Corticeira Amorim

Investor Presentation • Nov 7, 2019

Corticeira Amorim 2 M 2019

November 7, 2019

Launch of NDtech Sparkling, a cutting-edge quality control screening technology: the world´s first two-disc sparkling wine stopper with an individual, non-detectable TCA guarantee.

PwC study, commissioned by Amorim, concluded Neutrocork cork stopper has a positive carbon footprint. Each cork stopper is responsible for the retention of 392grams of CO2.

Acquisition of 50% of Vinolok. The historic association between cork and glass is expected to foster additional gains for premium and ultrapremium packaging of wines and spirits, in terms of sustainability, convenience and design.

Amorim Top Series launches a 100% natural capsulated cork stopper, developed in partnership with Cork Composite division, which combines cork with new bio-polymers derived exclusively from renewable resources.

Finalist in the prestigious Stirling Prize and winner of the RIBA's Stephen Lawrence 2019 award, the innovative Cork House (Berkshire, UK) was built with Amorim's expanded cork agglomerate.

Houses designed by Frank Lloyd Wright classified as World Heritage sites by UNESCO

In the interior of the Fallingwater house (Pennsylvania, USA), cork's natural colour complements Wright's specified palette of materials associated to the natural surroundings, providing acoustic insulation, warmth and softness.

World Business Council for Sustainable Development

Council Meeting in Lisbon

As one of the speakers in the "Disrupt or be disrupted: Fostering Innovation for Change" session, CEO António Rios de Amorim spoke about innovation for sustainability and Amorim's innovation culture

Corticeira Amorim presents City Cortex

A research program devised in partnership with ExperimentaDesign that focuses on the intersection between contemporary urban contexts and cork.

Creation of original projects for public or semi-public spaces in the city of New York, through the development of in situ research on the potential of Portuguese cork and its transformation industry.

www.city-cortex.com

Invited architects and designers:

Gabriel Calatrava (cal.xyz)

Diller Scofidio & Renfro (dsrny.com)

Sagmeister & Walsh (sagmeisterwalsh.com)

Leong Leong (leong-leong.com)

Philippe Starck (starck.com)

All the architects and designers have had the opportunity to delve into the universe of cork, understanding its possibilities and witnessing how it is transformed, used and reused at Corticeira Amorim's facilities.

Promote the	Circular Economy		RESPONSAL CO
environmental features of the	Product Environmental Impact	4	=(0)
product and the	Energy Efficiency and Climate Change
"Montado"	Promotion of the "Montado", its Biodiversity and Ecosystem Services		CO
development,	Promote people's Training and Development		DE GENERO 0
safety and well- being	Health and Satety at Work
Promote R&D and leverage	Economic Performance
economic performance	Research, Development and Innovation

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Consolidated Results

Acquisitions — July 2019

VINOLOK: acquisition of 50% for the amount of 11.0 M€; the seller will maintain ownership of the remaining 50%;

In brief:

• Owned by Preciosa Group and headquartered in the Czech Republic,
• Produces and sells high-end glass closures for wine and spirits bottles,
• Operates mainly in Europe, particularly in France and ltalv,
• · 2019FY (end-March): turnover: 16 M€ | EBITDA: 5.3 M€,
• Employees: 170;

Included in Corticeira Amorim's consolidated accounts - B/S an P&L - from July 25, 2019

• Consolidation method: equity,
• · Business Unit: Cork Stoppers.

BOURRASSE: acquisition of a 10% stake for the amount of 5.0 M€.

Key Facts & Figures

Sales rose to 602.6 M€ (+3.2%):

• Raw Materials: +15.0%;
• Cork Stoppers: +5.3%;
• Floor & Wall Coverings: -1.4%;
• Composite Cork: +2.2%; o
• Insulation: +18.1%; 0

Positive impact from FX: 6.1 M€ at sales level;

EBITDA/Sales: 16.1% (FY18: 17.6%)

• EBITDA of 96.8 M€;
• Increased cork prices and operational costs, partially offset by price increases, FX and efficiency gains;

Raw Materials + Cork Stoppers:

• Sales increased by 4.1% to 443.6 M€;
• ° EBITDA/Sales of 21.0% (FY18: 22.3%);
• •

Non-recurrent results of -1.0 M€, mostly due to restructuring and transaction costs (related with the acquisition of Vinolok);

Share of profit of Associates totalled 5.7 M€;

includes the distribution of Escrow Funds from US Floors (2.3 M€) and Vinolok's acquisition (0.7 M€);

Income tax fell to 16.0 M€, reflecting the positive impact of the reversal of a provision related to the utilisation of tax losses at a subsidiary in Spain;

Net Income totalled 54.4 M€ (9M18: 58.6 M€);

Application of IFRS 16 resulted in increases in EBITDA (+1.1 M€), depreciations (+1.1 M€) and net debt (+4.6 M€), as of September 30;

Net debt of 161.3 M€ (FY18: 139.0 M€):

• Capex (36.3 M€),
• · Increased NWC needs (25.9 M€),
• · Dividends paid (24.6 M€),
• •
• debt would have been 156.7 M€).

Dividends: the Board of Directors will propose at the GSM an additional dividend of €0.085/share

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Net Working Capital | Net Debt

Net Working Capital

━━━ NWC / SALES (Current sales of the last four quarters) Net Debt

NET DEBT

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Business Units

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Key Financials

9M 7	9MT3	9M 19
69.2%	72.0%	72.6%
16.7%	14.0%	13.5%
12.7%	12.7%	12.5%
1.4%	1.3%	1.4%
100%	100%	100%

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EBITDA/Sales (%)	9M 7	9M 3	9M 19
Raw Materials + Cork Stoppers	24.2%	23.5%	21.0%
Floor and Wall Coverings	7.2%	3.2%	-2.7%
Composite Cork	15.8%	10.7%	11.4%
Insulation Cork	17.8%	10.7%	-0.4%
Consolidated	19.8%	18.6%	16.1%

	9M 17	9M 18	9M 19	yoy	9M 19 w/o IFRS 16	IFRS 16
Sales	531.5	583.8	602.6	3.2%	602.6
Gross Margin	284.4	297.7	295.3	-0.8%	295.3
Operating Costs (incl. depreciation)	200.8	212.9	224.9	5.6%	224.9
EBITDA	105.4	108.4	96.8	-10.7%	95.7	1.1
Depreciation	21.7	23.6	26.3	11.5%	25.2	1.1
EBIT	83.6	84.8	70.5	-16.9%	70.5
Non-recurrent costs	1.6	-0.7	1.0		1.0
Net financial costs	0.8	2.2	1.3	-40.3%	1.3
Share of (loss)/profit of associates	1.0	2.1	5.7	168.9%	5.7
Profit before tax	82.2	85.5	73.9	-13.6%	73.9
Income tax	22.9	21.9	16.0	-27.0%	16.0
Non-controlling interest	2.9	5.0	3.5	-30.2%	3.5
Net Income	56.4	58.6	54.4	-7.1%	54.4	0.0
	9M 17	9M 18	9M 19	yoy	9M 19 w/o IFRS 16
Gross Margin / Production	53.3%	49.2%	48.1%	-1.1 p.p.	48.1%
EBITDA / Sales	19.8%	18.6%	16.1%	-2.5 p.p.	15.9%
Earnings per share (€)	0.424	0.441	0.409	-7.1%	0.409

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	9M 7	9M 18	9M 19	yoy
External supplies	85.7	90.6	93.8	3.5%
Transports	19.0	19.1	19.7	3.4%
Energy	9.8	11.1	10.8	-2.9%
Staff costs	92.3	102.0	106.5	4.4%
Depreciation	21.7	23.6	26.3	11.5%
Impairments	3.6	0.9	1.4	51.4%
Others	-2.5	-4.2	-3.1	-26.7%
Total Operating Costs (current)	200.8	212.9	224.9	5.6%

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Staff

Value and % (sales)

Values in million euros.

Number of employees

Financial Position

	September 30, December 31, 2017	2017	September 30, December 31, 2018	2018	September 30, 2019	Sept. 30, 2019 w/o IFRS 16	IFRS 16
Net Goodwill	તે જિંદ	9.8	13.9	14.0	13.9	13.9
Net Fixed Assets / Right of use	222.1	227.9	245.1	259.6	275.5	270.9	4.6
Net Working Capital *	353.4	359.0	402.9	414.5	440.4	440.4	l
Other **	20.1	21.9	19.9	21.4	36.4	36.4	-
Invested Capital	605.1	618.7	681.9	709.4	766.2	761.6	4.6
Net Debt	75.8	92.8	104.7	139.0	161.3	156.7	4.6
Share Capital	133.0	133.0	133.0	133.0	133.0	133.0	l
Reserves and Retained Earnings	289.2	297.5	326.1	333.4	367.4	367.4	l
Non Controlling Interests	30.8	29.5	33.1	31.9	28.8	28.8
Agreement to acquire non-controlling interests	18.8	19.0	20.1	20.4	15.0	15.0	l
Taxes and Deferred Taxes	3.0	-17.0	5.0	-12.6	0.2	0.2
Provisions	30.5	41.2	36.8	43.4	40.3	40.3
Grants ***	23.9	22.6	23.2	21.3	20.3	20.3	l
Equity and other sources	529.3	525.8	577.2	570.7	604.9	604.9	l

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

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

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

Ratios

	9MT7	2017	9MT 3	2018	9M 19
Net Debt / EBITDA *	0.57	0.69	0.77	1.04	1.32
EBITDA / Net Interest	173.3	135.9	123.5	108.0	91.3
Gearing	16.7%	20.2%	21.3%	27.9%	30.5%
NWC / Market capitalization	22.4%	26.4%	26.3%	34.6%	33.2%
NWC / Sales x 360 *	186.5	179.5	192.4	195.5	202.7
Free cash flow (FCF)	43.4	34.0	22.9	11.2	28.1
Capex	27.1	43.7	40.1	57.9	36.3
Return on invested capital (ROIC) pre-tax	23.8%	20.5%	18.9%	16.4%	13.5%
Return on invested capital (ROIC)	17.2%	15.0%	14.0%	11.8%	10.6%
Average Cost of Debt	1.66%	1.67%	1.15%	1.09%	1.11%

* Current sales and EBITDA of the last four quarters

FCF = EBITDA – Non-current cash expenditures – Net financing expenses – Income tax – Capex – NWC variation

ROIC = Annualized NOPAT / Capital employed (average)

Dividends

Attractive Dividend Payment

11% Compound Annual Growth Rate in the last 5 years;

In 2018, a total of 35.9 M€ was paid out in dividends, an increase of 4% on 2017;

In April 2019, payment of a gross dividend of € 0.185/share;

The Board of Directors will propose at the Shareholders General Meeting (December, 2) the distribution of free reserves in the amount of € 0.085 per share.

		2013	2014	2015	2016	2017	2018	9M 19
lssued shares	Qt.	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)	€	1.600	2.210	3.020	5.948	8.500	10.300	9.000
Earnings per share (N-1)	€	0.246	0.242	0.285	0.431	0.772	0.549	0.582
Payout	%	68 12%	83.3%	143,2%	58.0%	337%	49.2%	31.8%
Dividend per share	€	0.160	0.190	0.385	0.240	0.260	0.270	0.185
Total dividend	ME	20.1	23.9	50.2	31.9	34.6	35.9	24.6
Dividend Yield	%	11.3%	9.3%	13.5%	5 5%	3.6%	2.4%	1.7%

Dividend of year N-1 is payed in year N

Dividend yield = dividend per share/average share price (N-1)

2015: dividend of 0.38€ per share includes an additional dividend of 0.19€ per share (10v. 2015) as an application of games of the AB of treasury stock (5.62%)

Stock Market|CORA.LS

Source: Euronext

	2013	2014	2015	2016	2017	2018	9M 19
Qt. of shares traded	2,184,858	3,481,685	12,693,424	10,801,324	19,290,907	14,884,641	6,598,340
Share price (€):
Maximum	2.400	3.650	6.290	9.899	13.300	12.000	11.020
Average	2.040	2.850	4.340	7.303	11.067	10.604	9.960
Minimum	1.560	2.200	2.990	5.200	8.180	8.370	8.710
Period-end	2.210	3.020	5.948	8.500	10.300	9.000	9.970
Trading Frequency	89.3%	96.1%	98.8%	100.0%	100.0%	100.0%	100.0%
Stock market capitalisation at period-end (€)	293,930,000	401,660,000	791,084,000	1,130,500,000	1,369,900,000	1,197,000,000	1,326,010,000

Source: Euronext|Corticeira Amorim

Qt. of shares traded in 2015 includes the ABB of 7,399,262 shares (17-09-2015)

Cristina Amorim

CFO tel.: +351 227 475 425 cristina.amorim@amorim.com

Ana Negrais de Matos, CFA

IRO tel.: +351 227 475 423 ana.matos@corticeira.amorim.com

Corticeira Amorim, SGPS, S.A. Rua de Meladas, nº 380 . PO BOX 20 . 4536-902 MOZELOS PORTUGAL tel.: +351 22 747 54 00 . Fax: +351 22 747 54 07 email: corticeira.amorim@amorim.com www.corticeiraamorim.com