB:TRP
Teraplast Sa — Frontier Investor Days 2021
32 slides from Teraplast Sa's conference presentation, Sep 2, 2021
Slide 1: Frontier Investor Days
FRONTIER INVESTOR DAYS 2nd & 3rd September 2021
Slide 2: Agenda
Agenda TeraPlast: a performing company 2020-2021: adaptation of the strategy An ambitious view of the future Conclusions
Slide 3: Long history marked by pioneering
Long history marked by pioneering 2021 •Market cap over 2020 RON 2 bln •Over RON 160 mln •Sale of the Steel in expanding the 2017 division production •Sale of the window capacities and new •Politub acquisition profiles business business segments 2011 •The Group •Somplast inaugurates the •Upgraded to
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 distributed dividends worth in total RON 226,6 million → 14,2% yield at the medium stock price on the payment date (22.07.2021) We are the best-performer stock from the BET index during the first half of 2021 (+123%) BVB:TRP 2
Slide 5: TeraPlast Group structure
TeraPlast Group structure • Leader of the Romanian exterior sewerage market and PVC compounds market in Romania • 2021 investment plan: EUR 20 mln in expanding the production capacities for interior sewerage, PE-Xa systems and water & gas systems • Processing capacities of 96.000to of polymers – LEA
Slide 6: The implementation of the strategy in 2021
The implementation of the strategy in 2021 Closing of the Window profiles We are connected to the markets we business transaction operate on and the sustainable We were upgraded Closing of the development trends. Steel division within FTSE Russell transaction from MicroCap to Small Cap (& All Cap) W
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 2021 investment Exporter, adds to the Over 69% annual worth 12 mil EUR to become biodegradable packaging exports, develops to be
Slide 9: A responsible company, dedicated to sustainability
A responsible company, dedicated to sustainability 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 billing an
Slide 10: We started the expansion works
We started the expansion works Own distribution & production sites Expansion works The total production surface of the Group: • Total surface: 316.849m2 • Construction: 83.513 m2 (production and storage halls) • Concrete platforms: 233.335m2 Bistrița Oradea P. Neamț Out of which 13.794 m2 are being
Slide 11: 2020-2021: adaptation of the strategy
2020-2021: adaptation of the strategy 2020, the year when TeraPlast Group had the best results and adapted its strategy to benefit from the new market long-term opportunities starting 2021
Slide 12: Start of the strategic repositioning (2020)
Start of the strategic repositioning (2020) Strategy Operations Finance Update of the strategy to benefit from new Outstanding operational results at group level: Financial position, capital reserves and the market opportunities: investment program allowed the successful • Production start of the st
Slide 13: 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 14: 2020: a year with outstanding results
2020: a year with outstanding results Evolution of the production volumes in 2020 TeraPlast Group production 2020 vs. • Installation business line reached maximum capacity 2019 • We remain the largest PVC processor in Eastern EU • We remain the largest compounds producer in the region Pipes (PVC; PP
Slide 15: The investment projects are on track
The investment projects are on track
Slide 16: The implementation of the investment projects is on track
The implementation of the investment projects is on track Project contracting in April 2021 Project contracting in June 2021 20% 47% 53% 80% Signed Unsigned Signed Unsigned Water & Gas systems Recycling PE-Xa pipes august sept nov 2021 2021 2021 TeraBio Pack
Slide 17: Excellent results are maintained during the first half of 21
Excellent results are maintained During the first half of 2021
Slide 18: Excellent results are maintained during 1H21
Excellent results are maintained during 1H21 „With an EBITDA of RON 42,7 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 investment
Slide 19: Excellent results are maintained during 1H21
Excellent results are maintained during 1H21 The raw materials crisis, manifested not only through prices increase, 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 was
Slide 20: Group consolidated turnover evolution 1H/2021 vs 1H/2020
Organic growth of the turnover Group consolidated turnover evolution 1H/2021 vs 1H/2020 amount in mln RON + 42,2% + 3,8% + 0,2% ❑ Increase in sale price due to the rae + 8,5% 0,3 materials’ price increase. + 11,9% 7,3 16,4 + 17,8% 22,8 ❑ 20,4% increase in volumes (Volume + Mix). 34,2 ❑ We developed
Slide 21: 1H21 P&L summary
1H21 P&L summary All amounts in thousand RON, unless otherwise stated
Slide 22: 1H21 P&L summary by Segments
1H21 P&L summary by Segments www.teraplast.ro ___TotalPlastic Installations and recycling Compounds Windows&Doors Flexible Packaging RON ‘000 Net Sales "495,245 272,903 40% 272,903 40% 145,138 182,242 34,646 64,592 15,461 19,915 29% 6,154 100% Other operating income 1,239 1,391 12% 641 950 ion 181 4
Slide 23: An ambitious view of the future
An ambitious view of the future
Slide 24: A company with an ambitious view
A company with an ambitious view Mission Vision Development of efficient solutions for Values We aim to become leaders people and the Becoming leaders on the markets we activate on on the markets we activate environment Tradition on Responsibility Performance TeraPlast Group has 125 years of traditi
Slide 25: 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 for active on the construction market the Ins
Slide 26: Risks and challenges
Risks and challenges Market wise Business wise • The continuous pandemic context could • The most abrupt raw material price restore the market uncertainty and can increase in the last 5 years that bring up problems in the logistic chain accelerates the recycling investments Implementing our strategy
Slide 27: Opportunities
Opportunities 52.9% 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 a treatment station* 54.2% Of the resident population in Romania is 1,7 bln EUR connected to the sewerage network* Budgeted for infrastr
Slide 28: 2021 budget
2021 budget +60% TURNOVER ➢ The growth in 2021 is based on: 636,2 MLN. RON ➢ Increase in production capacities for TeraPlast by implementing the state aid co-financed projects (2020: 396,2 MLN. RON) ➢ Starting up the production of TeraBio Pack and integration +63% of Somplast EBITDA 89,1 MLN. RON Th
Slide 29: 2021 budget
2021 budget EBITDA Bridge 2019 – 2021 KEY POINTS TeraPlast, Plastics Division Plastics division • Sustained profitability despite the crisis; • EBITDA Margin of 13,7% for the plastics division is superior to Group average of 12%, prior the Steel division exit. • The budgeted growth does not include
Slide 30: Plan to recover the EBITDA of 130 mln RON after the transactions
Plan to recover the EBITDA of 130 mln RON after the transactions The M&A activity that The businesses that exited 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 carry out the set s
Slide 31: 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 32: Actualul material are caracter informativ şi îşi propune să prezinte într-un mod obiectiv compania
Actualul material are caracter informativ şi îşi propune să prezinte într-un mod obiectiv compania TeraPlast SA. Este interzisă reproducerea, distribuirea sau publicarea sub orice formă a conţinutului prezentului material de către orice persoană fără acordul prealabil al companiei. ©2021 TeraPlast S