Corticeira Amorim Sgps Sa · EURONEXT:COR
Corticeira Amorim Sgps Sa — Corticeira Amorim — H1 2020 Earnings Presentation
48 slides from Corticeira Amorim Sgps Sa's earnings presentation, 2020
Slide 1: Corticeira Amorim 1H2020
AMORIM Corticeira Amorim 1H2020
Slide 2: In brief: Rebranding Amorim
In brief Rebranding Amorim Revisiting a long history offers a unique opportunity for renewal. To mark its 150" anniversary, Amorim challenged Eduardo Aires, a renowned design studio, to rethink the company’s brand image, aiming to strike a balance between legacy and innovation. The rebranding was pr
Slide 3: In brief: Forestry Intervention Programme
In brief Forestry Intervention Programme Partnership with forestry producers, research institutions and local authorities. Major Goal: to ensure the maintenance, preservation and enhancement of cork oak forests and guarantee continuous production of high-quality cork. +50k hanew cork plantations +7%
Slide 4: In brief: Helix available coast-to-coast in the US
In brief Helix is now available coast-to-coast inthe US Amorim Cork's innovative, twist-off, twist-on cork closure is now available coast-to-coast in the US, thanks to Longenvity Wines and their partnership with Bronco Wine Company, one of the 4 largest US wine producers. Helix is a unique system th
Slide 5: In brief: New premises in Australia
In brief AMORIMCORK New premises in Australia Amorim Australasia opened its new premises in Regency Park, South Australia. Founded in May 2007 as a distribution company for the Amorim Group, Amorim Australasia is Australia’s largest importer of cork for the wine industry, and supplies all of Asia Pa
Slide 6: In brief: Amorim WISE
In brief Amorim WISE APVC free sustainable flooring solution with a negative carbon balance. Main features of Amorim WISE: > Installation in large areas without transition strips >» Waterproof > Reinforced dimensional stability >» Minimum sub-floor preparation > Sustainable 1H20 AMORIM.
Slide 7: In brief: Amorim Cork Flooring new digital ecosystem
In brief Amorim Cork Flooring launches anew digital ecosystem The new digital ecosystem is formed by 4 different websites, available in 11 different versions and 14 languages. www.amorimwise.com www.wicanders.com www.corklife.com The main features include a State of the art digital simulator, where
Slide 8: In brief: Cork base Yoga Collection
In brief Cork base Yoga Collection by @go4cork Acollection that aims to convey mindfulness and profound respect for nature. > Hypoallergenic > Anti-slip > Natural and recyclable > Sweat-resistant > Sustainable > Softand warm touch 1H20 AMORIM.
Slide 9: In brief: Negative Carbon Footprint
In brief -309gC0.eq -562gC0.eq natural cork stopper* sparkling wine stopper* Negative Carbon Footprint AEY study has confirmed the negative carbon footprint for Amorim’s Natural and Sparkling Wine cork stoppers. This independent study analysed the environmental footprint regarding the production of
Slide 10: In brief: Ecosystem Services of the Cork Oak Forest
In brief ee. pices Py ‘érage value e associated wi Ecosystem Services of the Cork Oak Forest Corticeira Amorim commissioned an independent study of the cork oak forest's ecosystem services. Using four case studies, EY monetized three regulation services that the cork oak forest provides: 1| Climate
Slide 11: In brief: World Finance Sustainability Award
In brief World Finance Sustainability Award Corticeira Amorim was distinguished in the category “Wine products industry”. World Finance Sustainability Awards celebrate the companies putting green values at the forefront of their business operations. WORLD FINANCE SUSTAINABILITY AWARDS 1H20 AMORIM n
Slide 12: In brief: Serpentine Pavilion 2020/21
In brief Serpentine Pavilion 2020 designed by Counterspace, Design Render, Interior View © Counterspace Serpentine Pavilion 2020/21 Corticeira Amorim provides 200m? of cork for the construction of the Serpentine Summer Pavilion 2020/21. Almost a decade after the project designed by Herzog & de Meuro
Slide 13: In brief: Cork at the Biennale Architettura 2021
In brief 29.08 — Pavilhao de Portugal Curadoria Curated by 29.11.2020 Portugal Pavilion depA architects mnconflct Cork at the Biennale Architettura 2021 The project of the Portuguese representation at the exhibition is supported by Corticeira Amorim, which made available 100 linear meters of fine co
Slide 14: Integral Verticalization
Integral Verticalization CORTICEITRA AMORIM AMORIM AMORIM AMORIM AMORIM AMORIM FLORESTAL CORK CORK CORK CORK FLOORING COMPOSITES INSULATION 1H20 AMORIM, 14
Slide 15: Alignment with United Nations' SDG
Aign nment with United ati ons’ SDG Sustainable Development Goals are an integral part of our Sustainability Strategy We are committed to a solid and dynamic future with sustainability as the main reference Corticeira Amorim aligns its strategy with 12 Sustainable Development Goals Preserving cork o
Slide 16: Sustainable by Nature
Sustainable by Nature 100% use of cork 63% energy consumed from biomass 485 tons cork recycled Cork Recycling programs in 5 continents 2.9 k students involved in 29 units with environmental} FSC education certification initiatives =90% Waste recovery rate (non-cork) > 80% consumed materials from ren
Slide 17: People, Planet and Profit
People, Planet and Profit Environmental, Social and Economic Impact: * 1,175 M€/year: total net value of Corticeira Amorim's contributions to society when considering ecosystem services induced by its activities (more than 7x higher than the estimated direct gross value added) + 2.17 production mult
Slide 18: 800.0 20.0% 700.0 15.0% 600.0 10.0% 500.0 400.0 5.0% 300.0 .0% 200.0 -5.0% 100.0
800.0 20.0% 700.0 15.0% 600.0 10.0% 500.0 400.0 5.0% 300.0 0.0% 200.0 -5.0% 100.0 0.0 -10.0%
Slide 19: Consolidated Results
AMORIM Consolidated Results
Slide 20: Key Facts & Figures
Key Facts & Figures Sales reached 391.6 M€ (-5.0%): * Raw Materials: -6.3%; « Cork Stoppers: -5.4%; + Floor & Wall Coverings: +5.0%; « Composite Cork: -5.9%; «Insulation: -14.3%; Immaterial impact of FX on sales (1H19: +4.5 M€); EBITDA/Sales: 16.8% (1H19: 16.6%) - EBITDA of 65.9 ME, + Lower cork pri
Slide 21: COVID-19 Update
COVID-19 Update > Avery challenging 2Q20: sales down 10.5%, all BUs posting declines; >» Overall activity levels impacted by containment measures and temporary closures of clients; no homogeneous behaviour across markets, products or channels; >No major disruptions in operations: some adjustments ma
Slide 22: 25.0% 20.0% 15.0% 0 250 200 200 10.0% 150 150 100 100 5.0% 50
500 500 450 450 25.0% 400 400 20.0% 350 350 300 300 15.0% 250 250 200 200 10.0% 150 150 100 100 5.0% 50 50 0 0 0.0%
Slide 23: 500.0 100% 500.0 1.80 450.0 90% 450.0 1.60 400.0 80% 400.0 .40 350.0 70%
500.0 100% 500.0 1.80 450.0 90% 450.0 1.60 400.0 80% 400.0 1.40 350.0 70% 350.0 1.20 300.0 60% 300.0 1.00 250.0 50% 250.0 0.80 200.0 40% 200.0 0.60 150.0 30% 150.0 0.40 100.0 20% 100.0 0.20 50.0 10% 50.0 0.0 0% 0.0 0.00
Slide 24: Business Units
AMORIM Business Units
Slide 25: 350.0 300.0 250.0 200.0 150.0 100.0 50.0 0.0 200.0 20.0% .0 160.0 140.0 15.0%
350.0 300.0 250.0 200.0 150.0 100.0 50.0 0.0 200.0 20.0% 180.0 160.0 140.0 15.0% 120.0 100.0 10.0% 80.0 60.0 5.0% 40.0 20.0 0.0 0.0%
Slide 26: 350.0 300.0 250.0 200.0 150.0 100.0 50.0 0.0 200.0 26.0% .0 160.0 140.0 16.0%
350.0 300.0 250.0 200.0 150.0 100.0 50.0 0.0 200.0 26.0% 180.0 160.0 140.0 16.0% 120.0 100.0 80.0 6.0% 60.0 40.0 20.0 0.0 -4.0%
Slide 27: 350.0 300.0 250.0 200.0 150.0 100.0 50.0 0.0 200.0 26.0% .0 21.0% 160.0 140.0
350.0 300.0 250.0 200.0 150.0 100.0 50.0 0.0 200.0 26.0% 180.0 21.0% 160.0 140.0 16.0% 120.0 100.0 11.0% 80.0 6.0% 60.0 40.0 1.0% 20.0 0.0 -4.0%
Slide 28: 350.0 300.0 250.0 200.0 150.0 100.0 50.0 0.0 26.0% 160.0 21.0% 16.0% 110.0 11.0%
350.0 300.0 250.0 200.0 150.0 100.0 50.0 0.0 26.0% 160.0 21.0% 16.0% 110.0 11.0% 60.0 6.0% 10.0 1.0% -40.0 -4.0%
Slide 29: 350.00 300.00 250.00 200.00 150.00 100.00 50.00 0.00 200.0 6.0% 180.0 21.0% 160.0 140.0
350.00 300.00 250.00 200.00 150.00 100.00 50.00 0.00 200.0 26.0% 180.0 21.0% 160.0 140.0 16.0% 120.0 100.0 11.0% 80.0 6.0% 60.0 40.0 1.0% 20.0 0.0 -4.0%
Slide 30: EBITDA / Sales (%)
350.0 300.0 250.0 200.0 150.0 100.0 50.0 0.0 22.0% 180.0 17.0% 130.0 12.0% 80.0 7.0% 30.0 2.0% -20.0 -3.0% -70.0 -8.0% EBITDA / SALES (%)
Slide 31: Key Financials
AMORIM Key Financials
Slide 32: Sales by Business Unit
Sales by Business Unit ™ Cork Stoppers Floor and Wall Coverings ™ Composite Cork Insulation Cork m Raw Materials 1H18 1H19 1H20 Raw Materials + Cork Stoppers 72.5% 72.7% 71.7% Floor and Wall Coverings 13.9% 13.6% 14.7% Composite Cork 12.3% 12.3% 12.4% Insulation Cork 1.3% 1.4% 1.3% 100% 100% 100% 1H
Slide 33: Sales by geographic areas and currency
Sales to more than 100 countries Sales by geographic areas Sales by currency HEU* BUSA @RestofAmerica Australasia @ Portugal "Rest ofEurope mAfrica MEUR S=USD =CLP DKK = =ZAR AUD =GBP mOthers 1H20 AMORIM. 33
Slide 34: 25.0% 20.0% 15.0% 10.0% 5.0% 50 0 0.0%
500 25.0% 450 400 20.0% 350 300 15.0% 250 200 10.0% 150 100 5.0% 50 0 0.0%
Slide 35: EBITDA by BU
EBITDA by BU 41 54.4 1.0 0.0 87 Raw Materials Cork Stoppers Floor & Wall Composite Cork Insulation Cork Others Consolidated Coverings EBITDA Values in million euros. 1H20 AMORIM 35
Slide 36: EBITDA by BU
EBITDA by BU 90 80 70 "69 122 60 87 50 40 540 557 30 20 10 ia 54 61 0 ee a8 $u 94 Al -10 THT TH19 1H20 m Insulation Cork ™ Composite Cork = Floor and Wall Coverings Cork Stoppers Raw Materials Others EBITDA/Sales (%) 1H18 1H19 1H20 Raw Materials + Cork Stoppers 24.5% 21.9% 22.1% Floor and Wall Cover
Slide 37: Key P&L Figures
Key P&L Figures 1H18 1H19 1H20 yoy Sales 399.9 412.2 391.6 -5.0% Gross Margin 207.0 204.2 203.8 -0.2% Operating Costs incl. depreciation) 146.0 153.9 156.3 1.6% EBITDA 774 68.3 65.9 -3.4% Depreciation 16.5 18.0 18.5 2.8% EBIT 60.9 50.3 47.4 -5.7% Non-recurrent costs -0.7 0.0 1.7 - Net financial cost
Slide 38: 350.0 50.0% 45.0% 300.0 40.0% 250.0 35.0% 30.0% 200.0 25.0% 150.0 20.0% 15.0% 100.0
350.0 50.0% 45.0% 300.0 40.0% 250.0 35.0% 30.0% 200.0 25.0% 150.0 20.0% 15.0% 100.0 10.0% 50.0 5.0% - 0.0%
Slide 39: 350.0 25.0% 300.0 250.0 20.0% 200.0 15.0% 150.0 10.0% 100.0 5.0% 50.0 - 0.0%
350.0 25.0% 300.0 250.0 20.0% 200.0 15.0% 150.0 10.0% 100.0 5.0% 50.0 - 0.0% 7,000 6,000 5,000 4,000 3,000 2,000 1,000 -
Slide 40: Net Income
Net Income 34 w EBITDA Depreciation Net financial results Gains/(losses) of Income tax Non-controlling interests Net Income Associates Values in million euros. 1H20 AMORIM. 40
Slide 41: Financial Position
Financial Position June 30, December 31, June 30, December 31, June 30, 2018 2018 2019 2019 2020 Net Goodwill 140 14.0 136 13.7 136 Not Fixed Asscts / Right of uso 2356 259.6 271.0 2846 2853 Net Working Capital * 388.9 4145 4368 4274 4249 Other 214 214 246 39.5 402 Invested Capital 6599 709.4 7461 7
Slide 42: Net Debt
Net Debt 1611 20 Net Debt Acquisition (Deo. 31, 2019) 18.4 Capex -3.5 Grants -24 Working Capital Needs 0.6 Taxes 54 ‘Other EBITDA Net Debt (Jun. 30,2020) 1H20 AMORIM. 42
Slide 43: Ratios
Satay, Ratios 1H18 2018 1H19 2019 1H20 Net Debt / EBITDA* 0.73 1.04 1.20 1.29 0.94 i EBITDA / Net Interest 136.6 108.0 818 88.2 107.0 Gearing 21.5% 27.9% 29.0% 29.9% 21.2% NWC / Market capitalization 26.1% 34.6% 32.3% 28.4% 31.7% NWC/ Sales x 360 * 189.0 195.5 190.7 197.0 201.1 Free cash flow (FCF)
Slide 44: 0.550 150.0% 130.0% 0.450 110.0% 0.350 90.0% 0.250 70.0% 50.0% 0.150 30.0% 0.050 10.0%
0.550 150.0% 130.0% 0.450 110.0% 0.350 90.0% 0.250 70.0% 50.0% 0.150 30.0% 0.050 10.0% -0.050 -10.0%
Slide 45: Stock Market
Stock Market From: 2019-12-31 tes 2020-07-31 zoom: 1D 5D 1M 3M 1Y 5Y YTD MAX \ _Aase wan xT : Lhe es , Par | ee eee From: 2019-12-31 se: 2020-07-31 zoom: 1D 5D 1M 3M IY 5Y YTD MAX = te atti a at tna 2014 2015 2016 2017 2018 2019 1H20 Qt of shares traded 3,481,685 12,693,424 10,801,324 19,290,907 14,
Slide 46: Shareholder Structure
Shareholder Structure Heirs of Américo Ferreira de Amorim Antonio Ferreira de Amorim Family Family 50% Amorim Investimentos e 50% |< Participagdes, SGPS, SA ie 10.32% 10.09% ee CORTICEIRA AMORIM, SGPS, SA 28.59% Free-float held directly and indirectly 1H20 AMORIM 46
Slide 47: Contact and Disclaimer
AMORIM Ana Negrais de Matos, CFA Corticeira Amorim, SGPS, S.A. IRO Public Company T +351227 475 423 Ruade Meladas, 380: PO BOX 20 ana.matos@amorim.com 4536-902 Mozelos, Portugal www.amorim.com T +351 22 747 54 00 F +35122 7475407 corticeira.amorim@amorim.com Disclaimer: This documenthas been prepare
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