Slides
Page 1
H1/2025 Results Investors and analysts call August 6, 2025
Page 2
TeraPlast Group structure in 2025 Rigid PVC recycling Flexible packaging Aluminum and PVC windows and doors Business lines Installation Compounds Polyethylene pipes Polyethylene pipes Custom injected products Water management, treatment and purification solutions, including digital components Flexible packaging
Page 3
Key info on H1/2025 • In the first five months of 2025, the construction sector grew by 7% in seasonally adjusted terms, according to the National Institute of Statistics (INS). Growth was driven by the engineering works segment (+13.7%), while residential buildings recorded a moderate increase of 1.3%, and non-residential buildings declined by 1.7%. • Although market dynamics generated strong demand in the first half of the year—supported by the Anghel Saligny program and EU-funded projects—the reimbursement of completed works created pressure on the cash-flow for the Installations segment. • The Wolfgang Freiler Group doubled its sales compared to the first half of 2024, intensified its activity in Hungary, and further strengthened its positions in Austria and Germany. The Group is targeting a leading position in the Hungarian market for polyethylene and PVC systems. • Despite weaker consumption due to the broader economic context, competitive pressure from imports, and raw material price volatility, the Group significantly reduced the loss recorded by TeraBio Pack. The business continues to diversify its portfolio of biodegradable and compostable products, while Opal focuses on strengthening its range of specialized products. The integration of Optiplast is progressing according to plan. • TeraGlass’s performance was affected by the reassessment of public rehabilitation projects financed through the NRRP (National Recovery and Resilience Plan), which caused delays in both collections and the launch of new projects. • Compounds showed a performance similar to H1/2024, while exports in this segment increased by 15% compared to the first six months of 2024.
Page 4
TeraPlast Group H1/2025 results EBITDA 46.9 MLN. LEI +74% vs H1/’24 (26.9 mln. LEI) TURNOVER 551.8 MLN. LEI +29% vs H1/’24 (428 mln. LEI) NET RESULT 3.4 MLN. LEI -6.6 mln LEI in H1/’24 VOLUMES 63,682 TONS +18% vs H1/’24 (54,009 tons) EBITDA MARGIN 8.5% +2.2pp vs H1/’24 (6.3%) GROSS MARGIN 37% 2pp vs H1/’24 (35%) Sales outside Romania nearly doubled, increasing from RON 100 million to RON 195 million, reaching 35% of total revenue in H1/2025, compared to 24% in H1/2024. We have analyzed the possibility of raising our full-year estimates; however, we opted for a conservative approach. The uncertainty in the market regarding the pace of infrastructure investments in Romania led us to remain cautious. We will revisit a potential revision of our 2025 outlook after the third quarter.
Page 5
28,9% increase in turnover 2025 vs 2024 ➢ The price deflation in 2025 is 1% compared to 2024 and is due to the decrease in raw material prices and, consequently, in production costs, which have been passed on to the market. ➢ Quantitatively, the TeraPlast Group recorded an 18% increase compared to 2024, which translates into a 13.8% increase in turnover. ➢ Volumes in the Installations and Compounds in TeraPlast SA grew by 12%. ➢ Volumes in the TeraBio Pack flexible packaging declined overall, partially offset by growth in the BIO packaging segment. Moderate decreases were also recorded in the windows and doors segment. ➢ The M&A component is the sales of Wolfgang Freiler Group (Q1 2025), Optiplast, and the Aquatica Experience Group (May–June 2025). amounts in mil RON
Page 6
Financial performance ➢ Due to the increase in sales volumes and the consolidation of the acquired entities, the turnover is 29% higher compared to H1/2024. ➢ In percentage terms, the gross margin improved from 35% in H1/2024 to 37% in H1/2025. However, it is slightly below the budgeted level of 38% due to the strategy of increasing market share. ➢ Salaries and employee benefit expenses increased as a result of both the higher number of employees following M&A activity and salary increases. ➢ Utility expenses rose due to increased operational activity. ➢ Operating expenses are in line with the budgeted level, and their share in turnover remains consistent compared to the previous year. Thus, EBITDA increased by 2.2 pp compared to H1/2024. Net profit reached RON 3.3 million, compared to a loss of RON 6,6 million in H1/2024.
Page 7
Financial performance all amounts in thousands of RON unless otherwise specified ➢ The consolidated results for the first half of 2025 show solid growth, supported by favorable market developments both Romania and international markets. ➢ The performance of the main business segments and improved operational efficiency contributed to enhanced profitability indicators, despite a RON 4.3 million cost driven by the depreciation of the leu. ➢ The integration of subsidiaries outside Romania delivered visible benefits to the Group in H1/2025. ➢ Sales outside Romania nearly doubled, from RON 100 million to RON 195 million, reaching 35% of the Group’s turnover in H1/2025, compared to 24% in H1/2024.
Page 8
Growth in the Installations segment was supported by expansion into external markets, particularly through the Wolfgang Freiler Group. In Romania, demand was driven by public programs (such as Anghel Saligny), though the pace of reimbursements put pressure on cash collections. Starting in May, the Installations segment also benefited from the contribution of the Aquatica Experience Group. The domestic compounds market remained stable, while exports increased by 15%, contributing to the segment’s strengthened position on external markets. The segment’s activity was impacted by the reassessment of PNRR projects, which delayed both collections and the launch of new works. Nevertheless, the segment managed to maintain its financial stability. The segment’s growth was supported by the contribution of Optiplast and operational optimizations implemented at TeraBio Pack and Opal. In H1 2025, TeraPlast Group recorded double-digit growth, with EBITDA up by 74% and turnover up by 29%. The EBITDA margin reached 8.5%, up by 2.2 percentage points compared to the same period in 2024. Financial performance
Page 9
➢ The reduction of the debt level is supported by the EBITDA growth in the first half of 2025, with a projection of below 4x EBITDA by the end of the year. ➢ Working capital increased by 4 percentage points, driven both by the integration of recent acquisitions and pressures related to extended collection periods. H1 2025| Balance-sheet summary Key aspects In the calculation of Net Debt/EBITDA and Net Working Capital/CA, the net sales and EBITDA of the last 12 months (period July 2024 - June 2025) were used. Financial performance
Page 10
H1 2025| Cash-flow summary Bridge 30 June 2025 ➢ Of the total planned investments for 2025, amounting to RON 64.7 million, payments of RON 33 million were made in the first half of the year. ➢ During this year, we estimate the collection of subsidies totaling RON 6.5 million for the photovoltaic power plant project. Financial performance
Page 11
Thank you!