Vidrala (AO) | Buy | Highlights from CEO roadshows (UK & Spain): upbeat message

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Vidrala (AO) | Buy | Highlights from CEO roadshows (UK & Spain): upbeat message

uch as OI, Ardagh and to a lesser extent

Verallia, facing financial troubles, EBITDA margins collapsing, huge leverage and shareholder changes). Assets in Eastern Europe

or Latin America could be of Vidrala´s interest. Midterm: LatAm to represent 1/3 of EBITDA (20% today), Iberia 1/3 and the UK 1/3.

Vidrala offers the strongest FCF yield (>10% over sales or even >20% over sales if capex is normalised=depreciations). Capital

allocation: 1) capex: organic (technology and potential capacity additions in LatAm and why not in South of Europe versus North

of Europe) and inorganic, & 2) shareholder remuneration (ordinary DPS, buybacks or extra DPS).

EUR100.5 TP, remains an Iberian top pick.

2026 guidance: EBITDA and FCF look achievable. Iran war (the energy inflation) opens the door to new price hikes in 2027

We organised two consecutive roadshows with Vidrala´s top management team (the CEO, Mr Raúl Gomez, the former Finance

Director, Mr Inigo Mendieta and the chief of Sustainability and Corporate development, Mr Galo Alvarez), a UK roadshow last week

and a group lunch meeting with institutional investors in Madrid this week and the message has been quite constructive and

slightly more bullish than in previous events focusing on:

-Vidrala´s cost-competitive advantages (the gap versus other players is clearly increasing, driven by substantially higher capex,

12-13% over sales, 2x depreciations),

-the hollow glass material advantages versus other materials, such as aluminium can,

-the M&A opportunity (more opportunities now than ever), among other topics,

-to deliver another good year (2026) in a still tough market environment (slightly improving, demand stabilisation after years of