Corticeira Amorim

Earnings Release • Aug 3, 2016

CORTICEIRA AMORIM, S.G.P.S., S.A.

Consolidated results June, 30

1. CONSOLIDATED RESULTS Organizational chart Highlights Consolidated key indicators (thousand euros)

2. Consolidated sales reached 334 million euros (M€) plus 24.8 M€ (+8%);

3. Growth justified by the effect of volume and mix. Exchange rate effect with little impact on sales. All Business Units (BU) registered more quantities sold. Effect perimeter: 1%;
4. Sales growth in value in all BUs, whether total or to end customers, particularly Cork Stoppers BU (+9.3%) and Floor and Wall Coverings BU (+6.3%). This BU managed to regain the positive trend of its sales;
5. NDTech sales initiated in the semester;
6. Growing importance of Hydrocork (weighing more than 10% of total sales of Floor and Wall Coverings BU);
7. Increased sales, change in the mix and stable operating costs justify an increase of 21.1% in EBITDA (65.9 M€ vs. 54.4 M€);
8. EBITDA / Sales 1H16: 19.7% (2Q16: 21.6%):
9. Improved ratio concerning Cork Stoppers + Raw Materials (1H16 = 22.1% vs. 1H15 = 21%), and in particular improved ratio of Floor and Wall Coverings (1H16: 11.1% vs 1Q16: 9.5%) and Cork Composites (1H16: 18.8% vs. 1H15: 13.5%);
10. Net Profit of 35.145 M€ (+34%).

* excludes 3730 K€ due to non-current results

** excludes 2912 K€ due to a Goodwill impairment

*** excludes 2735 K€ due to an industrial reorganization (Corroios)

1. HIGHLIGHTS AND KEY INDICATORS BY BUSINESS UNIT (thousand euros)

HIGHLIGHTS AND KEY INDICATORS 1H and 2Q: RAW MATERIALS BU

Activity increase 9.6%

• Sales for the value chain increased 7.8% (following the increase of activity of the Cork Stoppers, its main customer);
• EBITDA reached 10.6 M€, a slight decrease compared to 11.1 M€ in the 1H15; impact of increased price of the cork year 2014 and 2015 offset by increased activity and improving operating efficiency);
• Campaign 2016 (Portugal / Spain) was held as planned;
• Technological modernization and automation projects continue to be implemented.

HIGHLIGHTS AND KEY INDICATORS: CORK STOPPERS BU

Increased sales by 9.3% (1Q16: + 7.8%; 2Q16: +10.7%)

• Sales reached 220.6 M€ (1H15: 201.7 M€) driven by volume and mainly by the mix effect (more natural cork stoppers); perimeter effect: 1.4%;
• Highlighting the performance of Natural and Neutrocork® stoppers;
• Beginning of the commercialization of cork submitted to NDtech technology;
• Relevant performance in three of the major markets;
• EBITDA reached 39.8 M€ (+24%): increased sales, better mix and industrial improvements led to EBITDA ratio / Sales to move from 16% (1H15) to 18.1% (1H16);
• EBITDA ratio / Sales of Cork Stoppers + Raw Materials reached 22.1% (1H15: 21%).

HIGHLIGHTS AND KEY INDICATORS: CORK STOPPERS BU

1H 2014 1H 2015 1Q 2016 2Q 2016 1H 2016 EBITDA EBITDA (%sales)

HIGHLIGHTS AND KEY INDICATORS: FLOOR & WALL COVERINGS BU

Sales increase of 6.3% (manufactured products: +7.1%) (1Q16: +4.1%; 2Q16: +8.5%)

• Upturn in sales growth;
• Hydrocork as the event of the semester;
• Strong emphasis to Hydrocork sales, which represented more than 10% of sales;
• Sales growth and reduced operating costs more than offset less favorable mix: EBITDA reaches 6.8 M€ (1H15: 5.4 M€).

HIGHLIGHTS AND KEY INDICATORS: CORK COMPOSITES BU

Increased sales: 6.2%

• Increase in sales is mainly due to volume effect, with currency effects much lower than in recent quarters;
• Highlight for Retail, Industry and Construction and Inlay (Hydrocork);
• Asian market and US with good performance;
• Better percentual gross margin (lower price and better performance of some raw materials), stable operating costs and increased activity justify EBITDA growth (1H16: 9.8 M€ vs 1H15: 6.6 M€).

HIGHLIGHTS AND KEY INDICATORS: INSULATION CORK BU

Sales increase: +29.3% (final customers: +17.1%)

• Sales growth influenced by the supply of crushed cork to Composite Cork BU;
• Sales increase of the main product (expanded corkboard) justified by volume (+10%);
• Increase in sales of specialties (MDFachada + regranulate);

• EBITDA reached 1.5 M€ (+81%), representing 23% of sales.

• APPENDICES Consolidated indicators (thousand euros)

	1H 14	1H 15	1H 16
Raw Materials	1%	1%	1%
Cork Stoppers	63%	65%	65%
Floor and Wall Coverings	21%	18%	18%
Composite Cork	14%	15%	14%
Insulation Cork	1%	1%	1%

	1H 14	1H 15	1H 16
European Union a)	57.6%	54.5%	56.3%
Portugal	4.1%	5.5%	4.8%
Rest of Europe	5.0%	4.2%	3.4%
USA	19.2%	22.3%	22.0%
Australasia	6.0%	5.1%	5.3%
Rest of America	6.7%	7.0%	6.8%
Africa	1.4%	1.4%	1.3%

a) excludes Portugal e includes Switzerland, Norway 15

	1H 14	1H 15	1H 16
EUR	71.1%	67.3%	68.0%
USD	19.5%	23.1%	22.5%
GBP	0.8%	0.8%	0.8%
AUD	1.0%	1.2%	1.0%
ZAR	0.8%	0.9%	0.8%
DKK	1.7%	1.7%	2.2%
CLP	3.0%	2.8%	2.8%
Others	2.1%	2.1%	2.0%

	1H 14	1H 15	1Q 16	2Q 16	1H 16
Gross Margin	146,618	165,259	82,406	93,871	176,276
Other operating costs (current)	115,487	124,938	61,295	62,278	123,574
EBIT	31,132	40,321	21,110	31,592	52,702
EBITDA	43,613	54,379	27,597	38,257	65,854

	1H 14	1H 15	1Q 16	2Q 16	1H 16
External supplies	49,260	51,414	24,820	27,296	52,116
Staff costs	54,235	57,209	29,426	29,803	59,230
Depreciation	12,481	14,058	6,487	6,665	13,152
Provisions	79	827	-37	1,016	980
Other operating expenses and profits	569	-1,430	-598	2,502	1,904
Total Operating Costs (current)	115,487	124,938	61,295	62,278	123,574
% Production	39.6%	37.9%	38.4%	35.2%	36.7%

VALUE AND % (SALES)

NUMBER OF EMPLOYEES

	1H 14	1H 15	1Q 16	2Q 16	1H 16
EBIT current	31,132	40,321	21,110	31,592	52,702
Net financial costs	* 2,144	** 1,138	490	462	*** 952
Non-current costs	2,735	2,912	1,680	2,050	3,730
Gains of associates	745	1,084	119	822	941
EBT	26,998	37,356	19,060	29,902	48,961
Tax	8,145	11,081	4,746	8,333	13,079
Minority interests	434	53	400	337	737
Net Profit	18,419	26,222	13,913	21,232	35,145

* includes swap gains 230

** includes swap gains 129

*** includes swap gains 11 21

	1H 14	1H 15	1Q 16	1H 16
Net Debt	106,313	91,865	87,123	80,079
Equity and Minority interests	305,142	326,509	368,540	368,449
EBITDA / Net Interest	27.6	73.4	82.3	103.4
Equity / Total Assets	47.4%	49.0%	55.0%	52.5%
Gearing	34.8%	28.1%	23.6%	21.7%
Net interest bearing debt /EBITDA	1.30	0.94	0.83	0.71

	1H 14	1H 15	1H 16
Non-current assets	209,884	212,245	227,701
Inventories	241,148	261,928	264,641
Customers	147,006	155,821	163,190
Other current assets	45,288	36,030	46,759
Total Assets	643,326	666,023	702,291
Capex	8,763	10,608	13,940

	1H 14	1H 15	1H 16
Equity	305,142	326,509	368,449
Provisions	24,490	28,961	34,965
Other non-current liabilities	52,486	78,790	57,482
Trade payables	116,684	129,987	117,182
Other current liabilities	144,525	101,775	124,213
Total Liabilities	338,185	339,513	333,842

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

	June 30, 2016	December 31, 2015	June 30, 2015
Non-current assets	227,701	223,689	212,245
Current assets
Inventories	264,641	271,705	261,928
Other current assets	209,948	171,824	191,851
Total current assets	474,589	443,530	453,778
Total Assets	702,291	667,219	666,023
Equity (M. I. included)	368,449	354,133	326,509
Non-current liabilities
Bank borrowings	41,179	41,211	61,503
Other non-current liabilities	51,269	48,985	46,248
Total non-current liabilities	92,447	90,196	107,751
Current liabilities
Bank borrowings	53,218	50,146	37,302
Other current liabilities	188,177	172,744	194,460
Total current liabilities	241,395	222,890	231,762
Total Liabilities and Equity	702,291	667,219	666,023

	1H16	1H15	Variation	2Q16	2Q15	Variation
Sales	333,958	309,197	8.0%	177,267	161,846	9.5%
Gross Margin – Value	176,276	165,259	6.7%	93,871	86,083	9.0%
1)	52.4%	50.2%	+ 2.2 p.p.	50.6%	50.6%	-0.01 p.p.
Operating Costs - current	123,574	124,938	-1.1%	62,278	63,356	-1.7%
EBITDA - current	65,854	54,379	21.1%	38,257	30,576	25.1%
EBITDA/Sales	19.7%	17.6%	+ 2.1 p.p.	21.6%	18.9%	+ 2.7 p.p.
EBIT - current	52,703	40,321	30.7%	31,593	22,727	39.0%
Non-current costs 2)	3,730	2,912	N/A	2,050	3	N/A
Net Income	35,145	26,222	34.0%	21,231	17,775	19.4%
Earnings per share	0.264	0.209	26.6%	0.169	0.142	19.4%
Net Bank Debt	80,079	91,865	- 11,786	-	-	-
Net Bank Debt/EBITDA (x) 3)	0.71	0.94	-0.23 x	-	-	-
EBITDA/Net Interest (x) 4)	103.4	73.4	30.04 x	126.9	100.0	26.95 x
Equity/Net Assets	52.5%	49.0%	+ 3.4 p.p.	-	-	-

1) Related to Production

2) Figures refer to the provision for labor and customs litigation in Amorim Argentina, deferred costs concerning business started in the previous year and adjustments related to non-controlling interests (2016) and write-off of Goodwill (2015)

3) Current EBITDA of the last four quarters

4) Net interest includes interest from loans deducted of interest from deposits (excludes stamp tax and commissions)

CORTICEIRA AMORIM, S.G.P.S., S.A.

Rua de Meladas, nº 380 Apartado 20 4536-902 MOZELOS VFR PORTUGAL Tel.: 22 747 54 00 Fax: 22 747 54 07 Email: corticeira.amorim@amorim.com www.corticeiraamorim.com