Vidrala S.A. — Investor Presentation 2020

Feb 27, 2020

27TH FEBRUARY 2020

DISCLAIMER

This presentation includes or may include representations or estimations concerning the future about intentions, expectations or forecasts of VIDRALA or its management. which may refer to the evolution of its business performance and its results. These forward looking statements refer to our intentions, opinions and future expectations, and include, without limitation, statements concerning our future business development and economic performance. While these forward looking statements represent our judgment and future expectations concerning the development of our business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to, (1) general market, macro-economic, governmental and regulatory trends, (2) movements in local and international securities markets, currency exchange rates and interest rates as well as commodities, (3) competitive pressures, (4) technological developments, (5) changes in the financial position or credit worthiness of our customers, obligors and counterparties.

The risk factors and other key factors that we have indicated in our past and future filings and reports, including those with the regulatory and supervisory authorities (including the Spanish Securities Market Authority – Comisión Nacional del Mercado de Valores - CNMV), could adversely affect our business and financial performance. VIDRALA expressly declines any obligation or commitment to provide any update or revision of the information herein contained, any change in expectations or modification of the facts, conditions and circumstances upon which such estimations concerning the future have been based, even if those lead to a change in the strategy or the intentions shown herein.

This presentation can be used by those entities that may have to adopt decisions or proceed to carry out opinions related to securities issued by VIDRALA and, in particular, by analysts. It is expressly warned that this document may contain not audited or summarised information. It is expressly advised to the readers of this document to consult the public information registered by VIDRALA with the regulatory authorities, in particular, the periodical information and prospectuses registered with the Spanish Securities Market Authority – Comisión Nacional del Mercado de Valores (CNMV).

FY 2019 KEY FIGURES

	FY 2019	Change	- Organic change (constant currency basis)
Net sales (EUR million) EBITDA (EUR million)	1,010.8 274.6	+5.8% +14.7%	+5.5% +14.5%
Earnings per share (EUR/share)	5.27	+24.0%
Debt (EUR million) Debt / LTM EBITDA (multiple)	334.9 1.2x	-18.5% -0.5x

YEAR OVER YEAR CHANGE

EUR million

YEAR OVER YEAR CHANGE

EUR million

OPERATING MARGINS

YEAR OVER YEAR CHANGE

As percentage of sales

25.1% 27.2% 21% 23% 25% 27% 29% FY 2018 FY 2019 +210 bps

EARNINGS PER SHARE

YEAR OVER YEAR , SINCE 2015

EUR per share

CASH PROFILE

FREE CASH FLOW GENERATION

EUR million / as percentage of sales

274.6 121.1 -10.6% -4.6% 0 50 100 150 200 250 300 EBITDA Capex WC & Others FCF 27.2% 12.0%

SIX-MONTHLY EVOLUTION, SINCE 2017

Debt in EUR million and times EBITDA

FY 2019 MAIN HIGHLIGHTS

ORGANIC TOP-LINE GROWTH OF 5.5%

Sales in 2019 amounted to EUR 1,010.8 million, showing an organic growth of 5.5%.

OPERATING MARGIN OF 27.2%

Operating profit, EBITDA, was EUR 274.6 million representing an operating margin of 27.2%.

>20% GROWTH IN EARNINGS

Earnings reached EUR 5.27 per share, an increase of 24.0% over the previous year.

DELEVERAGING, MAIN USE OF CASH

Debt at December 31, 2019 stood at EUR 334.9 million, equivalent to 1.2 times last twelve months EBITDA.

Vidrala publishes this information in order to promote comparability and interpretation of its financial information and in compliance with the Directive of the European Securities and Markets Authority (ESMA) on Alternative Performance Measures (APM).

See below, the alternative performance measures used by Vidrala, as well as its basis of calculation. For further detail, please check the reference document published on the corporate website (link), as well as the reconciliation provided on the next slide of this presentation.

EBITDA. Vidrala calculates EBITDA as earnings before interest, taxes, depreciation and amortization (as reported in the consolidated income statement).

Consolidated net debt. Vidrala calculates consolidated net debt as the sum of all long-term liabilities and short-term obligations, and then subtracting cash and cash equivalents (as reported in the consolidated balance sheet).

Free cash flow. Vidrala calculates free cash flow by adding –to the real variation in net debt balances (as reported in the consolidated balance sheet)– payments during the period dedicated to dividends and net treasury stock purchases (as reported in the consolidated statement of cash flows).

Other magnitudes referred to in this report:

• Organic refers to the variation on a like-for-like (comparable perimeter) and constant currency basis.
• Debt/EBITDA ratio is calculated as consolidated net debt at the end of the reported period divided by EBITDA obtained in the last 12 months.

^• EBITDA margin is calculated as accumulated EBITDA during the reported period divided by net sales.

i) EBITDA

EUR million	FY 2019	Source of data
Profit before income tax from continuing operations	165,980	Consolidated Income Statement
Amortisation and depreciation	+91,088	Consolidated Income Statement
Finance income	-1,004	Consolidated Income Statement
Finance costs	+6,595	Consolidated Income Statement
Impairment of non-current assets	+11,980	Consolidated Income Statement
Reported EBITDA	274,639

Source of data
Consolidated Income Statement
Consolidated Income Statement
Consolidated Income Statement
Consolidated Income Statement
Consolidated Income Statement

ii) Consolidated net debt

EUR million	FY 2019	Source of data
Loans and borrowings (non-current liabilities)	231,906	Consolidated Balance Sheet
Loans and borrowings (current liabilities)	+131,787	Consolidated Balance Sheet
Cash and cash equivalents	-28,795	Consolidated Balance Sheet
Reported consolidated net debt	334,898

Source of data
Consolidated Balance Sheet
Consolidated Balance Sheet
Consolidated Balance Sheet

iii) Free Cash Flow

EUR million	FY 2019	Source of data
Year-over-year change in net debt balances *	76,196	Consolidated Balance Sheets
Dividends paid**	+27,471	Consolidated Statements of Cash Flows
Annual General Meeting attendance bonus	+936	Note 15(b) – Equity
Proceeds from issue of treasury shares and own equity instruments***	-0	Consolidated Statements of Cash Flows
Payments to redeem own shares and other own equity instruments***	+16,512	Consolidated Statements of Cash Flows
Reported Free Cash Flow	121,115

Source of data
Consolidated Balance Sheets
Consolidated Statements of Cash Flows
Note 15(b) - Equity
Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows