Slides
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2024 preliminary results Investors and analysts conference call February 27, 2025
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TeraPlast Group structure in 2025 Rigid PVC recycling Flexible packaging PVC and Aluminum windows and doors Business lines Installations Granules • Closed on Nov. 11, 2024, consolidated in 2024 results for one month. Polyethylene pipes Polyethylene pipes Customized injected products • Water treatment, purification, and management solutions, including digital components. • Purchased package: 51%. Transaction subject to investment approval by CEISD. Flexible packaging
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Aquatica Experience Group acquisition (1/2) Structure of the Group, comprised of companies focused on water resource management: • The AE Group owns 3 companies (100%): AQUA AZUR, AE TECH, and AE DEVELOPMENT. • AQUA AZUR has 2 subsidiaries (with 51% ownership): DANEX and EXPERT SERVICES. • The Group is owned by Daniela Marișcu (80%) (43 years old, certified accountant, master's degree in Political Science, former judge on "Imperiul Leilor," holds investments as an angel investor and lead investor in 8 companies) and Valentin Marișcu (20%) (husband). • Design and construction of water parks, water treatment plants, and wastewater treatment plants • Engineering, procurement, and construction • Operation and maintenance of water and wastewater facilities • Expertise in the circular economy of water • Holistic and integrated approach to water management • Through innovative solutions in the circular economy of water, contributes to building a sustainable environment and efficiently managing its vital resource, WATER. • Marketing activities, promotion, consultancy, design, production, international procurement, import, distribution, sales, installation, commissioning, sampling, and laboratory analysis for water quality. • Real-time control room service for the water industry • Software and platforms: H2O Pools • Designs and develops water parks, theme parks, recreational facilities, water treatment plants, and wastewater treatment plants. • Implementation engineering solutions for all clients/projects of the AE Group.
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Aquatica Experience Group acquisition (2/2) Payment to existing shareholders • Determinable price: 5x EBITDA 2025 – net debt +/- working capital adjustments. • 51% of the share capital is being acquired. Payments: • 2 million euros upon completion of the transaction • 1 million euros based on results from H1/2025 • The difference due on March 30, 2026 • SOP of 200 thousand euros for minority shareholders Financing growth • 3 million euros, by the following mechanism: • Loan of 1.5 million euros after closing • Capital increase through: • a. Conversion of the 1.5 million euros loan into shares • b. Cash contribution of 1.5 million euros from the minority associates (sellers) Estimated timeline: CEISD* notification: week 9 (done) Transaction approval: week 15 *CEISD – Commission for the examination of foreign direct investments.
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Key information on 2024 • The installations market in Romania remained stable, despite delays in the payment of public works. • The Western European markets where the Wolfgang Freiler Group operates experienced contractions, resulting in price pressure that eroded profitability. • Palplast Moldova benefited throughout the year from strong demand in the private residential sector and completed the expansion of its storage capacity in Călărași. • Exports from the Granules segment increased by 160% due to the sector's alignment with the expansion strategy into European markets through strengthened partnerships with strategic clients. In the Romanian market, the segment maintained its position as a market leader. • For flexible packaging, TeraBio Pack's exports partially mitigated the impact of declining sales in the domestic market of biodegradable packaging, caused by the macroeconomic context and delays in implementing legislation for the transition to biodegradable packaging. • The results of TeraGlass reflect the effectiveness of the strategy to reposition the customer mix and increase the share of custom-sized window projects compared to standard window sales in large retail stores.
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TeraPlast Group 2024 results EBITDA 52 MLN. LEI +1% vs. 2023 (51.3 mln. LEI) REVENUE 897.9 MLN. LEI +34% vs. 2023 (672.3 mln. LEI) NET RESULT -19.5 MLN. LEI 1.1 mln LEI in 2023 VOLUMES 109,985 TONS +46% vs. 2023 (75,346 tons) EBITDA MARGIN 5.8% -1,8pp vs. 2023 (7.6%) GROSS MARGIN 36% -1pp vs. 2023 (37%) Sales outside Romania increased by 122%, reaching 233.6 million lei in 2024, compared to 105.4 million lei in 2023. Their share of consolidated revenue rose to 26% in 2024, compared to 15.7% in 2023. The net loss of 19.6 million lei is due to: • Increased interest expenses and depreciation costs following the commissioning of investments in new factories. • Losses incurred from the initiation of the Opal stretch film business, which is in an accelerated ramp-up process and gaining market share. • Losses recorded by TeraBio Pack. • Non-recurring expenses throughout 2024 related to geographic expansion.
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2025 Budget – revenue of 1 billion lei and improvement of profitability EBITDA 88 MLN. LEI +69% vs. 2024 REVENUE 1,005.9 MLN. LEI +12% vs. 2024 NET RESULT 5.2 MLN. LEI EBITDA MARGIN 8.8% • The 12% revenue growth will primarily be supported by improved performance in the Packaging segment through enhanced profitability, operational efficiency, and the consolidation of Optiplast Croatia. • Moderate revenue increases are expected in traditional segments, ranging from 3% to 6%. • A significant improvement in EBITDA is projected, reaching RON 88 million (+69% vs. 2024), due to optimizations in operations and synergies from the integration of acquisitions. Notable contributions to the improvement of EBITDA are anticipated from the Packaging and Installations segments. • Volume growth is expected to reach 9%, approaching nearly 120,000 tons. We have reached the most challenging point in our journey. After an intense period of expansion, we are now focusing on consolidating the businesses within the Group, expanding into existing markets, and improving profitability. The phase of accelerated expansion has concluded for now, and starting in the second half of 2025, we expect the synergies generated by the new subsidiaries to produce visible effects. Although the market climate remains challenging, we have the strategy and resources necessary to navigate this period effectively.
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33,5% increase in turnover in 2024 vs. 2023 ➢ Price deflation in 2024 with 7% compared to 2023 is due to the decrease in raw material prices and in the cost of production, which have been transferred to the market. ➢ Quantitatively, the TeraPlast Group recorded a 46% increase compared to 2023, which means a 19.9% increase in turnover. ➢ Installations and also recycled PVC volumes increased by over 24%. ➢ TeraBio Pack flexible packaging volumes have decreased. Decreases were maintained in windows and doors. ➢ Volumes of Opal stretch film sold in 2024 were 10.842 to. ➢ The M&A component is the sales of Palplast, Freiler Group (April-December) and Optiplast (December) amounts in RON, mln.
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2025 Budget - segments After an intense period of expansion, we are now focusing on consolidating the businesses within the Group, expanding into existing markets, and improving profitability Starting in the second half of 2025, we expect the synergies generated by the new subsidiaries to produce visible effects. Net sales on segments EBITDA on segments
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2025 Budget - quarterly ➢ RON 1 billion net sales, increase with 12% vs. 2024. The growth will primarily be supported by volume growth with 9%, consolidation of Optiplast Croatia and the activity generated by the assets acquired in the new production site Zsámbék Hungary. ➢ Moderate revenue increases are expected in traditional segments (current activity), ranging from 3% to 6%. ➢ A significant improvement in EBITDA is projected, reaching RON 88 million (+69% vs. 2024), and a net profit reaching RON 5,3 million, due to optimizations in operations and synergies from the integration of acquisitions. Notable contributions to the improvement of EBITDA are anticipated from the Packaging and Installations segments.
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Financial performance The Romanian market remained stable despite delays in public works settlements. In contrast, the Western European markets where the Wolfgang Freiler Group operates experienced contractions that exerted price pressure and eroded profitability. Palplast Moldova benefited from solid demand Exports for this segment grew by 160%, In the Romanian market, the Group maintained its position as a market leader. EBITDA rose by 58% from the previous year. EBITDA increased fourfold. These results reflect the effectiveness of the strategy to reposition the customer mix and increase the share of residential and rehabilitation projects. Exports partially mitigated the impact of the decline in domestic sales of biodegradable packaging. The segment's EBITDA was affected by the ramp-up process of Opal and the slower pace of improvement of performance of TeraBio Pack. The evolution of TeraPlast Group in 2024 reflects the mix of organic growth and growth through acquisitions, overlaying the fluctuations in European markets The focus was on growing market share and accelerated expansion. Installation Installation Granules Windows Packaging Packaging Windows GranulesTurnover 12M24Turnover 12M23
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Financial performance ➢ Payments for investments were approx. RON 76.8 million in 2024. For the year 2025 we plan to invest RON 64.7 mil. ➢ This year we received 24 million lei in state aid. Next year we will collect 6,5 million lei. ➢ Net debts decrease to 3,7 x EBITDA. ➢ Net working capital will increase slightly in 2025 due to acquisitions consolidation. 2024| Balance-sheet summary Key aspects
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Financial performance 2024| Cash flow summary Bridge December 31, 2024 Bridge December 31, 2025
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Thank you!