Embellence Group Ab · OMXSTO:EMBELL
Embellence Group Ab — Q4 2024 Earnings Presentation
17 slides from Embellence Group Ab's earnings presentation, Feb 18, 2025
Slide 1: v 2) S < 7) £
v 2) S < 7) 2 £ 5 GROUP
Slide 2: Today's presenters
Today’s presenters pede! Sh ime - t i Magnus Welander Karin Lidén Chairman of the Board CFO (ad interim CEO) embellence GROUP
Slide 3: Q4 2024: Solid sales growth and continued margin improvements
Q4 2024 Q4 2024: Solid sales growth and continued margin improvements Net sales, MSEK EBITA, MSEK EBITA Margin 202 (190) 28 (23) 13.9% (12.2) * Sales growth of +6% (whereof +1% from exchange rates) * Gross margin improved 3.0 p.p. to 60.7%, driven by product mix effects and efficiency improvements *
Slide 4: Q4 2024: Segment highlights
Q4 2024 Q4 2024: Segment highlights Brands (+2%) * Cautious retailers in Europe * Strong growth for Artscape (partly thanks to anticipated order from large customer) * Positive product mix drives improved gross margin Net sales, MSEK 178 (175) Manufacturing (+64%) Strong growth continues Winning mar
Slide 5: • 2% 0% • -7% -4% -4% 1 154 -8% • 24 27 -11%
• 178 175 2% 693 693 0% • 72 78 -7% 273 283 -4% 36 37 -4% 141 154 -8% • 24 27 -11% 94 98 -4% • 10 10 0% 46 47 -2% • 36 24 51% 139 111 25% 24 15 64% 85 48 78% 202 190 6% 778 740 5% •
Slide 6: 2024 FY: Best year ever
2024 FULL YEAR 2024 FY: Best year ever Net sales, MSEK EBITA, MSEK EBITA Margin 778 (740) 112 (92) 14.4% (12.4) * Sales growth of +5% (no currency impact) * Gross margin improved 1.9 p.p. to 59.9%, driven by product mix effects and efficiency improvements * EBITA increase of +22% (+20 MSEK) * EBITA
Slide 7: Artscape
ARTSCAPE Artscape continues to win market share in window films segment in the US. DTC continues to grow. Q4 2024 boosted by largest US customer deciding to anticipate order for of assortment upgrade that like- for-like normally would happen in first quarter embelleace — GROUP
Slide 8: Cole & Son
Cole & Son’ Successful event during Paris Déco Off Theme: Design meets Art Customers and media invited to a Cole & Son decorated apartment overlooking Jardain du Palais Royale. embelleace — GROUP
Slide 9: Boråstapeter
BORASTAPETER Successful event during Paris Déco Off Theme: Swedish design icons in wallpaper since 1905 Customers and media invited to Bordstapeter pop-up store at 22 rue de Seine, Paris embelleace — GROUP
Slide 10: Boras Tapetfabrik
-BORAS TAPETFABRIK: Bords Tapetfabrik continues to win market share and new external customers in a competitive market Investments in new, more sustainabile colour mixing equipment and additional digital printing capabilities TNPET/ARRIK- embelleace — GROUP
Slide 11: Q4 2024 Financials: Improved growth and margins despite softer European markets
Q4 2024 FINANCIALS Improved growth and margins despite softer European markets Sales growth Gross margin EBITA Margin Op. Cash Flow +6% 60.7% 13.9% 38 MSEK MSEK Oct-Dec 2024 Oct-Dec 2023 Nop oh08 Net sales 202 190 778 740 Gross profit 123 110 466 433 Gross margin (%) 60.7 57.7 59.9 58.4 EBITA 28 23
Slide 12: Net sales and EBITA development
Q4 2024 FINANCIALS Net sales and EBITA development Net sales and Net sales R12 (MSEK) EBITA (MSEK) & EBITA Margin (%) 250 1000 40 20% 200 800 32 16% 150 600 24 12% 100 400 16 8% 50. 200 8 4% 10) 0 0 0% Ql @2 Q3 Q4 Ql Q2 Q3 a4 Ql Q2 Q3 @4 Ql Q2 Q3 Q4 23 23 23 23 24 24 24 24 23° 23 23 23 24 24 «24 «24
Slide 13: Improved EBITA and strong Cash Flow drives improved Balance Sheet
Q4 2024 FINANCIALS Improved EBITA and strong Cash Flow drives improved Balance Sheet Operating Cash Flow (MSEK) & Net Debt/EBITDA 125 2.5 * Operating Cash Flow best ever at 113 MSEK 100 2.0 * Leverage (Net Debt/EBITDA) 75 15 reduced to 0.7x * Outstanding loan financing in USD ae Ko was repaid in its
Slide 14: Sales and profitability growth since IPO
14 2024 FINANCIALS Sales and profitability growth since Net Sales (MSEK) 1000 900 800 700 600 500 +36% (CAGR +8%) — 2020 2021 2022 2023 2024 150 125 100 75 50 25 IPO EBITA (MSEK) +58% (CAGR +12%) | 2020 2021 2022 2023 2024 embellence GROUP
Slide 15: EBITA Margin improvement continues
15 2024 FINANCIALS EBITA Margin improvement continues R12 EBITA Margin (%) 20% 15% 10% 5% —EBITA Margin by quarter R12. — — Target Target
Slide 16: Summary & Looking ahead
Summary & Looking ahead 2024: A year with significant building blocks * Updated Brand focused strategy and financial targets communicated at CMD in May * Solid sales growth of +5% * Gross margin improves 1.2 p.p. to 59.6% ¢ EBITA-margin improves to 2.0 p.p. to 14.4% * Investments in Digital print ca
Slide 17: Q&A
Q&A embelleace GROUP