Corticeira Amorim Sgps Sa · EURONEXT:COR
Corticeira Amorim Sgps Sa — Corticeira Amorim — Q1 2020 Earnings Presentation
49 slides from Corticeira Amorim Sgps Sa's earnings presentation, May 14, 2020
Slide 1: Corticeira Amorim 1Q2020
AMORIM Corticeira Amorim 1Q2020
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 pre
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% n
Slide 4: In brief: Annual Team Meeting
In brief Anual Team Meeting Avery special day for Corticeira Amorim, with more than 250 people gathering at Alfandega do Porto to look back at 2019 and plan the year ahead Our CEO, Antonio Rios Amorim, opened the event by presenting a retrospective of the previous year and disclosing the goals and c
Slide 5: In brief: A Cork cocoon at Vinexpo Paris
In brief A Cork cocoon at Vinexpo Paris During Vinexpo Paris, one of the world’s most important wine events, Moét Hennessy created a sustainability forum in which cork was the highlighted material The forum was an ecological, recyclable and biological space. The sound insulation guaranteed by cork p
Slide 6: 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 Pac
Slide 7: In brief: 17,000 possibilities at Domotex
In brief 17,000 possibilities at Domotex Amorim Cork Flooring presents Cork Pure Signature at Domotex Cork Pure Signature is a carbon-negative balance collection, made from cork and recycled materials, which enables personalised patterns to be created, with more than 17,000 possible combinations. Us
Slide 8: 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 1Q20 AMORIM.
Slide 9: In brief: Amorim WISE floor simulator
In brief Amorim WISE floor simulator Amorim WISE now offers the possibility to simulate a floor in the client’s own space exis aver Using the website’s new room simulator it Sherwood Oak is possible to choose from hundreds of different flooring options and try them all in the different rooms of the
Slide 10: 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 t
Slide 11: 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 r
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 Meuron
Slide 13: In brief: Vitra Design Museum: Home Stories
In brief Installation »Home Stories: 100 Years, 20 Visionary Interiors« © Vitra Design Museum, Photos: Ludger Paffrath Vitra Design Museum: Home Stories The partnership between Corticeira Amorim and Vitra Design Museum brought more than 3200 agglomerated cork blocks to Germany, for the exhibition “H
Slide 14: In brief: City Cortex by Amorim
In brief City Cortex by Amorim City Cortex is aresearch programme, developed in partnership with experimentadesign, that focuses on the intersection between cork and contemporary urban contexts New York is the main arena for showcasing the research. The invited design studios are Diller Scofidio + R
Slide 15: Integral Verticalization
Integral Verticalization CORTICEITRA AMORIM AMORIM AMORIM AMORIM AMORIM AMORIM FLORESTAL CORK CORK CORK CORK FLOORING COMPOSITES INSULATION 1Q20 AMORIM, 15
Slide 16: 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 17: 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 environmental education initiatives =90% Waste recovery rate (non-cork) > 80% consumed materials from renewable sources >90% cork/cork pro
Slide 18: 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 19: 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 20: Consolidated Results
AMORIM Consolidated Results
Slide 21: Key Facts & Figures
Key Facts & Figures Sales rose to 203.7 ME (+0.7%): + Raw Materials: -7.7%; * Cork Stoppers: +1.0%; + Floor & Wall Coverings: +11.0%; + Composite Cork:-6.7%; + Insulation: -12.4%; Demanding yoy comparisons: +9.2% sales; positive FX impact of 2.3 ME in 1Q19 (immaterial in 1Q20); EBITDA/Sales: 17.6% (
Slide 22: Responding to Covid-19
Responding to Covid-19 Priorities Impacts Supply Guarantee the permanent well-being of all Employees, their Families and Communities Strong commitment to ensuring no disruptions in the supply chain (namely of the wine sector) and to continue servicing our clients Maintain ongoing operation of indust
Slide 23: Responding to Covid-19
Responding to Covid-19 Demand Measures Containment measures likely to cause a deterioration and/or postponement of global consumption of our products; wine production may be impacted bothin quantity and quality No homogeneous behaviour: markets, products and channels impacted differentially Evident
Slide 24: 100.0% 90.0% 80.0% 70.0% 60.0% 300 250 50.0% 250 200 40.0% 200 150 30.0%
500 100.0% 500 450 90.0% 450 400 80.0% 400 350 70.0% 350 300 60.0% 300 250 50.0% 250 200 40.0% 200 150 30.0% 150 100 20.0% 100 50 10.0% 50 0 0.0% 0
Slide 25: 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 0.40 100.0 100.0 20% 0.20 50.0 50.0 10% 0.0 0.00 0.0 0%
Slide 26: Business Units
AMORIM Business Units
Slide 27: 200.0 180.0 160.0 140.0 120.0 100.0 80.0 60.0 40.0 20.0 0.0 200.0 20.0% 180.0
200.0 180.0 160.0 140.0 120.0 100.0 80.0 60.0 40.0 20.0 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 28: 200.0 180.0 160.0 140.0 120.0 100.0 80.0 60.0 40.0 20.0 0.0 200.0 26.0% 180.0
200.0 180.0 160.0 140.0 120.0 100.0 80.0 60.0 40.0 20.0 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 29: 200.0 180.0 160.0 140.0 120.0 100.0 80.0 60.0 40.0 20.0 0.0 200.0 26.0% 180.0
200.0 180.0 160.0 140.0 120.0 100.0 80.0 60.0 40.0 20.0 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 30: 200.0 180.0 160.0 140.0 120.0 100.0 80.0 60.0 40.0 20.0 0.0 26.0% 160.0 21.0%
200.0 180.0 160.0 140.0 120.0 100.0 80.0 60.0 40.0 20.0 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 31: 200.00 180.00 160.00 140.00 120.00 100.00 80.00 60.00 40.00 20.00 0.00 200.0 26.0% 180.0
200.00 180.00 160.00 140.00 120.00 100.00 80.00 60.00 40.00 20.00 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 32: EBITDA / Sales (%)
200.0 180.0 160.0 140.0 120.0 100.0 80.0 60.0 40.0 20.0 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 33: Key Financials
AMORIM Key Financials
Slide 34: Sales by Business Unit
Sales by Business Unit 15.1% 11.7%) ———— 2.0% ™Cork Stoppers Floor and Wall Coverings Composite Cork Insulation Cork m Raw Materials 1918 1Q19 1Q20 Raw Materials + Cork Stoppers 70.9% 72.2% 72.0% Floor and Wall Coverings 15.3% 13.8% 15.1% Composite Cork 12.6% 12.6% 11.7% Insulation Cork 1.3% 1.4% 1.
Slide 35: 25.0% 20.0% 15.0% 10.0% 5.0% 0.0%
350 25.0% 300 20.0% 250 200 15.0% 150 10.0% 100 5.0% 50 0 0.0%
Slide 36: EBITDA by BU
EBITDA by BU 21 02 297 13 a 358 -2.2 47 Raw Materials Cork Stoppers Floor & Wall Composite Cork Insulation Cork Others Consolidated Coverings EBITDA Values in million euros. 1Q20 AMORIM. 36
Slide 37: EBITDA by BU
EBITDA by BU 40 35 86 3 30 25 20 257 269 15 10 5 36 06 - 0 200 ee | S§ $6 TQ TQ19 1920 -10 @Insulation Cork ™ Composite Cork = Floor and Wall Coverings ™Cork Stoppers = Raw Materials DOthers EBITDA/Sales (%) 1Q18 1Q19 1920 Raw Materials + Cork Stoppers 25.1% 22.8% 23.2% Floor and Wall Coverings 2.0%
Slide 38: Key P&L Figures
Key P&L Figures 1Q18 1Q19 1Q20 yoy Sales 185.4 202.3 203.7 0.7% Gross Margin 100.0 102.7 105.7 2.9% Operating Costs(incl. depreciation) 71.2 77.1 79.1 2.6% EBITDA 36.8 348 35.8 2.8% Depreciation 81 9.2 9.2 0.4% EBIT 28.7 25.6 26.6 3.7% Non-recurrent costs 0.1 0.0 0.0 - Net financial costs 0.4 0.7 0.
Slide 39: 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 40: 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% 6,000 5,500 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000
Slide 41: Net Income
Net Income wo “02 “05 199 EE -64 413 EBITDA Depreciation Net financialresults _ Gains/(losses) of Income tax Non-controlling Net Income Associates interests Values in million euros. 1Q20 AMORIM. 4
Slide 42: Financial Position
Financial Position March31, December 31, March31, December 31, March 31, 2018 2018 2019 2019 2020 Net Goodwill 14.4 14.0 13.9 13.7 13.7 Net Fixed Assets / Right of use 223.3 259.6 270.4 2846 283.9 Net Working Capital* 374.4 4145 4328 427.4 4425 Other ** 279 214 23.3 39.5 40.1 Invested Capital 640.0
Slide 43: Net Debt
Net Debt 1611 84 Net Debt Capex (Dec. 31, 2019) 0.6 Grants 151 Working Capital Needs 29 Other 35.8 EBITDA 152.3 Net Debt (Mar. 31, 2020) 1Q20 AMORIM 43
Slide 44: Ratios
Ratios 1Q18 2018 1Q19 2019 1Q20 Net Debt / EBITDA* 0.63 1.04 1.07 1.29 1.21 EBITDA /Net Interest 128.2 108.0 92.3 88.2 109.8 Gearing 17.9% 27.9% 27.3% 29.9% 27.3% NWC / Market capitalization 27.2% 34.6% 30.6% 28.4% 40.2% NWC/ Sales x 360 * 188.4 195.5 199.7 197.0 203.6 Free cash flow (FOF) 9.7 11.2
Slide 45: 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 46: Stock Market
Stock Market From: 2019-12-31 to: 2020-05-10 Zoom: 1D SD 1M 3M 1Y SY YTD MAK cs . alltil halt senna tidak From: 2019-12-31 to: 2020-05-10 Zoom: 1D SD 1M 3M IY 5Y YTD MAX 40% Volume CORTICEIRA AMORIN 200k 300k ° cca ntetaecsn tennessee atsttecaat ete Ten re rr for ve Tn fe var er 2014 2015 2016 2017
Slide 47: Shareholder Structure
Shareholder Structure Heirs of Américo Ferreira de Amorim Antonio Ferreira de Amorim Family Family 50% A im| ti t 50% morim Investimentos e < Participagdes, SGPS, SA ie 10.32% 10.09% Lovee es CORTICEIRA AMORIM, SGPS, SA 28.59% Free-float held direotly and indirectly 1Q20 AMORIM. 47
Slide 48: 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
Slide 49: 1870 Amorim 2020