investor presentation 3 june 2020...- strategic positioning 3. financials ... - costs breakdown -...

INVESTOR PRESENTATION3 June 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.

1. Neodecortech at a glance

TABLE OF CONTENTS

2. Market

- The Vision- Group structure- Confalonieri, Plana, Texte- Cartiere di Guarcino S.p.A.- Bio Energia Guarcino S.r.l.- Plants and Operations- Vertical integration benefits- Intercompany flows- Product lines- Group figures 2019- Revenues 2019 breakdown by SBU- Management Team- Company Governance- Shareholders- Neodecortech: main historical milestones

4. Growth strategy- Key investment highlights- Investment Opportunities

5. Neodecortech’ssustainability approach- Strategy- The stakeholders- ESG approach- Certifications- Certifications history- Key contacts

- Total paper and paperboard market- Focus on selected niches- Décor paper market- Global supply and demand of décor paper- Neodecortech: geographical reach- Strategic positioning

3. Financials

- Consolidated revenues - Revenues breakdown- Costs breakdown- P&L EBITDA analysis- NET INCOME - analysis- NWC & cash flow analysis- Cash flow analysis 2019- Net financial position- Debt maturity- Income statement- Balance sheet statement

1. NEODECORTECH AT A GLANCE

81. 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”


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


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 6 categories:

- décor papers;

- decorative printings;

- finish foil;

- melamine film;

- Plastic printed film & Plastic printed laminated film;

- laminates.

LPI


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


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


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


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


INTERCOMPANY FLOWS

Source: Internal average standardised data 2019

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

Furnishing producer

26% Electricity100% Steam

22% 3%

43%100% Electricity11% Steam

74% Electricity

78% 97%

Market

% Revenues

% Costs


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


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 performance 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


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


Laminate

EOSLAMINATO

Finish Foil

Décor Paper

Melamine Film

EOSTP

Luxury Vinyl Tiles

PRODUCT LINES


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


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


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


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


SHAREHOLDERS

Valentini Family

Market, includingtreasury shares

AZ Fund 1

61,60%

32,92%

5,48 %


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



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

282. 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

292. Market

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

563

655

631 625

662690

710 745

505

560 540530

545 565 586

265285

290270 285 275 274

87 90 85 9095 100 100

Americas

Asia

Europa

Décor Paper (Tons/1000)

Laminate flooring market

+1.3% CAGR

+1.7% CAGR

Market Trend

Market

% Growth 2017/16+ 18,1%

Neodecortech

% LVT Growth 2015/14+29%

% LVT Growth 2016/15+202%

Source: Decor Paper Market Research 2018 - Munksjo

% LVT Growth 2017/16+26%

% LVT Growth 2018/17+60,6%

765 765

100 100 99

280 285 281

630 605635

FOCUS ON SELECTED NICHES

Total paper andpaperboard market400mt (Ex China)

312. Market

122

DÉCOR PAPER MARKET

Printers

340

Impregnators

144

L HPL/CLP, LPL/DPLLamination on

wood substrates

NDT - Confalonieri 2.2%

NDT - Texte

229

53

690

86

340

339

58

Furniture, Laminate Flooring,

Interior Applications, Etc.

22


World market in 2017:1.515 m Metric Tons

- 765k ex China - 800k China

Decor paper producers

765

NDT - Cartiera 5.3%

322. Market

GLOBAL SUPPLY AND DEMAND OF DÉCOR PAPER

West Europe is the greater exporting area in the world

EAST EUROPE

CHINA

ASIA / PACIFIC

32

22

131

12

0

493

875

15

31

32

80

17

100

75

47

53

163

92

17

393

800

PRODUCTION

PRODUCTION

PRODUCTION

PRODUCTION

PRODUCTION

PRODUCTION

PRODUCTIONDEMAND

DEMAND

DEMAND

DEMAND

DEMAND

DEMAND

DEMANDNET

NET

NET

NET

NET

NET

NET

WEST EUROPE

NORTH AMERICA

SOUTH AMERICA

MIDDLE EAST / OTHERS


332. 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

342. 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)

Interprint (GER)**

Impress (GER)

Decotec (SPA) Decorin

Coveright(SPA)

Likora(GER)

DDL(GER)

Surfactor (GER)

Neodecortech**

419

283

467 562

Surteco (GER)**

690

354

255BMK + DKB

(GER)Toppan (JAP)

118 183

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

181815 1315

87

51

11Hoffsummer (GER)

Chiyoda (B+JAP)**

352. Market

STRATEGIC POSITIONING

Low price – retail market

Limited product range Wide product range

High price – design products

Small nicheproducers

Big diversifiedgroups

Neodecortech

Chinese producers

3. FINANCIALS

383. Financials

Consolidates revenuesincludes revenuesand other revenues

110

100

100

90

80

70

60

50

- -

120

130

140 110

2016 2017 2018 2019 2019

115.6

133.5

135.9 115.6 127.7 133.5 135.9

127.7

Consolidated (€/M)

2016 20182017

By category (€/M)

Not EnergyEnergy

CONSOLIDATED REVENUES

104.0 11.6 104.7 23.0 104.0 29.5 105.5 30.4

393. Financials

REVENUES BREAKDOWN

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

413. 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

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

423. Financials

P&L EBITDA - ANALYSIS

EBITDA (€/M)

2.0

-

4.0

6.0

8.0

10.0

12.0

14.0

16.0

17.0

18.0

19.0

16.3

13,5%*

2016 2018 2019

17.7 15.9

13,5%*

12,0%*

2017

14.3

12,1%*

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

2016

12.5

10,8%*

2018 2019

19.0 17.9

14,5%*

13,5%*

2017

15.2

12,9%*

* % EBITDA on Revenue from sales and services * % EBITDA ADJ on Revenue from sales and services

EBITDA decrease explanationCost increase of:

• Personnel• SOA-Raw material

433. Financials

NET INCOME - ANALYSIS

2.0

4.0

6.0

7.0

-4.4

2016

3,9%*

4.1

2017

3,5%*

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

-1.3

2016

1,2%*

7.3 5.7

5,6%*

4,3%*

2018 2019

4.8

4,1%*

2017

* % NET INCOME on Revenue from sales and services * % NET INCOME ADJ on Revenue from sales and services

443. Financials

NWC & CASH FLOW ANALYSIS

Net Working Capital (€/M)

20.0

40.0

60.0

-20.0

-40.0

payables

receivables

inventory

28.0

26.3

29.8

2016

Tot: 28.1

24.1

36.0

33.2

2018

Tot: 26.8

19.2

39.1

31,3

2019

Tot: 27.0

26.3

32.1

33.6

2017

Tot: 24.9

• Inventory increases due to pre-buying

• Receivables decrease -> Factoring

453. Financials

-

Cash

31/12/2018

+6.5

+16.4

Operational

Cash Flow

NWC

Changes

-7.7

-1.9

Capex

-9.1 +2.4

Banks

Debts and

Leasing

Financial

Activities

(CDG Int)

Dividends

Payment

-2.0

Treasury

shares

-0.2

-0.9

Other

Changes Cash

31/12/2019

+3.5

25.0

20.0

15.0

10.0

5.0

CASH FLOW ANALYSIS 2019 (€/M)

463. Financials

NET FINANCIAL POSITION

Net financial position (€/M)

VARIATION (10.1) (2.7) (3.8)

20.0

10.0

30.0

50.0

70.0

-

40.0

60.0

Current Debt

Non Current Debt

2016

33.3

23.8

Tot: 57.1

2018

28.1

16.2

Tot: 44.3

2019

23.1

17.4

Tot: 40.5

2017

31.8

15.1

Tot: 47.0

473. Financials

DEBT MATURITY

Debt Repayment plan (€/M)

1.0

-

2.0

3.0

5.0

4.0

4.8

2020

4.7

2021

3.4

2022

2.5

2023

2.4

2024

2.1

2025

1.6

2026

0,7

2027

483. Financials

INCOME STATEMENT

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)

*Cost of personnel includes, as at 31 December 2019, € 975 thousand attributable to the Stock Grant Program; as at 31 December 2018, the Program amounted to € 704 thousand.

493. Financials

BALANCE SHEET STATEMENT

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)

4. GROWTH STRATEGY

524. 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

534. 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

565. 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


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


ESG performance The integration of ESG aspects in the Group strategy and management approach is direct responsibility of Neodecortech’s CEO, who is supported by the Group’s QHSE manager.

Environment- BEG is powered by bioliquids, from a short supply chain - Circular Economy: CDG uses as secondary raw material scrap paper from NDT production process - Responsible procurement of wood based raw materials- Focus on PVC recovery

Social - Human Resources: focus on health and safety and training- Local communities: training programs and donations

Governance- Publication of the Sustainability Reports since 2015- QHSE management systems- Organisational Model Pursuant to Legislative Decree 231/2001

In coherence with its Sustainability Approach and inspired by the United Nations’ 2030 Agenda, Neodecortech has identified ESG long-term performance goals that positively impact the Sustainable Development Goals.The full Sustainability Report 2019 is available on the Company website https://www.neodecortech.it in the Sustainability section.

ESG 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

OHSAS 18001:2007 / ISO 45001:2018 Occupational health and safety management systems

UNI EN ISO 50001:2011 Energy management systems

CERTIFICATIONS

*Neodecortech S.p.A. only**Cartiere di Guarcino S.p.A. only


CERTIFICATIONS HISTORY

Source: Company information

2007

UNI EN ISO14001

2009

UNI EN ISO9001

2011

OHSAS18001:2007 /ISO 45001:2018

2018

ISO50001

2019

OHSAS18001:2007 /ISO 45001:2018

2017

ISO50001

UNI EN ISO9001

2015

UNI EN ISO14001

PEFC*

100%MADE IN ITALY

2016

SUSTAINABILTY REPORT

FSC®-CHAINOF CUSTODY*

2010

FSC®-CHAINOF CUSTODY

*Cartiere di Guarcino S.p.A. only


KEY CONTACTS

Luigi CologniEmail: [email protected]

Fabio ZanobiniEmail: [email protected]

ISSUER SPONSOR, SPECIALISTAND CORPORATE BROKING

Massimo SgabussiEmail: [email protected]

Benjamin John AtterE-mail: [email protected]

investor presentation 3 june 2020...- strategic positioning 3. financials ... - costs breakdown -...

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