Slide 1: January-September 2020 Results
January-September 2020 Results TeraPlast Group October 27, 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: Agenda
AGENDA ➢TeraPlast Group Structure ➢2020 highlights ➢Local construction market ➢Q3 key figures ➢Group overview ➢Market perspectives ➢Financial performance ➢Net sales by segment ➢Plastics Division (P&L summary; Net sales & EBITDA Bridge) ➢Steel Division (P&L summary; Net sales & EBITDA Bridge) ➢Balanc
Slide 4: TeraPlast Group Structure
TERAPLAST GROUP STRUCTURE Steel Division Plastics Division ➢ Rigid PVC recycling ➢ Complete roof ➢ #1 in Romania systems ➢ Top 10 in Europe ➢ #2 on the market ➢ Sandwich panels, galvanized steel ➢ Windows & doors purlins, turnkey ➢ Largest exporter of halls the Group ➢ #1 on the sandwich panels mark
Slide 5: 2020 Highlights
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 RO & RS, Wetter
Slide 6: The Local Construction Market
THE LOCAL CONSTRUCTION MARKET The construction sector in Romania kept its positive trend in the first 8 months of 2020 compared to the same period of 2019. By the adjusted series, the total volume of the construction works registered a 19,2% increase compares to the first 8 months of 2019. The posit
Slide 7: 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 8: Group Overview 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 Oct 23, 2020) 8
Slide 9: Market Perspectives
MARKET PRESPECTIVES 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* network*
Slide 10: 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 11: 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 11
Slide 12: Plastic Net Sales and EBITDA Bridge 9M'2020 vs 9M'2019
FINANCIAL PERFORMANCE PLASTIC | NET SALES AND EBITDA BRIDGE 9M’2020 VS 9M’2019 12
Slide 13: 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 13
Slide 14: Steel Net Sales and EBITDA Bridge 9M'2020 vs 9M'2019
FINANCIAL PERFORMANCE STEEL | NET SALES AND EBITDA BRIDGE 9M’2020 VS 9M’2019 14
Slide 15: 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 16: 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 17: 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 18: Questions
QUESTIONS Contact Subscribe to our IR newsletter investor.relations@teraplast.ro on https://investitori.teraplast.ro/ +40 741 270 439
Slide 19: TeraPlast contact details
©2020 TeraPlast SA. All rights reserved. investor.relations@teraplast.ro +40 741 270 439 TeraPlast Industrial Park www.teraplast.ro Saratel village, Sieu-Magherus commune Bistrita-Nasaud county, DN15A km 45+500 Bucharest Stock Exchange symbol: TRP