Corticeira Amorim

Investor Presentation • Aug 1, 2019

Corticeira Amorim 1 - 2019

August 1, 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.

Data from Nielsen Scanning Statistics confirms rising dominance for cork-sealed brands for the Top 100 Premium Brands in the USA. Cork-sealed wines already have 64.7% market share of US Premium Wines.

3

Launch of WISE, a non PVC sustainable flooring with a negative carbon footprint. WISE has an innovative core (Cork Rigid Core), made of cork and recycled materials, 100% recyclable.

WISE by Amorim cork flooring has won the Innovation Award for Architecture + Construction at BAU, the world's leading trade fair for architecture and building materials, in Munich.

Designed by Tom Dixon -Cork in the garden of the future of the Chelsea Flower Show, in London,. The project was awarded a silver medal by the Royal Horticultural Society

The summer with cork in the Square: 1.900 blocks of expanded cork agglomerate were used to create Gardens of Stone, designed by the Atelier Barbas Lopes for the programme A Square in the Summer of the Centro Cultural de Belém, Lisbon.

6

In brief

Leonor Antunes and Nacho Carbonell take Portuguese cork to the 58th Venice Biennale 2019

Leonor Antunes

Nacho Carbonell presents the "Inside a Forest Cloud" chandelier, in a creative and eloquent dialoque with the impressive Ca' d'Oro, one of the Grand Canal's most outstanding and crowded palaces.

ARCO VIP Room lined and decorated with cork as part of an artistic creation designed by Lázaro Rosa-Violán.

NYCxDesign 2019 -Ligne 102, an installation created by Bernard DuBois for Ligne Roset, presents Portuguese cork in the New York Design Week

Climate Change Leadership: as a founding member of The Porto Protocol Corticeira Amorim is deeply committed to creating a sustainable future for generations to come.

"By sharing best practices and near-term solutions we are capable of making a difference" climate leader Al Gore said during his speech at Climate Change Leadership Porto.

Integral Verticalization

People, Planet and Profit

Alignment with United Nations' SDG

Sustainability Strategy aligned with 12 Sustainable Development Goals

	Promote the	Circular Economy		C PRODUC 8
	environmental features of the product and the	Product Environmental Impact	ESTMENNER	-07
		Energy Efficiency and Climate Change
	"Montado"	Promotion of the "Montado", its Biodiversity and Ecosystem Services		CO	15 ATERSO
development,		Promote people's Training and Development		2 DEGENERO 0	ECONOMICO
	safety and well- being	Health and Satety at Work		ECRESCINENT
	Promote R&D and leverage	Economic Performance
	economic performance	Research, Development and Innovation

O ECRESCIMENTO 1 1 CONSUMICA

Sales & EBITDA

Consolidated sales – excludes sales between Corticeira Amorim's Business Units. Values in million euros.

Consolidated Results

Key Facts & Figures

Sales rose to 412.2 M€ (+3.1%):

• Raw Materials: +12.0%;
• Cork Stoppers: +4.7%;
• Floor & Wall Coverings: -2.2%;
• Composite Cork: +4.0%; o
• Insulation: +15.6%; o

Positive impact from FX: total impact of 4.5 M€ on sales;

EBITDA/Sales: 16.6% (FY18: 17.6%)

• EBITDA of 68.3 M€;
• Increased cork prices and operational costs, partially offset by price increases, efficiency and yield gains, and a supportive FX;

Raw Materials + Cork Stoppers:

• Sales increased by 3.7% to 304.6 M€;
• EBITDA/Sales of 21.9% (FY18: 22.3%);
• · 73% of consolidated sales (FY18: 72%):

Share of profit of Associates totalled 4.4 M€; includes the final distribution of Escrow Funds from the sale of US Floors (2.4 M€);

Income tax fell to 10.9 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 reached 40.4 M€ (1H18: 41.2 M€);

Application of IFRS 16 resulted in increases of EBITDA (+0.8 M€), depreciations (+0.8 M€) and net debt (+5.1 M€), as of June 30. Historical figures were not restated according to this accounting standard;

Net debt of 149.9 M€ (FY18: 139.0 M€):

• · increased NWC needs (22.4 M€),
• capex (23.3 M€),
• · dividends paid (24.6 M€),
• adoption of IFRS 16 (excluding this impact, net debt would have been 144.8 M€).

Subsequent Events — 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 and crystal 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;

To be 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€.

Sales | EBITDA

* excludes 0.7 M€: non-recurrent gains

━━━━━━━━━━━━━━━━

-- EBITDA

Values in million euros.

Net Working Capital | Net Debt

Net Working Capital

Net Debt

* Current EBITDA of the last four quarters

Values in million euros.

Business Units

-

••••

-

25,0%

0,00 50,00 100,00 150,00 200,00 250,00 300,00 350,00

0,0 50,0 100,0 150,0 200,0 250,0 300,0 350,0

- ••••

-

15,0%

25,0%

20,0%

Raw Materials + Cork Stoppers

EBITDA

-30,0 20,0 70,0 120,0 170,0 220,0 270,0 320,0

-

-5,0% 0,0% 5,0% 10,0% 15,0% 20,0%

•••••••

-

• 25,0%

0,00 50,00 100,00 150,00 200,00 250,00 300,00 350,00

0,0 50,0 100,0 150,0 200,0 250,0 300,0 350,0

-5,0% 0,0% 5,0%

20,0% 25,0%

-

••••••

-

• 10,0% 15,0%

- ••••••

-

-30,0 20,0 70,0 120,0 170,0 220,0 270,0 320,0

Key Financials

Sales by Business Unit

■ Cork Stoppers ■ Floor and Wall Coverings ■ Composite Cork ■ Raw Materials

1H 17	1H 18	1H 19
68.2%	72.5%	72.7%
17.1%	13.9%	13.6%
13.2%	12.3%	12.3%
1.4%	1.3%	1.4%
100%	100%	100%

Sales to more than 100 countries

Sales by geographic areas

■EU * ■ USA ■Rest of America ■ Australásia ■ Portugal ■ Rest of Europe ■ Africa

Sales by currency

Sales | Gross Margin | EBITDA | EBIT

EBITDA by BU

Values in million euros.

EBITDA by BU

■Raw Materials ■ Cork Stoppers ■ Floor and Wall Coverings ■ Composite Cork ■ Others

EBITDA/Sales (%)	11 17	11 13	1H 19
Raw Materials + Cork Stoppers	24.8%	24.5%	21.9%
Floor and Wall Coverings	6.8%	2.2%	=3.7%
Composite Cork	16.0%	10.4%	11.5%
Insulation Cork	18.8%	13.7%	-5.0%
Consolidated	19.9%	19.4%	16.6%

Key P&L Figures

	1H 17	1H 18	1H 19	yoy	1H 19 w/o IFRS 16	IFRS 16
Sales	354,8	399,9	412,2	3,1%	412,2
Gross Margin	192,1	207,0	204,2	-1,3%	204,2	-
Operating Costs (incl. depreciation)	137,3	146,0	153,9	5,4%	153,9
EBITDA	70,6	77,4	68,3	-11,8%	67,5	0,8
Depreciation	15,8	16,5	18,0	9,2%	17,2	0,8
EBIT	54,8	60,9	50,3	-17,5%	50,3
Non-recurrent costs	0,0	-0,7	0,0		0,0
Net financial costs	0,4	1,7	1,0	-41,0%	1,0
Share of (loss)/profit of associates	0,8	1,3	4,4	227,4%	4,4	-
Profit before tax	55,2	61,3	53,7	-12,4%	53,7	-
Income tax	15,9	16,3	10,9	-33,1%	10,9
Non-controlling interest	1,6	3,7	2,4	-35,0%	2,4
Net Income	37,8	41,2	40,4	-2,1%	40,3	0,0
	1H 17	1H 18	1H 19	yoy	1H 19 w/o IFRS 16
Gross Margin / Production	53,3%	49,3%	48,0%	-1,3 p.p.	48,0%
EBITDA / Sales	19,9%	19,4%	16,6%	-2,8 p.p.	16,4%
Earnings per share (€)	0,284	0,310	0,303	-2,1%	0,303

Operating Figures

Operating costs

1H 17	1H 18	1H 19	yoy
56,0	61,2	63,2	3,3%
11,7	12,9	13,1	2,3%
6,6	7,5	7,1	-5,1%
63,6	71,0	74,7	5,2%
15,8	16,5	18,0	9,2%
2,5	0,3	0,0	n.m.
-0,6	-2,9	-1,9	-35,5%
137,3	146,0	153,9	5,4%

Staff

Value and % (sales)

Values in million euros.

Number of employees

Net Income

Financial Position

	2017	June 30, December 31, 2017	2018	June 30, December 31, 2018	June 30, 2019	June 30, 2019 w/o IFRS 16	IFRS 16
Net Goodwill	0.0	9.8	14.0	14.0	13.6	13.6
Net Fixed Assets / Right of use	194.5	227.9	235.6	259.6	271.0	265.9	5.1
Net Working Capital *	299.5	359.0	388.9	414.5	436.8	436.8	l
Other **	20.8	21.9	21.4	21.4	24.6	24.6	-
Invested Capital	514.8	618.7	659.9	709.4	746.1	741.0	5.1
Net Debt	11.1	92.8	102.1	139.0	149.9	144.8	5.1
Share Capital	133.0	133.0	133.0	133.0	133.0	133.0	l
Reserves and Retained Earnings	290.3	297.5	309.8	333.4	349.4	349.4	l
Non Controlling Interests	16.6	29.5	32.2	31.9	34.1	34.1
Agreement to acquire non-controlling interests		19.0	20.0	20.4	20.2	20.2	l
Taxes and Deferred Taxes	11.9	-17.0	-1.2	-12.6	-2.1	-2.1
Provisions	29.9	41.2	38.8	43.4	40.6	40.6
Grants ***	21.9	22.6	23.4	21.3	20.9	20.9
Equity and other sources	503.5	525.8	556.1	570.7	596.2	596.2	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)

Net Debt

Ratios

	11 17	2017	11 13	2018	1H 19
Net Debt / EBITDA *	0.09	0.69	0.73	1.04	1.20
EBITDA / Net Interest	230.3	135.9	136.6	108.0	81.8
Gearing	2.5%	20.2%	21.5%	27.9%	29.0%
NWC / Market capitalization	17.5%	26.4%	26.1%	34.6%	32.3%
NWC / Sales x 360	152.0	179.5	189.0	195.5	190.7
Free cash flow (FCF)	40.3	34.0	25.3	11.2	18.3
Capex	14.3	43.7	23.4	57.9	23.3
Return on invested capital (ROIC) pre-tax	24.6%	20.5%	21.3%	16.4%	14.8%
Return on invested capital (ROIC)	17.9%	15.0%	15.3%	11.8%	11.9%
Average Cost of Debt	1.64%	1.67%	1.40%	1.09%	1.28%

* Current 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;

The Shareholders General Meeting (April 12, 2019) approved the distribution of a gross dividend of € 0.185 per share;

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

		2013	2014	2015	2016	2017	2018	1H 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)	E	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	%	68.5%	83.3%	14.37%	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 0.385€ per share includes an addition of 0.195€ per share (Nov. 2015) as an application of gains accrued in the ABB of treasury stock (5.62%)

Stock Market|CORA.LS

Source: Euronext

	2013	2014	2015	2016	2017	2018	1H 19
Qt. of shares traded	2,184,858	3,481,685	12,693,424	10,801,324	19,290,907	14,884,641	4,361,108
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	10.135
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	10.180
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	1,353,940,000

Source: Euronext|Corticeira Amorim

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

Shareholder Structure

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