Neodecortech Spa · MIL:NDT
Neodecortech Spa — Q3 2024 Earnings Presentation
56 slides from Neodecortech Spa's earnings presentation, November 2024
Slide 1: Investor Presentation November 2024
INVESTOR PRESENTATION November 2024
Slide 2: Disclaimer
DISCLAIMER This document has been prepared by Neodecortech S.p.A. those results or development s may not be indicati ve of results or (“NEODEC ORTECH”) solely for use in connection with the presentation developments in future periods. of the Com pany to potential investors and shareholders and may n
Slide 3: Index
Investor Presentation INDEX 1. Company overview 4. ESG approach At a glance Certifications Group structure Survey Sustainability Vertical integration benefits Circular economy Intercompany flows: economics 2023 Group emissions neutrality scope 1 + 2 circular economy Fully commited ESG agenda Industr
Slide 4: Index
Investor Presentation INDEX 1. Company overview 4. ESG approach At a glance Certifications Group structure Survey Sustainability Vertical integration benefits Circular economy Intercompany flows: economics 2023 Group emissions neutrality scope 1 + 2 circular economy Fully commited ESG agenda Industr
Slide 5: Neodecortech, a group 100% Made in Italy
1. Company overview 5 Neodecortech, a group 100% Made in Italy. 5 companies sharing the same vision and a clear industrial and ESG strategy: Providing the interior design industry with high-end decors and surfaces enhanced by distinctive Italian flair for a sustainable living.
Slide 6: At a Glance
1. Company overview 6 AT A GLANCE 75 YEARS OF EXPERIENCE Neodecortech is a top player in the niche of decorative surfaces design and manufacturing (mostly paper, plus plastic more recently) for the interior design and flooring industries. A HIGHLY SINERGISTIC BUSINESS MODEL The Group is built around
Slide 7: Group structure
1. Company overview 7 EFFECTIVE BUSINESS MODELS Group structure Neodecortech S.p.A. - 1947 (44% of FY23 revenue, 222 employees) 70% owned Bergamo Printing, Impregnation Changzhou NDT new material technology Lacquering, Embossing company Ltd - 2024 100% owned Casoli di Atri Lamination NDT energy S.r.
Slide 8: Group structure
1. Company overview 8 EFFECTIVE BUSINESS MODELS Group structure Neodecortech S.p.A. - 1947 (44% of FY23 revenue, 222 employees) Founded in 1947, is the parent company of the Group. Under the brand name Confalonieri, Plana and Texte it is specialized in paper printi ng, pol ymeri c fil ms printi ng,
Slide 9: Vertical integration benefits
1. Company overview 9 EFFECTIVE BUSINESS MODELS Vertical integration benefits KNOW HOW – R&D (Centralized R&D, co- development with the paper mill) Vertical integration brings competitive advantages in terms of: - flexibility; - competitive purchase prices; - maintaining control over R&D. Operating
Slide 10: Intercompany flows 2023: integration and market
1. Company overview 10 INTERCOMPANY FLOWS 2023: integration but also a lot of market 100% Electricity 25% Steam-hot water 77% Bio-energy producer Paper mil l Decor lay er pri nting (steam and base, unicol or Impregnat ion Plastic 24%Electricity 18% electricity ) and b lack paper film pri nting 100%
Slide 11: Intercompany flows 2023: a fully sustainable business model
1. Company overview 11 INTERCOMPANY FLOWS 2023: A FULLY SUSTAINABLE BUSINESS MODEL A model based on the circular economy approach (see more at section 4) CDG uses only FSC® (Forest Stewardship Council) pulp that comes from sustainable certified forests (for a total consum ption of 25k tons) Paper pr
Slide 12: Internal vertical integration across the supply chain
1. Company overview 12 EFFECTIVE BUSINESS MODELS Internal vertical integration to serve across an integrate supply chain Energy producer (BEG) Decor paper producers NDT - Cartiera Printers NDT China NDT - Confalonieri Impregnators HPL/CLP, LPL/DPL NDT - Lamination on Plana eTexte wood substrates Fur
Slide 13: Strategic positioning: competitive arenas
1. Company overview 13 STRATEGIC POSITIONING Competitive arenas Paper Producers Décor Paper Producers *Only Décor Paper (printers – impregnators) high high Schattdecor Technocell (GER) Toppan (GER) (Toppan JAP + Interprint GER 850 654 + Decotec SP) Surteco (GER) Qifen g (CN) Kingdecor (CN) 774 567 7
Slide 14: Strategic positioning
1. Company overview 14 STRATEGIC POSITIONING High price – design products Neodecortech Small niche producers Big diversified groups Limited product range Wide product range Chinese Producers Low price – retail market Sour ce: Com pany inform ation
Slide 15: Strong brand portfolio for a complete Made in Italy offer
1. Company overview 15 STRONG BRAND PORTFOLIO FOR A COMPLETE MADE IN ITALY OFFER - Base paper - Unicolors - Balancing paper - Printed decorative papers (DEC) - Melamine-impregnated papers (MEL) - Finish-foils mainly for the furniture, laminate flooring and camper/caravan segments (FINISH) Paper-base
Slide 16: Superior market offering 1/3
1. Company overview 16 SUPERIOR MARKET OFFERING Over 900 designs divided into 7 families 1/3 NDT recently launche d EOS, the innovative line of supermatt anti-fingerprint products for the high- end surfaces market. Now the over 900 designs are divided in 7 families: Décor Papers Decorative printed p
Slide 17: Superior market offering 2/3
1. Company overview 17 SUPERIOR MARKET OFFERING Over 900 designs divided into 7 families 2/3 PPF & PPLF for LVT EOSTP EOSLAMINATO Laminates Printed plastic films that offer the A thin unicolor or printed plastic Thanks to a spe cific technology, Decorative Laminates are same high resemblance to film
Slide 18: Superior market offering 3/3
1. Company overview 18 SUPERIOR MARKET OFFERING Over 900 designs divided into 7 families 3 /3 Micro Top Melamin e Pape r Décor Paper Finish Foil EOSLAM INAT O Laminate Melamin e Film EOS T P Luxu ry Vin yl Tiles
Slide 19: 2023 Sales Mix
1. Company overview 19 2023 SALES MIX End Users Geography* 0,5% Middle East 0,8% Africa 5,5% Americas 1,0% Asia 19,9% Flooring Furniture 80,1% 42,1% Italy Europe 50,1% * Excluded Energy turnover
Slide 20: Experienced management team
1. Company overview 20 EXPERIENCED MANAGEMENT TEAM LUCA PELI – Chairman, 2022 LUIGI COLOGNI –CEO, 2005 - 60, Degree in Business Administration, MBA from - 71, Degree in Electrical Engineering; Bocconi University; -1979, Established HS Elettronica Progetti S.p.A., specialized in - Previous banking ex
Slide 21: Key financials & numbers 2023
1. Company overview 21 KEY FINANCIALS & NUMBERS – 2023 161,6 57,9% 13,9M Revenues (€M) Export * EBITDA (€M) 8.6% 25,9M 390 EBITDA Margin NFP (€ M) Employees * Excluded Energy turnover
Slide 22: Shareholders and market data
1. Company overview 22 SHAREHOLDERS AND MARKET DATA Shareholding structure - updated at 19 April 2024 PRIVATE COMPANY 26-09-2017 25-05-2020 15-03-2021 Azimut Investments SA 5,3% Finanziaria Market Data Valentini Spa 58,6% Share Price Mar 12th , 2024 3,03€/share Market (including 36,1% treasury share
Slide 23: Shareholders and market data 2/2
1. Company overview 23 SHAREHOLDERS AND MARKET DATA 2/2 Performance 1Y 125.0 120.0 115.0 110.0 105.0 100.0 95.0 Nov 2023 Dec 2023 Jan 2024 Feb Mar Apr May Jun Jul Aug Sep Oct Nov 2024 (INDEX) Neodecortech SpA - Price (INDEX) FTSE Italia STAR Net Tax - Price (INDEX) FTSE Italia Growth - Price Analyst
Slide 24: Index
Investor Presentation INDEX 1. Company overview 4. ESG approach At a glance Certifications Group structure Survey Sustainability Vertical integration benefits Circular economy Intercompany flows: economics 2023 Group emissions neutrality scope 1 + 2 circular economy Fully commited ESG agenda Industr
Slide 25: Financial results: 2020-2023 and Q3 2024
2. Results 25 FINANCIAL RESULTS: 2020 – 2023 and Q3 2024 (in € milions) 2020 2021 2022 2023 (in € milions) Q3 2023 Q3 2024 Net Sales 127,8 176,4 196,5 161,6 Net Sales 125,0 121,5 % change -3,9% 38,0% 11,4% -17,8% % change -2,8% Ebitda 14,6 18,1 16,0 13,9 Ebitda 11,3 11,1 Ebitda Margin % 11,4% 10,3%
Slide 26: Net Sales - €M
2. Results 26 Net SALES - €M 2020 – 2023 Net Sales (€/M) Q3 2023 – Q3 2024 Net Sales (€/M) 250 250 + 20,1 M 196.5 - 34,9 M 200 200 + 11,4% 176.4 - 17,7 % + 48,5 M 43.8 161.6 (*) + 37,9% 38.3 150 150 29.8 127.9 125.0 - 3,5M 121.5 - 2,8% 32.0 75.5 25.5 100 76.9 100 31.2 70.8 55.2 52.9 48.6 50 50 77.2
Slide 27: EBITDA & EBITDA margin - €M
2. Results 27 EBITDA & EBITDA MARGIN (*) - €M 2020 – 2023 EBITDA(€/M) Q3 2023 – Q3 2024 EBITDA (€/M) 20 - 2,1 M 50% + 3,5 M 18.1 20 50% - 11,6 % 45% + 24,0% 16.0 - 2,1 M 45% 14.6 - 13,1 % 40% 15 13.9 40% 15 - 0,2 M 35% 35% 1.8 - 1,8 % 30% 11,3 11.1 30% 10 12.1 25% 10 2.6 25% 20% 20% 15% 5 15% 8.6% 1
Slide 28: Net Income - €M
2. Results 28 NET INCOME - €M 2020 – 2023 Net Income (€/M) Q3 2023 – Q3 2024 Net Income (€/M) 8.4 40% + 1,7 M 40% 8 8 + 25,4% 35% 35% 7 6.7 7 - 5,6 M 30% 30% 6 6 + 3,2 M 5.6 - 66,7 % 25% 25% 5 5 + 91,4% 20% 20% 4 3.5 4 3,2 2.8 15% 3 15% 3 2,1 1.3 10% 1,2 - 10% 2 2 2.4 4.3% 1 2.7% 3.8% 5% 1 5% 1.8% 1
Slide 29: Net working capital - €M
2. Results 29 NET WORKING CAPITAL - €M (*) 2020 – 2023 Net Working Capital (€/M) Q3 2023 – Q3 2024 Net Working Capital (€/M) 90 27.4 33.7 35,5 70 31.3 70 30.4 25.1 50 18.6 17.7 26.6 23.8 50 16.3 19.3 30 30 42.0 45.9 36.7 40.6 43.6 42.6 10 10 -10 -10 -25.6 -33.7 -29.3 -28,1 -39.8 -33.8 -30 -30 -50 -5
Slide 30: 2023 cash flow analysis - €/M
2. Results 30 2023 CASH FLOW ANALYSIS - €/M 30 1.6 25 6.5 20 14.4 4.8 15 2.0 2.6 10 12,0 12.2 5 0 Cash Operational Cash NWC Changes Capex Banks Debts and Dividends Other Cash 31/12/2022 flow Leasing Payment Changes 31/12/2023
Slide 31: Q3 2024 cash flow analysis - €/M
2. Results 31 Q3 2024 CASH FLOW ANALYSIS - €/M 24 22 20 18 10.9 16 16.1 14 12 10 - 8 2.4 6 12,2 8.3 4 5.6 7.3 2 - Cash Operational Cash NWC Changes Capex Banks Debts and Dividends Other Cash 31/12/2023 flow Leasing Payment Changes 30/09/2024 At Q3 2024 the Group not yet collected the credit maximiza
Slide 32: Net financial position - €M
2. Results 32 NET FINANCIAL POSITION - €M 2020 - 2023 Net financial position (€/M) Q3 2023 – Q4 2024 Net financial position (€/M) 45 45 39,9 40 3,1 39.1 40 (10.6) 36.0 35 35 1,4 30,7 30 29,3 (4,8) 30 25,9 22.5 25 28.8 25 24.3 20 22.1 20 23.2 15 22.2 15 10 10 11.1 16.6 5 8.6 11.7 2.7x 6.1 5 1.6x 1.9x
Slide 33: Consolidated debt maturity at 31 December 2023
2. Results 33 CONSOLIDATED DEBT MATURITY at 31 December 2023 Debt Repayment plan (€ /M) One covenants on CDG long term debts 9.0 8.0 8.0 6.8 7.0 6.1 6.0 5.0 4.8 4.0 3.0 2.4 2.0 1.0 0.2 - 2024 2025 2026 2027 2028 2029
Slide 34: Index
Investor Presentation INDEX 1. Company overview 4. ESG approach At a glance Certifications Group structure Survey Sustainability Vertical integration benefits Circular economy Intercompany flows: economics 2023 Group emissions neutrality scope 1 + 2 circular economy Fully commited ESG agenda Industr
Slide 35: Investment opportunities 2024-2026
3. Growth strategy 35 INVESTMENT OPPORTUNITIES 2024 – 2026 (€/M) Tangible & Intangible investments 35 30 25,3 + 0,8% 25,5 25 + 31,8% 20 19,2 2024 Investments € 12,3 m 12.3 12.2 2025 investments € 6,0 m 15 6.9 2026 investments € 7,1 m 10 4.3 7.5 9.5 5 8.0 5.4 3.8 0 2018 - 2020 2021 - 2023 2024 - 2026
Slide 36: Index
Investor Presentation INDEX 1. Company overview 4. ESG approach At a glance Certifications Group structure Survey Sustainability Vertical integration benefits Circular economy Intercompany flows: economics 2023 Group emissions neutrality scope 1 + 2 circular economy Fully commited ESG agenda Industr
Slide 37: Certifications
4. Neodecortech’s Sustainability Approach 37 CERTIFICATIONS The Group certifications are the tangible proof of its focus toward sustainable production. All Group companies have the following in place: Code of Ethics Organisational Model Pursuant to Legislative Decree 231/2001 QHSE Policy Quality, He
Slide 38: Certifications history
4. Neodecortech’s Sustainability Approach 38 CERTIFICATIONS HISTORY UNI ENISO UNI ENISO FSC®-CHAIN OF OHSAS 100% SUSTAINABILTY ISO UNI ISO NONFINANCIAL 14001 9001 CUSTODY 18001 MADE IN ITALY REPORT 50001 45001 REPORT wirh limited RATING assurance CDP 2007 2009 2010 2011 2015 2016 2017 2020 2021 FSC®
Slide 39: Survey sustainability - ratings
4. Neodecortech’s Sustainability Approach 39 SURVEY SUSTAINABILITY - RATINGS score score score score 92% 92.3% 85.8% A A- B B- C C- D D- 30/06/2024 15/02/2024 30/06/2024 31/12/2023 top performer score score score leader green A conscious yellow BCDE red builder Deloitte 31/072024 10/07/2024 30/06/20
Slide 40: A fully sustainable business model: circular economy
4. Neodecortech’s Sustainability Approach 40 A FULLY SUSTAINABLE BUSINESS MODEL Circular economy CDG uses only FSC® (Forest Stewardship Council) pulp that comes from sustainable certified forests (for a total consum ption of 25k tons) Paper production Thermoplastic film production Circular Economy 9
Slide 41: Carbon neutral scope 1 + 2 from 2023
4. Neodecortech’s Sustainability Approach 41 A FULLY SUSTAINABLE BUSINESS MODEL From 2023 onward the Group is Carbon neutral scope 1 + 2 CO2 eq - Ton 2023 - Neutralization and Offsetting Tons of CO2 eq 60,000 -31% -20% 30,000 47,542 32,609 -100% 26,120 0 -6,489 -14,907 -26,120 -30,000 Theoretical Gr
Slide 42: Fully committed to ESG agenda 1/3
4. Neodecortech’s Sustainability Approach 42 FULLY COMMITTED TO ESG AGENDA 1/3 Environment & Circular Economy: 2023 Achievement of Group Carbon Neutrality (Scope 1 + Scope 2). Fuel used by the BEG power plant was derived from certified tallow and other by products of animal origin (ABPs). CDG uses o
Slide 43: Fully committed to ESG agenda 2/3
4. Neodecortech’s Sustainability Approach 43 FULLY COMMITTED TO ESG AGENDA 2/3 Social 2023 14.354 hours of training delivered 5 Scholarship program for employees’ children New policy on diversity issued. In 2023 women represented 15% of the employees 390 employees of which 212 < 50 years-old Contrac
Slide 44: Fully committed to ESG agenda 3/3
4. Neodecortech’s Sustainability Approach 44 FULLY COMMITTED TO ESG AGENDA 3/3 Governance and reporting: Organizational model in place pursuant to Legislative Decree 231/2001 adopted in all companies Code of Ethics adopted in all companies Code of Conduct of Borsa Italiana: comply or explain Board o
Slide 45: Sustainable development goals
4. Neodecortech’s Sustainability Approach 45 SUSTAINABLE DEVELOPMENT GOALS The 2030 Agenda for Sustainable Development set by the United Nations in 2015 expresses the global plan of action for sustainable development, by tackling issues of universal concern such as poverty, hunger, lack of education
Slide 46: Index
Investor Presentation INDEX 1. Company overview 4. ESG approach At a glance Certifications Group structure Survey Sustainability Vertical integration benefits Circular economy Intercompany flows: economics 2023 Group emissions neutrality scope 1 + 2 circular economy Fully commited ESG agenda Industr
Slide 47: Income statement 2023-2022
Appendix 47 INCOME STATEMENT 2023 – 2022 31 Dec 31 Dec (Euro thousands) 2023 % 2022 % Change Change % Revenue from sales and services 161.604 100,0% 196.474 100,0% (34.870) (17,7%) Changes in work in progress, semi-finished and 3.250 2,0% 3.044 1,5% 206 6,8% finished products Other revenue 7.215 4,5
Slide 48: Income statement Q3 2024 - Q3 2023
Appendix 48 INCOME STATEMENT Q3 2024 – Q3 2023 30 Sept. 30 Sept. (Euro thousands) 2024 % 2023 % Change Change % Revenue from sales and services 121.546 100,0% 125.016 100,0% (3.470) (2,8%) Changes in work in progress, semi-finished and finished prod. 1.842 1,5% 2.323 1,9% (481) (20,7%) Other revenue
Slide 49: Balance sheet - assets FY 2023 - FY 2022
Appendix 49 BALANCE SHEET STATEMENT - ASSETS FY 2023 – FY 2022 Assets (Euro thousands) 31 Dec 2023 % 31 Dec 2022 % Change Change % Intangible assets 777 0,5% 827 0,5% (50) (6,0%) Tangible assets 75.969 46,1% 78.617 46,6% (2.648) (3,4%) Equity investments 0 0,0% 100 0,1% (100) (100%) Other non-curren
Slide 50: Balance sheet - equity and liabilities FY 2023 - FY 2022
Appendix 50 BALANCE SHEET STATEMENT– EQUITY AND LIABILITIES FY 2023 – FY 2022 Equity and liabilities (Euro thousands) 31 Dec 2023 % 31 Dec 2022 % Change Change % Share capital 18.804 11,4% 18.804 11,1% 0 0,0% Share premium reserve 18.864 11,4% 18.864 11,2% 0 0,0% Other reserves 28.185 17,1% 24.968 1
Slide 51: Balance sheet - assets Q3 2024 - FY 2023
Appendix 51 BALANCE SHEET STATEMENT - ASSETS Q3 2024 – FY 2023 Assets (Euro thousands) 30 Sept. % 31 Dec % Change Change % 2024 2023 Intangible assets 1.731 1,0% 777 0,5% 954 122,8% Tangible assets 73.903 43,2% 75.969 46,1% (2.066) (2,7%) Equity investments 0 0,0% 0 0,0% 0 - Other non-current assets
Slide 52: Balance sheet - equity and liabilities Q3 2024 - FY 2023
Appendix 52 BALANCE SHEET STATEMENT – EQUITY AND LIABILITIES Q4 2024 – FY 2023 Equity and liabilities (Euro thousands) 30 Sept. % 31 Dec % Change Change % 2024 2023 Share capital 18.804 11,0% 18.804 11,4% 0 0,0% Share premium reserve 18.864 11,0% 18.864 11,4% 0 0,0% Other reserves 30.412 17,8% 28.18
Slide 53: Net financial position FY 2023 - FY 2022
Appendix 53 NET FINANCIAL POSITION FY 2023 – FY 2022 (Euro thousands) 31 December 31 December Change 2023 2022 A. Cash funds 12.157 12.042 115 B. Cash and cash equivalents 0 0 0 C. Other current financial assets 0 0 0 D. Cash (A+ B + C) 12.157 12.043 114 E. Current financial debt (9.578) (13.489) 3.
Slide 54: Net financial position Q3 2024 - Q3 2023
Appendix 54 NET FINANCIAL POSITION Q3 2024 – Q3 2023 (Euro thousands) 30 Sept. 30 Sept. Change 2024 2023 A. Cash funds 7.300 6.510 790 B. Cash and cash equivalents 0 0 0 C. Other current financial assets 0 0 0 D. Cash (A+ B + C) 7.300 6.510 790 E. Current financial debt (14.473) (12.530) (1.943) F.
Slide 55: Key contacts
Appendix 55 KEY CONTACTS ISSUER INVESTOR RELATIONS SPECIALIST CORPORATE BROKING Luigi Cologni – CEO & Investor relator Lorenzo Edmondo Bondi Chiara Tavazzi Email: [email protected] Email:[email protected] Email: [email protected] Marina Fumagalli - CFO Email:m.fumagalli
Slide 56: Decors and surfaces for sustainable living
4+A0Z mmm ANO OR H Decors and surfaces for sustainable living.