Slides
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H1 2026 Results Analysts & investors teleconference August 06, 2026
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TeraPlast Group divisions 1000+ employees >200 kt annual production capacity 6 countries • Complete water management systems, interior and exterior sewage systems, energy infrastructure, injected products, recycled micronized PVC. • Operations in Romania, Republic of Moldova, Hungary, Austria, Spain* • flexible packaging (film, bags, sacks etc.) and stretch film. • Operations in Romania and Croatia • virgin PVC granules and recycled granules. • Operations in Romania • PVC windows and doors • Aluminum windows and doors • Operations in Romania Installation Flexible Packaging Granules Windows *the activity of the factory in Spain will be consolidated in the Group results starting July 1, 2026, thus will be included in reporting starting Q3/2026 TeraPlast Group 16 factories
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TeraPlast Iberia 81 employees 16.000 t annual production capacity • Location: Okondo, 20 km from Bilbao, Basque Country, Spain • Manufacturer of polyethylene pipes for water and natural gas networks • Strong customer portfolio across Spain, France and Germany • Strategic location to strengthen our presence in Western European and North African markets • The final transaction value was determined based on a customary purchase price adjustment mechanism, starting from a base value of EUR 6.7 million and adjusted according to the actual level of the working capital. Upon completion of the transaction, the final purchase price was set at EUR 3.7 million, with payment initiated on June 30, 2026. • Consolidated in the Group's results starting Q3/2026
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Key information on H1/2026 • The 4% increase in turnover has been supported mainly by the performance of the Installation and Flexible Packaging divisions. • The gross margin increased by 9% in absolute value, from RON 206.5 million in H1/2025 to RON 224.4 million in H1/2026. As share in turnover, the gross margin increased from 37% to 39%, reflecting on one side an efficient procurement cost and inventory management, and a significantly faster market response to the sharp increase in raw material prices triggered by the Iran war. • Consolidated EBITDA amounted to RON 42.5 million, down 9% compared to the first half of 2025, when it stood at RON 46.9 million, due to increased operational costs. • The evolution of the sales outside Romania demonstrates the resilience of the Group's international operations and validates its geographic expansion strategy. • We recovered a significant portion of the RON 10.6 million loss recorded after the first quarter of the current year, thanks to the RON 6 million net profit generated in Q2/2026. Nevertheless, the net result was affected by higher finance costs arising from foreign exchange differences and interest expenses, which were RON 2.2 million above the level recorded in H1/2025. TURNOVER 574 MLN. LEI +4% vs H1/2025 (551,8 mln. LEI) EBITDA MARGIN 7,4% -1,1 pp vs H1/2025 (8,5%) NET RESULT -4 MLN. LEI 3,4 mln LEI in H1/2025 VOLUMES 60.734 TONNES -5% vs H1/2025 (63.682 tonnes) EBITDA 42,5 MLN. LEI -9% vs H1/2025 (46,9 mln. LEI) GROSS MARGIN 39% +2pp vs H1/2025 (37%) Sales outside Romania stood at RON 202,8 million in H1/2026, representing 35% of the consolidated turnover (vs. RON 195 mln. in H1/2025, 35% of the consolidated turnover)
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Key information on H1/2026 - divisions Installation • A slower pace of new infrastructure project launches and delays in the implementation of ongoing investments, driven by financing constraints, delayed reimbursements, and rising execution costs in the Romanian market. • Customers focused primarily on purchases for confirmed orders while reducing inventory levels. • The geographical diversification of operations enabled the Group to capitalize on opportunities on part of the international markets, contributing to the division's resilience in this challenging market environment. Granules • Demand from the cable industry declined, while market contraction intensified competition and put additional pressure on margins. • Raw material price volatility further increased commercial challenges. • The division adapted its commercial strategy to maintain competitiveness. Flexible Packaging • The strongest-performing division within the Group in H1 2026. • Results were supported by strong market demand during the first part of the semester. • Market normalization towards the end of the semester calls for a cautious outlook for the coming period. Windows • Lower sales volumes, combined with the limited ability to pass higher raw material costs on to the market, resulted in lower fixed-cost absorption and, consequently, reduced operating profitability. • Change in management to start the next development phase of the company. • A comprehensive transformation, digitalization and efficiency program is underway to strengthen the division's competitiveness.
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Revenue increase by 4% in H1 2026 compared to H1 2025 ➢ In H1 2026, average selling prices increased by 4.1% compared to H1 2025, driven by market conditions resulting from the impact of the conflict in Iran. ➢ In terms of volumes, TeraPlast Group recorded a 5% decrease compared to H1 2025. ➢ The combined effect of higher prices and lower volumes resulted in a 4% increase in revenue. ➢ Volumes in the Installations segment decreased by 2%. Volumes produced in Romania recorded a slight decline, while volumes of installations manufactured in Hungary increased due to the low comparison base following the integration of the Zsámbék facility. ➢ The Compounds segment recorded a 22% decline in volumes. ➢ All entities within the Packaging business reported volume growth, with the strongest increases recorded at Opal and in the biodegradable product range. ➢ Volumes in the Windows & Doors segment declined by 5%. amounts in mil RON
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Financial performance ➢ Revenue increased by 4% compared to H1 2025, driven by higher selling prices despite lower volumes. ➢ On a percentage basis, the gross margin improved from 37% in H1 2025 to 39% in H1 2026, exceeding the budgeted level of 36%. However, this improvement was not sufficient to offset the increase in operating expenses. ➢ Employee benefits expenses increased mainly due to the higher headcount resulting from the acquisitions of Aquatica Group and the Zsámbék plant. ➢ Operating expenses increased primarily as a result of the consolidation of the acquired businesses. As a result, EBITDA margin decreased by 9 percentage points compared to H1 2025. The Group reported a net loss of RON 4 million, compared to a net profit of RON 3.4 million in H1 2025. ➢ In Q2, we recovered a significant portion of the loss recorded in Q1, supported by considerably stronger results than those achieved in Q2 of the previous year.
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Financial performance ➢ The first half of the year reflected varying market conditions across the Group's business divisions, with the common denominator being pressures on costs and lower volumes in certain segments, which affected the Group’s profitability ➢ Nevertheless, the 39% gross margin demonstrates effective management of procurement costs and inventory in the context of the conflict in Iran, which triggered a sharp increase in raw material prices. ➢ Sales outside Romania continued to account for 35% of consolidated revenue, increasing by 4% in value compared to the first half of 2025.
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Financial performance The Romanian installations market operated in a challenging environment, characterized by a slower pace of new infrastructure project launches and delays in the implementation of ongoing investments, driven by financing constraints, delayed reimbursements, and rising execution costs. The PVC compounds market faced multiple challenges, particularly weaker demand from the cable industry and the postponement of investment projects, resulting in a market contraction compared to the same period last year. The Packaging division delivered the strongest performance within the Group in the first half of the year, supported by a temporary acceleration in market demand driven by the geopolitical environment and concerns over raw material availability. The Windows & Doors division operated in a challenging market environment characterized by weak demand and high raw material costs, resulting in lower sales volumes and revenue. At the same time, the division continues to implement a comprehensive transformation and efficiency improvement program.
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➢ The increase in the Net Debt/EBITDA ratio to 4.8x reflects the temporary pressure on profitability. Going forward, our focus will be on improving profitability and reducing leverage. ➢ Working capital as a percentage of revenue remained stable at 26%, indicating strong operational control despite the increase in the working capital base. Financial performance *Net sales and EBITDA from the last 12 months.
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Financial performance ➢ In the first half of 2026, the Group invested RON 31 million in fixed assets, supporting the strategic projects currently underway. ➢ The Group received RON 7.9 million in grants during the period, out of a total of RON 14.6 million expected by year-end, related to the photovoltaic and Optiplast investment projects.
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