Thrace Plastics and Commercial S A : Announcement of H1 2020 Financial Results

September 21, 2020

Announcement of H1 2020 Financial Results

The purpose of the current release is to present the Group's financial results for the first half of the current year.

FINANCIAL RESULTS OF FIRST HALF 2020

ATHEX:PLAT

Reuters:THRr.AT

Bloomberg:PLAT GA

The purpose of the current release is to present the Group's financial results for the first half of the current year.

The spread of the Covid-19 pandemic from the beginning of 2020 until today has resulted into substantial changes and disruptions in global supply and demand. As the pandemic is ongoing, there is still an inability to assess both its duration and intensity, but also its potential impact. In the midst of these conditions, the Group has managed to date to offset the negative consequences and to ensure its smooth and uninterrupted operation, while always having as its primary objective the health and safety of its employees.

This effort of the Management is reflected in the positive course of the results of the Group for the first half of the current year. The main reasons that contributed into the resilience of sales (from continuing operations) and the significant improvement of profit margins are the following:

· The reorganization of the Group's activities, which was implemented during the previous years.

· The higher demand for products related to personal protection and health, an increase that offset the decline in demand for products related to catering and tourism, as well as the development of new products and activities.

· The expansion of the Group's customer base. The customers in the context of the conditions of uncertainty prevailing in the market showed and continue to demonstrate real trust but also to recognize the reliability and consistency of the Group as a supplier.

The reduction of Net Debt by €36,556 thousand has been also a very significant development in the period under consideration (on 30.06.2020 the Net Debt amounted to €46,972 thousand, compared to €83,528 thousand on 31.12.2019, posting a drop of 43.8%). The Net Debt / Equity ratio settled at 0.31x compared to 0.57x on 31.12.2019, whereas the Net Debt / EBITDA ratio stood at 1.30x on 30.06.2020, compared to 2.91x on 31.12.2019 and 3.31x on 30.06.2019.

The total Equity on 30.06.2020 amounted to €151,851 thousand compared to €146,349 thousand on 31.12.2019.

More specifically, the following table presents the main financial figures of the Group in the first half of 2020 in relation to the corresponding period of 2019. It is also noted that the discontinued operations concern the termination of production activities of the US subsidiary Thrace Linq Inc.

CONSOLIDATED FIGURES OF THE GROUP (in € thous.)	30/06/2020	30/06/2019	Change (%)
Turnover (Continuing Operations)	155,376	155,173	+0.1%
Gross Profit (Continuing Operations)	42,141	32,440	+29.9%
ΕΒΙΤ* (Continuing Operations)	17,734	9,434	+88.0%
EBITDA* (Continuing Operations)	26,033	16,468	+58.1%
Adjusted EBITDA*	26,787	16,468	+62.7%
EBT (Continuing Operations)	16,855	7,487	+125.1%
Earnings after Taxes (Continuing Operations)	12,830	5,255	+144.1%
Earnings/(Losses) after Taxes (Discontinued Operations)	(2,809)	(902)
EAT (Total Operations)	10,021	4,353	+130.2%
Earnings after Taxes and Minority Interests (Continuing Operations)	12,548	5,103	+145.9%
Earnings/(Losses) after Taxes and Minority Interests (Discontinued Operations)	(2,809)	(902)
EATAM (Total Operations)	9,739	4,201	+131.8%
Basic Earnings per Share (Continuing Operations)	0.2869	0.1167	+145.8%
Basic Earnings / (Losses) per Share (Discontinued Operations)	(0.0642)	(0.0206)
Basic Earnings per Share(Total Operations)	0.2227	0.0961	131.7%

It should be noted that the Adjusted EBITDA in the first half of 2020 does not include costs related to the operational reorganization of the Scottish subsidiary Don & Low Ltd.

Outlook for the Second Half 2020

Regarding the third quarter of the year, demand for most products in the portfolio remains unaffected, while there is an increased demand for existing and new products related to personal protection and health. These events are expected to offset the decline in demand for products related to catering and tourism. These developments are expected to result in the third quarter of the year to show significantly improved profitability, compared to the corresponding period of the previous year, despite the possible negative effects of the pandemic which may occur by the end of the third quarter.

Regarding the prospects for the entire second half of 2020, at the time of preparation of the current report, the Management estimates that the financial performance of the Group will continue to show a significant improvement, compared to the corresponding period of the previous year, both in terms of profitability, as well as in terms of liquidity. However, given the intense uncertainty created by the second phase of the pandemic, it should be reiterated that it is not unlikely the second half of the year to be, on a case-by-case basis, negatively affected by adverse economic conditions, whereas at this point in time no estimate or assessment can be made regarding the degree of such effect.

In conclusion, the Group's Management remains optimistic over the achievement of particularly positive results for the entire financial year 2020. The commitment to the further improvement of profitability as well as to stronger free cash flows creates favorable conditions for even greater improvement of financial performance, despite the uncertain conditions which, as already mentioned, are being created by the course of the pandemic. These conditions, which are carefully monitored and evaluated on a daily basis by the Management, inevitably affect the business environment and potentially the respective projections and estimates.

For further clarifications or information regarding the present release you may refer to Ms Ioanna Karathanasi, Head of Investor Relations, tel.: + 30 210-9875081.

* Note

Alternative Performance Measures (APM): During the description of the developments and the performance of the Group, ratios such as the EBIT and the EBITDA are utilized.

EBIT (The indicator of earnings before the financial and investment activities as well as the taxes): The EBIT serves the better analysis of the Group's operating results and is calculated as follows: Turnover plus other operating income minus the total operating expenses, before the financial and investment activities. The EBIT margin (%) is calculated by dividing the EBIT by the turnover.

EBITDA (The indicator of operating earnings before the financial and investment activities as well as the depreciation, amortization, impairment and taxes): The EBITDA also serves the better analysis of the Group's operating results and is calculated as follows: Turnover plus other operating income minus the total operating expenses before the depreciation of fixed assets, the amortization of grants and the impairments, as well as before the financial and investment activities. The EBITDA margin (%) is calculated by dividing the EBITDA by the turnover.

Adjusted EBITDA (The adjusted indicator of operating earnings before the financial and investment activities as well as the depreciation, amortization, impairment and taxes): The adjusted EBITDA equals with the EBITDA excluding any extraordinary Expenses/Income.