Neodecortech Spa · MIL:NDT
Neodecortech Spa — Investor Presentation (April 2022)
49 slides from Neodecortech Spa's investor presentation, April 2022
Slide 1: Investor Presentation April 2022
INVESTOR PRESENTATION April 2022 Decors and surfaces for sustainable living.
Slide 2: Disclaimer
DISCLAIMER This document has been prepared by Neodecortech S.p.A. tained in this presentation, those results or developments may not (“NEODECORTECH”) solely for use in connection with the pres- be indicative of results or developments in future periods. entation of the Company to potential investors
Slide 3: 1. Company Overview
1. COMPANY OVERVIEW
Slide 4: Neodecortech, a group 100% Made in Italy
1. Company overview 4 Neodecortech, a group 100% Made in Italy. 3 companies sharing the same vision and a clear industrial strategy: “Providing the interior design industry with high-end products enhanced by distinctive Italian flair”
Slide 5: Effective Business Model: Group structure
1. Company overview 5 EFFECTIVE BUSINESS MODEL Group structure Neodecortech S.p.A. Printing, Impregnation and Lamination Unit (43% of FY20 revenue) Founded in 1947, is the parent company of the Group. Under the brand name 100% owned Confalonieri, Plana and Texte it is specialized in paper printing,
Slide 6: Vertical integration benefits 1/2
1. Company overview 6 EFFECTIVE BUSINESS MODELS Vertical integration benefits 1/2 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. Operat
Slide 7: At a Glance
1. Company overview 7 AT A GLANCE 70+ YEARS OF EXPERIENCE Neodecortech is a top player in the niche of decorative surfaces design and manu- facturing (mostly paper, plus plastic more recently) for the interior design and flooring industries. A HIGHLY SINERGISTIC BUSINESS MODEL The Group is built aro
Slide 8: Intercompany Flows 2021
1. Company overview 8 INTERCOMPANY FLOWS 2021 100% Electricity 34% Steam 80% Bio-energy producer Paper mill Decor layer printing (steam and base, unicolor Impregnation 34% Electricity 20% electricity) and black paper Plastic film printing 100% Steam manifacturer Paper & plastic film lamination 66% 8
Slide 9: Experienced Management Team
1. Company overview 9 EXPERIENCED MANAGEMENT TEAM RICCARDO BRUNO - Chairman LUIGI COLOGNI - CEO - 62, Degree in Electrical Engineering, MBA American University of - 58, Degree in Business Administration, MBA from Bocconi Washington; University; -1985, Banca Nazionale del Lavoro, Head of Capital Mark
Slide 10: Key Financials & Numbers – 2021
1. Company overview 10 KEY FINANCIALS & NUMBERS – 2021 176,4 M 60,3% 18,1M Revenues (€ M) Export * EBITDA (€ M) 10.3 % 29.3M 406 EBITDA Margin NFP (€ M) Employee * Excluded Energy turnover
Slide 11: Industry Outlook
1. Company overview 11 INDUSTRY OUTLOOK Furniture Flooring - Lockdown put home (and furniture) back in the center of life - This newfound centrality of the domestic sphere will probably lead many to invest in improving their living spaces - The introduction of the Superbonus by Italian Government th
Slide 12: Total Paper and Paperboard Market
1. Company overview 12 TOTAL PAPER AND PAPERBOARD MARKET Source: Decor Paper Market Research 2019 - Pöyry
Slide 13: Vertical integration benefits
1. Company overview 13 EFFECTIVE BUSINESS MODELS Vertical integration benefits 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, Laminate Flooring, Interior Applications, E
Slide 14: Strategic Positioning
14 1. Company overview STRATEGIC POSITIONING Paper Producers Décor Paper Producers *Only Décor Paper (printers – impregnators) **Plastic business included high 500 Surteco (GER)** Qifeng (CN) 690 467 Schattdecor (GER) Technocell (GER) Toppan 562 (Toppan JAP + Interprint GER 452 + Decotec SP) Munksjo
Slide 15: Strategic Positioning
1. Company overview 15 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 16: Completed Investments
1. Company overview 16 COMPLETED INVESTMENTS Brand Investment Innovation Customer Profitable New value Growth product Acquisition of a branch Eur 2.5 mn* LAMINATES from Corbetta (2018) (paper base laminates business) Embossing line (2020) Eur 2.5 mn PPLF Lacquering line (2020) Eur 1.5 mn EOSTP Revam
Slide 17: Superior Market Offering 1/2
1. Company overview 17 SUPERIOR MARKET OFFERING Over 900 designs divided into 7 families 1/2 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 pap
Slide 18: Superior Market Offering 2/2
1. Company overview 18 SUPERIOR MARKET OFFERING Over 900 designs divided into 7 families 2/2 PPF & PPLF for LVT Laminates EOST P EOSLA M IN ATO Printed plastic films that offer Decorative Laminates are A thin unicolor or printed Thanks to a specific technolo- the same high resemblance to surfacing m
Slide 19: Strong Brand Portfolio for a Complete Made in Italy Offer
1. Company overview 19 STRONG BRAND PORTFOLIO FOR A COMPLETE MADE IN ITALY OFFER - Printed decorative papers (DEC) - Melamine-impregnated papers (MEL) - Finish-foils mainly for the furniture, laminate flooring and camper/ caravan segments (FINISH) Paper-based laminates made for the covering, doors a
Slide 20: Superior Market Offering
1. Company overview 20 SUPERIOR MARKET OFFERING Finish Foil Laminate EOSLAMINATO Décor Paper Melamine Film EOSTP Luxury VinylTiles
Slide 21: Sales Mix - 2021
1. Company overview 21 SALES MIX - 2021 End Users Geography* 5,8% Middle East 1,1 Africa 3,8% Americas 1,6% Asia 25% Flooring Furniture 75% 39,6% Italy Europe 48,2% * Excluded Energy turnover
Slide 22: Shareholders and Market Data 1/2
1. Company overview 22 SHAREHOLDERS AND MARKET DATA 1/2 Shareholding structure - updated at March, 2022 PRIVATE COMPANY 26-09-2017 25-05-2020 15-03-2021 Market Data Finanziaria 58,6% Valentini Spa Share Price March 16th , 2022 3.81€/share Market, including Share Price Jan 7th 2022 4.39€/share 41,4%
Slide 23: Shareholders and Market Data 2/2
1. Company overview 23 SHAREHOLDERS AND MARKET DATA 2/2 Performance since IPO Analyst Coverage Company Name / Date Target price €/share Banca Akros – 16 Mar 2022 6 (previous 6.4) MidCap – 16 Mar 2022 5.8 (previous 6.3) Hardman – 16 Mar 2022 6.78 (previous 6,74)
Slide 24: 2. FY 2021 Results
2. FY 2021 RESULTS
Slide 25: FY2021 Financial Results
1. Company overview 25 FY2021 FINANCIAL RESULTS (in € milions) 2019 2020 2021 Net Sales 133 127,8 176,4 % change -3,9% +38% EBITDA 16 14,6 18,1 % EBITDA margin 12% 11,4% 10,3% Net Income 4 3,5 6,7 % Margin 3% 2,8% 3,8% NFP 40,5 39,9 29,3 FY2021 sales with strong increase of 38% not only compared to
Slide 26: Net Sales
2. FY2021 Results 26 Net SALES 2018- 2021 Net Sales (€/M) Décor Paper – CDG Printed Paper- NDT Energy - BEG 20 0,0 176,4 18 0,0 32,7% 16 0,0 38% 38,3 14 0,0 133,0 130,9 127,9 12 0,0 29,2 29,5 32,0 10 0,0 76,9 80 ,0 50,8 56,5 55,2 60 ,0 40 ,0 61,2 50,9 47,0 20 ,0 40,7 0,0 20 18 20 19 20 20 20 21
Slide 27: EBITDA & EBITDA Margin
2. FY2021 Results 27 EBITDA & EBITDA MARGIN 2018 - 2021 EBITDA (€/M) 20 ,0 3 0 , % 18,1 17,7* 18 ,0 13,8% 24% 15,9 2 5 ,0 % 16 ,0 14,6 14 ,0 2 0 , % 12 ,0 10 ,0 13,5% 1 5 ,0 % 12,0% 11,4% 8,0 10,30% 1 0 , % 6,0 4,0 5 ,0 % 2,0 0,0 0 ,0 % 20 18 20 19 20 20 20 21 % (EBITDA on Net Sales) * included non
Slide 28: EBITDA Bridge
2. FY2021 Results 28 EBITDA BRIDGE EBITDA Bridge (€/ M) 70 ,0 60 ,0 0,6 50 ,0 40 ,0 +5.5 +5.1 30 ,0 20 ,0 18,1 14,6 41,6 2,9 10 ,0 48,6 0,0 EBTID A FY20 ∆ REVENUES OTH ER REVENU ES ∆ VARIABLE ∆ FIXED EBTID A FY21 COSTS COSTS -10 ,0
Slide 29: Net Income
2. FY 2021 Results 29 NET INCOME 2018-2021 Net Income (€/M) 8,0 1 5 ,0 % 7,0 6,7 1 3 ,0 % 6,0* 6,0 1 1 ,0 % 89,1% 5,0 9 ,0 % 4,0 4,0 7 ,0 % 3,5 3,0 4,6% 5 ,0 % 3,80% 3,0% 2,7% 2,0 3 ,0 % 1,0 1 ,0 % 0,0 -1 ,0 % 20 18 20 19 20 20 20 21 % (NET INCOME on Net Sales) * included non recurring revenues rela
Slide 30: Net Working Capital
2. FY2021 Results 30 NET WORKING CAPITAL 2018 – 2021 Net Working Capital (€/M) 80 % 30.4 27.6 27.0 27,4 60 % 19,3 19,2 24,1 26,6 40 % 20 % 39,1 36,7 36,7 40,6 0% -31,3 -25,6 -20 % -33,2 -39,8 -40 % 2019 2020 2021 2018 payables inventory receivables
Slide 31: Cash Flow Analysis
2. FY2021 Results 31 CASH FLOW ANALYSIS (€/M) 30,0 25,0 2,1 20,0 9,4 15,0 4,6 1,60 1,2 3,2 10,0 13,4 17,4 7,5 5,0 - Ca sh Opera ti ona l Cash NWC Ch ang es Ca pex Ban ks D ebts and Di vide nd Sha re Cap itale Oth er Ca sh 31 /1 2/202 0 flow Le asin g pa yment in crease Ch ang es 31 /1 2/202 1
Slide 32: Net Financial Position
2. FY 2021 Results 32 NET FINANCIAL POSITION Current Debt Net financial position (€/M) Non Current Debt NFP/EBITDA 50 44,3 45 40,5 39,9 40 35 29,3 30 28,1 23,1 25 28,8 20 23,2 15 10 16,2 17,4 5 11,1 2,5x 2,5x 2,7x 6,1 1,6x 0 20 18 20 19 20 20 20 21 VARIATION (3.8) (0.6) (10.6)
Slide 33: 3. Growth Strategy
3. GROWTH STRATEGY
Slide 34: Investment Opportunities 2021 – 2023
3. Growth strategy 34 INVESTMENT OPPORTUNITIES 2021 – 2023 (€/M) New machinery Efficiency recovery Productivity 35 30 28,6 25 + 49 % 9,6 19,2 20 15 6,9 8,3 10 4,3 5 10,7 8,0 0 2018-2020 2021-2023
Slide 35: 4. Neodecortech's Sustainability Approach
4. NEODECORTECH’S SUSTAINABILITY APPROACH
Slide 36: A Fully Sustainable Business Model - Circular Economy
4. Neodecortech’s Sustainability Approach 36 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 29k tons) Paper production Thermoplastic film production Circular Economy 9
Slide 37: Fully Committed to ESG Agenda 1/4
4. Neodecortech’s Sustainability Approach 37 FULLY COMMITTED TO ESG AGENDA 1/4 Environment & Circular Economy: 2021 Around 98% of fuel used by the BEG power plant was derived from certified tallow and other by-products of animal origin (ABPs) in 2021. CDG uses only FSC (Forest Stewardship Council) p
Slide 38: Fully Committed to ESG Agenda 3/4
4. Neodecortech’s Sustainability Approach 38 FULLY COMMITTED TO ESG AGENDA 3/4 Social 2021 6.456 hours of training delivered (+187% compared to 2019), 16 hours per capita 6 Scholarship program for employees’ children New policy on diversity issued. In 2021, women represented 14% of employees 406 emp
Slide 39: Fully Committed to ESG Agenda 4/4
4. Neodecortech’s Sustainability Approach 39 FULLY COMMITTED TO ESG AGENDA 4/4 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 40: Sustainable Development Goals
4. Neodecortech’s Sustainability Approach 40 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 41: Sustainability Strategy
4. Neodecortech’s Sustainability Approach 41 SUSTAINABILITY STRATEGY For years, the Group has been committed to responsible business management, which is not merely a matter of regulatory compliance and the containment of negative externalities, but focuses rather on promoting a corporate culture or
Slide 42: Appendix
APPENDIX
Slide 43: Income Statement 2020 – 2021
Appendix 43 INCOME STATEMENT 2020 – 2021 (Euro thousands) 31 DECEMBER % 31 DECEMBER % Chg. % change 2021 2020 Revenue from sales and services 176.429 100,0% 127.843 100,0% 48.586 38,0% Changes in work in progress, semi-finished and finished products 255 0,1% (2.547) (2,0%) 2.802 (110,0%) Other reven
Slide 44: Balance Sheet Statement 2020 – 2021
Appendix 44 BALANCE SHEET STATEMENT 2020 – 2021
Slide 45: Net Financial Position FY2021 – FY2020
Appendix 45 NET FINANCIAL POSITION FY2021– FY2020 (Euro thousands) 31 December 2021 31 December 2020 Chg. A. Cash funds (13.491) (7.536) (5.955) B. Cash and cash equivalents 0 0 0 C. Other current financial assets 0 (64) 64 D. Cash (A+ B + C) (13.491) (7.600) (5.891) E. Current financial debt 13.608
Slide 46: Debt Maturity at 31 Dec 2021
Appendix 46 DEBT MATURITY AT 31 DEC 2021 Debt Repayment plan (€/M) No covenants on long term debts 5 4,4 4,5 4,4 4 4 3 2,8 2 1 1 0 2022 2023 2024 2025 2026 2027
Slide 47: Certifications
Appendix 47 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 48: Certifications History
Appendix 48 CERTIFICATIONS HISTORY UNI EN ISO UNI EN ISO FSC®-CHAIN OHSAS 100% SUSTAINABILTY ISO UNI ISO 14001 9001 OFCUSTODY 18001 MADE IN ITALY REPORT 50001 45001 2007 2009 2010 2011 2015 2016 2017 2020 FSC®-CHAIN PEFC UNI EN ISO ISO UNI ISO UNI ISO OF CUSTODY 9001 50001 45001 14001 FSC® RECYCLED
Slide 49: Key Contacts
Appendix 49 KEY CONTACTS ISSUER INVESTOR RELATIONS SPECIALIST CORPORATE BROKING Luigi Cologni – CEO & Investor relator Massimo Sgabussi Duccio Galletti Email: [email protected] Email: [email protected] Email: [email protected] Fabio Zanobini - CFO Email: f.zanobini@neodeco