Franchi Umberto Marmi Spa · MIL:FUM
Franchi Umberto Marmi Spa — Investor Presentation (January 2025)
49 slides from Franchi Umberto Marmi Spa's investor presentation, January 2025
Slide 1: Franchi Umberto Marmi Investor Presentation
Franchi Umberto Marmi Investor Presentation January 2025 1
Slide 2: Notice to Recipient
Notice to Recipient The information contained in this documentation has been prepared by Franchi Umberto Marmi S.p.A. (the “Company”) and its consolidated subsidiaries (together, the "Group") for the sole purpose of the presentation made to you concerning the Company. This presentation and the infor
Slide 3: Today's presenting team
Today’s presenting team • 35 years with FUM Alberto Franchi • Director from 1988 to 1991 Chairman & CEO • Chairman and CEO since 1990 • 30+ years with FUM Carlo Varni • Over 20 years within the commercial department General Manager • Leading the commercialisation of marble slabs • 5 years with FUM M
Slide 4: Company at glance
Company at glance 2023 financials… International leader of high-quality marble Luxury product portfolio Gioia Statuario Calacatta €74.7m +13.42% Headquarter Venato Total consolidated revenue(1) Tot. Revenue CAGR (‘20-’23) Carrara Following acquisition of IGFC in 2021, FUM secured privileged €25.4m 3
Slide 5: The Group structure
The Group structure Joint operation Ingegner Giulio Faggioni 50% 49% FUM Australia Pty Ltd. S.C.A.R.L. 51% 40% Recovery Stone S.r.l. Marmoles Man S.r.l. Consolidation Perimeter 50% 33.3% Escavazione Calacatta Escavazione La Gioia S.r.l. Bondielli S.r.l. 25% 33.3% Artana Marmi S.r.l. Ciot New York In
Slide 6: From the quarry to the end customer
From the quarry to the end customer Scope of activity of FUM TRADING OF BLOCKS MARBLE PURCHASE OF BROKERS & END CONSUMERS EXTRACTION BLOCKS DEALERS Minority interest offering a privileged access for FUM TRANSFORMATION TRADE OF INTO SLABS SLABS 6
Slide 7: Holistic luxury positioning
Holistic luxury positioning FUM portfolio focuses on the highest quality marble … Only extracted in the mountains above Carrara by a handful of quarries, FUM has a privileged access to 25-30% of total Calacatta and +53% Calacatta Statuario production of FUM Sales(1) Unique Italian heritage FUM’s sup
Slide 8: M&A case study - IGFC (2021)
M&A case study - IGFC (2021) In 2021 FUM acquired 50% of IGFC(1), which owns 50% of one the most important quarries producing Statuario and Calacatta in the Apuane district As a result of the deal, FUM has exclusive access to 25% (~10k tons a year) of the production of the two most renowned marble q
Slide 9: M&A – other results achieved
M&A – other results achieved ➢ At the beginning of 2022 FUM acquired 51% of ➢ In 2023 FUM acquired ~40% of Marmoles Man, ➢ In 2023 FUM acquired ~49% of FUM Australia, Recovery Stone, at that moment still dormant. continuing its strategy of growth by external with the possibility to increase the part
Slide 10: Compelling financial performance
5.1 Compelling financial performance 10
Slide 11: Historical top-line results
Historical top-line results Total Revenue(1) (in €m) Fiscal Years First Half Total revenue slightly decrease by -2.5% YoY in FY2023, registering revenues of €73.9 million. However, (21.5)% +27.6% +16.8% (2.5)% (9.6)% +15.6% the company was able to double its revenues in the last 9 years. In H1 2024
Slide 12: Historical margins results
Historical margins results Adj. EBITDA(1) (in €m) Fiscal Years First Half Strong margins even during 35.7% 37.9% 40.5% 33.9% 34.8% 35.0% contraction period thanks to luxury positioning and technology 30.9 expertise (2) 25.4 24.7 Additional increase in marginality during 2022 thanks to better product
Slide 13: Capital expenditure and strong cash generation
Capital expenditure and strong cash generation Capital expenditure(1) Cash conversion ratio(3) (in €m) 4.2% 2.7% 1.3% 6.2% 2.8% 96.7% (2) 3.1 93.0% (2) 92.2% 2.1 1.7 (2) 88.1% 87.8% (2) 1.2 1.0 FY 2020 FY 2021 FY 2022 FY 2023 H1 2024 FY 2020 FY 2021 FY 2022 FY 2023 H1 2024 % of Total revenue Source
Slide 14: Net Income, Dividend Pay-out, NFP
Net Income, Dividend Pay-out, NFP Net income NFP Fiscal Years (in €m) First Half (2) 69.4% 78.9% 55.0% 40.0%(1) 29.4 22.5 17.2 (2) 20.2% 15.9% 22.6% 17.4% 21.5% (5.1)% 13.5 31.1 8.5 10.2 12.7 17.2 (2) 13.0 41.4(3) 37.7 8,1 32.7(3) 30.5 10.3 10.4 7,6 7.7 5.1 (13.8) (12.1) (23.7) (29.4) (29.2) (1.0) F
Slide 15: Revenues breakdown by geography 9M 2023 – 9M 2024
Revenues breakdown by geography 9M 2023 – 9M 2024 9M 2023A(1) 9M 2024A(2) Revenues 56.4 61.8 • During 9M 2024 the company (€/m) registered an increase in revenues of €5.3 million 1,7% 0,9% 0,9% EMEA 0,5% 0,5% EMEA (+9%). Asia 5,5% Asia 11,6% Revenues 17,4% North America North America • In terms of g
Slide 16: Marble market overview
2) Marble market overview marmi
Slide 17: FUM's total addressable market
FUM’s total addressable market Total Addressable Market - 2020 Carrara best in class marble Carrara marble has the highest quality worldwide because of its ~€18.0bn (1) unique physical characteristics: 99% CaCO3 with distinctive grain type Global marble market +5.7% CAGR ‘23-’28 ~€2.0bn (2) Market d
Slide 18: Positioned at the top of the Italian's most premium district
Positioned at the top of the Italian’s most premium district Raw marble average selling price per geography • The Carrara district’s marble is world- renowned for its superior quality and (€/ton) Statuario Calacatta unique elegant classic look 3,702 • Carrara marble experienced significant premiumis
Slide 19: Luxury product & best-in class operations
3 Luxury product & best-in class operations 19
Slide 20: A best in class quality and diversified product offering
A best in class quality and diversified product offering Hi o gh q li uality marble portfo Calacatta Statuario Gioia Venato Venatino Others High-end High-end Medium-end Medium-end Medium / Low-end 3,273€/ton(1) 3,375€/ton(1) 588€/ton(1) 952€/ton(1) 953€/ton(1) Revenue share: Revenue share: Revenue s
Slide 21: FUM's Global Presence
FUM’s Global Presence Asia (21.9%) €73.9m 2023 Total Revenue(1) North America EMEA (12.6%) (61.4%) Australia South (2.3%) America Africa (1.0%) (0.8%) Top 10 countries by of revenues generated revenue size in 2023 64% from top 3 countries FUM marbles reach FUM’s recurrent dealers 450+ clients and 20
Slide 22: Privileged procurement process while remaining flexible
Privileged procurement process while remaining flexible FUM suppliers by source in 2021(1) Key advantages of diversified suppliers Only minority interest for diversification purpose Quarries in which FUM owns an interest 20% FUM enjoys privileged marble supply through: • Long-term preferential contr
Slide 23: ESG Considerations
ESG Considerations FUM’s environmental impact Energy intensive Risk of landslides Transformation process from fine debris produced by block cutting - 76% greenhouse gas emissions than average ceramics producer(2) ✓ FUM’s slabs have lower environmental ✓ FUM imposed to its suppliers to work impact on
Slide 24: Growth Strategy
4 | Growth Strategy marmi
Slide 25: FUM organic growth strategy
FUM organic growth strategy Market Penetration Market Expansion Partnerships Projects Penetration focused on high- FUM has set goals to expand in Develop existing and new Decades of collaborations allows margins markets, such as new geographies to leverage its partnerships across the globe FUM to ta
Slide 26: Appendix
5 Appendix 26
Slide 27: Revenues breakdown by region FY2022 – FY2023
Revenues breakdown by region FY2022 – FY2023 2022 A 2023(1) A Revenues 75.8 73.9 (€/m) • During FY2023 the company registered a decrease in 0,3% 1,3% 1,0% 1,0% 0,8% revenues of €1.9 million EMEA EMEA (-2.5%). Asia 2,3% Asia 11,0% 12,6% Revenues • Asia recorded results of €16.2 North America North Am
Slide 28: Focus on FUM S.p.A. | revenue breakdown by marble quality
Focus on FUM S.p.A. | revenue breakdown by marble quality 2022 - 2023 2022 A 2023 A Revenues(1) 75.0 65.0 (€/m) • In terms of marbles quality sold, it can be noted that Calacatta Calacatta between the end of 2022 and the same period of 2023 17,3% Statuario 21,8% 22,7% Statuario 27,3% there was a cle
Slide 29: Focus on FUM S.p.A. | quantity sold by marble quality
Focus on FUM S.p.A. | quantity sold by marble quality 2022 - 2023 2022 A 2023 A Quantity(1) 45,476 45,862 (tons) Calacatta Calacatta 14,0% 9,8% Quantity Statuario 13,3% Statuario 39,6% • In terms of quantities sold by 12,7% 43,7% breakdown Gioia Venato Gioia Venato marbles quality, in 2023 there by
Slide 30: Focus on FUM S.p.A. | revenue breakdown by marble type
Focus on FUM S.p.A. | revenue breakdown by marble type 2022 - 2023 2022 A 2023 A Revenue(1) 75.0 65.0 (€m) • In terms of marbles type, between the end of 2022 and 2023 there was a decrease Revenue in absolute values in both breakdown Blocks Slabs Blocks Slabs block and slab sales, with a by marbles
Slide 31: Focus on FUM S.p.A. | quantity breakdown by marble type
Focus on FUM S.p.A. | quantity breakdown by marble type 2022 - 2023 2022 A 2022 A Average price by 1,704 1,600 1,403 1,431 marble type (€/tons) Quantity(1) (tons) 45,476 45,862 • In 2023 there was a greater quantity of slabs sold Quantity breakdown by (50.6%) than block. Blocks Slabs Blocks Slabs Mo
Slide 32: A differentiated marketing approach
A differentiated marketing approach Warehouse showrooms Collaborations • FUM collaborates with stone sculptors to exalt Carrara marble and • Headquarters of 60,000m2 where 5 modern warehouses are give its product new dimensions used as showrooms for clients • Build exhibition corners in the most imp
Slide 33: Key investment highlights
Key investment highlights Compelling financial performance Luxury positioning translates into best-in-class margins and stable cash flow generation, enabling significant headroom to create value for shareholders 1 Marble market overview Solid demand for Italian marble, stimulated by its higher produ
Slide 34: High end marble benefiting from attractive growth drivers
High end marble benefiting from attractive growth drivers Growing UHNWI group Sustained demand for Italian quality products +27%(2) expected UHNWI population growth +3.3%(4) — ’22-’25 expected CAGR for the luxury Italian for 2025 vs. 2020 segment • UHNWI have a large portion of their wealth in • Ita
Slide 35: Flexible block trade
Flexible block trade FUM, thanks to its experience and know-how, operates with bespoke contract with its dealers and brokers across all geographies This allows the company to offer maximum flexibility to its customers on timing and size, but also price negotiation Such flexibility is necessary for a
Slide 36: Technology to maximise block value
Technology to maximise block value DAMAGED WASHED AND KEPT UNDER REINFORCED BLOCKS SLABS READY FOR BLOCKS COVERED WITH PRESSURE FOR 24H CUT INTO SLABS PROCESSING SALE RESIN UNDER VACUUM FUM leverages its cutting-edge technology to enhance its value proposition for slabs Ability to market increased v
Slide 37: Logistical process
Logistical process Extraction Storage Shipment • Carried out through trusted and long-term relationships third part shippers • Material is transferred to the warehouse of the Issuer • Slabs are stored in same storage until the day of the by trucks shipment • Deliveries within Italy are predominantly
Slide 38: Transformation using advanced technologies
Transformation using advanced technologies • Each block goes through internal and external damage assessment 1 Reinforcement • Damaged blocks undergo a thorough under vacuum Recovery Stone reinforcement process (“Risanamento”) acquisition (2021) • Marble blocks are cut in the FUM sawmill located in
Slide 39: A truly global client base
A truly global client base FUM customer base concentration 30% 31% 32% 40% 38% 39% 2020 2021 2022 Other Brokers 100% countries Broker ~60% 12% 12% 11% 18% 19% 18% Dealers Client 1-10 Client 11-20 Clients 21-30 Others Dealers Dealers • FUM built up decades of relationships with dealers and brokers th
Slide 40: US market expansion strategy
US market expansion strategy Strong market for high-end marble qualities due to luxury projects and estates Expansion Strategy ▪ 10% of FUM 2021 sales Market strength $2,535 Average FUM vs. average Italian marble vs. exports in US(1) coming from the US backed $1,661 by showroom in New York City Impo
Slide 41: Established expansion strategy into new markets
Established expansion strategy into new markets GCC(1) Growing interest for marble with 33% increase in import of processed stones since 2014(2) Kuwait Bahrain Qatar New luxury projects driven by demand Saudi UAE from UHNWIs Arabia Oman Real estate development across the region for state-of-the-art
Slide 42: Stronger together – FUM's strategic partnerships
Stronger together – FUM’s strategic partnerships Partnerships across the globe, laying the foundations for future growth • Partnership with distributor Ciot NY for a new showroom in Brooklyn, New York City • Partnership with local distributor Corsi & Nicolai since 2019 • The collaboration builds out
Slide 43: International exposure to renown architectural projects
International exposure to renown architectural projects Waldorf Astoria Saudi Arabia’s Hotel in NYC, Investment Fund synonymous with (PIF) renewed its 5- exquisite luxury for year strategy aiming over a century, is to develop the undergoing Kingdom’s economy renovations since and real estate 2017(1)
Slide 44: Management Organisational Structure
Management Organisational Structure Board of Directors Bernarda Maurizia Alberto Paolo Marco Gualtiero Roberto Franchi Maurizio Gianluca Leto Andrea Davide Franchi Orlando Galatieri Vanelli Lettieri Vice Saravini Cedro Di Priolo Franchi Giovanetti Chairman & Daviddi di Genola Marketing Independent C
Slide 45: Regulatory framework
Regulatory framework Quarries, qualify as a property (bene estimato), and/or concession: Renewal of authorization (art. 38 of the Tuscany Regional Law No. 35/2015) Property (bene estimato) Concession Owners of authorizations(2) on concessions can apply for an extension of maximum of 25 years if: • A
Slide 46: Contractual Agreements with Suppliers
Contractual Agreements with Suppliers CONTRACTUAL AGREEMENT Procurement of marble is regulated by 10-year contracts (rolling renewals for Extracting Companies additional 5/10 years) expiring in 2029 allowing FUM: in which FUM directly owns a non- controlling interest • Right to buy a pre-determined
Slide 47: Call options
Call options FUM has four option contracts Alberto Bernarda Counterparty Carrara Real Estate Franchi Franchi 33.3% 16.7% 50% 50% 25% 50% M.P.A. Marmi Pregiati N.P.A. Nuovi Pregiati Right to purchase (%) shareholding in Marmi Carrara S.r.l. Bettogli Marmi S.r.l. Apuani S.r.l. Apuani S.r.l. Right to p
Slide 48: Mix of property and concession – Gioia Pianello example
Mix of property and concession – Gioia Pianello example Gioia Pianello example case • Gioia Pianello quarry is a combination of private property (bene estimato) and concession area • The area has an approximate 50/50 split between two categories • Example highlights how extraction process can become
Slide 49: franchiumbertomarmi
franchiumbertomarmi via Del Bravo 14/16 Carrara (MS) t. +39 0585 70057 www.franchigroup.it
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