Corticeira Amorim : Acquisitions drive consolidated sales of the 1Q2018

Corticeira Amorim, SGPS, S.A. Sociedade Aberta

Edifício Amorim I

Rua de Meladas, n.º 380 4536-902 Mozelos VFR Portugal

Share Capital: € 133,000,000.00 A company incorporated in Santa Maria da Feira - Portugal Registration and Corporate Tax ID nº: PT 500 077 797www.corticeiraamorim.com

Investor Relations Officer:Ana Negrais de Matos, CFA tel: + 351 227 475 423 fax: + 351 227 475 407ana.matos@corticeira.amorim.com

Acquisitions drivesales

Highlights:

• Sales increase 8%,surpassing €185 million

• US dollar depreciation impacts negatively on business

• EBITDAincreases 10% to €36.8 million

• Net profit rises 9.3%to €18.8 million

First-quarter sales rose 8% on the same period of2017 to €185.4 million. The change in the consolidation perimeter contributed to this increase (due mainly to the integration of the operations of Bourrassé and Elfverson) in spite of the negative impact of USdollar depreciation on the group's sales. Excluding these two factors, sales would have increased 1.7%.

As a result of the increase in business activity, Corticeira Amorimended the first quarter with a net profit of €18.8 million, an increase of 9.3% compared with the same period of 2017. It should be noted that the first quarter of 2017 was the strongest in terms of sales, having been the quarter of that year with the most working days.

Sales growth by Business Unit (BU) was not uniform. The Cork Stopper BU recorded sales of 14.1%. Excluding the impact of the change in the consolidation perimeter and the exchange rate effect,the BU's sales would have increased2.8%. Sales by the Raw Materials BU grew 7.6%. Sales by the other BUs decreased.

EBITDA evolved favourably, reaching€36.8 million, an increase of 9.8% compared with the first quarter of 2017. This performance resulted in an improvement in the EBITDA-sales ratio, which increased from 19.5% to 19.9%. In a context of greater pressure on the gross margin, growth mainly resulted from an increase in operating efficiency, rigorous cost control and a reduction in impairments.

At the end of the firstquarter of 2018, net debt was €85.9 million, compared with €11.7 million at the end of the first quarter of 2017 and €92.8 millionat the end of 2017. Despite lower interest rates, the financial function registered a slight increase, due to an increase in average indebtedness, mainly due to the recent acquisitions of Bourassé, Sodiliège and Elfverson.

The financial autonomy ratio was 54% (1Q17: 59.9%).

Performance by Business Unit

TheRaw Materials BUrecorded sales of €45.7 million, anincrease of about 7.6%.

EBITDA reached €8.6 million, up 51% on the same period of thepreviousyear (1Q17: €5.7 million). Thegrowth reflected the increase in the gross margin resulting from the positive contributions of industrial cork preparation operations as well as disc and granulate production. Both the consumption of raw materials (cork) acquired in the 2016/2017 purchasing campaign and improved operating efficiency contributed to the increase.

Sales by theCork Stopper BUtotalled €128.8 million, an increaseof 14.1%. Sales increased in almost all business segments and countries in the world. In comparable terms (excluding the change in the consolidation perimeter), sales fell 0.4%, a decrease influenced by the exchange rate factor. Excluding these effects, sales would have increased 2.8%.

The BU's profitability remained at a same level of the sameperiod of 2017. EBITDA increased by 13.3%, reflecting the incorporation of Bourrassé, which still has lower EBITDA margins than those of the Cork Stopper BU.

Sales by theFloor and Wall Coverings BUfell (-10.1%)to €29.2 million, reflecting lower sale performances in some regions (Germany, the US and Russia). It should also be noted the particularly robust performance in the first three months of 2017 (the best quarter of that year).

The BU's EBITDA decreased to €0.6 million. The expectation is that 2018 will be a transitional year, with the new press machine expected to become fully operational in the first half, supporting the launch of new products by the end of 2018 / early 2019.

TheComposite Cork BUrecorded sales of €24.4 million, adecrease of 5.6% compared to the first quarter of 2017. Excluding the exchange rate effect, however, sales were at the same level as the previous year. Terminating the supply of inlays to the Floorand Wall Coverings BU also impacted negatively on the BU'ssales, despite increases in the sales volumes ofthe BU's otherproducts and an improved sales mix.

EBITDA for the quarter was €3.6 million,due mainly to high raw material prices and unfavorable exchange rates. Excluding theexchange rate effect, the BU's EBITDA-sales ratio would have remained at the same level as in the previous year.

Sales by theInsulation Cork BUtotalled €2.7 million, a decrease of 4.1% on the same period of2017. EBITDA reached €0.3 million.

Indicators

• 1) Relatedto Production

• 2) Figures referto transaction costs ofElfverson

• 3) CurrentEBITDA ofthelastfourquarters

• 4) N etinterestincludes interestfrom loans deducted ofinterest from deposits (excludes stam p taxand com m issions)