Corticeira Amorim

Investor Presentation • May 15, 2017

Corticeira Amorim 102017

Consolidated Results

Integral Verticalization

Key Facts & Figures

Sales reached 172 million euros (ME) an increase of 15 ME (+9.6%);

Sales growth at all major BUs:

• Cork Stoppers (+10.3%);
• Floor & Wall Coverings (+9.2%); $\bullet$
• Cork Composites (+ 5.9%): $\bullet$

Sales growth mainly reflected the volume effect (70%);

The exchange rate effect had a positive impact of 2,1 $M\epsilon$ on sales;

1Q2017 benefited from higher number of working days in Portugal $(+2 \text{ days})$

Consolidated sales for April 2017 negatively affected by less four working days (Portugal);

Every cork stopper segment (wine, sparkling and spirits) registered strong sales growth (above 9%);

NDtech^® with sales of 4 million stoppers in the quarter;

Hydrocork^® sales $(4.7 \text{ M€})$ continue to grow;

Increased impairments (2.3 M€) caused by:

• The reassessment of intangible assets from development projects;
• The recoverable amount from an industrial site that will be relocated;

Key Facts & Figures

EBITDA increased by 21.6% (33.6 M€ vs. 27.6 M€);

EBITDA/Sales 1Q17: 19.5% (1Q16: 17.6% | 2016FY: 19.1%):

• Increased sales with a more favorable mix:
• Gains on gross margin;

Financial operations continue to benefit from lower net debt and lower interest rates;

Net debt decreased by 24 M€ from the end of 2016, to 12 M€;

Net Income of 17.2 M€ (+23.7%);

Total Assets reached 741.4 M€ (2016FY: 726.9 M€);

Dividends distributed in 2017: $\epsilon$ 0.18 per share (April);

Total cash out of 23.9 M $\epsilon$ .

+6.3% +9.6%

Business Units

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Raw Materials + Cork Stoppers

EBITDA

^* excludes 1.7 M€: non-recurrent costs
** excludes 2.9 M€: Goodwill impairment

Values in million euros.

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Insulation Cork

Sales

Sales decreased by 3.4% to 2.8 M€

Excluding the effect of granulated cork sales to the Cork Composites BU, sales increased by 296 thousand euros, +12%;

No supplies of granulated cork to the Cork Composites BU;

Increase in specialty sales, mainly MDFachada® and re-granulated cork for football stadiums;

EBITDA reached 0.5 M€ (-22.7%): a lower gross margin due to a higher average price of specific raw materials manufactured explains the variation.

Key
Financials

1Q15	1Q16	1Q17
63.6%	64.5%	65.0%
19.0%	18.3%	18.4%
15.1%	14.2%	13.6%
1.4%	1.4%	1.5%
0.9%	1.5%	1.5%
100%	100%	100%

EBITDA/Sales (%)	1Q 15	10 16	1Q 17
Raw Materials + Cork Stoppers	20.3%	20.7%	24.8%
Floor and Wall Coverings	6.4%	9.5%	7.4%
Cork Composite	9.1%	17.9%	18.4%
Insulation Cork	22.1%	22.9%	18.3%
Consolidated	16.2%	17.6%	19.5%

	1Q15	1Q16	1Q17	yoy
External supplies	24.4	24.8	27.9	12.4%
Transports	5.2	5.4	5.5	2.4%
Energy	3.1	3.3	3.4	3.8%
Staff costs	28.1	29.4	31.6	7.4%
Depreciation	6.2	6.5	8.1	24.8%
Impairments	0.6	$-0.04$	2.3
Others	2.2	0.6	$-0.4$
Total Operating Costs (current)	61.6	61.3	69.5	13.4%

	1Q15	1Q16	1Q17	yoy
EBITDA	23.8	27.6	33.6	21.6%
Depreciation	6.2	6.5	8.1	24.8%
Net financial costs	0.6	0.5	0.2	$-58.1%$
Non-current costs	2.9	1.7	0.0	$-100.0%$
Share of (loss)/profit of associates	0.4	0.1	$-0.02$
Profit before tax	14.4	19.1	25.2	32.4%
Income tax	5.8	4.7	7.1	50.5%
Non-controlling interest	0.2	0.4	0.9	119.9%
Net Income	8.4	13.9	17.2	23.7%

Key Consolidated Indicators

Sales up 9.6% to 171.7 M€;

Cork Stoppers and Floor and Wall Coverings had a major impact on growth;

Sales growth mainly due to the volume effect; the exchange rate accounted for 2.1 M $\epsilon$ ;

EBITDA/Sales: 19.5%;

Net income up by 23.7% to 17.2 M€;

Main applications of EBITDA + government grants (8 $M\epsilon$ ): 5.7 M€ Capex 3.7 M€ Working Capital Needs 24.2 M€ Net Debt Reduction $-2.2$ ME Other

The AGM held on April 7 approved a dividend of 0.18€ per share, payed on April 26.

	1Q15	1Q16	1Q17	yoy
Sales	147.4	156.7	171.7	9.6%
Gross Margin	79.2	82.4	95.0	15.3%
Gross Margin / Prodution	49.7%	51.7%	52.6%	$+0.9 p.p.$
Operating Costs	61.6	61.3	69.5	13.4%
EBITDA	23.8	27.6	33.6	21.6%
EBITDA / Sales	16.2%	17.6%	19.5%	$+1.9$ p.p.
EBIT	17.6	21.1	25.5	20.6%
Non-recurrent costs	2.9	1.7	0.0	$-100.0%$
Net Income	8.4	13.9	17.2	23.7%
Earnings per share $(\epsilon)$	0.067	0.105	0.129	23.7%

23

Debt | Ratios

	1Q 15	2015	1Q16	2016	1Q 17
Net Debt	90.3	83.9	87.1	35.9	11.7
Net Assets	644.2	667.2	670.7	726.9	741.4
Equity and Minority interests	328.0	354.1	368.5	426.9	444.2
Net Debt / EBITDA*	0.96	0.83	0.83	0.29	0.09
EBITDA / Net Interest	54.7	70.5	82.3	108.6	238.0
Equity / Net Assets	50.9%	53.1%	55.0%	58.7%	59.9%
Gearing	27.5%	23.7%	23.6%	8.4%	2.6%
Net working capital (NWC)	296.2	296.8	315.5	315.7	305.5
NWC / Market capitalization	55.0%	37.3%	35.4%	27.9%	23.0%
NWC / Sales x 360	180.9	176.7	181.2	177.2	160.1
Free cash flow (FCF)	$-4.0$	22.1	6.3	86.9	17.2
Capex	3.6	31.4	5.8	33.6	5.7
Return on invested capital (ROIC)	12.8%	14.3%	14.2%	16.9%	16.5%
Average Cost of Debt	2.7%	2.1%	1.7%	1.8%	1.4%

* Current EBITDA of the last four quarters

NWC = Inventories + Trade receivables + Other operating assets - Trade payables - Other operating liabilities FCF = EBITDA - Non-current cash expenditures - Net financing expenses - Income tax - Capex - NWC variation ROIC = Annualized NOPAT / Capital employed (average)

Balance Sheet

Assets

Liabilities & Equity $2014$ $10.17$

	1Q16	2016	1Q17		1Q16	2016	1Q17
Total non-current assets	225.4	231.7	228.9	Equity	368.5	426.9	444.2
Inventories	257.2	268.7	262.4	Bank borrowings	41.6	38.6	37.8
Raw materials (cork)	119.9	149.2	122.0	Provisions	32.8	30.7	31.0
Finished products and WIP	126.5	109.1	116.8	Other non-current liabilities	17.5	16.9	24.1
Others	10.8	10.3	23.7	Total non-current liabilities	91.9	86.2	92.9
Trade receivables	147.7	141.9	161.4	Bank borrowings	54.2	48.4	28.2
Other current assets	40.3	84.6	88.6	Trade payables	98.6	110.0	107.5
Corporate Income Tax	2.5	4.2	2.5	Accrued costs	22.9	23.4	26.8
Cash	8.6	51.1	54.2	State and social security - withholding/VAT/others	20.0	16.0	22.7
VAT receivable	18.4	19.9	19.2
Others	10.9	9.3	12.7	Other current liabilities	14.5	16.0	19.1
Total current assets	445.2	495.2	512.5	Total current liabilities	210.2	213.8	204.3
Total Assets	670.7	726.9	741.4	Total Liabilities and Equity	670.6	726.9	741.4

Cristina Rios de Amorim

CFO. IRO Tel.: +351 22 747 54 25 . Fax: +351 22 747 54 07 Email: cristina.amorim@amorim.com www.corticeiraamorim.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