COMPANYPRESENTATIONAPRIL 2021

DISCLAIMER
This presentation includes or may include representations or estimations concerning thefuture 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, withoutlimitation, statements concerning our future business development and economicperformance. 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) generalmarket, macro-economic, governmental and regulatory trends, (2) movements in local
and international securities markets, currency exchange rates and interest rates as well ascommodities, (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 theSpanish 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 theinformation herein contained, any change in expectations or modification of the facts,conditions and circumstances upon which such estimations concerning the future havebeen 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 orproceed to carry out opinions related to securities issued by VIDRALA and, in particular, byanalysts. 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, theperiodical information and prospectuses registered with the Spanish Securities MarketAuthority – Comisión Nacional del Mercado de Valores (CNMV).

INDEX

1. GENERAL OVERVIEW
2. BUSINESS FUNDAMENTALS
3. FINANCIALS
4. TARGETS

5. ANNEXES
3

VIDRALA, AT A GLANCE
SUPPLIER OF REFERENCE IN THE PACKAGING INDUSTRY
Vidrala is a consumer packaging company. We make glass containers
for food and beverages products and offer a wide range of packaging
services that include logistic solutions and filling activities.
We are one of the main glass container manufacturers in Western
Europe, through eight complementary sites located in five differentcountries.
We sell more than 8.0 billion bottles and jars per year, among morethan 1,600 customers. Our industrial knowledge, growing geographicalpresence, glass manufacturing expertise, level of service andunderstanding of customers’ processes make us a business partner for
many of the main food and beverages brands.
Vidrala is a public listed company, with a market capitalization overEUR 2.5 billion.

47%

OVER

3,500

USE OF
RECYCLEDGLASSEMPLOYEES

8

MANUFACTURINGSITES

ANNUAL PRODUCTION≈8.0 BILLIONCONTAINERS

19FURNACES

OVER

1,600

CUSTOMERS4MAIN FIGURES FY 2020SALESEARNINGS

988.4

5.62

EUR million

EUR per share

EBITDA

FREE CASH FLOW

-1.7% YoY organic

279.8
EUR million

28.3% EBITDA margin+12.0% YoY

140.0
EUR million

14.2% FCF over sales

CREATING VALUE AND FUTURE IN A SUSTAINABLE WAY
5

OUR HISTORY1965

The origin of Vidrala

1965 - Vidrala begins operations in Alava (Spain)

1975

1985

Vidrala goes public

1985 - IPO Madrid and Bilbao stock exchanges

Domestic expansion

1989 - Second greenfield in Albacete (Spain)

1995
Internationalisation
2005

2003 - Acquisition of one plant in Portugal2005 - Acquisition of two plants: Barcelona (Spain) and Italy2007 - Acquisition of one plant in Belgium

Transformational acquisitions
2015

2015 - Acquisition of Encirc (UK and Ireland)2017 - Acquisition of Santos Barosa (Portugal)

Strategic divestment
20202019 - Sale of our manufacturing activity in Belgium

CUSTOMER, COMPETITIVENESS & CAPITALTHE GUIDELINES ON WHICH WILL BE SUSTAINED OUR AMBITIOUS FUTURE

6OPERATING PROFILENET SALES.

EBITDA MARGIN.

1.200

30%

1.000

25%

800

20%

600

15%

400

10%

2005%

00%

2020

2019

20182017

2016

2015

201420132012

2011201020092008

20072006

2005

20042003

2002

2001

2000

2020

20192018

2017

2016

20152014

2013

20122011201020092008

2007

Since 2000, as percentage of sales.

20062005

2004

2003

2002

2001

2000

Since 2000, EUR million.

STRATEGIC DIVERSIFICATION & COHERENT GROWTHSTABILITY OF MARGINS, RESILIENT TO INTEGRATIONS AND ECONOMIC CYCLES

7

CASH PROFILEEBITDA.

FREE CASH FLOW.

300

160

Since 2011, EUR million.

Since 2011, EUR million.

250

200

14050%

120

CASH CONVERSIONOF EBITDA 2011-2020

1001508060100405020002011201220132014201520162017201820192020

201120122013201420152016201720182019

2020

VALUE CREATION, MATERIALISED IN ASUSTAINED CASH GENERATIONFree cash flow figures exclude M&A.

8FINANCIAL PROFILEFINANCIAL SOLVENCY.

Year-over-year evolution of debt since 2015, EUR million and times EBITDA.

800

3x
2.5x
2.2x

600

1.9x

400

200

2x

1.7x
1.2x
487

404

322

0.8x
411

335

1x

233

00x
Dec-15

Dec-16

Dec-17

Dec-18Dec-19Dec-20

ON THE BASIS OF ASOLVENT FINANCIAL STRUCTURE
Debt/EBITDA ratio is calculated on pro-forma basis.

9

EARNINGS PROFILEEARNINGS PER SHARE.
Since 2011, EUR per share.

6,04,02,02020

2019

2018

2017

2016

2015

2014

2013

2012

20110,010

DIVIDEND POLICY
CASH DIVIDENDS.

Since 2000, EUR million.

40+5%3020102021

2020

20192018

2017201620152014

2013

2012

20112010

20092008

2007

2006

2005

2004

2003

2002

2001

20000A DIVIDEND POLICY FOCUSED ON LONG-TERM STABILITY
ANNUAL GROWTH, COHERENT WITH PREVAILING BUSINESS CONDITIONS

Including cash dividends and AGM attendance bonuses.

11SHAREHOLDER REMUNERATIONEXPECTED 2021 DIVIDEND PAYMENTS

SHAREHOLDER REMUNERATION

Proposed FY 2020 results distribution

February 15th, 2021
Interim dividend
EUR 84.30 cents per share

Since 2018, EUR million

Dividend*Share buy-back

60
5040

July 14th, 2021
Complementary dividend
EUR 32.09 cents per share3020

EUR 4.00 cents per shareas attendance bonus to theshareholders´ annual general meeting

1002018

2019

2020

2021

DIVIDEND PAYMENTS REPRESENT AN INCREASE OF +5%**+33% IN TOTAL REMUNERATION, INCLUDING THE SHARE BUY-BACK PROGRAM ON TRACK*Including cash dividends and AGM attendance bonuses. **Considering the effect of the bonus share issue completed in December 2020.

12BUSINESS FUNDAMENTALS

Understanding the european glass packaging industry

13

INDUSTRY FUNDAMENTALS1LOGISTICS. Local sales nature.
Natural characteristics of hollow glass containers limit logistics.
Customers’ packaging activity demands service on time and supply flexibility.
Proximity to the customer and service quality determines sales capabilities.

2

CONTINUOUS PROCESS. Capital intensive.
Glass manufacturing is based on a continuous 24/365 activity.
Production process is intensive in cost (labour and energy) andcapital (periodical replacements). Technological development
demands constant and complex adaptation.

3

OPERATING GEARING. Utilization rates.
Cost and capital intensity creates a high levelof operating leverage.
High utilization rates are crucial for profitability.

NOTEWORTHY ENTRY BARRIERS
14DEMAND FUNDAMENTALS
Our key geographical regions
STRATEGIC MARKETS FOR THE SECTOR

Glass containers demand in Europe vs GDP.
Annual variation (accumulated), base year 2000.

Glass packaging production vs GDP per capita.

GDP

GLASS PACKAGING PRODUCTIONPER CAPITA (KG)

The glass packaging market in Europe
SOLID AND STABLEGLASS PACKAGING DEMAND

30%25%20%15%
10%
5%0%

70

Iberia60Italy

France50

Germany
40

UK30

USA

China
Brazil20

Japan102000

2005

2010

2015

2020

0102030405060

GDP PER CAPITA ($000)

THE GLASS PACKAGING MARKET

A MATURE AND STABLE DEMAND
15

PRODUCT FUNDAMENTALS
Environmentally friendly

Glass is a 100% recyclable material that can be shaped
over and over again without losing any of its properties
or advantages.

The healthiest type of packaging

It is a completely hygienic material, impervious togases, vapour, and liquid, thereby protecting andpreserving the flavour and properties of the food within.

Premiumisation trend

Glass is seen by consumers as a guarantee of quality
and reliability. Brands design containers, bestowing
them with different shapes and colours to give theirproduct its own personality.

GLASS, THE PREFERRED MATERIALENVIRONMENTAL, HEALTHY & BRAND PERCEPTION BENEFITS

16

VIDRALA FUNDAMENTALS
Vidrala’s commercial positioning is focused on geographic regions and product segments of long-term strategic value.
Vidrala sells its products to a strong customer base composed of a solid balance between blue chip customers,
multinational brand owners and domestic packagers.
2020 SALES BREAKDOWN.
By geography.

Iberia39%
UK andIreland
36%

By segment.

More than 1,600
active customers

OthersSoft7%
Drinks6%

Rest of EU
18%
Italy
7%

2020 SALES BREAKDOWN.

Spirits
9%

Wine
35%

Food
13%
Beer
30%

Top10 customers standfor ≈30% of revenue
50% of sales madeup by ≈30 customers

TOWARDS A STRATEGIC POSITIONING IN OUR KEY MARKETS
17COMPETITIVE LANDSCAPE (1)EVOLUTION OF MARKET SHARES IN WESTERN EUROPE. 1990 vs 2020.

TOP 4 PLAYERS 1990

14%TOP 4 PLAYERS 2014

20%

29%

13%

58%

1990

20,0%

12%

8%

12,0%

15%

11,5%

29%

AVIR

2%
1,8%

2020

29,1%

8,0%

TOP 4 PLAYERS: 41,8%

13,3%

28,6%

TOP 4 PLAYERS: 82,6%

A DYNAMIC ATTITUDE TOWARDS CONSOLIDATIONInternal sources. Figures include Spain, Portugal, Italy, France, Germany, Benelux, UK and Ireland.

18

COMPETITIVE LANDSCAPE (2)LOCATION OF PRODUCTION SITESInternal sources. Some facilities, especially in Eastern Europe, are not identified in the map.

19

FINANCIALS
Latest earnings release20

Q1 2021 RESULTS | SalesSALES.

YoY change, EUR million.

300-3.3%250
200-0.3%

243.7

234.9

150
100500Q1 2020

Organicchange

FXeffect

Q1 202121

Q1 2021 RESULTS | EBITDA
EBITDA.

YoY change, EUR million.

75+4.1%50-0.2%
62.2

59.9

250

Q1 2020

Organicchange

FXeffect

Q1 202122

Q1 2021 RESULTS | EBITDA margin
EBITDA MARGIN.

YoY change, as percentage of sales.

28%

26.5%
26%

24.6%

+191 bps24%

22%
Q1 2020

Q1 202123

Q1 2021 RESULTS | Debt
NET DEBT.

YoY evolution since 2018, in EUR million and times EBITDA.

700

2,5x2.2x

600

2,0x

1.7x

500

1,5x

400

1.1x

300
200

503

0.7x

426313

100

210

0

1,0x
0,5x
0,0x

Mar-18Mar-19Mar-20Mar-21
24

FY 2021 OUTLOOKActuals
Full Year2020

Last Twelve Months
at March 2021

Sales
variation-1.7% YoY

-2.5% YoY

Operatingmargins

28.3%

28.8%

Earnings

FCF

Free Cash Floworganicorganic

Full Year 2021
TrendsModest volume growth, more intense in Q2 dueto the low comparison basis. Full recovery still
depending on the evolution of the pandemic
and the path of reopening of the on-trade.

FY 2021 expected operational margins to bebroadly in line with FY 2020 levels as growing
cost inflationary pressures are to be offset by
top line growth and internal efficiencies.

EBITDA/sales

EBITDA/sales

EUR 5.62

per share

EUR 5.71

per share

FY 2021 expected earnings per share to growlow-single digit from FY 2020, supported on
operational profits.

140.0

139.8

FY 2021 expected free cash generation to be inline with FY 2020 levels as the planned intense
capex program will be aligned with expected
operational cash generation.

EUR million

14.2% FCF/sales

EUR million

14.3% FCF/sales

26

TARGETSBusiness profitability and cash generation

27

OPERATIONAL TARGETS
Capacity utilization.

EBITDA margin

100%
75%
25%

28.3%

Operationalleverage

50%0%
2012

2013

2014

2015

2016

2017

2018

2019

2020

Pack-to-melt ratio.
90%

Internal
efficiency

80%

23.0%

Target 85%

Site 1Site 2Site 3Site 4Site 5Site 6Site 720.1%

70%Site 8

EBITDA margins.
40%
20%

Integration

0%Best 4 sites

Group Consolidated

Average2005-15

2015

2020

Rest28SUSTAINED CASH GENERATION
Historical cash profile.

5-year accumulated average rates, as percentage of sales.

>50%

≈25%

CASH CONVERSIONOF EBITDA 2016-2020≈9%

EBITDACapex≈2%WC &others

≈1%

≈13%

Financialexpense

FCF

CASH GENERATION

MATERIALISATION OF VALUE
29

RETURN ON CAPITAL EMPLOYED
20%

15%
14.5%
10%

10.3%

11.4%

15.6%

11.9%

11.5%
9.4%

9.4%

2016

2017

7.9%
5%

0%
2012

2013

2014

2015

2018

2019

2020

FOCUS ON BUSINESS PROFITABILITY
RoCE is calculated as EBIT post-tax divided by capital employed. See used formula: [EBIT * (1-t)] / (equity + net debt)30

ANNEXES

A general overview of the most recent acquisitions

31

ANNEX I. Acquisition of Encirc (2015).

Encirc Glass is a glass packaging
manufacturer for the food andbeverage markets in UK andIreland. It is the sole player inIreland and the second player
within the UK (market share >30%).

The DERRYLIN plant (NorthernIreland), built in 1998, is the only
glass container plant in Ireland.
The ELTON plant (England), built in2005, is the largest glass container
plant in Europe and includes filling
and logistics facilities.

32

ANNEX I. Acquisition of Encirc (2015).
QUALITY OF ASSETS
High-scale facilities
Triple gob and quad gob flexibility
Highly modern inspection machines
Filling capabilities
Fully automated warehouse

33

ANNEX II. Acquisition of Santos Barosa (2017).

Santos Barosa manufactures and commercialises glass containers. It
operates a major production facility located in Marinha Grande, Portugal.
The company produces around 400,000 glass tons per year.
The agreed transaction price amounts to an enterprise value equivalent
to EUR 252.7 million. Trough this acquisition, Vidrala becomes the leader of
the attractive Iberian market.
34

ANNEX III. Financing structure.
500

452,5

400
300
233,5200
1000Debt as at
Dec 31,2020

Immediately
available
resources

1-12
months13-24
months25-36
months37-48
monthsBeyond48 months

Debt maturity profile.
Per year, EUR million.

Current financing structure
As at December 31, 2020

Debt / EBITDA ratio≈0.8x

Average maturity≈3.5 years

Estimated cost, all-in<1.0% annual35

VIDRALA, S.A.
Investor Relations
Tel: +34 94 671 97 50
investors@vidrala.com
www.vidrala.com