32 slides from Thrace Plastics Holding And Commercial's investor presentation, Jun 8, 2017
Slide 1: Corporate Presentation
CORPORATE PRESENTATION 8 June 2017 • JANUARY 2013 CORPORATE PRESENTATION I1
Slide 2: Converting polypropylene into a World of Material & Solutions for over 38 years
Converting polypropylene into a World of Material & Solutions for over 38 years CORPORATE PRESENTATION I2
Slide 3: 2 Business Units
2 BUSINESS UNITS TECHNICAL FABRICS PACKAGING SOLUTIONS CORPORATE PRESENTATION I3
Slide 4: Thrace Group at a Glance
Converting more than 100k MT of PP/PE per year Operations in 11 countries 28 different production technologies THRACE GROUP 59% production / 18% sales in Greece AT A GLANCE Sales network in 80 countries / Sales in 24 market segments FY 2016 Group Sales 292 mil € / 2015-2016 CAPEX 57 mil € 1,709 empl
Slide 5: Presence
PRESENCE Technical Fabrics BU Packaging BU CORPORATE PRESENTATION I5
Slide 6: Technical Fabrics Business Unit
TECHNICAL FABRICS BUSINESS UNIT CORPORATE PRESENTATION I6
Slide 7: Technical Fabrics Business Unit: Products by Application
TECHNICAL FABRICS BUSINESS UNIT I PRODUCTS ΒΥ APPLICATION GEOSYNTHETICS CONSTRUCTION AGRI/HORTICULTURE LANDSCAPE- SPORT & LEISURE AQUACULTURE GARDENING MEDICAL & HYGIENE FILTRATION FURNITURE & AUTOMOTIVE FIBC / PACKAGING BEDDING FABRICS ADVANCED FABRICS/ FLOOR COVERING INDUSTRIAL FABRICS ARNO WEBBIN
Slide 8: Technical Fabrics Business Unit: Overview
TECHNICAL FABRICS BUSINESS UNIT I OVERVIEW Production Geographical Breakdown Sales Geographical Breakdown America UK 14% 21% UK 29% Rest of America Europe 24% 9% Greece Asia, Africa European Greece 4% & Oceania Union excl. 57% 4% Greece, UK 38% 57% of production in Greece (following the investment
Slide 9: Packaging Solutions Business Unit
PACKAGING SOLUTIONS BUSINESS UNIT CORPORATE PRESENTATION I9
Slide 10: Packaging Business Unit: Products
PACKAGING BUSINESS UNIT I PRODUCTS BAGS/FFS FILMS PALLET COVERING/ CONTAINER LINERS/ FABRICS PACKAGING FILM CARGO PROTECTION INJECTION/BUCKETS/ THERMOFORMING EPS CONTAINERS & CRATES PAILS/CONTAINERS CUPS TRAYS 5 GAL BOTTLES & CAPS BAG IN BOX GARBAGE BAGS ROPES & TWINES CORPORATE PRESENTATION I 10
Slide 11: Packaging Business Unit: Overview
PACKAGING BUSINESS UNIT I OVERVIEW Production Geographical Breakdown Sales Geographical Breakdown S-E Europe S.E. Europe European 37% 31% Union excl Greece, UK 5% Rest of Europe 1% Greece UK 59% 2% Greece 63% Asia, Africa & Other 2% 63% of production and 59% of the sales in Greece. Main markets
Slide 12: Strategy
STRATEGY Pursuing profitable growth through investment in capacity & innovation CORPORATE PRESENTATION I 12
Slide 13: Strategy Overview: Profitable Growth
THRACE GROUP I STRATEGY OVERVIEW Profitable Growth Market-driven Value Capture Organic growth (increase margins) Increase Capacity Further reduce production cost Geographical expansion Improvement of Product Mix (shift of sales to the high margin products) Focus on two major growth markets
Slide 14: Strategy Progress: Market-driven Organic Growth, CAPEX 2015-2016
THRACE GROUP I STRATEGY PROGRESS Market-driven Organic Growth Cost (‘000 Euros) Capacity (‘000 tons) CAPEX 2015 – 2016 56.742 25.600 Fiber line expansion (for Needle-punch fiber production) Technical Fabric BU Greece Needle-punch line Technical Fabric BU Greece Spundbond line Technical Fabric BU Gre
Slide 15: Strategy Progress: CAPEX 2017-2018
THRACE GROUP I STRATEGY PROGRESS Market-driven Organic Growth Cost (‘000 Euros) Capacity (‘000 tons) CAPEX 2017 – 2018 28.800 15.000 Grass yarn line Technical Fabric BU Scotland New Building Technical Fabric BU Scotland Spundbond line Technical Fabric BU Scotland Yarns Technical Fabric BU Scotland S
Slide 16: Strategy Progress: Value Capture (increase margins)
THRACE GROUP I STRATEGY PROGRESS Value Capture (increase margins) Further reduce Production Cost Energy Management: target to reduce kwh/kg by 30% Control cost per man-hour: improve competitiveness Reduce scrap rates Improvement of Product Mix Increase the number of sales people Add new channels to
Slide 17: Financials
FINANCIALS Statutory Financial Statements: The change of standards with regard to the consolidation of joint ventures (IFRS 10, 11 and 12) resulted into the change of the consolidation method. IFRS 11 abolishes the concept of the proportional consolidation of the jointly controlled entities. Instead
Slide 18: FY 2016 Group Production and Revenue Breakdown
FY 2016 IFRS FINANCIAL RESULTS I GROUP PRODUCTION AND REVENUE BREAKDOWN Production Geographical Breakdown Sales Geographical Breakdown S-E Europe Rest of UK 11% America Europe 16% 10% UK 9% 20% America 19% European Union excl. Greece, UK Asia, Africa 35% Greece Greece & Oceania 59% 18% 3% Sales Cont
Slide 19: FY 2016 IFRS Financial Results: P&L Summary
FY 2016 IFRS FINANCIAL RESULTS I P&L SUMMARY P&L (amounts in 000s €) 2016 2015 Improved Group Financial Performance driven by: Turnover 291,900 289,396 • Increase of sales volume in both sectors of Gross Profit 66,403 59,374 business activity (Technical Fabrics & Packaging) EBIT 22,905 19,080 EBITDA
Slide 20: FY 2016 Group Revenue Bridge
FY 2016 IFRS FINANCIAL RESULTS I GROUP REVENUE BRIDGE (€ ‘000) 320,000 22,166 310,000 +4.4% 300,000 9,553 302,009 +0.8% 290,000 10,109 291,900 289,396 280,000 270,000 260,000 250,000 FY 2015 Volume Sales / Price Mix FY 2016 with Translation FX FY 2016 Impact Impact Constant FX CORPORATE PRESENTATION
Slide 21: FY 2016 Group EBT Bridge
FY 2016 IFRS FINANCIAL RESULTS I GROUP EBT BRIDGE (€ ‘000) 25,000 9,306 257 1,427 +47.2% 20,000 2,462 +37.9% 19,553 2,258 1,226 18,327 15,000 13,284 10,000 5,000 0 FY 2015 Gross Profit Distribution Administrative Other Income Financial FY 2016 with Translation FX FY 2016 Expenses Expenses & Expenses
Slide 22: Technical Fabrics Business Unit: Overview
TECHNICAL FABRICS BUSINESS UNIT I OVERVIEW Key P & L Items FY FY TF BU Volume Sold (amounts in €’000) 2016 2015 83 Sales 225,299 228,540 77 7% y-o-y Change % -1.4% '000 Tons EBITDA 22,560 19,746 EBITDA Margin 10.0% 8.6% 2016 Sales Bridge (€ 000's) 250,000 16,521 2016 2015 245,000 240,000 +2.7% 235,0
Slide 23: Packaging Business Unit: Overview
PACKAGING BUSINESS UNIT I OVERVIEW Key P & L Items FY FY Packaging BU Volume Sold (amounts in €’000) 2016 2015 Sales 76,021 70,433 27 10% 24 y-o-y Change % +7.9% '000 Tons EBITDA 12,357 9,018 EBITDA Margin 16.3% 12.8% 2016 Sales Bridge (€ 000's) 2016 2015 80,000 7,102 +9.0% +7.9% 75,000 0 76,795 774
Slide 24: FY 2016 IFRS Financial Results: BS Summary
FY 2016 IFRS FINANCIAL RESULTS I BS SUMMARY Balance Sheet Items 2016 2015 CAPEX (in mi €) 2016 2015 Non Current Assets 140,522 122,669 Technical Fabrics 22.5 18.2 Current Assets 148,969 141,862 Packaging 7.4 7.0 Total Assets 289,491 264,531 Agricultural & Other 0 1.6 Total CAPEX 29.9 26.8 Loans 85,8
Slide 25: Net Debt (including the JVs)
FY 2016 IFRS FINANCIAL RESULTS I NET DEBT (including the JVs) 70 3.5 Net Debt / EBITDA (x) Net Debt (EUR m) 60 3.0 50 2.5 40 2.0 30 1.5 20 1.0 10 0.5 0 0.0 2009 2010 2011 2012 2013 2014 2015 2016 Net Debt EBITDA Net Debt/EBITDA 35 High investment plan of 2015 – 2016 resulted 30 25 in increased Net
Slide 26: FY 2016 Earnings per Share
FY 2016 IFRS FINANCIAL RESULTS I EARNINGS PER SHARE 2016 2015 Earnings Before Taxes 18,327 13,284 Income Tax 4,668 3,263 Minority Interest 275 233 Profit Attributable to Shareholders 13,384 9,788 Adjusted # of Shares 44,022 44,406 EPS (in euro) 0.304 0.2204 CORPORATE PRESENTATION I 26
Slide 27: Group Financial Performance: Stock Data
GROUP FINANCIAL PERFORMANCE I STOCK DATA CORPORATE PRESENTATION I 27
Slide 28: Q1 2017 IFRS Financial Results: Key Financial Figures
Q1 2017 IFRS FINANCIAL RESULTS I KEY FINANCIAL FIGURES (€ ‘000) Q1 2017 Q1 2016 Δ% VOLUMES (tons) 29.412 24.942 17.9% TURNOVER 76.545 70.305 8.9% GROSS PROFIT 16.765 16.177 3.6% EBITDA 7.794 7.736 0.7% EAT & MI 2.147 3.280 34.5% CORPORATE PRESENTATION I 28
Slide 29: Corporate Governance: Board of Directors and Audit Committee
THRACE GROUP I CORPORATE GOVERNANCE BOARD OF DIRECTORS Constantinos Chalioris: Chairman & CEO Theodosios Kolyvas: Executive Vice-Chairman George Braimis: Executive Member Dimitris Malamos: Executive Member Vassilis Zairopoulos: Non-Executive Member Christos Chiatis: Independent Non-Executive Member
Slide 30: Alternative Performance Measures (APM) ESMA
ALTERNATIVE PERFORMANCE MEASURES (APM) I ESMA Alternative Performance Measures (APM) During the description of the developments and the performance of the Group, ratios such as the EBIT and the EBITDA are utilized. • EBIT (The indicator of earnings before the financial and investment activities as w
Slide 31: Thrace Group Disclaimer
THRACE GROUP I DISCLAIMER This material (the “Presentation”) has been prepared, issued and presented by Thrace Plastics Co S.A. (the “Company”) on the terms set out below for the exclusive and confidential use of the persons to whom it is addressed (“Recipients”), solely for use by the Recipients in
Slide 32: Contacts
Contacts Investors Relations Ioanna Karathanassi ikarathanasi@thraceplastics.gr +30 210 9875081 Group CFO Dimitris Malamos dmalamos@thraceplastics.gr +30 210 9875016 www.thracegroup.com CORPORATE PRESENTATION I 32