Teraplast Sa · BVB:TRP
Teraplast Sa — Frontier Investor Days 2022
25 slides from Teraplast Sa's conference presentation, Sep 15, 2022
Slide 1: Frontier Investor Days, September 15-16, 2022
Frontier Investor Days September 15-16, 2022
Slide 2: Agenda
Agenda About TeraPlast Group TRP stock at Bucharest Stock Exchange Business model and recent evolution Forecast 2022 and market perspectives Integrating sustainable development into business Key figures and financial performance Conclusions IR Contact Alexandra Șica +40 741 270 439 investor.relation
Slide 3: Why TeraPlast?
Why TeraPlast? There is a huge potential for national We hold leading positions in the and regional infrastructure and budgets segments we operate (eg installation & of over 8 billion euros for public compounds) and aim to achieve leading investments from which we will positions in the other segment
Slide 4: Long history that proves our resilience
Long history that proves our resilience TeraPlast Group is one of the largest Romanian entrepreneurial groups with more than 125 years of tradition, extensive expertise in polymer processing and an annual turnover of over EUR 100 million. The Group has a strong history of growth and innovation. Curr
Slide 5: TeraPlast Group structure
TeraPlast Group structure 101 Micronized recycled PVC Rigid PVC recycling Recgranulated recycled PVC TERAPLAST RECYCLING SA % 100% Installation 156 Compounds 501 Biodegradable and compostable packaging Flexible packaging Polyethylene packaging Parent-company of the Group, Listed on the BSE since Jul
Slide 6: Strong history in launching industry-first solutions
Strong history in launching industry-first solutions We have industry-specialized colleagues that carry out the internalized R&D activity. We also have an internal testing laboratory, accredited by RENAR – the national Accreditation Body. Through the R&D activity, TeraPlast marked a series of premie
Slide 7: TRP stock at Bucharest Stock Exchange
TRP stock at Bucharest Stock Exchange Constantly within Shareholding structure Legal entities Top 10 485 mln 20,11% most traded stocks in the Shares traded reference index BET in the last in the last 12 months. Dorel Goia 46,83% 12 months. 497mln 105 k Individuals RON, Transactions in the 21,04% Tot
Slide 8: Key events in the last 12 months
Key events in the last 12 months ➢ In 2022, we granted dividends worth 32 million lei, from the net profit from the production activity of TeraPlast SA. In addition, in 2021 a special dividend was granted from the extraordinary from the sale of the steel division (total dividend value 226.6 million
Slide 9: Delivering our promises
Delivering our promises Continuous investment to Double-digit annual integrate innovation and growth through organic sustainable solutions into growth and M&A. our businesses. Performance above the Strong focus on market average with the Disciplined allocation of international objective of being a l
Slide 10: Key points of our business model
Key points of our business model The Group has good reputation among its clients and suppliers Clients’ structure – 6M 2022 being recognized as a trustworthy, strategic business partner. 0,46% 2,51% 12,72% DIY ➢ Tight credit risk monitoring internal & external (insurance) 16,62% Reseller Infrastruct
Slide 11: Our evolution in the past 3 years
Our evolution in the past 3 years ➢ Strong growth generated by investments co-financed through the state aid scheme for expanding the production capacities. ➢ Diversified product portfolio and raw material synergies reduce the impact of crises on Group-wide performance. ➢ Development oriented toward
Slide 12: Key figures H1/2022
Key figures H1/2022 TeraPlast Group’s turnover increased in the first half of 2022, but at a lower pace than previous intervals. Export sales evolved excellently in H1/2022, reaching RON 63.8 million, a 79% increase compared to H1/2021. +37% -16% -42% TURNOVER EBITDA NET PROFIT EBITDA MARGIN 373,7 3
Slide 13: Forecast 2022
Forecast 2022 The budget considered a much more favourable macroeconomic scenario, on a different trajectory than the one that materialized (none of the announced infrastructure programs have started: PNRR, Anghel Saligny and there are also delays in the POIM projects). For these reasons we have rev
Slide 14: Market climate and perspectives
Market climate and perspectives ➢ The construction works increased in volume as an adjusted series according to the number of working days and seasonality by 1.9% in January-June 2022 INSTALLATION compared to 6 months/2021. 56,2% ➢ On construction objects, increases occurred in non-residential build
Slide 15: Integrating sustainable development
Integrating sustainable development Category Material topics ➢ Our business model aims at the optimal integration of the entire value Governance Corporate governance chain, compliance with business ethics, the development of a sustainable Risk management and compliance economic and social environmen
Slide 16: Green projects
Green projects Photovoltaic plant We have a functional photovoltaic plant made together Integrating recycled raw material with E.ON Energie (EUR 1.9 million total value of the We have in our portfolio products that integrate recycled project). We are in the process of building a new PVC (multilayer
Slide 17: Tangible steps towards impact assessment
Tangible steps towards impact assessment We quantified direct emissions (Scope 1) and indirect emissions related to electricity consumption (Scope 2) in tCO2 eq. (tons of carbon dioxide equivalent), in accordance with the requirements of the GHG Protocol - A Corporate Accounting and Reporting Standa
Slide 18: Key figures H1/2022
Key figures H1/2022 The main and traditional divisions in the Group had good developments even though the economic environment became incomparably more challenging compared to last year. H1 2022 Results INSTALLATION & RECYCLING Lei, thousand Group Installation & Compounds, Windows & Flexible ➢ The l
Slide 19: Organic growth of the turnover
Organic growth of the turnover +37% growth in turnover H1 2022 vs H1 2021 ➢ A significant proportion of the increase in turnover is due to price increases, as a result of higher production costs. ➢ The largest volume increases were in PVC pipes and recycled PVC micronized (TRP Recycling). ➢ The turn
Slide 20: Financial performance
Financial performance Net sales • Increase in sales prices, volume increases and new products • Exports were 17% of net sales in S1/2022 (13% in S1/2021) EBITDA •The EBITDA margin remained at the targeted levels for the Installations and Compounds business lines. •PVC recycling was an essential fact
Slide 21: Financial performance
Financial performance The consolidated result at Group level was affected by below-estimated The recycling business had The highest EBITDA margin in It is estimated that the The objective for H2 developments in the Windows & Doors and Flexible Packaging divisions. double margins compared to the Grou
Slide 22: Financial performance
Financial performance H1/2022 | Balance sheet summary Key points ➢ Investment payments were 44.3 million lei in H1 2022. ➢ In 2022, the Group will invest in: • 10 million lei to improve production capacities • 22.6 million lei in renewable energy production • We will start the 56 million lei investm
Slide 23: Financial performance
Financial performance Bridge June, 30 2022 ➢ The investments paid in H1 2022 are mostly co-financed by state aid, therefore the increase in net debts is temporary. ➢ In H2, the focus is on reducing working capital as response to the market context.
Slide 24: Conclusions
Conclusions ➢ The markets on which we operate will benefit in the coming years from significant investments that will lead to their doubling. ➢ We have the production capabilities ready to serve this demand. ➢ Although 2022 turns out to be more challenging than we estimated, we remain optimistic tha
Slide 25: 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