Corticeira Amorim

Investor Presentation • Feb 22, 2024

AMORIM

Corticeira Amorim FY2023

Acquisition of 55% of VMD Group's share capital for CHF 11.6 million

Swiss market leader VMD Group produces and sells corks, caps, oenological products, barrels and cellar equipment for the wine industry.

Sharing the same values of excellence and innovation as Corticeira Amorim, this partnership enables VMD Group to continue developing and offering value-added solutions and products tailored to the needs of its customers.

Amorim Top Series opens two plants in Portugal

The factories will strengthen production capacity for wooden capsules for bar tops.

Amorim Top Series offers an exclusive range of capsulated cork stoppers that feature distinctive closure solutions for the world´s most celebrated spirits brands. Equipped with state-of-the-art technology, these plants will strengthen the offer of premium products for spirits, one of the fastest growing segments.

Cork Oak Tree Plantation

Corticeira Amorim volunteers plant another 2,500 cork oak trees at Herdade da Baliza, Castelo Branco, Portugal.

This initiative, organised in collaboration with Quercus and Floresta Comum as part of the Green Cork programme, involved with the participation of almost 150 volunteers.

Corticeira Amorim's volunteers have been helping to reforest Portugal since 2011, planting more than 27,000 autochthonous trees in a joint effort to regenerate Portuguese forests.

Wicanders Wise Bionatural wins the Green Collection award at Domotex

Wicanders Wise, officially launched at Domotex, produces a wide range of natural products, 100% PVC free, with an exceptional level of realism, brought to life through cutting-edge technology.

Bionatural, a result of four years of R&D, is Amorim Cork Flooring's greenest product. It combines an innovative bio core, made of cork, sugar cane waste and natural materials (with a renewable content of more than 95%) with advanced printing technology to achieve realistic designs with remarkable precision.

Amorim Cork Composites launches Navicork

This new brand aims to transform the maritime sector by offering sustainable high-performance cork solutions for the decks of different types of vessels.

Navicork solutions are inherently sustainable. They are 2-5 times lighter than conventional decking and their unique natural texture guarantees on-board grip, stability and safety. In addition, these solutions offer excellent thermal and acoustic insulation, which reduces energy consumption and contributes to passenger comfort.

Launch of an ESG credit line for cork suppliers

This partnership with Caixa Geral de Depósitos is the first ESG operation in the cork sector with the aim of fostering sustainable development and forest preservation.

Corticeira Amorim's cork suppliers will benefit from better terms offered by Caixa Geral de Depósitos based on their ESG classification and their certification by the FSC®.

Through this partnership, Corticeira Amorim strengthens its leadership position in promoting sustainability within the company and across its supply chain.

Green Cork Schools

This program establishes partnerships with educational and community groups to promote environmentally conscious initiatives for the preservation of nature.

Green Cork Schools, in partnership with Corticeira Amorim, Quercus and other partners, work with schools, private institutions and scouts to encourage the adoption of more sustainable practices, namely through the recycling of cork stoppers.

This initiative is part of the Green Cork - the national programme for the selective collection and recycling of cork stoppers, created in partnership with Quercus and other partners - that aims to promote and educate people to recycle cork in Portugal and help fund the Floresta Comum (common forest) project, which ensures the planting of autochthonous trees in Portugal, namely of the cork oak tree.

"Dan Graham and 20th-Century Architecture" highlights cork at Serralves

Corticeira Amorim´s support of this exhibition underlines the innovative use of cork in modern architecture, showcasing its versatility and ecological benefits.

The exhibition establishes itself as a beacon of innovation in architectural thought and sustainable construction. These innovative projects are underpinned by the qualities of cork-performance and sustainability—that reflect Corticeira Amorim's contribution to reducing the environmental impact of the building industry.

Corticeira Amorim is one of the most attractive companies to work for

Read more

New Generation @ Amorim We are ON!

Read more

Value & Sustainability Annual Team Meeting 2023

Corticeira Amorim signs the Forest 2030 Commitment

Read more

Korko´s cork toy collection has a negative carbon balance

Cork Infills have a negative carbon balance

Read more

European Sustainable Energy Awards 2023 Innovation category awarded to the Alqueva Floating Solar Farm

Launch of the "Aldeias Suber-Protegidas" Programme

Read more

Opening of The Heritage House

"Amorim em Movimento", a journey of well-being and mental health

Embrace Equality

Read more

Pact for "More and Better Jobs for Young People"

Read more

ASICS Run store, Tokyo, equipped with Amorim Wise flooring

Read more

Sportino's new athleisure store, Porto, furnished with expanded cork from Amorim Cork Insulation

Puma concept store, Seoul, selects Originals Rhapsody from Amorim Wise flooring

Amorim Wise was awarded the Global Prize Designs award 2023

Read more

Cork shines at the Golden Vines® Awards

Read more

Launch of MAC020 Heavy Mass Layer

Generation Proxima: Emerging Environmental Practices in Portuguese Architecture

Read more

Corticeira Amorim welcomes students from Pratt Institute

Read more

The Thick Skin - a partnership with Parsons School of Design

Spirit of Place Cork at LDF2023 The Sea Deck: Cork at Milan

Read more

Design Week 2023

Read more

Flora Project: Forest Lab

Suber Design wins C-IDEA Golden Award 2022

Read more

Cork staircase project by Roz Barr Architects in the Building Centre

Read more

Suber Design Corbula new ethics iF DESIGN AWARD

AMORIM

Consolidated Performance

Sales totalled 985.5 M€ (-3.5%), impacted by FX and subdued volumes across all Business Units:

· Amorim Florestal:	+14.5%
- Amorim Cork :	+0.7%
· Amorim Cork Flooring:	-30.1%
▪ Amorim Cork Composites:	-3.8%
· Amorim Cork Insulation:	+14.2%

FX negatively impacted sales:

• -13.0 M€
• -2.2% sales

EBITDA/Sales improved to 18.0%

• EBITDA increased to 177.0 M€
• Product mix improvements, increased grinding yields and cost savings

Non-recurrent results of 0.8 M€,

Net income declined 9.7% to 88.9 M€

Net Debt increased to 240.8 M€

-

-

Dividends: the approval of a gross dividend of € 0.20 per share.

Purchase of a 55% stake for CHF 11.6 M

-

Strengthening Corticeira Amorim's presence in

Switzerland

Conclusion of the transaction: October 11;

Fully consolidated from October 1.

New cork oak plantations at Rio Frio and Baliza estates,

Setting up of a platform for ESG management and reporting,

Appointment of a Head of Corporate Safety &

Health,

Promoting sustainability across the supply chain

Strengthening policies and procedures,

Appointments, Evaluation and Remuneration Committee

ESG Performance

AMORIM

Business Units

Vertical Integration

Amorim Florestal

Sales

Sales increased 14.5% to 234.0 M€

An improved business mix and higher cork prices were the main causes of sales growth; cork preparation, disc production and North Africa continued to contribute positively to performance;

EBITDA margin declined marginally, as higher cork consumption prices more than offset lower operational costs (particularly electricity and transport) and an improved sales mix;

Significant increase in volumes in the 2023 cork purchasing campaign; prices increased for the second consecutive year, driven by inventory replenishment following a highly atypical 2022 harvest;

Cork consumption prices should remain at high levels over the coming months, reflecting the existing inventories built up in the 2023 campaign;

New plantations at Rio Frio and Baliza estates progressed as planned (totalling 1,198 hectares); continued development of new and more efficient technologies to improve processes, ranging from forestry to the manufacturing and selection of cork discs.

Values in million euros.

EBITDA

Amorim Cork

Sales

EBITDA

Sales increased 0.7% to 759.4 M€

Product mix improvements and price increases continued to drive sales growth; sales remained negatively impacted by volume declines (ongoing destocking, across different wine segments and markets) and by FX (at constant exchange rates, sales increased 2.3%);

The sparkling wine and spirits segments showed resilient sales performances; the still wine segment underperformed as lower consumption, particularly in the low-end segment, further impacted volumes; Neutrocork continued to show strong sales growth, making it stand out in the still wine stopper category segment;

Despite the significant increase of cork prices, the EBITDA margin evolved very positively, supported by:

• · Improved product mix,
• · Lower energy and transport costs,
• · Lower non-cork raw material prices,
• Increased grinding yields;

Consolidation of VMD Group from October 1.

0.0% 5.0% 10.0% 15.0% 20.0% 25.0%

Sales

EBITDA

0.0

50.0

100.0

150.0

200.0

250.0

0.0 100.0 200.0 300.0 400.0 500.0 600.0 700.0 800.0

Amorim Cork Flooring

Sales

Sales decreased 30.1% to 92.2 M€

Volume performance was the main reason for the significant decline in sales; market conditions remained very challenging, namely in the residential segment;

Negative sales performance across most regions and in all product lines, especially those being phased-out; manufactured products were particularly impacted, continuing to underperform trade products;

The decline in the EBITDA margin mainly reflects the negative impact of operating deleverage, despite having benefited from:

• · Price increases,
• · Product mix improvements,
• · Reduced operating costs, with significant savings in energy, transport and marketing costs;

The launch of new and more sustainable products in 2024 should lay the foundation for a steady recovery of profitability, once the negative trend in the flooring market that began in the summer of 2022 reverses.

EBITDA

Amorim Cork Composites

Sales

EBITDA

Values in million euros.

Sales decreased 3.8% to 119.8 M€

Despite a solid sales performance in the last quarter, sales in 2023 fell across most regions, reflecting lower volumes that more than offset the benefits of product mix improvements and price increases;

The Sports Surfaces, Footwear and Aerospace segments recorded strong sales growth, while the Distributors of Flooring & Related Products segments showed the biggest drops, given the tough market conditions that have been impacting the sector overall;

Sales by existing partnerships (Amorim Sports, Corkeen, Korko) continued to outperform, increasing their weight in total sales to 8.5%;

EBITDA margin expanded significantly, mostly reflecting product mix improvements, as the most profitable sectors posted the strongest sales performances, whilst negatively impact from:

• · Operating deleverage,
• · Higher cork prices,
• · Lower grinding yields.

Amorim Cork Insulation

Sales

Sales increased 14.2% to 18.2 M€

Sales growth driven by higher sales prices and product mix improvements, despite the increased pressure on volumes;

Portugal, the BU's most important market, showed robust sales growth; sales performance in the Middle-East was also positive;

Higher cork consumption prices and operating deleveraging were the main drivers of a significant drop in the EBITDA margin, despite benefitting from an improved product mix, better grinding yields and lower operating costs (mainly reflecting lower energy prices);

Contexts of high cork prices typically have a significant impact on the BU's margins, as expanded insulation corkboard is highly sensitive to cork prices, as its manufacture uses only cork as a raw material;

Profitability is expected to be restored, as cork prices should normalise, following two years of significant increases.

Values in million euros.

EBITDA

AMORIM

Key Financials

Sales & EBITDA

Sales

EBITDA

Sales | Gross Margin | EBITDA | EBIT

Sales by Business Unit

	2021	2022	2023
Amorim Florestal + Amorim Cork	70.8%	74.2%	77.2%
Amorim Cork Flooring	14.1%	12.5%	9.2%
Amorim Cork Composites	13.6%	12.0%	12.0%
Amorim Cork Insulation	1.5%	1.4%	1.6%
	100%	100%	100%

Sales to more than 100 countries

EBITDA by BU

EBITDA by BU

EBITDA/Sales (%)	2021	2022	2023
Amorim Florestal + Amorim Cork	20.0%	18.8%	21.1%
Amorim Cork Flooring	2.3%	-1.3%	-8.5%
Amorim Cork Composites	8.6%	17.4%	21.0%
Amorim Cork Insulation	14.2%	5.5%	-8.6%
Consolidated	16.0%	16.1%	18.0%

Key P&L Figures

	2021	2022	2023	yoy
Sales	837.8	1,021.4	985.5	-3.5%
Gross Margin	415.8	523.8	507.6	-3.1%
Operating Costs (incl. depreciation)	322.2	408.5	382.6	-6.3%
FBITDA	134.4	164.0	177.0	7.9%
Depreciation	40.7	48.6	51.9	6.7%
EBIT	93.7	115.3	125.1	8.5%
Non-recurrent costs	-6.4	0.8	-0.8	-197.3%
Net financial costs	1.6	2.8	7.8	180.9%
Share of (loss)/profit of associates	3.0	4.8	3.0	-37.9%
Profit before tax	101.5	116.6	121.0	3.8%
Income tax	18.4	5.9	20.9	252.0%
Non-controlling interest	83	12.2	11.2	-8.2%
Net Income	74.8	98.4	88.9	-9.7%
	2021	2022	2023	yoy
Gross Margin/ Sales	49.6%	51.3%	51.5%	+ 23 b.p.
EBITDA / Sales	16.0%	16.1%	18.0%	+ 191 b.p.
Earnings per share (€)	0.562	0.740	0.668	-9.7%

Operating Figures

Operating costs

	2021	2022	2023	yoy
External supplies	142.6	186.5		151.2 -18.9%
Transports	33.7	39.4	30.5	-22.6%
Energy	26.2	39.9	15.0	-62.4%
Staff costs	146.1	182.9	189.7	3.7%
Depreciation	40.7	48.6	51.9	6.7%
Impairments	-2.2	0.2		1.2 654.3%
Others	-5.0	-9.8	-11.4	16.7%
Total Operating Costs (current)	322.2	408.5	382.6	-6.3%

Staff costs

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%

6,500

• 50.0 100.0 150.0 200.0 250.0 300.0 350.0

3,000

3,500

4,000

4,500

5,000

5,500

Number of workers 6,000

Net Income

Financial Position

	December 31,2020 *	December 31,2021*	December 31,2022*	December 31,2023 *
Net Goodwill	13.7	9.8	18.9	23.9
Net Fixed Assets / Intangible Assets / Right of use / Biological assets	304.1	307.5	420.1	467.4
Net Working Capital **	407.7	358.3	441.8	555.4
Other ***	31.0	61.2	46.2	43.0
Invested Capital	756.6	736.9	926.9	1,089.6
Net Debt	110.7	48.1	129.0	240.8
Share Capital	133.0	133.0	133.0	133.0
Reserves and Retained Earnings	416.7	462.9	5326	577.2
Non Controlling Interests	26.9	27.3	79.3	89.8
Agreement to acquire non-controlling interests	10.0	5.0
Taxes and Deferred Taxes	33.7	33.3	25.1	19.6
Provisions	4.5	5.5	6.6	11.1
Grants ***	21.0	21.7	21.3	18.0
Equity and other sources	645.9	688.8	797.9	848.8

* Final figures according to the approved accounts.

** Inventories + accounts receivables - accounts payables + other operating assets (liabilities).

*** Investment property + Investments in associates + Other non-operating assets/(liabilities).

**** Non interest bearing grants (reimbursable and non-reimbursable).

Net Working Capital

Net Debt

---

—— NET DEBT / EBITDA

Current sales and EBITDA of the last four quarters.

Net Debt

* VMD Group acquisition for 12.3 M€ which included net cash of 6.3 M€.

Debt breakdown by maturity

	2020	2021	2022	2023
Fixed	38%	40%	40%	27%
Variable	62%	60%	60%	73%
Sustainable financing	22%	45%	40%	38%
Average cost of debt	1.0%	0.9%	1.2%	3.1%
Average maturity	2.3	2.4	2.0	1.8

Ratios

	2020	2021	2022	2023
Net Debt / EBITDA *	0.90	0.36	0.79	1.36
EBITDA / Net Interest	105.7	167.7	148.6	52.6
Gearing	19.2%	7.7%	17.3%	30.1%
NWC / Market capitalization	26.4%	26.4%	38.1%	45.7%
NWC / Sales x 360 *	198.3	154.0	109.3	202.9
Free cash flow (FCF)	90.0	119.5	-139.6	-45.1
Capex	44.8	44.0	76.7	95.3
Return on invested capital (ROIC) pre-tax	11.4%	12.7%	12.4%	12.0%
Return on invested capital (ROIC)	9.8%	10.2%	11.8%	10.0%
Average Cost of Debt	1.0%	0.9%	1.2%	3.1%

* Current sales and EBITDA of the last four quarters.
FOF = EBITDA = Net financing expenses = lncome tax = Capex = NWC variation.
ROIC = Annualized NOPAT / Capital employed

Steadily growing Dividend Payment

In 2023, a total of 38.6 M€ was paid out in dividends

approved the distribution of free reserves in the amount of € 0.09 per share

Board of Directors will propose distribution of a gross dividend of € 0.20 per share to be paid in May

		2016	2017	2018	2019	2020	2021	2022	2023
Issued shares	Qt	133,000,000	133,000,000	133,000,000	133,000,000	133,000,000	133,000,000	133,000,000	133,000,000
Year-end close (N-1)	€	5.948	8.500	10.300	9.000	11.300	11.600	11.280	8.720
Earnings per share (N-1)	€	0.431	0.772	0.549	0.582	0.564	0.484	0.562	0.740
Payout	0/0	58.0%	33.7%	49.2%	46.4%	32.8%	55.8%	51.6%	39.2%
Dividend per share	€	0.240	0.260	0.270	0.270	0.185	0.270	0.290	0.290
Total dividend	ME	31.9	34.6	35.9	35.9	24.6	35.9	38.6	38.6
Dividend Yield	0/0	5.5%	3.6%	2.4%	2.5%	1.8%	2.4%	2.9%	3.0%

-0.050

0.050

0.150

0.250

0.350

0.450

0.550

-10.0%

10.0%

30.0%

50.0%

70.0%

90.0%

110.0%

130.0%

150.0%

Stock Market

Source: Euronext | CorticeiraAmorim

AMORIM

Sustainable by nature

ESG Strategy

Committed to a solid and dynamic future with sustainability as the main reference

Sustainable Development Goals are an integral part of our Sustainability Strategy

Our strategy is aligned with 12 Sustainable Development Goals

ESG Strategy Goals

Ethics and Integrity

Act in an appropriate and ethical way, with transparency and responsibility, stimulating competitiveness and the creation of long-term value

Value Chain

|--|

Reinforce responsible production and consumption, preferably selecting suppliers that adopt good ESG practices

Cork Oak Forest

Preserve the cork oak forest and ecosystem services by increasing knowledge, mobilizing resources and proposing initiatives

Climate Change

Reduce the environmental impact of operations by adopting renewable, affordable and efficient solutions

Circular Economy

Apply the principles of circular economy through the reduction of waste, extend the life of materials and regeneration of natural systems

Green Products

Maintain a proactive role in developing the already vast scope of application of cork, sustained by the innate properties of the material

Development

Promote personal and professional development for all

Safety, Health and Well-Being

Ensure the safety, health and physical and psychological well-being of all, and promote appropriate work environments

Community /Society

Boost economic growth in a sustainable and inclusive manner, ensuring efficient production and decent work for all

Innovation

Support and promote research, development and innovation and foster sustainable solutions

ESG Targets: 2030

(Portuguese operations)

100% workers with training

Zero discrimination

100% wasterecovery rate

100% controlled renewable electrical energy

Zero

injuries

recordable

work-related

13 CLIMATE

Zero carbon footprint (scopes 1 and 2)

Balanced and Agile Governance Model

Anglo-Saxon Model

Elected by the shareholders' General Meeting

Designated by the Board of Directors

Balanced and Agile Governance Model

Leveraging Board Effectiveness

Shareholder Structure

T

Ana Negrais de Matos, CFA Corticeira Amorim, SGPS, S.A.

T F

AMORIM

Sustainable by nature