Embellence Group Ab · OMXSTO:EMBELL
Embellence Group Ab — Q2 2024 Earnings Presentation
15 slides from Embellence Group Ab's earnings presentation, Jul 18, 2024
Slide 1: Embellence Group
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Slide 2: Today's presenters
Today’s presenters Olle Svensk Karin Lidén CEO CFO
Slide 3: Q2 2024 Highlights Group
Q2 2024 Highlights Group Net sales, MSEK EBITA, MSEK EBITA Margin 191 (170) 25 (15) 13.0% (8.9) * A strong quarter with sales growth of 13% versus a weak Q2 2023 EBITA margin improves to 13.0% thanks to strong sales growth * We are gaining market share in a continued soft market Updated brands focus
Slide 4: Q2 2024 Highlights Segments
Q2 2024 Highlights Segments Brands (+5%) Manufacturing (+111%) * Bordstapeter and Artscape ° Increased market share in delivered solid growth Nordic region * Cole & Son suffering from sluggish UK market * Hospitality & Direct to Consumer channels mitigated continued soft Retail demand SM lO CO Le Ne
Slide 5: Brand focused sales and marketing push continues in second quarter
Brand focused sales and marketing push continues in second quarter Several larger events ... ... Complemented with targeted brand * Salone del Mobile in Milan events 0 fwayfi Sellome fin Miller * Bordstapeter — large launch event for . Orangeri and Landscape collections in * HD Expo in Las Vegas Sia
Slide 6: Cole & Son collaboration with Harrods
tt Cole &@ Son’ For their 175th anniversary Harrods invited Cole & Son to collaborate on fashion inspired wallpapers and cushions — Couture Carousel embelleace
Slide 7: Bordstapeter launch event for Orangeri
‘A BORASTAPETER Successful launch event for Orangeri in Stockholm.
Slide 8: WET System 2024 launched at Salone del Mobile
Salone Wall&cecd delNobile Milano WET System 2024 — the innovative wallpaper for showers and wet rooms launched at Salone del Mobile in Milan. embelleace GROUP
Slide 9: Q2 2024 Financials
Q2 2024 FINANCIALS Sales growth, improving EBITA margin and strong cash flow Sales growth Grossmargin _ EBITA Margin Op. cash flow 13% 60.1% 13.0% 43 MSEK MSEK April-June April-June JanJune Jan-June July 2023- FY 2024 2023 2024 2023 June 2024 2023 Net sales 191 170 405 367 778 740 Gross profit 15 10
Slide 10: Q2 2024 Financials: Growing sales and strong margins
10 Q2 2024 FINANCIALS Growing sales and strong margins Net sales and Net sales R12 (MSEK) 250 200 150 100 50 (0) Q3 Q4 QI Q2 Q3 Q4 QI Q2 22 22 23 23 23 23 24 24 mmm Net sales —Net sales R12 800 780 760 740 720 700 680 EBITA (MSEK) & EBITA-Margin R12 (%) 40 35 30 25 20 15 10 5 (0) Q3 Q4 Ql Q2 Q3 Q4 Q
Slide 11: • 5% 6% • -2% • 1% • • 4% 26 19% 24 12
• 167 158 5% 61 57 6% • 36 37 -2% • 26 26 1% • • 13 12 4% 31 26 19% 24 12 111% 191 170 13% •
Slide 12: Brand focused strategy as presented at CMD
12 Brand focused strategy as presented at CMD SUSTAINABLE LONG-TERM APPROACH PRODUCT oenoee ADD ORGANIC BUILD. INNOVATION SELECTED UTILIZE GROUP STRATEGIC GROWTH EXCITING WHILE GEOGRAPHIES SYNERGIES M&A THAT FOCUS BRANDS NURTURING AND STRENGTHENS > DESIGN ICONS CHANNELS | THE GROUP ENTREPRENUERIAL C
Slide 13: Financial Targets
Financial Targets NET SALES PROFITABILITY (EBITA MARGIN) DIVIDEND LEVERAGE 13 Financial Targets Baseline Current performance SEK 1 billion 740 MSEK 778 MSEK by 2028 2023 Netsales R12 Net sales >15% 12.4% 13.9% 2023 EBITA R12 EBITA 30-50% ordinary dividend, in relation to net income No dividend 2023
Slide 14: Summary
Summary A strong second quarter against weak Q2 2023 * Net sales amounted to 191 MSEK (170), growth +13% * Fourth consecutive quarter with organic growth * EBITA margin 13.0% (8.9) thanks to strong growth Updated Brand focused strategy and financial targets — focusing on organic growth — presented o
Slide 15: Q&A
Q&A embelleace GROUP