Thrace Plastics S A : FINANCIAL RESULTS OF YEAR 2023

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PRESS RELEASE

Tuesday, 23 April 2024

FINANCIAL RESULTS OF YEAR 2023

Demonstrating Resilience: Strong profitability of 44mil. with recurring EBITDA increase of 2.4%.

Proposed annual gross dividend of €0.23 / share

ATHEX: PLAT

Reuters: THRr.AT

Bloomberg: PLAT GA

Full Year Highlights (Continuing Operations):

• Turnover of €345.4 mil.
• EBITDA amounted to €44.0 mil.
• Earnings before Taxes (EBT) amounted to € 21.3 mil.
• Net Debt amounted to €16.3 mil. including time deposits (amounting to €13.3 mil.)
• Proposed annual dividend of ~€0.23 per share, which, excluding the interim dividend that was already distributed, will result in a remaining dividend to be distributed of ~€0.17 per share (gross amount)

THRACE GROUP presents the financial results for the fiscal year 2023.

Annual Financial Results

In 2023, Turnover amounted to €345.4 mil. compared to €394.4 mil. in 2022, due to the historically high average sales prices of raw materials in the first months of 2022. The Group achieved in 2023 stable volumes sold compared to 2022 (109.8 thous. tons in 2023 vs. 109.2 thous. tons in 2022), despite the unfavorable market conditions, such as the weak demand in key sectors of the economy (construction, agricultural sector) and the lower demand in critical markets for the Group (European Union, United Kingdom and USA).

EBITDA amounted to €44.0 mil., increased by 2.4%, compared to FY2022 recurring EBITDA of €43.0 mil. (from the traditional product portfolio). It is noted that FY2022 EBITDA had settled at €48.3 mil., including one-off profits of €5.3 mil. from the COVID-19 products. The improvement in the level of recurring profitability in 2023 clearly demonstrates the ability of the Group to achieve stable and recurring profitability, while maintaining the volumes sold at similar level compared to prior year, that being a strong indication of Group's potential to further improve its financial performance in the future.

Regarding the liquidity level of the Group, Net Debt amounted to €16.3 mil., including time deposits of €13.3 mil. The low level of Net Debt demonstrates the Group's strong financial position as well as the quality of its customer portfolio, its ability to invest while keeping its Net Debt relatively low, distributing at the same time significantly higher dividends compared to pre-pandemiclevels. In parallel, from a financial standpoint, the Group has the ability to take advantage of any business opportunities that may arise, for further development and growth.

The investment plan of €30 mil. on a cash basis has been successfully completed with the implementation of pivotal projects in the two main business segments, in its facilities in Greece and abroad. At the same time the

THRACE PLASTICS Co. S.A.

20, Marinou Antypa str., 17455, Alimos (Athens), Greece, Τ [phone] | F [phone] Registration Number: 125122460000

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FINANCIAL RESULTS OF YEAR 2023

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first stage of the new investment project in Thrace Greenhouses was completed, by expanding the greenhouses by 65 acres.

More specifically, the following table depicts the key financial figures from continuing operations of the Group during the fiscal year 2023, compared to fiscal year 2022:

CONSOLIDATED FINANCIAL RESULTS (in € thous.)	31/12/2023	31/12/2022*
Continuing Operations			Change (%)
Volumes Sold	109,757	109,169	+0.5%
Turnover	345,373	394,382	-12.4%
Gross Profit	77,069	84,263	-8.5%
ΕΒΙΤ*	20,663	27,407	-24.6%
EBITDA*	44,017	48,259	-8.8%
EBITDA traditional portfolio	44,017	42,982	+2.4%
EBT *	21,336	32,068	-33.5%
Earnings after Taxes	18,326	26,270	-30.2%
Earnings after Taxes and Non-Controlling Interests	17,767	25,777	-31.1%
Basic Earnings per Share (in €)	0.4134	0.5985	-30.9%

*Note: EBITDA, EBIT and Earnings before Taxes (EBT) of 2022 include also profits from sales of COVID-19related products amounted to €5.3 mil. The comparable FY2022 EBITDA from traditional portfolio of the Group amounted to €43.0 mil., therefore FY2023 EBITDA demonstrates an increase of +2.4%.

Prospects of the Group

Regarding the annual profitability for the year 2024, the Management estimates that, despite the high uncertainty about the course of the global economy and of Europe in particular, the Group's EBITDA profitability for the year 2024 is expected to fluctuate at higher levels than the ones of 2023. However, even if the Company does not revise its initial annual target, the recent crisis in the Middle East creates new conditions of uncertainty, the effects of which are impossible to determine at the given time, therefore any estimate of annual profitability is highly uncertain, while the Management of the Group monitors the market developments so to be able to implement the necessary actions, in order not to deviate from its plan.

For the first quarter of 2024, the Management estimates that Group's operating profitability (EBITDA), in absolute terms, will edge 5%-10% higher than in the first quarter of the previous year. This is due to specific actions taken on the Group level and specifically by the sales teams as well as the subsidiaries' management teams but is also due to profits generated from new product categories and partnerships. Furthermore, there is stable demand in the sectors of infrastructure and packaging, an increase in demand in the agricultural sector, whereas there is still weak demand in the construction sector.

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FINANCIAL RESULTS OF YEAR 2023

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Regarding the annual financial results, Mr. Dimitris Malamos, Thrace Group CEO, stated the following: "For another year, Thrace Group demonstrated resilience under unstable conditions, with further enhancement of its operating profitability, maintaining stable volumes sold, low net debt level while implementing a large investment plan, thus ensuring its long-termleadership position in its operating segments. With sustainability and innovation organically integrated into all of our practices and while investments' implementation continues dynamically, the Group's strategy continues to generate consistent results. Our ongoing target is the value increase within our entire ecosystem: the employees of the Group, its customers and suppliers-partners,the consumers and investors community and generally the society".

The Management of THRACE GROUP will host a Conference Call for the annual presentation to the Analysts, to present the financial year 2023 Financial Results. The Conference Call will take place on Friday, April 26, 2024. The details for the conference call will be announced in due time via a new press release by the Company on its website.

For further clarifications or information regarding the present release you may refer to the Department of Investor Relations and Corporate Announcements, tel.: + 30 210-9875081.

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FINANCIAL RESULTS OF YEAR 2023

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ANALYSIS OF FINANCIAL RESULTS OF YEAR 2023 (in € thousand)
STATEMENT OF COMPREHENSIVE INCOME	FY 2023	FY 2022		Change (%)
Turnover (Continuing Operations)	345,373	394,382		-12.4%
Gross Profit (Continuing Operations)	77,069	84,263		-8.5%
Gross Profit Margin	22.3%	21.4%
Other Operating Income	4,065	2,766	47.0%
Sales & Distribution Expenses	38,835	39,693	-2.2%
As % of Turnover	11.2%	10.1%
Administrative Expenses	17,263	16,966	1.8%
As % of Turnover	5.0%	4.3%
Research & Development Expenses	2,506	2,295	9.2%
As % of Turnover	0.7%	0.6%
Other Operating Expenses	1,860	1,577	17.9%
Other Income / (Losses)	-7	909
ΕΒΙΤ* (Continuing Operations)	20,663	27,407		-24.6%
EBIT Margin	6.0%	6.9%
EBITDA* (Continuing Operations)	44,017	48,259		-8.8%
EBITDA Margin	12.7%	12.2%
Financial Income/Expenses (Net)	-1,658	2,136
Earnings / (Losses) from Companies consolidated with the
Equity Method	2,331	2,525	-7.7%
EBT (Continuing Operations)	21,336	32,068		-33.5%
EBT Margin	6.2%	8.1%
Income Tax	3,010	5,798	-48.1%
Earnings / (Losses) after Taxes (Continuing Operations)	18,326	26,270	-30.2%
Earnings / (Losses) after Taxes (Discontinued Operations)	0	-35
Earnings / (Losses) after Taxes (Total Operations)	18,326	26,235		-30.1%
EAT Margin	5.3%	6.7%
EATAM (Continuing Operations)	17,767	25,777	-31.1%
Earnings / (Losses) after taxes & Non Contr, Interests (Discont,
Operations)	0	-35
EATAM (Total Operations)	17,767	25,742		-31.0%
EATAM Margin	5.1%	6.5%
Earnings per Share (from Continuing Operations)	0.4134	0.5985	-30.9%
Earnings / (Losses) per Share (from Discontinued Operations)	0.0000	-0.0008
Earnings per Share from Total Operations (in Euro)	0.4134	0.5977		-30.8%

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FINANCIAL RESULTS OF YEAR 2023

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STATEMENT OF FINANCIAL POSITION	31/12/2023		31/12/2022		Change (%)
Property, Plant & Equipment	177,670	169,218	5.0%
Right-of-use Assets	3,154	2,521	25.1%
Investment Property	113	113	0.0%
Intangible Assets	10,316	10,357	-0.4%
Investments in Joint Ventures	20,475	19,921	2.8%
Net benefit from funded defined benefit plans	9,533	7,169	33.0%
Other Long-term Receivables	138	132	4.5%
Deferred Tax Assets	326	357	-8.7%
Total Fixed Assets	221,725		209,788	5.7%
Inventories	72,003	76,415	-5.8%
Income Tax Prepaid	956	1,984	-51.8%
Trade Receivables	62,179	64,769	-4.0%
Other Receivables	21,523	11,945	80.2%
Financial derivative products	77	284	-72.9%
Cash & Cash Equivalents	27,801	39,610	-29.8%
Total Current Assets	184,539		195,007	-5.4%
TOTAL ASSETS	406,264		404,795	0.4%
TOTAL EQUITY	277,054		267,861	3.4%
Long-term Debt	27,790	31,641	-12.2%
Liabilities from Leases	1,885	1,470	28.2%
Provisions for Employee Benefits	1,658	1,385	19.7%
Deferred Tax Liabilities	7,910	9,660	-18.1%
Other Long-term Liabilities	518	174	197.7%
Total Long-term Liabilities	39,761		44,330	-10.3%
Short-term Debt	26,555	26,989	-1.6%
Liabilities from Leases	1,140	967	17.9%
Income Tax	1,914	1,048	82.6%
Suppliers	38,462	40,630	-5.3%
Other Short-term Liabilities	21,378	22,970	-6.9%
Total Short-term Liabilities	89,449		92,604	-3.4%
TOTAL EQUITY & LIABILITIES	406,264		404,795	0.4%
			01/01/2023-		01/01/2022-
STATEMENT OF CASH FLOWS			31/12/2023		31/12/2022
Cash flows from operating activities		46,598	13,023
Cash flows from investing activities		(26,670)	(36,502)
Cash flows from financing activities		(32,190)	1,003
Net increase / (decrease) in cash and cash equivalents		(12,262)	(22,476)
Cash and cash equivalents at beginning of period		39,610	63,240
Effect from changes in foreign exchange rates on cash reserves	453	(1,154)
Cash and Cash Equivalents at end of period			27,801		39,610

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FINANCIAL RESULTS OF YEAR 2023

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FINANCIAL RESULTS PER BUSINESS SEGMENT (Continuing Operations)

Sector

Technical Fabrics

Packaging

Other

Intra-Segment

Group

Eliminations

(Amounts	FY	FY	%	FY	FY	%	FY	FY	FY	FY	FY	FY
in €	2023	2022	Change	2023	2022	Change	2023	2022	2023	2022	2023	2022
thous.)
Turnover	230,755	274,488	-15.9%	125,202	132,672	-5.6%	5,600	5,658	-16,184	-18,436	345,373	394,382

Gross

Profit

Gross

Profit

Margin

Total

EBITDA

EBITDA Margin

47,555 56,478 -15.8%

20.6% 20.6%

24,635 29,688 -17.0%

10.7% 10.8%

28,875 27,2396.0%

23.1% 20.5%

19,655 18,8924.0%

15.7% 14.2%

266 282

4.8% 5.0%

-263-339

-4.7%-6.0%

373 264

- -

-1019

- -

77,069 84,263

22.3% 21.4%

44,017 48,259

12.7% 12.2%

• 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 minus Cost of Sales plus other operating income minus the total operating expenses, before the financial and investment activities and taxes, 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 minus Cost of Sales plus other operating income minus the total operating expenses before the depreciation of fixed assets, the amortization of grants and impairments, as well as before the financial and investment activities, and before taxes, 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 and any expenses in relation restructuring, mergers and acquisitions.

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