Teraplast SA — Regulatory Filings 2021

Jun 16, 2021

TeraPlast celebrates 125 years of evolution

Bistrița, June 16, 2021

TeraPlast Group celebrates 125 years of tradition and entrepreneurship through the Evolution defines us for 125 years campaign. After a record 2020 year that also meant the readjustment of its strategy, in 2021, the anniversary year, the group is implementing investments worth EUR 32 million.

"We have a history that spans three different centuries. Through this campaign we celebrate 125 years of entrepreneurship at the highest level. We also celebrate the vision and determination that helped us develop and define us. Studies show that the average lifespan of a company in Romania is around 10 years. We are part of the ones that strongly raise the average. Over time we have shown that we innovate, we open factories abroad as well, we contribute to the national economy, we perform on the capital market and bring value to our shareholders. Our business model is less common in Romania and at least in our case it proved its efficiency. We would like to see more successful models around at our 130 years anniversary and to see Romania, in terms of development and strategy, closer to the Western European countries that we admire" stated Mr. Alexandru Stânean, TeraPlast CEO.

The TeraPlast tradition dates back in 1896 in Bistrita, where a Saxon craftsman opened a workshop for ceramic tiles. This workshop underwent multiple transformations in its evolution, becoming the terracotta division within the Bistrița Construction Materials Enterprise. Following the division of the latter, in 1990 it was integrated into TeraPlast SA together with the plastics processing division. At that time, TeraPlast SA had 396 employees, of which 123 in the plastics department, 194 in the terracotta department and 98 administrative and workshop staff.

Although today the TeraPlast portfolio no longer includes terracotta, the industrial tradition continues through the evolution of the plastics portfolio, by cultivating the Romanian private-sector initiative and excellence as values that support business development.

The anniversary will be marked by a series of actions under the umbrella Evolution defines us for 125 years, oriented towards social responsibility and sustainable development. These include a competition to improve the internal processes, support future generations by awarding performance prizes to high school and university students, as well as environmental actions, in line with the Group's policy to reduce its carbon footprint. Also, in the context of the anniversary, the new version of the teraplast.ro website was launched an improved, optimized version.

TeraPlast brought a series of solutions for the first time in Romania, such as the polyethylene pipe for water and natural gas. It is also the only Romanian manufacturer that holds a patent for the use of recycled material in the production of PVC pipes for exterior sewers and the only producer of HFFR (halogen-free, fire-resistant) compounds in Romania.

The production has been sustained over time by continued development through investments. The last five years mean over RON 390 million worth of investments in holdings and production capacities. During the same period, the company's stock market capitalization increased almost 6 times, exceeding 1.4 billion lei in 2021.

In relation to the budgeted turnover, the Group's investments in 2021 represent 25% of it and some of them are co-financed by the state aid scheme. This means that within 5 years, the Group will contribute to the state budget with taxes from new businesses in an amount equal to the state aid received, i.e. 14 million euros.

About the TeraPlast Group

The group is comprised of the following companies: TeraPlast, TeraGlass, TeraPlast Recycling, TeraBio Pack and Somplast. Starting July 2nd, 2008, TeraPlast SA is listed on the Bucharest Stock Exchange under the symbol TRP. The company's shares are included in the BET reference index of the Bucharest Stock Exchange and, from September 2020, in the TotalCap and MicroCap indices of FTSE Russell. In the evaluation of Vektor based on 15 investor communication criteria, carried out by ARIR, TeraPlast obtained the maximum grade, 10, for the second consecutive year.

Contact details

e-mail investor.relations@teraplast.ro; phone +40 741 270 439; Contact person: Alexandra Șica.