Neodecortech Spa · MIL:NDT
Neodecortech Spa — Q1 2024 Earnings Presentation
56 slides from Neodecortech Spa's earnings presentation, May 2024
Slide 1: Investor Presentation May 2024
INVESTOR PRESENTATION May 2024
Slide 2: Disclaimer
DISCLAIMER This document has been prepared by Neodecortech S.p.A. those results or developments may not be indicative of results or (“NEODECORTECH”) solely for use in connection with the presentation developments in future periods. of the Company to potential investors and shareholders and may not b
Slide 3: Index
Investor Presentation INDEX 1. Company overview 4. ESG approach At a glance Circular economy Group structure 2023 Group emissions neutrality scope 1 + 2 Vertical integration benefits Fully commited ESG agenda Intercompany flows: economics Sustainable development goals circular economy Sustainable st
Slide 4: Index
Investor Presentation INDEX 1. Company overview 4. ESG approach At a glance Circular economy Group structure 2023 Group emissions neutrality scope 1 + 2 Vertical integration benefits Fully commited ESG agenda Intercompany flows: economics Sustainable development goals circular economy Sustainable st
Slide 5: Neodecortech, a group 100% Made in Italy
1. Company overview 5 Neodecortech, a group 100% Made in Italy. 4 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) Founded in 1947, is the parent company of the Group. Under the brand name Confalonieri, Plana and Texte it is specialized in paper printing, polymeric films printing, polym
Slide 8: Vertical integration benefits
1. Company overview 8 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 9: Intercompany flows 2023: integration but also a lot of market
1. Company overview 9 INTERCOMPANY FLOWS 2023: integration but also a lot of market 100% Electricity 25% Steam-hot water 77% Bio-energy producer Paper mill Decor layer printing (steam and base, unicolor Impregnation Plastic 24% Electricity 18% electricity) and black paper film printing 100% Steam-ho
Slide 10: Intercompany flows 2023: a fully sustainable business model
1. Company overview 10 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 consumption of 25k tons) Paper pro
Slide 11: Internal vertical integration across an integrated supply chain
1. Company overview 11 EFFECTIVE BUSINESS MODELS Internal vertical integration to serve across an integrate supply chain Energy producer (BEG) Decor paper producers NDT - Cartiera Printers NDT - Confalonieri Impregnators HPL/CLP, LPL/DPL NDT - Lamination on Plana e Texte wood substrates Furniture, L
Slide 12: Strategic positioning: competitive arenas
1. Company overview 12 STRATEGIC POSITIONING Competitive arenas Paper Producers Décor Paper Producers *Only Décor Paper (printers – impregnators) high high Schattdecor Technocell (GER) (GER) Toppan (Toppan JAP + Interprint GER 850 654 + Decotec SP) Surteco (GER) Qifeng (CN) Kingdecor (CN) 774 567 75
Slide 13: Strategic positioning
1. Company overview 13 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 Source: Company information
Slide 14: Strong brand portfolio for a complete Made in Italy offer
1. Company overview 14 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 15: Superior market offering 1/3
1. Company overview 15 SUPERIOR MARKET OFFERING Over 900 designs divided into 7 families 1/3 NDT recently launched 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 pa
Slide 16: Superior market offering 2/3
1. Company overview 16 SUPERIOR MARKET OFFERING Over 900 designs divided into 7 families 2/3 PPF & PPLF forLVT EOSTP EOSLAM IN ATO Laminates Printed plastic films that offer the A thin unicolor or printed plastic Thanks to a specific technology, Decorative Laminates are same high resemblance to film
Slide 17: Superior market offering 3/3
1. Company overview 17 SUPERIOR MARKET OFFERING Over 900 designs divided into 7 families 3 /3 Micro Top Finish Foil Laminate EOSLAMINATO Melamine Paper Décor Paper Melamine Film EOS TP Luxury Vinyl Tiles
Slide 18: 2023 sales mix
1. Company overview 18 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 19: Experienced management team
1. Company overview 19 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 e
Slide 20: Key financials & numbers 2023
1. Company overview 20 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 21: Shareholders and market data
1. Company overview 21 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 shares
Slide 22: Shareholders and market data 2/2
1. Company overview 22 SHAREHOLDERS AND MARKET DATA 2/2 Performance 1Y 105,0 100,0 95,0 90,0 85,0 80,0 May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May 2023 2023 2024 2024 (INDEX) N eo decortech SpA - Price (INDEX) FTSE Italia STAR Net Tax - Price (INDEX) FTSE Italia Growth - Price Analyst Covera
Slide 23: Index
Investor Presentation INDEX 1. Company overview 4. ESG approach At a glance Circular economy Group structure 2023 Group emissions neutrality scope 1 + 2 Vertical integration benefits Fully commited ESG agenda Intercompany flows: economics Sustainable development goals circular economy Sustainable st
Slide 24: Financial results: 2020-2023 and Q1 2024
2. Results 24 FINANCIAL RESULTS: 2020 – 2023 and Q1 2024 (in € milions) 2020 2021 2022 2023 (in € milions) Q1 2023 Q1 2024 Net Sales 127,8 176,4 196,5 161,6 Net Sales 46,5 43,1 % change -3,9% 38,0% 11,4% -17,8% % change -7,3% Ebitda 14,6 18,1 16,0 13,9 Ebitda 3,7 3,3 Ebitda Margin % 11,4% 10,3% 8,1%
Slide 25: Net sales
2. Results 25 Net SALES - €M 2020 – 2023 Net Sales (€/M) Q1 2023 – Q1 2024 Net Sales (€/M) 250,0 + 20,1 M 196,5 - 34,9 M 200,0 + 11,4% 176,4 - 17,7 % 60,0 + 48,5 M 43,8 161,6 (*) + 37,9% 38,3 150,0 29,8 46,5 - 3,4 M 127,9 43,1 - 7,3 % 11,3 32,0 75,5 9,2 100,0 76,9 70,8 30,0 18,1 17,5 55,2 50,0 77,2
Slide 26: EBITDA & EBITDA margin
2. Results 26 EBITDA & EBITDA MARGIN (*) - €M 2020 – 2023 EBITDA(€/M) Q1 2023 – Q1 2024 EBITDA (€/M) Ebitd a Ebitd a Margin Ebitd a Ebitd a Margin 20,0 30% 6,0 30% 18,1 - 2,1 M 18,0 + 3,5 M - 11,6 % 16,0 25% + 24,0% - 2,1 M 5,0 25% 16,0 14,6 - 13,1 % 13,9 14,0 3,7 20% 4,0 - 0,4 M 20% 12,0 - 10,8 % 3
Slide 27: EBITDA & EBITDA margin without Bioenergia Guarcino
2. Results 27 EBITDA & EBITDA MARGIN (*) - €M Without Bioenergia Guarcino 2020 – 2023 EBITDA(€/M) Q1 2023 – Q1 2024 EBITDA (€/M) Ebitd a Ebitd a Margin Ebitd a Ebitd a Margin 20,0 30% 5,0 30% 18,0 4,5 15,3 25% 25% 16,0 4,0 14,0 3,5 11,8 20% 20% 2,9 12,0 10,8 10,5 3,0 2,7 10,0 15% 2,5 15% 11,2% 11,1%
Slide 28: Net income
2. Results 28 NET INCOME - €M 2020 – 2023 Net Income (€/M) Q1 2023 – Q1 2024 Net Income (€/M) 9,0 8,4 15,0% 3 20,0% + 1,7 M 8,0 13,0% 18,0% + 25,4% 7,0 6,7 - 5,6 M 16,0% 11,0% - 66,7 % 14,0% 6,0 + 3,2 M 2 9,0% 12,0% + 91,4% 5,6(*) 5,0 7,0% 10,0% 4,0 3,5 1,2 4,30% 8,0% 3,80% 2,8 5,0% 3,0 1 2,7% 6,0%
Slide 29: Net working capital
2. Results 29 NET WORKING CAPITAL - €M (*) 2020 – 2023 Net Working Capital (€/M) Q1 2023 – Q1 2024 Net Working Capital (€/M) 90,0 90,0 27,4 33,7 41,7 32,9 70,0 30,4 25,1 70,0 26,6 23,8 27,3 23,9 50,0 19,3 16,3 50,0 30,0 30,0 36,7 40,6 43,6 42,6 42,6 41,9 10,0 10,0 -1 0,0 -25,6 -1 0,0 -33,7 -28,2 -32
Slide 30: 2023 cash flow analysis
2. Results 30 2023 CASH FLOW ANALYSIS - €/M 30,0 1,6 25,0 6,5 20,0 14,4 4,8 15,0 2,0 2,6 10,0 12,2 12,0 5,0 - Cash Operation al NWC Chan ges Capex Banks Deb ts and Dividends Other Cash 31/12/2022 Cash flow Leasing Payment Changes 31/12/2023
Slide 31: Q1 2024 cash flow analysis
2. Results 31 Q1 2024 CASH FLOW ANALYSIS - €/M 20,0 18,0 16,0 14,0 3,6 12,0 12,2 10,0 12,6 8,0 6,0 1,0 5,5 4,0 5,1 2,0 1,8 - - Cash Operation al NWC Chan ges Capex Banks Deb ts Dividends Other Cash 31/12/2023 Cash flow and Leasing Payment Changes 31/03/2024 At Q1 2024 the Group not yet collected the
Slide 32: Net financial position
2. Results 32 NET FINANCIAL POSITION - €M 2020 - 2023 Net financial position (€/M) Q1 2023 – Q1 2024 Net financial position (€/M) 45,0 45,0 39,9 38,6 40,0 40,0 (1,1) 37,5 (10.6) 35,0 35,0 1,4 30,7 30,0 29,3 (4,8) 30,0 25,9 21,7 25,0 28,8 25,0 26,6 20,0 22,1 20,0 23,2 15,0 22,2 15,0 10,0 10,0 15,8 5,
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 4,8 5,0 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 Circular economy Group structure 2023 Group emissions neutrality scope 1 + 2 Vertical integration benefits Fully commited ESG agenda Intercompany flows: economics Sustainable development goals circular economy Sustainable st
Slide 35: Investment opportunities 2024-2026
3. Growth strategy 35 INVESTMENT OPPORTUNITIES 2024 – 2026 (€/M) 35,0 30,0 25,3 + 0,8% 25,5 25,0 + 31,8% 19,2 2024 Investments € 12,3 m 20,0 12,2 12,3 2025 investments € 6,0 m 15,0 6,9 2026 investments € 7,1 m 10,0 4,3 7,5 9,5 5,0 8,0 5,4 3,8 0,0 2018 - 2020 2021 - 2023 2024 - 2026 New machinery Eff
Slide 36: Index
Investor Presentation INDEX 1. Company overview 4. ESG approach At a glance Circular economy Group structure 2023 Group emissions neutrality scope 1 + 2 Vertical integration benefits Fully commited ESG agenda Intercompany flows: economics Sustainable development goals circular economy Sustainable st
Slide 37: A fully sustainable business model: circular economy
4. Neodecortech’s Sustainability Approach 37 A FULLY SUSTAINABLE BUSINESS MODEL Circular economy CDG uses only FSC® (Forest Stewardship Council) pulp that comes from sustainable certified forests (for a total consumption of 25k tons) Paper production Thermoplastic film production Circular Economy 92
Slide 38: Carbon neutral scope 1 + 2 from 2023
4. Neodecortech’s Sustainability Approach 38 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 39: Fully committed to ESG agenda 1/3
4. Neodecortech’s Sustainability Approach 39 FULLY COMMITTED TO ESG AGENDA 1/3 Environment & Circular Economy: 2021-2022 Fuel used by the BEG power plant was derived from certified tallow and other by products of animal origin (ABPs). CDG uses only FSC (Forest Stewardship Council) pulp FSC for a tot
Slide 40: Fully committed to ESG agenda 2/3
4. Neodecortech’s Sustainability Approach 40 FULLY COMMITTED TO ESG AGENDA 2/3 Social 2021 – 2022 projects 10,480 hours of training delivered (of which 4,024 in 2022), 16 hours per capita 10 Scholarship program for employees’ children (of which 4 in 2022) New policy on diversity issued. 2021 and 202
Slide 41: Fully committed to ESG agenda 3/3
4. Neodecortech’s Sustainability Approach 41 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 42: Sustainable development goals
4. Neodecortech’s Sustainability Approach 42 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 43: Sustainability strategy
4. Neodecortech’s Sustainability Approach 43 SUSTAINABILITY STRATEGY For Neodecortech innovation has always been the beating heart around which rotates ideas, projects, products and development processes and is fueled by research that promotes the development and sharing of knowledge, in support of
Slide 44: Index
Investor Presentation INDEX 1. Company overview 4. ESG approach At a glance Circular economy Group structure 2023 Group emissions neutrality scope 1 + 2 Vertical integration benefits Fully commited ESG agenda Intercompany flows: economics Sustainable development goals circular economy Sustainable st
Slide 45: Income statement 2023-2022
Appendix 45 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 46: Income statement Q1 2024-Q1 2023
Appendix 46 INCOME STATEMENT Q1 2024 –Q1 2023 31 March 31 March (Euro thousands) 2024 % 2023 % Change Change % Revenue from sales and services 43.079 100,0% 46.474 100,0% (3.395) (7,3%) Changes in work in progress, semi-finished and (107) (0,2%) 1.548 3,3% (1.655) (106,9%) finished products Other re
Slide 47: Balance sheet statement 2023-2022 - Assets
Appendix 47 BALANCE SHEET STATEMENT 2023 – 2022 - ASSETS 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-current asse
Slide 48: Balance sheet statement 2023-2022 - Equity and liabilities
Appendix 48 BALANCE SHEET STATEMENT 2023 – 2022 – EQUITY AND LIABILITIES 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 14,8%
Slide 49: Balance sheet statement Q1 2024 - Assets
Appendix 49 BALANCE SHEET STATEMENT Q1 2024 – FY 2022 - ASSETS Assets (Euro thousands) 31 March % 31 Dec % Change Change % 2024 2023 Intangible assets 1.485 0,9% 777 0,5% 708 91,1% Tangible assets 74.894 44,1% 75.969 46,1% (1.075) (1,4%) Equity investments 0 0,0% 0 0,0% 0 #DIV/0! Other non-current a
Slide 50: Balance sheet statement Q1 2024 - Equity and liabilities
Appendix 50 BALANCE SHEET STATEMENT Q1 2024 – FY 2022 – EQUITY AND LIABILITIES Equity and liabilities (Euro thousands) 31 March % 31 Dec % Change Change % 2024 2023 Share capital 18.804 11,1% 18.804 11,4% 0 0,0% Share premium reserve 18.864 11,1% 18.864 11,4% 0 0,0% Other reserves 27.991 16,5% 28.18
Slide 51: Net financial position FY 2023 - FY 2022
Appendix 51 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 52: Net financial position Q1 2024 - Q1 2023
Appendix 52 NET FINANCIAL POSITION Q1 2024 – Q1 2023 (Euro thousands) 31 March 31 March Change 2024 2023 A. Cash funds 5.508 5.603 (95) B. Cash and cash equivalents 0 0 0 C. Other current financial assets 0 0 0 D. Cash (A+ B + C) 5.508 5.603 (95) E. Current financial debt (13.694) (11.714) (1.980) F
Slide 53: Certifications
Appendix 53 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, Health, Safety and Environmental 10
Slide 54: Certifications history
Appendix 54 CERTIFICATIONS HISTORY UNI ENISO UNI ENISO FSC®-CHAIN OF OHSAS 100% SUSTAINABILTY ISO UNIISO NON FINANCIAL 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®-CHAIN PEFC UNI EN ISO ISO UNI IS
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.fumagal
Slide 56: Decors and surfaces for sustainable living
4+A0Z mmm ANO OR H Decors and surfaces for sustainable living.