INVESTOR PRESENTATION 7 September 2020 · Certain information contained in this presentation may...
Transcript of INVESTOR PRESENTATION 7 September 2020 · Certain information contained in this presentation may...
INVESTOR PRESENTATION7 September 2020
This document has been prepared by Neodecortech S.p.A. (“NEODECORTECH”) solely for use in connection with the pres-entation of the Company to potential investors and shareholders and may not be used for any other purposes.The information contained in this document has not been inde-pendently verified and no representation or warranty express or implied is made as to, and no reliance should be placed on the fairness, accuracy, completeness or correctness of the information or opinions contained herein. Certain information contained in this presentation may contain forward - looking statements which involve risks and uncertainties and are subject to change. Actual results may differ materially from those contained in any forward-looking statement due to a number of significant risks and future events which are outside NEODE-CORTECH’s control and cannot be estimated in advance such as the future economic environment and the actions of competitors and others involved on the market. These forward-looking state-ments speak only as at the date of this presentation. NEODECORTECH cautions you that forward looking-statements are not guarantees of future performance and that its actual financial position, business strategy, plans and objectives of management for future operations may differ materially from those made in or suggested by the forward-looking statements contained in this presentation. In addition, even if NEODECORTECH’s financial position, business strategy, plans and objectives of management for future operations are consistent with the forward-looking statements con
DISCLAIMER
tained in this presentation, those results or developments may not be indicative of results or developments in future periods. NEODECORTECH expressly disclaims any obligation or undertak-ing to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in NEODE-CORTECH expectations with regard thereto or any change in events conditions or circumstances on which any such statement is based.The information and opinions contained in this document are provided as at the date of this presentation and are subject to change without notice. The recipient will be solely responsible for conducting its own assessment of the information set out in this presentation and for any underlying business decision. NEODE-CORTECH has not made an independent evaluation or appraisal of its own shares, assets or liabilities (contingent or otherwise). None of NEODECORTECH, its shareholders, or any of their respec-tive affiliates, advisers or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document.The information contained in this presentation may constitute inside information pursuant to EU Regulation n. 596/2014, therefore the recipient undertakes to comply with the applicable regulations and, in particular, to not disclose them (i.e. by transmitting, circulating or publishing) in any way.By accepting this presentation, you acknowledge and agree to be bound by the foregoing limitations and restrictions.
TABLE OF CONTENTS
1. Neodecortech at a glance
2. Market
The VisionGroup structureConfalonieri, Plana, TexteCartiere di Guarcino S.p.A.Bio Energia Guarcino S.r.l.Plants and OperationsVertical integration benefitsIntercompany flowsProduct linesGroup figures 2019Revenues 2019 breakdown by SBUManagement TeamCompany GovernanceShareholdersNeodecortech: main historical milestones
4. Growth strategyKey investment highlightsInvestment Opportunities
5. Neodecortech’s sustainability approach
StrategyThe stakeholdersESG approachMateriality matrix & SDGsEnvironmentSocialGovernanceCertificationsCertifications historyKey contacts
Total paper and paperboard marketFocus on selected nichesDécor paper marketGlobal supply and demand of décor paperNeodecortech: geographical reachStrategic positioning
3. Financials
Consolidated revenues Revenues breakdown 2019 vs 2018Costs breakdown 2019 vs 2018P&L EBITDA analysisNET INCOME - analysisNWC & cash flow analysisCash flow analysis 1H2020Net financial positionDebt maturityIncome statementBalance sheet statement
1. NEODECORTECH AT A GLANCE
51. Neodecortech Group at a glance
THE VISION
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”
61. Neodecortech Group at a glance
GROUP STRUCTURE
Neodecortech is an industrial holding
100% owned
100% owned
+
+
Cartiere di Guarcino S.p.A.
Bio Energia Guarcino S.r.l.
Neodecortech S.p.A.Printing andimpregnation
Bergamo
Energy plant+
Paper millGuarcino
Casoli di Atri Lamination
LPI
PM
EP
71. Neodecortech Group at a glance
Printing, impregnation, lamination units
Neodecortech, founded in 1947, is the parent company of the Group; under the brand name Confalonieri, it ranks as the
top player in the niche of decorative surfaces design and manufacturing (mostly paper, plus plastic more recently) for
the interior design and flooring industries. Neodecortech is the Italian leader in the production of decorative paper for
laminated panels and flooring used for interior design.
The Group’s business revolves around the production of complete and cutting-edge solutions for interior design projects,
covering every stage of the production process of decorative paper, from raw material management, through surface
finishing and impregnation, to the finished product and management of end-of-line logistics.
Thanks to ongoing creative research, the Group offers almost 900 types of decorations representing different natural
materials such as wood and stone, surfaces such as metal and cement, as well as textures of textile inspiration and
abstracts. The Group provides products divided into 7 categories:
- décor papers;
- decorative printings;
- finish foil;
- melamine film;
- Plastic printed film & Plastic printed laminated film;
- EOSTP & EOS LAMINATO antifingerprint;
- laminates.
LPI
81. Neodecortech Group at a glance
Paper mill
Cartiere di Guarcino S.p.A. is located in Italy, in the town of Guarcino (FR), and occupies an area of 144,000 m2 (of which
21,000 m2 covered). The Company has a production capacity of 50,000 tons/year. It manufactures decorative papers
for high and low pressure lamination as well as for flooring. Cartiere di Guarcino is a continuously developing company
of world renown. Over the past few years, it has gained a solid foothold on the European, American, Asian and East
European markets.
The Company offers its customers a wide range of “decor papers”: print base papers, backer papers, underlay papers,
edge banding papers and unicolour papers.
An innovative and trendy catalogue has been dedicated to the latter, named “Let’s colour”.
Cartiere di Guarcino has always been innovation oriented, paying the utmost attention to environmental protection. For
this reason, through its stake in B.E.G. S.r.l., it has built an electrical and thermal energy cogeneration plant powered by
vegetable oils (biomass).
The Company strives for customer satisfaction through skilled assistance and consulting. Cartiere di Guarcino offers 3
product categories:
- base paper;
- unicolor paper;
- backer paper (+Underlay + Kraft).
CARTIERE DI GUARCINO
PM
91. Neodecortech Group at a glance
Energy plant
Bio Energia Guarcino is totally owned by Cartiere di Guarcino; the Company is the
owner of the cogeneration plant that produces electrical and thermal energy through
three endotherm diesel engines powered by tallow oil with low CO2 emissions.
It has a production capacity of 9 steam tons and 20 MWh.
BIO ENERGIA GUARCINO
EP
101. Neodecortech Group at a glance
PRINTING AND IMPREGNATION
ENERGY PLANT PAPER MILL
Total Area 96.978 sqmCovered Area 37.732 sqmReconstruction Value* ¤ 108 mlnFixed Assets (Net Book Value) ¤ 24,6 mlnNumber of Employees 181Number of shifts 3-5/24Impregnation SBU 2.947 tonPrinting SBU 6.456 ton
Total Area 9.000 sqmCovered Area 1.000 sqmReconstruction Value ¤ 22 mlnFixed Assets (Net Book Value) ¤ 13,3 mlnNumber of Employees 2Number of shifts 3-7/24
Total Area 144.000 sqmCovered Area 21.000 sqmReconstruction Value* ¤ 97 mlnFixed Assets (Net Book Value) ¤ 36 mlnNumber of Employees 166Number of shifts 3-7/24Production SBU Cartiere di Guarcino 36.546 ton
FILAGO (BG)
GUARCINO (FR)
All plants and machines are fully owned by the group
Total reconstruction value of plants ≈ €249mln* vs a NBV of €78,9mln**
*As per Insurance appraisal report** Source: Company informationOTA Srl 2018 data
CASOLI DI ATRI (TE)
LAMINATION
Total Area 18.000 sqmCovered Area 6.037 sqmReconstruction Value ¤ 22 mlnFixed Assets (Net Book Value) ¤ 3,6 mlnNumber of Employees 29Number of shifts 3-5/24Production 1.400 ton
PLANTS AND OPERATIONS
EP PM
PI L
111. Neodecortech Group at a glance
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.
Cost savingVertical integration with the energy plant offers competitive advantages, producing significant economies of scale on energy costs (electricity and steam), and generating savings of approximately €4.85m p.a.
Operating efficiency via the energy plant- business continuity in case of grid outages;- virtually full coverage (90%) of power needs;- production efficiency;
VERTICAL INTEGRATION BENEFITS
121. Neodecortech Group at a glance
INTERCOMPANY FLOWS
% Revenues
% Costs
Bio-energy producer
(steam and electricity)
Paper mill
base, unicolorand black papermanifacturer
Electricity Market
Panel producer
Flooring producer
Impregnators
Printers
Decor layer printing
Impregnation
Plastic film printing
Paper & plastic film lamination
26% Electricity100% Steam
22%
43%100% Electricity11% Steam
74% Electricity
78% 97%
Market
Source: Internal average standardised data 2019
131. Neodecortech Group at a glance
Finish FoilsOur Finish foils meet the need for surfacing materials offering an authentic look, texture reali- sm and affordable manufactu-ring costs.
Decorative printed papersProduced in woodgrain, stone and fancy designs, our décor papers become the surfaces used in the furniture and floo-ring industries.
Décor PapersSemi-finished products used for High and Low Pressure Laminates and flooring divided into three main product types
- base papers;- unicolours;- backing papers.
PRODUCT LINES
Ongoing creative and stylistic research with over 900 designsdivided into 7 families
141. Neodecortech Group at a glance
Melamine FilmsMelamine films are decorative papers impregnated with thermoplastic resins that convert into strong and durable surfaces for the furniture and flooring industries.
PPF & PPLF for luxury vinyl tilesOur printed plastic films offer the same high resemblance to natural materials as our Decorative papers, despite being produced on a plastic substrate. They are employedin the production of high perfor- mance flooring materials (LVT) and vertical surfaces.
LaminatesDecorative Laminates are surfacing materials produced in continuity with our décor papers, which cover a broad spectrum of applications thanks to their resistance, flexibility and superb appearance.
PRODUCT LINES
151. Neodecortech Group at a glance
EOSTPThe product consists of a thin unicolor or printed plastic film of PVC or PET subsequently lacquered. It is a material with good mechanical properties and resistance to abrasion, aging, chemical agents and attack of funguses and bacteria. It is water repellent and particularly resist- ant to fire, thanks to its high ignition temperatures and low flame propagation. The special lacquering gives the surface a special soft-touch and anti-finger-print effect.
EOSLAMINATOThanks to a specific technology, the acrylic surface of Thin Top EOS LAMINATO acquires extraordinary properties such as: anti fingerprint, high scratch resistance, light fastness, no bacterial proliferation, high resistance to solvents and chemical reagents.EOS LAMINATO is a Phenol Free product, an additional choice for environment protections and consumers health confirming Neodecortech spa commitment toward the green chemistry.
PRODUCT LINES
161. Neodecortech Group at a glance
Laminate
EOSLAMINATO
Finish Foil
Décor Paper
Melamine Film
EOSTP
Luxury Vinyl Tiles
PRODUCT LINES
171. Neodecortech Group at a glance
GROUP FIGURES 2019
Revenues ( ¤ M)
135,9 M 4/5 1/5
51%378
Not energy
revenues
Energy Plant
adjusted revenues
EBITDA Adjusted
Margin
EBITDA Adjusted (€ M)
*Excluded Energy post turnover
Export* Employees
Women: 52
Men: 326
= +
13,2 %17,9 M
181. Neodecortech Group at a glance
REVENUES 2019 BREAKDOWN BY SBU
Consolidated data
Source: Company information 2019
Bio Energia Guarcino S.r.l.22,1%
Neodecortech S.p.A. 42,5%
Cartiere di Guarcino S.p.A. 35,4%
EP
PM
PI L
191. Neodecortech Group at a glance
LUIGI COLOGNI - CEO
- 56, Degree in Business Administration, MBA from Bocconi University;- Previous banking experience;- 1990s, started his experience in the furniture industry, working for multinational companies;- 2005, joined Confalonieri S.p.A. (now NEODECORTECH Italia), where he is currently CEO.
FABIO ZANOBINI - CFO
- 50, Degree in Business Administration, Certified Public Accountant and Auditor;- 1997, first 7 years experience in Law & Tax firm, principally the EY Law & Tax firm;- 2004, 4 years experience in multinational companies in the Pharma and Energy business, as Finance Director;- 2008, joined Sorgenia Spa Group, covering several roles, Head of Tax, Internal Audit Director and Head of Administration and Tax; - 2018, joined BT Italia Spa, as Head of Administration & Tax.
MASSIMO GIORGILLI - Executive Director
- 51, Degree in Law, MBA from LUISS University;- After a short stint with law firms, set up an advisory company;- 2002, started his experience in the paper mill industry, holding roles in the management control division;- 2003, joined Cartiere di Guarcino as CFO;- Following his position as CFO, appointed Executive Director in 2005;- 2015, appointed CEO of Cartiere di Guarcino and Sole Director in Bio Energia Guarcino.
MANAGEMENT TEAM
201. Neodecortech Group at a glance
COMPANY GOVERNANCE
BOARDS OF DIRECTORS
Chairman: Riccardo Bruno
CEO: Luigi Cologni
Executive Director on CDG and Sole Director in BEG: Massimo Giorgilli
1 Non executive Directors: Cristina Valentini
4 Independent Directors: Riccardo Bruno (Chairman),
Paolo Pietrogrande, Paola Carrara, Laura Calini.
MenWomen
Set up of a Committee for:- Risk Control- Remuneration and Appointments- Related Party Transactions- Sustainability
Respect for gender equalityin the Board of Directors
Adoption of a Codeof Conduct – comply or explain
Evaluationof the members of the Boardof Directorsand of the Board of Statutory Auditors
211. Neodecortech Group at a glance
SHAREHOLDERS
Valentini Family
Market, includingtreasury shares
AZ Fund 1
61,60%
32,92%
5,48 %
Updated at
16 March 2020
221. Neodecortech Group at a glance
NEODECORTECH: MAIN HISTORICAL MILESTONESNEODECORTECH: MAIN HISTORICAL MILESTONES
1947Establishment of
2003Acquisition of CONFALONIERI and CARTIERE DI GUARCINOby Finanziaria Valentini
2017Group reorganizationand IPO on AIM Italia
Oct 2019Accelerated BookBuilding
Disposal of thefinancial investment in CDG International Corp.
2020Translisting on MTA
1990Establishment of
2006Establishment of
1960Confalonieri focuses on decorative papers for laminates and finished panels
1999Set up of asecond machineat Cartiere di Guarcino
2010Confalonieri’sshowroom renewal
End 2015Confalonieri starts printing PPF and inaugurates its new internal Studio for décor implementation (LAB)
Source: Company information
Sept 2018Acquisition ofCORBETTA FIAbusiness unit
2. MARKET
242. Market
TOTAL PAPER AND PAPERBOARD MARKET
Source: Decor Paper Market Research 2019 - Pöyry
0,2%Decor paper market
8%Other paperand board
6%Newsprint
310 mt (2018)
24%Total printing and writing
9%Tissue
1%Sack Kraft
40%Corrugatingmaterial
12%Cartonboards
252. Market
DECOR PAPER WORLD MARKET incl China - (Tons/1000) - CAGR 4,3%
WORLD PRODUCTION OF LAMINATE FLOORING - incl China - (Mio m2) - CAGR 1,1 %
Source: Decor Paper Market Research 2019 - Munksjo
FOCUS ON SELECTED NICHES (1/2)
Source:Laminate Flooring Market Research 2019 - Munksjo
900
800
600
400
200
0
800
600
400
200
0
China
Europe
Europe
Asia (inc China)
Asia (ex China)
Americas
Americas
2012
2012
67
270 285 275 274 280 285 281 283
445510 575 590
665750
800 815
84
90
530 545 565 586630 635
605 608
95 100 100 100 100 99 94
474 491 511 521 551 562 556 538
79 8297 9396 94100 107 109 10896 9610092
2013
2013
2014
2014
2015
2015
2016
2016
2017
2017
2018
2018
2019
2019
262. Market
WORLD PRODUCTION OF LVT FLOORING 2016-2019 - ex China - (Mio m2) - CAGR 22,3 %
FOCUS ON SELECTED NICHES (2/2)
Source: LVT Flooring Market Research 2019 - MMFA
Asia (ex China)
Europe
Americas
Other Countries0,7
17,9
24,2
33,5
44,1
1,5 1,2 1,1
15,6
0,3 0,3 0,5 1,0
22,426,5
31,0
2016 2017 2018 2019
50
40
30
20
10
0
272. Market
127
DÉCOR PAPER MARKET
Printers
319
Impregnators
152
L HPL/CLP, LPL/DPLLamination on
wood substrates
NDT - Confalonieri 2.2%
NDT - Texte
205
53
664
91
319
332
61
Furniture, Laminate Flooring,
Interior Applications, Etc.
742
25
Source: Decor Paper Market Research 2019 - Munksjo
World market in 2017:1.557 m Metric Tons
- 742k ex China - 815k China
Decor paper producers
742
NDT - Cartiera 5.3%
282. Market
GLOBAL SUPPLY AND DEMAND OF DÉCOR PAPER
West Europe is the greater exporting area in the world
EAST EUROPE
CHINA
ASIA / PACIFIC
35
20
138
12
0
451
900
10
31
33
80
16
84
85
45
51
171
92
16
367
815
PRODUCTION
PRODUCTION
PRODUCTION
PRODUCTION
PRODUCTION
PRODUCTION
PRODUCTIONDEMAND
DEMAND
DEMAND
DEMAND
DEMAND
DEMAND
DEMANDNET
NET
NET
NET
NET
NET
NET
WEST EUROPE
NORTH AMERICA
IMPORT
IMPORT
IMPORT
IMPORT
IMPORT
EXPORT
EXPORT
SOUTH AMERICA
MIDDLE EAST / OTHERS
Source: Decor Paper Market Research 2019 - Munksjo
292. Market
NEODECORTECH: GEOGRAPHICAL REACH
AMERICAS
AFRICA
ASIA
EUROPE
ITALY
2,6%
1,5%
33,1%
58,3%
4.4%
Sales organisation: sales activities are mainly carried out by 4 internal area managers, together with 14 agentsin certain areas (Belgium, Turkey, Brasil, Russia, Far East, North America) requiring on-site direct presence.
on-site agents
Revenues by geographical area: export 51%Note: revenues by geography excluding energy plant revenues
DecorImpreg LVT
Backer Base Unicolor
302. Market
STRATEGIC POSITIONING
Low
Integration/Diversification
(Print – Pre-impregnated – Melamine Impregnation – PPF – PPLF) HighLow
Product range
High
high
low
turn
over
EU
R m
- 2
018
Paper ProducersDécor Paper Producers(printers - impregnators)*Only Décor Paper ** Plastic business included
450
700
350
50
10
Munksjo Group (GER)*
Kingdecor (CN)
Qifeng (CN)Schattdecor (GER)
Toppan(Toppan JAP + Interprint GER
+ Decotec SP)
Impress (GER)
Decorin
Coveright(SPA)
Likora(GER)
DDL(GER)
Surfactor (GER)
Neodecortech**
419
283
467 562
Surteco (GER)**
690
552
255BMK + DKB
(GER)
118
452
219
114
Khoeler (GER)
65
Neodecortech Paper Mill
48Panigada (ITA)
7
Giacosa (ITA)
Technocell (GER)
Malta Décor (POL)
Hans Schmid (GER)
6969
Lamigraf (SPA)
Dilong(CN)
80 106100
1818 1315
87
51
Hoffsummer (GER)
Chiyoda (B+JAP)**
11
Source: Company information
312. Market
STRATEGIC POSITIONING
Low price – retail market
Limited product range Wide product range
High price – design products
Small nicheproducers
Big diversifiedgroups
Neodecortech
Chinese producers
Source: Company information
3. FINANCIALS
333. Financials
Consolidates revenuesincludes revenuesand other revenues
20
40
60
70
100
120
140
160
100
80
60
40
20
- -
120
20172016 2018 2019 2019
133.3 135.9
127.7
115.6
133.3 135.9
68.7
59.2
127.7115.6
Consolidated (€/M)
201820172016
By category (€/M)
Not EnergyEnergy
CONSOLIDATED REVENUES
104.7104.0 23.011.6 103.8 29.5 105.5 54,2 43.930.4 14.5 15.3
1st half2020
1st half2020
1st half2019
1st half2019
59,268,7
343. Financials
REVENUES BREAKDOWN 2019 vs 2018
Revenues by products* (€/M)
*- Analysis excluding energy plant
- Aggregated data
Revenues 2019
5.0
-
10.0
15.0
20.0
25.0
30.0CDG NDT
Backer paper
10.1 9.0 25.9 29.2 24.2 25.8 16.3 5.115.7 5.226.7 8.427.3 2.6
Unicolor paper Base paper Impregnated Paper
Decorative printing PPF Laminates
Revenues 2018
353. Financials
Costs and cost incidence by category (€/M)
10.0
-
20.0
30.0
40.0
50.0
60.0
70.0
80.0
Costs 2019
Costs 2018
Cost of rental
64%
4%
13%
17%
1%0,3%
66%
4%
13%15%
1%0,4%
Cost of RawMaterials
Energy Services* Personel Other
COSTS BREAKDOWN 2019 vs 2018
Tot. Operative Costs€ 121.3
Variable Costs: € 93.1
Fixed Costs: € 28.3
2019
Tot. Operative Costs€ 116.1
Variable Costs: € 91.6
Fixed Costs: € 24.5
2018
77.2 4.5 14.6 18.0 0.41.4
77.5 4.8 16.2 20.7 0.31.8
*Services cost increase due to:
• Technical consultancy
• Transport costs
• Maintenance costs
363. Financials
P&L EBITDA - ANALYSIS
2.0
-
4.0
6.0
8.0
10.0
12.0
14.0
16.0
17.0
18.0
19.0
20192018
17.7
13,5%*
15.9
12,0%*
2017
14.3
12,1%*
2016
16.3
13,5%*
EBITDA adjusted (€/M)
2.0
-
4.0
6.0
8.0
10.0
12.0
14.0
16.0
17.0
18.0
19.0
2018 2019
19.0 17.9
14,5%*
13,5%*
20172017
15.212.5
12,9%*
7,9%*
* % EBITDA on Revenue from sales and services * % EBITDA ADJ on Revenue from sales and services
5.65.6
10,3%* 10,3%*
1st half2019
1st half2020
1st half2020
7.1
10,9%*
1st half2019
8.5
12,9%*
EBITDA (€/M)
373. Financials
NET INCOME - ANALYSIS
2.0
4.0
6.0
7.0
-4.14.4
20172016
3,5%*3,9%*
6.0 4.0
4,6%*
3,0%*
2018 2019
Net income (€/M) Net Income adjusted (€/M)
2.0
4.0
6.0
7.0
-7.3 5.7
5,6%*
4,3%*
2018 2019
4.81.3
4,1%*
1.2%*
20172016
* % NET INCOME on Revenue from sales and services * % NET INCOME ADJ on Revenue from sales and services
1.1 0.2
1,7%*
0,4%*2.3
0.3
3,4%*
0,6%*
1st half2019
1st half2019
1st half2020
1st half2020
383. Financials
NWC & CASH FLOW ANALYSIS
Net Working Capital (€/M)
20.0
40.0
60.0
80.0
-20.0
-40.0
payables
receivables
inventory
24.1
36.0
33.2
2018
Tot: 26.9
19.2
39.1
31,3
2019
Tot: 27.0
26.3
32.1
33.6
2017
Tot: 24.8
23.4 17.1
35.7 38.4
29.223.5
1st half2019
1st half2020
Tot: 29.9 Tot: 32.0
28.0
26.3
29.8
2016
Tot: 28.1
393. Financials
-
-2.0
Cash
31/12/2019
+3.5
+5.2
Operational
Cash Flow
NWC
Changes
-3,4
-6.2
Capex
+5.0
Banks
Debts and
Leasing
Dividends
Payment
-1.9 -0.1
-0.9 +1,2
Aquisition
own sharesOther
Changes
Cash
30/06/2020
2.0
4.0
6.0
8.0
10.0
CASH FLOW ANALYSIS 1H2020 (€/M)
403. Financials
NET FINANCIAL POSITION
Net financial position (€/M)
VARIATION (10.1) (2.7) (3.8) (0.1)
20.0
10.0
30.0
50.0
70.0
-
40.0
60.0
Current Debt
Non Current Debt
2018
28.1
16.2
Tot: 44.3
2019
23.1
17.4
Tot: 40.5
2017
31.8
15.1
Tot: 47.0
1st half2020
23.2
25.9
Tot: 48.2
1st half2019
25.9
22.4
Tot: 48.3
2016
33.3
23.8
Tot: 57.1
413. Financials
DEBT MATURITY
Debt Repayment plan (€/M)
1.0
-
2.0
3.0
5.0
4.0
2,5
4.8
2021
2.6
2022
2.5
2023
2.4
2024
2.1
2025
1.6
2026
0,7
20272nd half2020
423. Financials
INCOME STATEMENT 2019 vs 2018
Consolidated Figuresin € Thousands
31 Dec.2019
% 31 Dec.2018
% Change Change %
Revenue from sales and services 133,0 100 130,9 100 2,0 2
Changes in work in progress, semi-finished and finished products
1,4 1 0,3 0 1,1 394
Other revenue 2,9 2 2,6 2 0,3 11
Value of Production 137,2 103 133,8 102 3,4 3
Consumption of raw, ancillary and consumable materials (77,5) 58 (77,2) 59 (0,3) 0
Other operating expense (23,1) 17 (20,9) 16 (2,2) 11
Value Added before non-recurring events 36,6 28 35,7 27 0,9 3
Cost of personnel* (20,7) 16 (18,0) 14 (2,7) 15
EBITDA 15,9 12 17,7 14 (1,8) (10)
Amortization, depreciation (8,7) 7 (7,2) 6 (1,5) 21
Allocations (0,1) 0 0,0 0 (0,1) 0
EBIT 7,1 5 10,6 8 (3,5) (33)
Financial components (1,9) 1 (2,9) 2 1,0 (35)
Exchange gains and losses (0,0) 0 (0,1) 0 0,0 (51)
Result before tax 5,2 4 7,6 6 (2,4) (32)
Income tax (1,2) 1 (1,6) 1 0,4 (22)
Result for the year 4,0 3 6,0 5 (2,0) (34)
433. Financials
INCOME STATEMENT 1H20 vs 1H19
Consolidated Figuresin € Thousands
30 Jun.2020
% 30 Jun.2019
% Change Change %
Revenue from sales and services 54,5 100 66,4 100 (11,8) (18)
Changes in work in progress, semi-finished and finished products
8,6 16 (0,5) (1) 9,1 (2.003)
Other revenue 4,6 8 2,3 4 2,3 98
Value of Production 59,2 109 68,2 103 (9,0) (13)
Consumption of raw, ancillary and consumable materials (34,1) 63 (38,8) 58 4,6 (12)
Other operating expense (10,3) 19 (11,4) 17 1,1 (9)
Value Added before non-recurring events 14,8 27 18,1 27 (3,3) (18)
Cost of personnel* (9,1) 17 (11,0) 17 1,9 (17)
EBITDA 5,6 10 7,1 11 (1,4) (20)
Amortization, depreciation (4,2) 8 (4,2) 6 0,0 (0)
Allocations (0,2) 0 0,0 0 (0,2)EBIT 1,2 2 2,9 4 (1,7) (57)
Financial components (0,8) 1 (1,0) 1 0,2 (22)
Exchange gains and losses 0,0 0 (0,0) 0 0,0 (100)
Result before tax 0,5 1 1,9 3 (1,4) (75)
Income tax (0,3) 1 (0,8) 1 0,5 (65)
Result for the year 0,2 0 1,1 2 (0,9) (82)
443. Financials
BALANCE SHEET STATEMENT 2019 vs 2018
Reclassified Consolidated Statement of Financial Position(Euro thousand)
31 dec 2019 31 dec 2018 Change Change %
Trade receivables 19,2 24,1 (4,9) (20)
Inventories 39,1 35,9 3,2 9
Trade payables (31,3) (33,2) 1,8 (6)
Operating Working Capital 27,0 26,8 0,2 1
Other current receivables 1,9 3,5 (1,7) (47)
Other current payables (4,7) (4,2) (0,5) 11
Tax 2,1 0,4 1,7 462
Net Working Capital 26,3 26,5 (0,2) (1)
Property, plant and equipment 78,9 76,7 2,2 3
Intangible assets 2,9 3,5 (0,5) (16)
Available for sale financial assets 0,0 0,0 0,0 0
Non-current financial assets not included in the NFP 1,9 3,9 (2,0) (52)
Other non-current assets 0,1 0,0 0,1 194
Fixed assets 83,7 84,0 (0,3) (0)
Post-employment benefit provisions (2,9) (2,9) (0,0) 1
Provisions for risks and costs (0,9) (0,7) (0,2) 27
Deferred tax assets and liabilities (4,4) (4,3) (0,2) 4
Net Invested Capital 101,8 102,7 (0,9) (1)
Equity (61,3) (58,6) (2,7) 5
Cash and cash equivalents 3,5 6,5 (3,0) (46)
Other current financial receivables 0,1 0,0 0,1 0
Current financial liabilities (21,0) (22,7) 1,7 (7)
Non-current financial liabilities (23,1) (27,9) 4,8 (17)
Net Financial Debt (40,5) (44,1) 3,6 (8)
Net Equity and Net Debt (101,8) (102,7) 0,9 (1)
453. Financials
BALANCE SHEET STATEMENT 1H20 vs 1H19
Reclassified Consolidated Statement of Financial Position(Euro thousand)
30 Jun 2020 30 Jun 2019 Change Change %
Trade receivables 17,1 23,4 (6,3) -27%
Inventories 38,4 35,7 2,7 8%
Trade payables (23,6) (29,1) 5,6 -19%
Operating Working Capital 32,0 30,0 2,1 7%
Other current receivables 2,5 2,8 (0,2) -9%
Other current payables (4,6) (5,4) 0,8 -15%
Tax 2,3 1,2 1,1 92%
Net Working Capital 32,2 28,5 3,7 13%
Property, plant and equipment 78,5 77,3 1,2 2%
Intangible assets 2,6 3,1 (0,5) -17%
Non-current financial assets not included in the NFP 1,8 5,8 (4,0) -68%
Other non-current assets 0,1 0,0 0,1 100%
Fixed assets 83,0 86,3 (3,2) -4%
Post-employment benefit provisions (3,2) (3,0) (0,2) 7%
Provisions for risks and costs (1,1) (0,5) (0,6) 138%
Deferred tax assets and liabilities (4,4) (4,5) (0,1) -1%
Net Invested Capital 106,5 106,9 (0,4) 0%
Equity 58,3 58,6 (0,3) -1%
Cash and cash equivalents (1,2) (1,5) 0,3 -20%
Other current financial receivables (0,1) (0,0) (0,1) 100%
Current financial liabilities 26,2 23,9 2,3 10%
Non-current financial liabilities 23,2 25,9 (2,6) -10%
Net Financial Debt 48,2 48,3 (0,1) 0%
Net Equity and Net Debt 106,5 106,9 (0,4) 0%
4. GROWTH STRATEGY
474. Growth strategy
KEY INVESTMENT HIGHLIGHTS
Neodecortech boasts a high level of differentiation
and custom-tailoring in the Interior Design industry
Superior
market offering
First-class integrated range of products
Effective
business model
Focused on the reduction of risks (vertical integration) and time to market
Experienced
management team
With proven trackrecord
Stable
dividend policy
Strong and well balanced
customer base Customer loyalty
Strong integration with clients
High growth potential
and high margins
Strong cash flow
generation
484. Growth strategy
INVESTMENT OPPORTUNITIES
New technologies
Machine improvement
Market expansion
Area
- Further investments in film laminations- Digital printing
- Increase process efficiency- Increase product quality- Adopt Industry 4.0 technology (as per previous years)
- Increase market share- Acquire new markets
Investment rationale
5. NEODECORTECH’S SUSTAINABILITY APPROACH
505. Neodecortech’s Sustainability Approach
Neodecortech believes that sustainability is a responsibility for any successful enterprise. Therefore, the Group commitments go beyond compliance and reduction of negative impacts as they actively promote a company culture based on value creation for all stakeholders.
Sustainability is a key driver for Neodecortech’s long term strategy, which is based on excellence, efficient use of resources and continuous improvement of the Group’s performance.
Neodecortech’s approach towards sustainability is deeply rooted in its values and principles, which are defined in the Neodecortech’s Ethical Code. Moreover, the Group actions and goals are inspired by the most relevant international initiatives, such as the Global Compact and the United Nation’s Sustainable Development Goals (SDGs).
STRATEGY
515. Neodecortech’s Sustainability Approach
Neodecortech strives to maintain and develop a trustworthy relationship with its stakeholders, i.e. the individuals, groups or institutions whose contribution is needed to fulfil the Group’s mission, or those that in any case share an interest in its fulfillment.For every stakeholder, the Neodecortech Code of Ethics offers the ethical principles on which all its activities are based.
NEODECORTECH
Environment Clients and prospects
Financial market Suppliers
Competitors
Human resources
Public administrationand institutions
Local communityand territory
THE STAKEHOLDERS
525. Neodecortech’s Sustainability Approach
ESG performance The integration of ESG aspects in the Group strategy and management approach is the direct responsibility of Neodecortech’s CEO, who is supported by the Group’s QHSE manager.
Environment & Circular Economy:BEG is powered by sustainable bioliquids, a short supply chain obtained exclusively from by-productsCDG uses scrap paper from the NDT production process as secondary raw materialResponsible procurement of wood based raw materialsFocus on PVC recovery
Social Human Resources: focus on health and safety and trainingLocal communities: training programs and donations
GovernancePublication of Sustainability Reports since 2015QHSE management systemsOrganisational Model Pursuant to Legislative Decree 231/2001
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, climate change, gender inequality, lack of access to clean water and energy.
17 Sustainable Development Goals (SDGs) spread over 169 targets to achieve by 2030: Neodecortech has identified which of these targets it can tangibly contribute to through its own businesses and production environment, identifying for each one commitments and performance indicators.
ESG APPROACH
535. Neodecortech’s Sustainability Approach
MATERIALITY MATRIX & SDGs
Importance for Neodecortech
Impo
rtanc
e fo
r the
Sta
keho
lder
s
5,05,0
5,5 6,5
5,5
6,0
6,0
6,5
7,0
7,5
8,0
7,0 7,5 8,0 8,5 9,0 9,5
8,5
9,0
9,5
2
34
1
5
6
78
9
10
11
12
1316 1415
MATERIAL TOPICS
1. Diversity and equal opportunities2. Training 3. Governance4. Relations with the local community5. Circular economy6. Employee management7. Responsible supply chain management8. Waste9. Non-renewable raw materials10. Compliance11. R&D12. Emissions13. Renewable raw materials14. Occupational safety15. Product quality16. Economic performance
545. Neodecortech’s Sustainability Approach
Circular Economy Neodecortech Group adopts an approach based on the responsible and sustainable use of resources, voluntary certifications, compliance with international and national initiatives on the use of secondary raw materials, fostering the protection of natural resources and adopting the principles of the circular economy.
1. Some 98% of fuel used by the BEG power plant was derived from certified tallow and other by-products of animal origin (ABPs) in 2019.
2. CDG uses only FSC (Forest Stewardship Council) pulp FSC for a total consumption of 21k tons. FSC pulp comes from sustainable certifed forests.
3. In 2019, BEG produced more than 151,000 MWhs of electricity, over 29% of which was used to cover the whole of CDG’s electricity needs, thus making CDG one of the few paper producers in the world to be entirely run on renewable electricity.
4. Neodecortech: all residual paper is carefully separated from possible pollutants and then reused in CDG’s production processes. In 2019, about 800 tons of waste paper were collected and delivered for recovery to CDG. Some were directly reused by the paper mill (42%), some were processed by an intermediary before being delivered to CDG as secondary raw material (58%).
5. Neodecortech: pvc waste is delivered to disposers who adehere to the European Recovinyl initiative (under the VinylPlus voluntary commitment): 98 tons of PVC recovered in 2019.
ENVIRONMENT
555. Neodecortech’s Sustainability Approach
ENVIRONMENT
EMISSION PRODUCTION 2019TOTAL: 29,494 t CO2 eqPer kg of product:CDG: 0.38 kg CO2 eqNDT: 0.74 kg CO2 eq
Per kWh produced by BEG: 0.03 kg CO2 eq**CO2 emissions allowance regarding diesel use alone.
CDG: 51%
NDT: 34%
BEG: 15%
SUSTAINABLE USE OF RESOURCES, WASTE AND EMISSION (1/4)
565. Neodecortech’s Sustainability Approach
BEG
The power plant processes (O&M and Waste management policies) are certified underISO 14000:2015 scheme.
The power plant environmental procedures (jointly with CdG) are certified under ISO 50001:2018 scheme.
The Power Plant is classified IAFR (Renewable sources fuelled power plant) under Italian legislation(GSE State issuing body).
Main Goals:
Purchase electricity from the external grid that is 100% certified to come from renewable sources by 2020
Reduce the consumption of fresh water for cleaning and maintenance by 5% by recovering condensed water and steam, by the end of 2020
Provide 100% of the spent catalytic material as secondary raw material by 2020
Define a system for measuring direct CO2 equivalent emissions that includes the combustion of animal by-products and vegetable oils
SUSTAINABLE USE OF RESOURCES, WASTE AND EMISSION (2/4)
ENVIRONMENT
575. Neodecortech’s Sustainability Approach
CDG
Since 2018, the factory environmental procedures (jointly with BEG) have been certified underthe ISO 50001:2018 certification scheme.
In 2018 CDG, thanks to important changes in its production process, achieved a 9.6% energy reduction, compared to year 2017 (TEP/kg_paper).
In 2018, CDG replaced previous steam generators with high efficiency generators, allowing a 9.1% primary energy reduction compared to 2017 (TEP/kg_paper).
From 2017 to 2019 CDG increased the use of heat from cogeneration by 12.5% (TEP/kg_paper).
Fresh water consumption per unit of product from 2018 to 2019 decreased 8.7%
Main Goals
To reduce the overall energy consumption 8% by 2022, increasing energy from renewable sourcesof 3% by 2020.
To reduce the fresh water consumption per ton of paper 4% by the end of 2020, by increasing the useof treated water in production processes.
To reduce pulper waste 4% by 2020.
ENVIRONMENT
SUSTAINABLE USE OF RESOURCES, WASTE AND EMISSION (3/4)
585. Neodecortech’s Sustainability Approach
Neodecortech
Since 2007 Neodecortech, the Filago site (printing and impregnation), has been ISO 14001 certified. In 2019, the environmental certification was extended to the Casoli di Atri site (lamination).
Monitoring of the emissions of each production line, as required by AIA.
Since 2000, the Filago plant has operated a formaldehyde and VOC (volatile organic compounds) abatement system that allows compliance with both national and regional limits: 50% below the VOC emission limit.
Main Goals:
Reduce electricity and gas consumption by 2.5% by 2020Reduce plastic packaging use by 2,5% by 2020Increase the amount of waste water treated and not disposed of by 6% by the end of 2020
ENVIRONMENT
SUSTAINABLE USE OF RESOURCES, WASTE AND EMISSION (4/4)
595. Neodecortech’s Sustainability Approach
SOCIAL
Training
2,860 hours of training delivered
7.6 hours of training delivered per capita
For over twenty years now, the Group companies have been organizing internships for high-school students and cooperating with universities, providing traineeships or assistance in preparing dissertations.
Goals Continuing the scholarship program for employees’ children.
Outline a three-year plan to involve the local communities in training programs.
Gender (al 31.12.2019)
HUMAN RESOURCES - 2019 (1/2)
EmployeesProduction
Employees NOT production TOT Employees
Men: 248 94% 78 69% 326 86%Women: 17 6% 35 31% 52 14%Total: 265 100% 113 100% 378 100%
Employee age: 21 employees < 30 years 216 employees = 30-50 years 141 employees > 50 years
Contract: 95% full time and permanent
Employee tenure: 71% more than 10 years
Employees
378 Employees (+3% versus 2018)
605. Neodecortech’s Sustainability Approach
Health and Safety The Group’s commitment is also shown through the certifications obtained, such as OH SAS 18001 for the Filago offices of Neodecortech S.p.A., and the new ISO 45001:2018 edition for BEG and CDG.Training on occupational health and safety: 46% of total training delivered + 70% versus 2018
Goals Neodecortech S.p.A.: improve safety conditions at work for its employees by reducing the number of minor injuries (<30 days) by 20% and eliminating serious injuries by the end of 2020.Cartiere di Guarcino and BEG: keep the injury frequency rate, injury severity rate and incidence rate below INAIL statistics.
WelfareIn 2020 Neodecortech Group has set up a company welfare plan for a maximum amount of € 650,000 intended for its employees, excluding executives
SOCIAL
HUMAN RESOURCES (2/2)
615. Neodecortech’s Sustainability Approach
Corporate donations are used to actively contribute to local community life and sustain local initiatives aimed at supporting cultural and charitable associations active in areas where the Group sites are located:
Social:
Scholarships for the worthiest students in the Municipality of Filago, Support to local firefighting forces,Contribution for a car dedicated to carrying disabled people in the Alta Ciociaria area,Donation of sports equipment for a youth recreational centre,Donation to Associazione Diakonia Onlus, linked to the Bergamo Caritas, for the building ofa well in Africa.Donation to the Papa Giovanni XXIII Hospital in Bergamo in March 2020 to contrastSars-Covid 19 virus.
Cultural:
Contribution to Fondazione Donizetti of Bergamo.
SOCIAL
LOCAL COMMUNITIES
625. Neodecortech’s Sustainability Approach
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 of Directors: 7 members
Gender balance: 3 women, 4 men Independency: 4 independent Directors
Internal Committees on:
Risk Control, Remuneration and Appointments, Transactions with related parties, Sustainability
All Sustainability Reports since 2015 are available on the Company website https://www.neodecortech.itin the Sustainability section.
GOVERNANCE
635. Neodecortech’s Sustainability Approach
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)
100% MADE IN ITALY*
FSC® (Forest Stewardship Council) - CHAIN OF CUSTODY
PEFC** (Programme for the Endorsement of Forest Certification)
UNI EN ISO 9001:2015 Quality management systems
UNI EN ISO 14001:2015 Environmental management systems
UNI ISO 45001:2018 Occupational health and safety management systems
UNI EN ISO 50001:2018 Energy management systems
CERTIFICATIONS
*Neodecortech S.p.A. only**Cartiere di Guarcino S.p.A. only
645. Neodecortech’s Sustainability Approach
CERTIFICATIONS HISTORY
Source: Company information
2018
ISO50001
2018
ISO50001
2019
UNI ISO 45001
2019
UNI ISO 45001
2007
UNI EN ISO14001
2009
UNI EN ISO9001
2011
OHSAS18001
2020
UNI ISO45001
2017
UNI EN ISO9001
2017
UNI EN ISO9001
2017
ISO50001
UNI ISO14001
2015
PEFC
2015
UNI ISO14001
2015
100%MADE IN ITALY
2016
SUSTAINABILTY REPORT
FSC®-CHAINOF CUSTODY
FSC® RECYCLED WOOD
2010
2010
FSC®-CHAINOF CUSTODY
655. Neodecortech’s Sustainability Approach
KEY CONTACTS
Luigi CologniEmail: [email protected]
Fabio ZanobiniEmail: [email protected]
ISSUER SPECIALISTAND CORPORATE BROKING
Massimo SgabussiEmail: [email protected]
Benjamin John AtterE-mail: [email protected]
INVESTOR RELATOR
Email: [email protected]