Neodecortech Spa · MIL:NDT
Neodecortech Spa — Investor Presentation (May 2022)
52 slides from Neodecortech Spa's investor presentation, May 2022
Slide 1: Investor Presentation May 2022
INVESTOR PRESENTATION May 2022 Decors and surfaces for sustainable living.
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 pres- developments in future periods. entation of the Company to potential investors and shareholders and NEODECO
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 LUCA PELI - Chairman LUIGI COLOGNI - CEO - 69, Degree in Electrical Engineering; - 58, Degree in Business Administration, MBA from -1979, Established HS Elettronica Progetti S.p.A., specialized in Bocconi University; process automation, Owner and CEO
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
1. Company overview 14 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 pa
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 forLVT Laminates EOSTP EOSLAM IN ATO Printed plastic films that offer the Decorative Laminates are A thin unicolor or printed plastic Thanks to a specific technology, same high resemblance to surf
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 May, 2022 PRIVATE COMPANY 26-09-2017 25-05-2020 15-03-2021 Azimut Investments SA 5,6% Market Data Finanziaria Valentini Spa 58,6% Share Price March 10th , 2022 3.80€/share Market, including Share Price Jan 7t
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 – 13 May 2022 6 (previous 6) MidCap – 13 May 2022 5.2 (previous 5.8) Hardman – 16 Mar 2022 6.78
Slide 24: 2. Q1 2022 Results
2. Q1 2022 RESULTS
Slide 25: 2021 and Q1 2022 Financial Results
2. Q1 2022 Results 25 2021 and Q1 2022 FINANCIAL RESULTS (in € milions) 2019 2020 2021 (in € milions) Q1 2021 Q2 2022 Net Sales 133 127,8 176,4 Net Sales 39,6 49,2 % change -3,9% +38% % change 24,3% EBITDA 16 14,6 18,1 EBITDA 5,1 4,2 % EBITDA margin 12% 11,4% 10,3% % EBITDA margin 12,8% 8,6% Net Inc
Slide 26: Net Sales
2. Q1 2022 Results 26 Net SALES 2019 - 2021 Net Sales (€/M) Q1 2021 - Q1 2022 Net Sales (€/M) 20 0,0 60 ,0 176,4 18 0,0 49,2 16 0,0 50 ,0 32,7% 38,3 38% 14 0,0 133,0 24,3% 9,7 127,9 40 ,0 39,6 12 0,0 29,5 32,0 10 0,0 8,5 76,9 30 ,0 19,6 80 ,0 56,5 55,2 20 ,0 14,0 60 ,0 40 ,0 61,2 10 ,0 19,9 20 ,0 47
Slide 27: EBITDA & EBITDA Margin
2. Q1 2022 Results 27 EBITDA & EBITDA MARGIN 2019 - 2021 EBITDA (€/M) Q1 2021 - Q1 2022 EBITDA (€/M) 20 ,0 3 0 , % 8 3 0 , 0 % 18,1 18 ,0 13,8% 7 15,9 2 5 ,0 % 2 5 ,0 0 % 16 ,0 24% 14,6 6 14 ,0 5,1 2 0 , % 2 0 , 0 % 5 12 ,0 4,2 10 ,0 1 5 ,0 % 4 1 5 ,0 0 % 12,0% 12,80% 11,4% 8,0 10,30% 3 8,60% 1 0 ,
Slide 28: EBITDA Bridge
2. Q1 2022 Results 28 EBITDA BRIDGE EBITDA Bridge (€/M) 30 ,0 25 ,0 0,6 20 ,0 13,0 12,9 15 ,0 10 ,0 +5.5 1,6 5,1 +5.1 4,2 5,0 0,0 EBTID A Q12 1 ∆ REVENUES OTH ER REVENU ES ∆ VARIABLE ∆ FIXED EBTID A Q12 2 -5,0 COSTS COSTS -10 ,0
Slide 29: Net Income
2. Q1 2022 Results 29 NET INCOME 2019 - 2021 Net Income (€/M) Q1 2021 - Q1 2022 Net Income (€/M) 8,0 1 5 ,0 % 8,0 7,0 6,7 1 3 ,0 % 7,0 6,0 1 1 ,0 % 6,0 6 2 0 , % 89,1% 67,5% 1 8 ,0 % 5,0 9 ,0 % 5,0 5 1 6 ,0 % 4,2 4,0 1 4 ,0 % 4,0 7 ,0 % 4,0 4 3,5 1 2 ,0 % 3,0 5 ,0 % 3 3,0 8,6% 1 0 , % 3,80% 3,0% 8 ,
Slide 30: Net Working Capital
2. Q1 2022 Results 30 NET WORKING CAPITAL 2019 - 2021 Net Working Capital (€/M) Q121 - Q122 Net Working Capital (€/M) 35,0 70 30.4 70 30,0 27.0 27,4 30,3 50 50 19,2 19,3 19,7 26,6 30 30 45,0 39,1 36,7 36,7 10 40,6 10 -10 -10 -31,3 -25,6 -26,4 -39,8 -40,3 -30 -30 2019 2020 2021 -50 -50 Q121 Q122 paya
Slide 31: Cash Flow Analysis (€/M)
2. Q1 2022 Results 31 CASH FLOW ANALYSIS (€/M) 20,0 18,0 3,2 16,0 13,4 14,0 12,0 10,0 6,9 8,5 8,0 1,9 0,2 0,5 2,4 6,0 4,0 2,0 - Ca sh Opera ti ona l Cash NWC Ch ang es Ca pex Ban ks D ebts and Treasu ry Sh ares Oth er Ca sh 31 /1 2/202 1 flow Le asin g Ch ang es 31 /0 3/202 2
Slide 32: Net Financial Position
2. Q1 2022 Results 32 NET FINANCIAL POSITION 2019 - 2021 Net financial position (€/M) Q1 21 - Q2 22 Net financial position (€/M) 45 45 40,5 (0.6) 39,9 40 37,4* 40 (10.6) 35 35 31,3 (6,1) 30 29,3 30 23,1 25 28,8 25 28 16,7 20 20 23,2 15 15 10 10 17,4 5 11,1 6,1 5 1,6x 9,4 14,6 0 2,5x 2,7x 0 20 19 20
Slide 33: 3. Growth Strategy
3. GROWTH STRATEGY
Slide 34: Investment Opportunities 2021 – 2023 (€/M)
3. Growth strategy 34 INVESTMENT OPPORTUNITIES 2021 – 2023 (€/M) New machinery Efficiency recovery Productivity 35 28,6 30 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 1/3
4. Neodecortech’s Sustainability Approach 37 FULLY COMMITTED TO ESG AGENDA 1/3 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 2/3
4. Neodecortech’s Sustainability Approach 38 FULLY COMMITTED TO ESG AGENDA 2/3 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 3/3
4. Neodecortech’s Sustainability Approach 39 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 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 2021 – 2020
Appendix 43 INCOME STATEMENT 2021 – 2020 (Euro thousands) 31 Dec 31 Dec 2021 % 2020 % Change Change % 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 revenue 2.595
Slide 44: Income Statement Q1 2022 - Q1 2021
Appendix 44 INCOME STATEMENT Q1 2022 - Q1 2021 (Euro thousands) 31 March 31 March 2022 % 2021 % Change Change % Revenue from sales and services 49.229 100,0% 39.603 100,0% 9.626 24,3% Changes in work in progress, semi-finished and finished products 3.250 6,6% (93) (0,2%) 3.343 (3594,6%) Other revenu
Slide 45: Balance Sheet Statement 2021 – 2020
Appendix 45 BALANCE SHEET STATEMENT 2021 – 2020
Slide 46: Balance Sheet Statement Q1 2022
Appendix 46 BALANCE SHEET STATEMENT Q1 2022 Assets 31 MARCH % 31 DECEMBER % Chg. % 2022 2021 change (Euro thousands) Intangible assets 1.371 0,8% 1.551 0,9% (180) (11,6%) Property, plant and equipment 78.900 45,8% 78.561 46,5% 339 0,4% Other non-current assets 57 0,0% 19 0,0% 38 200,0% Non-current f
Slide 47: Net Financial Position FY2021 – FY2020
Appendix 47 NET FINANCIAL POSITION FY2021 – FY2020 (Euro thousands) 31 December 31 December Change 2021 2020 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.
Slide 48: Net Financial Position Q1 2022 – Q1 2021
Appendix 48 NET FINANCIAL POSITION Q1 2022 – Q1 2021 (Euro thousands) 31 March 31 March Change 2022 2021 A. Cash funds (8.509) (5.851) (2.658) B. Cash and cash equivalents 0 0 0 C. Other current financial assets 0 (65) 65 D. Liquidity (A+ B + C) (8.509) (5.916) (2.593) E. Current financial debt 17.0
Slide 49: Debt Maturity at 31 Mar 2022
Appendix 49 DEBT MATURITY AT 31 MAR 2022 Debt Repayment plan (€/M) No covenants on long term debts 5 4,5 4,4 4 4 3,5 3 2,8 2 1 1 0 2022 2023 2024 2025 2026 2027
Slide 50: Certifications
Appendix 50 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 51: Certifications History
Appendix 51 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 52: Key Contacts
Appendix 52 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