Slide 1: WOOD's Winter Wonderland
WOOD’s Winter Wonderland December 3-4, 2020
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 o
Slide 3: Table of Contents
TABLE OF CONTENTS GROUP OVERVIEW BUSINESS MODEL STEEL DIVISION TRANSACTION FINANCIAL PERFORMANCE SUSTAINABLE DEVELOPMENT IR CONTACT 3
Slide 4: 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 5: 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 6: 2020 Highlights
GROUP OVERVIEW 2020 HIGHLIGHTS 1 BET inclusion TeraPlast’s shares were included in the reference index BET at the Bucharest Stock Exchange 2 Free shares 1 share per 3,3 shares owned were granted to the shareholders 3 Steel division TeraPlast signed an agreement to sell its Steel division (TeraSteel
Slide 7: Product Portfolio – Plastics Division
GROUP OVERVIEW PRODUCT PORTFOLIO – PLASTICS DIVISION PRODUCT PORTFOLIO COVERS ALL CONSTRUCTION MARKET SEGMENTS Installation Window profiles Compounds Rigid PVC Windows & Doors recycling Complete systems for: 3 window profiles systems: • Rigid PVC compounds • Granulated PVC • PVC Windows • Exterior s
Slide 8: Product Portfolio – Steel Division
GROUP OVERVIEW PRODUCT PORTFOLIO – STEEL DIVISION . PRODUCT PORTFOLIO COVERS ALL CONSTRUCTION MARKET SEGMENTS Sandwich Galvanized Self-supporting Complete panels steel purlins trapezoidal sheet roof systems • Polyurethane foam • 5 metallic roof tiles profiles • Z, C, U & Sigma • Corrugated sheet of
Slide 9: Highlights
GROUP OVERVIEW HIGHLIGHTS Shareholder Structure Key Business performance 2019 9M vs 2020 9M Teraplast SA | TRP RO Stock Price Performance (last 12 months as at Dec 2, 2020) 9
Slide 10: Geographical Footprint
GROUP OVERVIEW GEOGRAPHICAL FOOTPRINT TeraPlast Group’s exports represent 23% of its turnover in 2019 ➢ Which means around EUR 47 million in 2019 ➢ To over 25 countries ➢ Cover a population of 19.5 million in Romania and 66 million in core CEE countries * Exports at similar level in 2020ytd: 22% of
Slide 11: Construction Sector in Romania
GROUP OVERVIEW CONSTRUCTION SECTOR IN ROMANIA¹ Evolution of construction works in RO Monthly evolution of construction works by construction objects In the first nine months of 2020, the volume of the construction works in Romania increased by 19,3% compared to the same period of 2019. By structure
Slide 12: Romania
GROUP OVERVIEW ROMANIA Country highlights Main macro parameters¹ ➢ Full EU member since 2007 with a strategic positioning Key figures 2016A 2017A 2018A 2019F 2020F ➢ The 8th largest European country by population and GDP (€ bn) 170.4 187.5 202.1 223 235.0 2nd in CEE Population (m) 19.8 19.6 19.5 19.
Slide 13: Opportunities
GROUP OVERVIEW OPPORTUNITIES 52.9% 35% 20% Of the resident population in Romania is Of the resident population in Romania is Of the total EUR 1 bln budget of the connected to a sewerage network that has connected to the national natural gas National Irrigation Program were spent a treatment station*
Slide 14: Management Team
GROUP OVERVIEW 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 May 2018 ➢ Within the Group ➢
Slide 15: Business Model: TeraPlast Group
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 16: 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 17: 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 18: Steel Division Transaction: What It Means
STEEL DIVISION TRANSACTION WHAT IT MEANS ➢ 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: 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 20: 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 20
Slide 21: Plastic: Net Sales and EBITDA Bridge 9M'2020 vs 9M'2019
FINANCIAL PERFORMANCE PLASTIC | NET SALES AND EBITDA BRIDGE 9M’2020 VS 9M’2019 21
Slide 22: 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 22
Slide 23: Steel: Net Sales and EBITDA Bridge 9M'2020 vs 9M'2019
FINANCIAL PERFORMANCE STEEL | NET SALES AND EBITDA BRIDGE 9M’2020 VS 9M’2019 23
Slide 24: 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 25: 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 26: 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 27: Basis for Growth
FINANCIAL PERFORMANCE BASIS FOR GROWTH ➢ We have investment projects worth EUR 32 million for expanding the production capacities and access new markets which we submitted to Ministry of Finance to get state aid: ➢ Expansion of production capacities in TeraPlast – EUR 8 mln ➢ New polyethylene plant
Slide 28: Sustainable Development: Products, Community & Corporate Governance
SUSTAINABLE DEVELOPMENT PRODUCTS, COMMUNITY & 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 market
Slide 29: IR Contact
IR CONTACT Contact details: e-mail: investor.relations@teraplast.ro phone no.: +40 741 270 439 You can also subscribe to up-to-date information about our activity via the TeraPlast IR newsletter at: https://investors.teraplast.ro/newsletter/ 29
Slide 30: Contact details
Contact details: ©2020 TeraPlast SA. All rights reserved. IR Contact: Alexandra Sica TeraPlast Industrial Park investor.relations@teraplast.ro Saratel village, Sieu-Magherus commune +40 741 270 439 Bistrita-Nasaud county, DN15A km 45+500 www.teraplast.ro Bucharest Stock Exchange symbol: TRP 30