Teraplast Sa · BVB:TRP
Teraplast Sa — Consumer & Industrial Conference February 2021
39 slides from Teraplast Sa's conference presentation, February 2021
Slide 1: Consumer & Industrial Conference
Consumer & Industrial Conference February 2021
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 SUSTAINABLE DEVELOPMENT FINANCIAL PERFORMANCE IR CONTACT 3
Slide 4: Table of Contents
TABLE OF CONTENTS GROUP OVERVIEW MARKET CONTEXT SUSTAINABLE DEVELOPMENT FINANCIAL PERFORMANCE IR CONTACT 4
Slide 5: 2021 TeraPlast Group Structure
GROUP OVERVIEW 2021 TERAPLAST GROUP STRUCTURE BBG Ticker TRP RO BSE symbol: TRP • Parent company of the Group → holds stakes in the Group’s subsidiaries • Listed on the BSE since 2008 • Leading producer of PVC compounds and PVC, PE & PP installation systems • PVC and aluminum windows & doors produce
Slide 6: Short History
GROUP OVERVIEW SHORT HISTORY Long history marked by pioneering, significant research & investment projects. TeraSteel DOO – the Serbian factory is inaugurated TeraPlast acquires the majority TeraPlast is founded as a TeraPlast goes public on the stake in Wetterbest company Bucharest Stock Exchange 1
Slide 7: Group Overview Highlights
GROUP OVERVIEW HIGHLIGHTS Shareholder Structure Key Business performance for Plastics Division, 2019 9M vs 2020 9M Teraplast SA | TRP RO Stock Price Performance (last 12 months as at Feb 8, 2021) ADTV (EUR ‘000 | as of Feb 8, 2020) 7
Slide 8: Plastics Product Portfolio
GROUP OVERVIEW PLASTICS PRODUCT PORTFOLIO Installation Rigid PVC PVC Compounds Windows & Doors recycling TeraPlast Industrial Park, TeraPlast Industrial Park, TeraPlast Industrial Park, Saratel, BN, Romania Bistrita, BN, Romania Saratel, BN, Romania Saratel, BN, Romania Complete systems for: • Regra
Slide 9: Plastics Product Portfolio
GROUP OVERVIEW PLASTICS PRODUCT PORTFOLIO Biodegradable Flexible Polyethylene packaging packaging systems TeraPlast Industrial Park, Năsăud, BN, Romania Saratel, BN, Romania Năsăud, BN, Romania Flexible foils and packaging Sacks and bags with a • PE systems for water with applications in minimum 90%
Slide 10: Production Units
GROUP OVERVIEW PRODUCTION UNITS PVC Factory (RO) PP Factory (RO) PE Factory (RO) 8 production lines 9 production lines 11 production lines 52.800 tons/year 3.800 tons/year 11.500 tons/year Current Group’s production units Windows & Doors Factory Recycling Factory (Plastics) (RO) (RO) 5 production li
Slide 11: Production Sites
GROUP OVERVIEW PRODUCTION SITES ROMANIA TeraPlast Group’s production sites sum up 306.518 square meters in surface out of which 83.513 sqm of buildings. To the Industrial Park in Saratel an additional 13.794 sqm will be added in 2021, as follows: • 4.410 sqm for the new PE factory • 4.440 sqm for th
Slide 12: Distribution Centers & Showrooms
GROUP OVERVIEW DISTRIBUTION CENTERS & SHOWROOMS Romania Our activity is assisted by the 6 distribution centers in Romania that sum Bistrita Piatra Oradea up over 9.000sqm in surface. Neamt Deva Brasov All our distribution centers’ locations are rented. During 2020, our strategy included capitalizing
Slide 13: 2020 Highlights
2020 HIGHLIGHTS BET inclusion Free shares +103,5% TeraPlast’s share yield in 2020 1 TeraPlast’s shares were included in the reference index BET at the Bucharest Stock Exchange 2 1 share per 3,3 shares owned were granted to the shareholders Steel division 3 TeraPlast signed an agreement to sell its S
Slide 14: 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 15: Steel Division Transaction
GROUP OVERVIEW STEEL DIVISION TRANSACTION ➢ Buyer: Kingspan Group ➢ Leader on the high-performance insulation market Plastics ➢ Listed on the London Stock Exchange Division ➢ 11 billion GBP market capitalization ➢ Estimated value of the Steel division (headline price): RON 410 million – net debt +/-
Slide 16: Steel Product Portfolio
GROUP OVERVIEW STEEL PRODUCT PORTFOLIO Sandwich Galvanized Self-supporting Complete panels steel purlins trapezoidal sheet roof systems TeraPlast Industrial Park, Baicoi, PH; Podari, DJ & Saratel, BN, Romania Bistrita, BN, Romania Leskovac, Serbia Saratel, BN, Romania Leskovac, Serbia • Polyurethane
Slide 17: Window Profiles Transaction & Somplast Acquisition
GROUP OVERVIEW WINDOW PROFILES TRANSACTION & SOMPLAST ACQUISITION The sale of the window profiles business line Somplast acquisition ➢ Buyer: Dynamic Selling Group ➢ Acquired: 70% stake in the company ➢ Estimated value of the transaction: EUR 4,5 million ➢ Financed from the sale of the Brasov wareho
Slide 18: Management Team
GROUP OVERVIEW MANAGEMENT TEAM Experienced management team Board of Directors Alexandru Stanean Ioana Birta CEO TeraPlast Group CFO TeraPlast Group ➢ CEO since July 2018 ➢ CFO since June 2017 ➢ In his 2nd mandate ➢ ACCA & CAFR member ➢ Within the Group ➢ More than 10 years of since 2006 experience i
Slide 19: Table of Contents
TABLE OF CONTENTS GROUP OVERVIEW MARKET CONTEXT SUSTAINABLE DEVELOPMENT FINANCIAL PERFORMANCE IR CONTACT 19
Slide 20: Construction Sector in Romania
MARKET CONTEXT CONSTRUCTION SECTOR IN ROMANIA The construction sector in Romania kept its positive trend in the first 11 months of 2020 compared to the same period of 2019. By the adjusted series, the total volume of the construction works registered a 19,3% increase compared to the first 11 months
Slide 21: Opportunities - Infrastructure
MARKET CONTEXT OPPORTUNITIES - INFRASTRUCTURE 52.9% 35% 25% Of the resident population in Romania is Of the resident population in Romania is Of the total EUR 1,5 bln funds available connected to a sewerage network that has connected to the national natural gas for irrigation projects were spent a t
Slide 22: Opportunities – Flexible Packaging
MARKET CONTEXT OPPORTUNITIES – FLEXIBLE PACKAGING The European Commission issued in 2015 a directive regarding the usage of plastic bags with the objective of reducing the plastic bags consumption from over 400 bags/person to 40 bags/person by 2025. This directive must be implemented in the national
Slide 23: Table of Contents
TABLE OF CONTENTS GROUP OVERVIEW MARKET CONTEXT SUSTAINABLE DEVELOPMENT FINANCIAL PERFORMANCE IR CONTACT 23
Slide 24: Sustainability Reporting
SUSTAINABLE DEVELOPMENT SUSTAINABILITY REPORTING We constantly analyze our impacts and set our sustainability strategy based on the inclusiveness principle to ensure that the opinion of our stakeholders is included. Our sustainability reports are made in accordance with the GRI Standards, Core optio
Slide 25: Value Chain
SUSTAINABLE DEVELOPMENT VALUE CHAIN While carrying out our daily activity we consider the responsibility we have towards our entire value chain as well as to the environment and the communities. In our view, a healthy business goes beyond the financial performance. We pay attention to collaborate wi
Slide 26: Employees
SUSTAINABLE DEVELOPMENT EMPLOYEES Our HR policy also aims at ensuring an objective remuneration in Gender distribution Gender distribution in line with a series of criteria like medium wage, level of expertise, Group level management comparison to similar positions. At the same time, it ensures that
Slide 27: 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 28: Table of Contents
TABLE OF CONTENTS GROUP OVERVIEW MARKET CONTEXT SUSTAINABLE DEVELOPMENT FINANCIAL PERFORMANCE IR CONTACT 28
Slide 29: 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 30: 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 30
Slide 31: Plastic Net Sales and EBITDA Bridge 9M'2020 vs 9M'2019
FINANCIAL PERFORMANCE PLASTIC | NET SALES AND EBITDA BRIDGE 9M’2020 VS 9M’2019 31
Slide 32: 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 32
Slide 33: Steel Net Sales and EBITDA Bridge 9M'2020 vs 9M'2019
FINANCIAL PERFORMANCE STEEL | NET SALES AND EBITDA BRIDGE 9M’2020 VS 9M’2019 33
Slide 34: 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 35: 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 36: 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 37: Plastics Division - Turnover & EBITDA
FINANCIAL PERFORMANCE PLASTICS DIVISION - TURNOVER & EBITDA Plastic Division Turnover Structure Plastic Division EBITDA Structure <<Total RON 49 mil RON 302 mil Turnover Plastic (16% of <<Total EBITDA Turnover) Plastic 9% <<Windows&Doors 2% <<Windows&Doors RON 255 mil 18% <<Compounds 20% <<Compounds
Slide 38: Cash Flow Summary: CA(P)GR 9M 2020 vs 9M 2017
FINANCIAL PERFORMANCE CASH FLOW SUMMARY Growth rate: turnover(oY) & EBITDA % (oX) (the bubble dimension represents the turnover for 9M2020) 45% 40% CA(P)GR (9M 2020 vs 9M 2017) 35% Installations ➢ Good evolution of the Installation 30% Windows&Doors business line thanks to the advance of 25% 20% the
Slide 39: Contact us
Contact us: IR Contact: investor.relations@teraplast.ro +40 741 270 439 www.teraplast.ro Bucharest Stock Exchange symbol: TRP ©2021 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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