Vidrala S.A. — Investor Presentation 2021

Jul 23, 2021

H1 2021 RESULTS

23rd JULY 2021

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).

	H1 2021	Change	Organic change (constant currency basis)
Sales (EUR million)	529.5	+11.6%	+11.2%
EBITDA (EUR million)	149.4	+22.1%	+21.4%
Earnings per share (EUR)	2.88	+31.5%
Debt (EUR million)	173.2	-41.2%
Debt / LTM EBITDA (multiple)	0.6x	-0.5x

YEAR OVER YEAR CHANGE EUR million

YEAR OVER YEAR CHANGE

EUR million

OPERATING MARGIN

YEAR OVER YEAR CHANGE

As percentage of sales

EARNINGS PER SHARE

YEAR OVER YEAR EVOLUTION, SINCE 2017 EUR per share

CASH PROFILE

FREE CASH FLOW GENERATION LAST 12 MONTHS TO JUNE 2021

EUR million / as percentage of sales

YEAR OVER YEAR EVOLUTION, SINCE 2018

EUR million and times EBITDA

ORGANIC TOP-LINE GROWTH OF 11.6%

Sales during the first six months 2021 amounted to EUR 529.5 million, showing an organic growth of 11.6%

OPERATING MARGIN OF 28.2%

Operating profit, EBITDA, was EUR 149.4 million representing an operating margin of 28.2%

>30% GROWTH IN EARNINGS

Earnings reached EUR 2.88 per share, an increase of 31.5% over the previous year

DELEVERAGING, MAIN USE OF CASH

Debt at June 30, 2021 stood at EUR 173.2 million, equivalent to 0.6 times last twelve months EBITDA

FY 2021 OUTLOOK, REITERATED

	Actuals Full Year 2020	Last Twelve Months at March 2021	Full Year 2021 Trends
Sales variation	-1.7% YoY organic	-2.5% YoY organic	Modest volume growth, more intense in Q2 due to the low comparison basis. Full recovery still depending on the evolution of the pandemic and the path of reopening of the on-trade.
Operating margins	28.3% EBITDA/sales	28.8% EBITDA/sales	FY 2021 expected operational margins to be broadly in line with FY 2020 levels as growing cost inflationary pressures are to be offset by top line growth and internal efficiencies.
Earnings	EUR 5.62 per share	EUR 5.71 per share	FY 2021 expected earnings per share to grow low-single digit from FY 2020, supported on operational profits.
FCF Free Cash Flow	140.0 EUR million 14.2% FCF/sales	139.8 EUR million 14.3% FCF/sales	FY 2021 expected free cash generation to be in line with FY 2020 levels as the planned intense capex program will be aligned with expected operational cash generation.

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:

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

ANNEX | ALTERNATIVE PERFORMANCE MEASURES (APM)

i) EBITDA

EUR million	H1 2021	Source of data
Profit before income tax from continuing operations	103.469	Consolidated Income Statement
Amortisation and depreciation	+43.715	Consolidated Income Statement
Finance income	-5	Consolidated Income Statement
Finance costs	+2.168	Consolidated Income Statement
Impairment of non-current assets	+84	Consolidated Income Statement
Reported EBITDA	149.431

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

ii) Consolidated net debt

EUR million	H1 2021	Source of data
Loans and borrowings (non-current liabilities)	184.546	Consolidated Balance Sheet
Loans and borrowings (current liabilities)	+96.831	Consolidated Balance Sheet
Cash and cash equivalents	-108.225	Consolidated Balance Sheet
Reported consolidated net debt	173.152

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

iii) Free Cash Flow*

EUR million	H1 2021	Source of data
Year-over-year change in net debt balances	121.338	Consolidated Balance Sheets
Dividends paid**	+32.564	Consolidated Statements of Cash Flows
Annual General Meeting attendance bonus	+998	Note 23 – Subsequent events
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**	+3.619	Consolidated Statements of Cash Flows
Reported Free Cash Flow last twelve months	158.519

* Free cash flow is presented on a full-year, last twelve months basis. ** Figures are calculated from full-year 2020 financial statements less first half 2020 plus first half 2021.

VIDRALA, S.A. Investor Relations Tel: +34 94 671 97 50

investors@vidrala.com www.vidrala.com