Teraplast Sa · BVB:TRP
Teraplast Sa — Investor Presentation (July 2020)
32 slides from Teraplast Sa's investor presentation, July 2020
Slide 1: TeraPlast Group
TeraPlast Group TERA July, 2020 Seely
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 BUSINESS MODEL SUSTAINABLE DEVELOPMENT IR CONTACT 3
Slide 4: Table of Contents
TABLE OF CONTENTS GROUP OVERVIEW MARKET CONTEXT BUSINESS MODEL SUSTAINABLE DEVELOPMENT IR CONTACT 4
Slide 5: TeraPlast Group Structure
GROUP OVERVIEW TERAPLAST GROUP STRUCTURE The largest Romanian construction materials manufacturer. BBG Ticker TRP RO BSE symbol: TRP Piping, fittings and other products made of PVC, PE and PP | PVC Compounds | PVC window profiles #1 on the exterior sewage market in Romania #1 on the PVC compounds ma
Slide 6: Short History
GROUP OVERVIEW SHORT HISTORY Long history marked by pioneering, significant research & investment projects. TeraPlast Group invested over the years in research too, having 3 patents and 3 in progress. TeraSteel DOO – the Serbian TeraPlast is founded as a TeraPlast goes public on the factory is inaug
Slide 7: Product Portfolio
GROUP OVERVIEW PRODUCT PORTFOLIO By its product portfolio, TeraPlast Group covers all construction market segments. Rigid PVC Installation Window profiles PVC Compounds Windows & Doors recycling TeraPlast Industrial Park, TeraPlast Industrial Park, TeraPlast Industrial Park, TeraPlast Industrial Par
Slide 8: Product Portfolio
GROUP OVERVIEW PRODUCT PORTFOLIO By its product portfolio, TeraPlast Group covers all construction market segments. Sandwich Galvanized Self-supporting Complete panels steel purlins trapezoidal sheet roof systems TeraPlast Industrial Park, Baicoi, PH; Podari, DJ & Saratel, BN, Romania Bistrita, BN,
Slide 9: Geographical Footprint
GROUP OVERVIEW GEOGRAPHICAL FOOTPRINT TeraPlast Group’s exports represent 24% of its turnover in 2019 ➢ Which means around EUR 49 million in 2019 ➢ To 25 countries ➢ Covering a population of 19.5 million in Romania and 66 million in core CEE countries Assets ➢ 11 factories that sum up over 75.200 sq
Slide 10: Production Sites
GROUP OVERVIEW PRODUCTION SITES TeraPlast Group production sites sum up over 340.000 square meters in surface. SARATEL BISTRITA BAICOI PODARI 2007 2008 2019 2006 218.000 sqm 33.061 sqm 37.805 sqm 5.000 sqm 38.668sqm 10.968 sqm 14.355 sqm 1.121 sqm 1 factory 1 factory 6 factories 2 factories ROMANIA
Slide 11: Production Units
GROUP OVERVIEW PRODUCTION UNITS PVC Factory (RO) PP Factory (RO) PE Factory (RO) Recycling Factory (RO) 31 production lines 15 production lines 7 production lines 10 production lines 52.800 tons/year 3.800 tons/year 11.500 tons/year 12.000 tons/year Windows & Doors Factory Sandwich Panels Factory Ga
Slide 12: Distribution Centers & Showrooms
GROUP OVERVIEW DISTRIBUTION CENTERS & SHOWROOMS Hungary Romania Budapest Szolnok Bistrita Iasi Oradea Piatra Cluj Napoca Neamt Deva Brasov The Group distribution network includes Bucharest Podari • 3 showrooms Chiajna • 7 distribution centers that sum up over 12.300sqm in surface. State capital Grou
Slide 13: 2019 Key Figures
GROUP OVERVIEW 2019 KEY FIGURES TERAPLAST GROUP 2019 2019 Results 2017-2019 Evolution Revenue EBITDA million EUR million EUR +21% +41% +85% 205 172,9 REVENUE EBITDA NET 19,2 PROFIT 91,8 13,9 9,2 205 19,2 9,4 Mil. EUR Mil. EUR Mil. EUR 2017 2018 2019 2017 2018 2019 ➢ TeraPlast Group has closed in on
Slide 14: 2019 Key Figures
GROUP OVERVIEW 2019 KEY FIGURES TERAPLAST GROUP 2019 2019 Results Companies’ proportion in the consolidated revenue Revenue EBITDA million EUR 2019 2018 Evolution 3% 1% Revenue 76,9 62,9 25% TeraPlast EBITDA 7,8 4,4 80% 17% Revenue 65 56,3 18% 28% 37% 41% TeraSteel EBITDA 7,9 5,7 42% Revenue 56,9 47
Slide 15: 1H 2020 Estimates
GROUP OVERVIEW 1H 2020 ESTIMATES 1H/2020 1H/2019 ESTIMATES RESULTS Evolution EUR, million STEEL Revenue 55 50 +13% DIVISION EBITDA 4,1 3,8 +11% EBITDA margin 7,7% 7,8% PLASTICS Revenue 44 38 +18% DIVISION EBITDA 5,6 3,6 +54% EBITDA margin 12,5% 9,6% TERAPLAST Revenue 99 88 +15% GROUP EBITDA 9,7 7,6
Slide 16: 1H 2020 - Results
GROUP OVERVIEW 1H 2020 - RESULTS TERAPLAST GROUP Q1/2020 TERAPLAST GROUP Q1/2019 +17% +49% REVENUE EBITDA EBITDA REVENUE EBITDA EBITDA MARGIN MARGIN 100,8 11 87,8 7,4 Mil. EUR Mil. EUR 10,8% Mil. EUR Mil. EUR 8,5% ➢ Turnover above estimated → +17% compared to +15% ➢ EBITDA above estimated → +49% com
Slide 17: 1H 2020 - Results
GROUP OVERVIEW 1H 2020 - RESULTS EUR, million H1 2020 H1 2019 Evolution Turnover 41,2 35,3 19% TeraPlast EBITDA 6,5 3,2 105% Turnover 32,3 27,6 19% TeraSteel Romania & Serbia EBITDA 3,4 2,8 24% Turnover 24,1 22,2 11% Wetterbest EBITDA 1 1 2% Turnover 3,2 2,7 22% TeraGlass EBITDA 0,06 0,2 (76)% Turno
Slide 18: Steel Division Transaction
GROUP OVERVIEW STEEL DIVISION TRANSACTION ➢ Buyer: Kingspan Group ➢ Leader on the high-performance insulation market ➢ Listed on the London Stock Exchange Plastics ➢ 11 billion GBP market capitalization Division ➢ Estimated value of the Steel division (headline price): RON 410 million – net debt +/-
Slide 19: Steel Division Transaction
GROUP OVERVIEW STEEL DIVISION TRANSACTION - The Steel division generated 40% of the Group’s EBITDA in H1/2020 and represents 40% of the net assets - The final price will be set at the date of the registration of Kingspan’s stake at the Trade Register - The main elements of the final price calculatio
Slide 20: Table of Contents
TABLE OF CONTENTS GROUP OVERVIEW MARKET CONTEXT BUSINESS MODEL SUSTAINABLE DEVELOPMENT IR CONTACT 20
Slide 21: Construction Sector in Romania
MARKET CONTEXT CONSTRUCTION SECTOR IN ROMANIA Despite the lack of visibility regarding the impact, the spread of the virus and delays in payments, most of the construction sites remained operational and the construction sector performed especially in the European funds financed areas. Thus, the tota
Slide 22: Opportunities
MARKET CONTEXT OPPORTUNITIES 69.4% 35% of Romania’s population is connected to a water network* of Romania’s population is connected to a gas network** 52.7% 9.8 billion € of Romania’s population is connected to a sewage network* of the total EU funds allocated for large infrastructure projects (POI
Slide 23: Table of Contents
TABLE OF CONTENTS GROUP OVERVIEW MARKET CONTEXT BUSINESS MODEL SUSTAINABLE DEVELOPMENT IR CONTACT 23
Slide 24: TeraPlast Group: Suppliers and Clients
BUSINESS MODEL TERAPLAST GROUP Suppliers structure – Group level The Group has good reputation among its clients and suppliers being recognized as a trustworthy, strategic business partner 11% Chemicals supplier 1 ➢ Tight credit risk monitoring internal & external (insurance) Steel supplier 1 ➢ Effe
Slide 25: Employees
BUSINESS MODEL EMPLOYEES Annual evolution of no. of employees* ➢ All Group companies have trade representatives that work closely with the companies’ management in all matters regarding collective agreements (except for the Serbian facility). 500 478 401 ➢ Aggressive sales incentive scheme, bonus sy
Slide 26: Employees
BUSINESS MODEL EMPLOYEES Breakdown by activity TeraPlast TeraSteel TeraGlass Wetterbest 10% 8% 8% 7% 5% 8% 4% 15% 38% 5% 36% 19% 11% 55% 11% 33% 69% 13% 26% 19% Production Sales Production Sales Production Sales Production Sales Logistics Financial Logistics Financial Logistics Financial Logistics F
Slide 27: Management Team
BUSINESS MODEL MANAGEMENT TEAM Experienced management team Board of Directors Alexandru Stanean Ioana Birta Ioana Borza CEO TeraPlast Group CFO TeraPlast Group Group Marketing Director ➢ CEO since July 2018 ➢ CFO since June 2017 ➢ Marketing Director since ➢ In his 2nd mandate ➢ ACCA & CAFR member Ma
Slide 28: IT Infrastructure
BUSINESS MODEL IT INFRASTRUCTURE Integrated, flexible software solutions Integrated, flexible software solutions Highly reliable IT backbone creating operational and cost efficiencies ERP platforms main modules ➢ ERP multi module systems ▪ Most entities use SAP (integrated electronic invoicing syste
Slide 29: Table of Contents
TABLE OF CONTENTS GROUP OVERVIEW MARKET CONTEXT BUSINESS MODEL SUSTAINABLE DEVELOPMENT IR CONTACT 29
Slide 30: Resource and Waste Management
SUSTAINABLE DEVELOPMENT RESOURCE AND WASTE MANAGEMENT As the largest Romanian construction materials manufacturer with 11 factories in 5 locations, clear resource and waste management procedures are vital in order to effectively manage the environmental impact of our activity ➢ The resource manageme
Slide 31: 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 32: Contact us
Contact us: IR Contact: Alexandra Sica investor.relations@teraplast.ro +40 741 270 439 www.teraplast.ro Bucharest Stock Exchange symbol: TRP ©2020 TeraPlast SA. All rights reserved. TeraPlast Industrial Park Saratel village, Sieu-Magherus commune Bistrita-Nasaud county, DN15A km 45+500 32