Slide 1: Company presentation
Company presentation
Slide 2: Agenda
Agenda About TeraPlast Group TRP stock on the capital market Business model Sustainable development Recent evolution Conclusions IR Contact Alexandra Șica +40 741 270 439 investor.relations@teraplast.ro 2
Slide 3: TeraPlast Group's structure
TeraPlast Group’s structure We have diversified our business portfolio in the past years by using our extensive expertise 929 in polymer processing for investment projects and our next objective is to expand abroad. Employees at Group level as of June 30, 2023 Micronized recycled PVC Recgranulated r
Slide 4: Tradition and pioneering
Tradition and pioneering 125+ Years of tradition Investment worth over 80 mln LEI in a new stretch film factory & over 20 mln LEI in a photovoltaic plant 45 Years of polymer processing expertise Sale of the Steel division; Sale 2022- 15 Years on the Bucharest of the window profiles business; Somplas
Slide 5: 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 6: The base of our vision
The base of our vision Clear, strong objectives Resilient business model › Double-digit annual growth both organically and › Strict monitoring of internal and external credit through M&A risk; reduced dependence through customer › Continuous investments for the integration of › Effective procurement
Slide 7: TeraPlast, one of the largest Romanian entrepreneurial groups
TeraPlast, one of the largest Romanian entrepreneurial groups Platform to further expand Solid financial profile Professional management regionally 2023 Group forcasted results Seasoned result-oriented management Scalable platform allowing further team with track record in expanding the market share
Slide 8: TRP stock on the capital market
TRP stock on the capital market TeraPlast is listed on the Bucharest Stock Exchange since July 2008. Shareholding structure Our share (TRP) is included in the reference index of BSE and benefits Legal from international exposure by also being included in the CECE MID entities and ROTX EUR indices of
Slide 9: Strategic pillars
Strategic pillars Continuous investment to Double-digit annual growth integrate innovation and through organic growth and sustainable solutions into our M&A. businesses. Performance above the market average with the objective of Disciplined allocation of Strong focus on international being a leader
Slide 10: Business lines and geographical footprint
Business lines and geographical footprint Weight of business lines in the Export map – 20 countries consolidated turnover – half-year 2023 Flexible Packaging 3X Windows & doors 2020-2022 7% 8% exports increase Granules & recycled Installation 13% & recycled 72% Exports – half-year 2023 Export 16% Do
Slide 11: Market potential (Romania)
Market potential (Romania) ➢ Markets’ size and potential amplifies the Group’s ➢ The connection rates to utilities infrastructure in perspectives over time. Romania show outstanding perspectives for the Installation business of TeraPlast. ➢ EU funds available to accelerate public investment ➢ EBRD e
Slide 12: Key points of our business model
Key points of our business model The Group has good reputation among its clients and suppliers being recognized as a trustworthy, strategic business partner. ➢ Tight credit risk monitoring internal & external (insurance) ➢ Effective purchasing policy: broad supplier base ➢ Customized strategies for
Slide 13: TeraPlast Group – production facilities
TeraPlast Group – production facilities 3 production locations with 12 factories, all located in Bistrița Năsăud county PVC pipes factory, Sărățel (TeraPlast) Polypropylene factory, Sărățel (TeraPlast) Polyethylene factory, Sărățel (TeraPlast) 2nd Polyethylene factory, Sărățel (TeraPlast) Rigid PVC
Slide 14: The largest polymer processor in Southern & Eastern Europe
The largest polymer processor in Southern & Eastern Europe ➢ We commissioned the investments in expanding the production capacities and diversifying our business segments. ➢ Regional development ➢ We have opened the subsidiary in Hungary which is operational since January 2023 ➢ Streamlined the orga
Slide 15: Our vision for sustainable development
Our vision for sustainable development The 21st century is the century of water. The main challenges we see in this context are: → Responsible exploitation of freshwater resources; → Rational rainwater management in terms of its separate collection and treatment from the wastewater; → Efficient wast
Slide 16: TeraPlast Group – development and sustainability
TeraPlast Group – development and sustainability We have specific projects that address the sustainable development: Photovoltaic plant: Biodegradable packaging Integration of recycled material We already have a The technology in TeraBio’s photovoltaic plant made factory has a carbon We have product
Slide 17: Sustainability reporting
Sustainability reporting › Our business model aims at the optimal integration of the entire value chain, compliance with business ethics, the development of a sustainable social and economic environment as well as reducing the potential negative impact we can have on what surrounds us. › We are part
Slide 18: CCF & sustainability rating
CCF & sustainability rating › The total emissions of greenhouse gases (GHG) are obtained at Group level by calculating the emissions resulting from the consumption of electricity, natural gas and fuels, in accordance with GHG Protocol. TeraPlast Group 3,871 carbon footprint Tons CO2 eq. › Emissions
Slide 19: Innovation and creativity – Gri(n) Pipe
Innovation and creativity – Gri(n) Pipe For this product, TeraPlast holds a number of intellectual property documents (patents, utility models) that protect the technical solutions used to produce the low-density (expanded) middle layer, using both 100% virgin materials (PVC K57 - 68) and and recycl
Slide 20: TeraPlast R&D
TeraPlast R&D 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 premieres in terms of uniqueness and innovati
Slide 21: Our evolution in the past 4 years
Our evolution in the past 4 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 22: First half - overview
First half - overview ➢ The evolution of the engineering works of the constructions sector (+30,8% Jan-May 2023 vs Jan-May 2022 according to INS) is still mostly determined by road infrastructure works and less by the entry into execution phase of public works that accelerated based on seasonality b
Slide 23: First half – evolution of the Group
First half – evolution of the Group ➢ The budget was built on the premise of smaller quantities in the first semester, but for the Installations division a more visible revitalization is expected from the 3rd quarter, as progress will be made in the running of tenders from public funds, especially t
Slide 24: H1/2023 Key results
H1/2023 Key results • TeraPlast managed to return to a positive bottom line, which stood at RON 1,6 million for the second quarter and which partially compensates the negative results of the first quarter. For the whole semester, the negative result was reduced to below RON 1 mn (RON 998 th). -14% -
Slide 25: H1/2023 Key results
H1/2023 Key results INSTALLATIONS & MICRONIZED RECYCLED ➢72% contribution to the turnover of the Group ➢Turnover decreased by 7%, but increasing from Q1 results ➢The highest margin of the Group: 10.2% WINDOWS & DOORS ➢Turnover decreased by 12% due to the decrease in external demand ➢Significant cont
Slide 26: Turnover evolution H1 2023 vs H1 2022
Turnover evolution H1 2023 vs H1 2022 ➢ Decreases in volume due to the decrease in public works of water, sewerage and gas installation. Decreases recorded in recycled amounts in mil RON PVC, windows and doors. ➢ Price deflation in the first half of the year compared to the same period of the previo
Slide 27: Financial performance
Financial performance Turnover • Consolidated turnover in H1 decreased by 14%. • Quarter-on-quarter improvement of 18% in Q2/2023. • The decline was accentuated by a price deflation in the first part of the year. EBITDA • The Group recorded an EBITDA decrease of 35%, but with an improvement in the s
Slide 28: Financial performance
Financial performance The first half of 2023 was a A positive effect as a result of the Intense competition Negative impact of Segment transition period in view of implementation of the PNRR projects and from extra-EU imports the decline in performance a new growth cycle. the "Anghel Saligny" Progra
Slide 29: Financial performance
Financial performance H1 2023| Key aspects Balance-sheet summary ➢ TeraPlast Group plans to invest 120 million lei this year. The stretch film plant is under construction and production tests will start in the 4th quarter of this year. The total investment amounts to 84 million lei. ➢ In H1 2023 we
Slide 30: Financial performance
Financial performance H1 2023| Cash Flow summary Bridge 30 June 2023 ➢ The improvement in operating cash in H1 2023 vs H1 2022 is due to better performance in working capital management. ➢ The main outflows were for the financing of ongoing investments (stretch film project). 30
Slide 31: Conclusions
Conclusions ➢ TeraPlast Group – the largest polymer processor in Southern & Eastern Europe. ➢ We always aim high, and we take on ambitious growth objectives. ➢ We have been one of the innovators in our field for more than 125 years in product design and sustainable development. ➢ Resilience in the f
Slide 32: 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 33: WN TeraPlast
WN TeraPlast 896 ~~ a - rk