INVESTOR PRESENTATION 7 November 2019 DISCLAIMER This document has - - PowerPoint PPT Presentation

INVESTOR PRESENTATION 7 November 2019

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

• r 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

• f 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

• perations 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

• 4. Growth strategy
• 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 2018
• Revenues 2018 breakdown by SBU
• Management Team
• Company Governance
• Shareholders
• Neodecortech: main historical milestones
• Key investment highlights
• Investment Opportunities
• Offer structure and remedy shares - sept. 2017
• 5. Appendix
• Mission
• Values of the Group
• The stakeholders
• Certificates
• 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
• Net financial position
• Debt maturity
• Income statement
• Balance sheet statement

• 1. NEODECORTECH AT A GLANCE

8

• 1. Neodecortech at a glance

THE VISION

Neodecortech, a new 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”

9

• 1. Neodecortech 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

Printing and impregnation

Bergamo

Energy plant + Paper mill

Guarcino Casoli di Atri

Lamination

L PI PM EP

10

• 1. Neodecortech 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 1000 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 51 products divided into 6 categories:
• décor papers;
• decorative printings;
• finish foil;
• melamine film;
• Plastic printed film & Plastic printed laminated film;
• laminates.

CONFALONIERI - PLANA - TEXTE

L PI

11

• 1. Neodecortech 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 employs 130 resources and 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 decorative papers;
• unicolors;
• backer papers.

CARTIERE DI GUARCINO S.P .A.

PM

12

• 1. Neodecortech at a glance

Energy plant

Bio Energia Guarcino is totally owned by Cartiere di Guarcino; the Company is the

• wner of the cogeneration plant that produces electrical and thermal energy through

three endotherm diesel engines powered by tallow oil with zero emissions of CO2. It has a production capacity of nine steam tons and 20 MWh.

BIO ENERGIA GUARCINO S.R.L.

EP

13

• 1. Neodecortech at a glance

PRINTING AND IMPREGNATION ENERGY PLANT PAPER MILL

Total Area 100.000 sqm Covered Area 39.000 sqm Reconstruction Value* ¤ 104 mln Fixed Assets (Net Book Value) ¤ 23 mln Number of Employees 156 Number of shifts 3-5/24 Impregnation SBU 2.550 ton Printing SBU 7.750 ton Total Area 9.000 sqm Covered Area 1.000 sqm Reconstruction Value ¤ 30 mln Fixed Assets (Net Book Value) ¤ 15 mln Number of Employees 2 Number of shifts 3-7/24 Total Area 136.000 sqm Covered Area 25.000 sqm Reconstruction Value* ¤ 94 mln Fixed Assets (Net Book Value) ¤ 33 mln Number of Employees 166 Number of shifts 3-7/24 Production SBU Cartiere di Guarcino 42.000 ton BERGAMO GUARCINO

The whole plants and machines are fully owned by the Group Total reconstruction value of plants ≈ €228mln* vs a NBV of €71mln

*As per Insurance appraisal report OTA Srl 2017 data CASOLI DI ATRI

LAMINATION

Total Area 18.000 sqm Covered Area 6.000 sqm Reconstruction Value ¤ 21 mln Fixed Assets (Net Book Value) ¤ 2 mln Number of Employees 33 Number of shifts 3-5/24 Production 1.400 ton

PLANTS AND OPERATIONS

EP PM PI L

14

• 1. Neodecortech at a glance

KNOW HOW – R&D (Centralized R&D, co-development with the paper mill)

Vertical integration brings competitive advantages in terms of:

• higher production;
• flexibility;
• competitive purchase prices;
• maintaining control over R&D.

Cost saving

Vertical 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 effjciency via the energy plant

• unaffected by national grid power outages;
• business continuity in case of grid outages;
• virtually full coverage (90-95%) of power needs;
• production efficiency;
• invariance of procurement cost (M/L term contract) in respect of methane gas price fluctuations.

VERTICAL INTEGRATION BENEFITS

15

• 1. Neodecortech at a glance

INTERCOMPANY FLOWS

Bio Energia Guarcino

Bio-energy producer (steam and electricity)

Cartiere di Guarcino

Paper Mill base, unicolor and backer paper manifacturer Panel Producers Flooring producers Impregnators Printers

NEODECORTECH

Decor layer printing Impregnation Plastic fim printing Paper & plastic film lamination 100% Electricity 100% Steam 16% 43% 20% Steam 43% Electricity

57%

Electricity

84% 97%

Source: Internal average standardised data 2017

Market

% of Revenues % of Costs

Neodecortech’s Scope

EP PM PI L

16

• 1. Neodecortech at a glance

Finish Foils

Our Finish foils meet the need for surfacing materials offering an authentic look, texture reali- sm and affordable manufactu- ring costs.

Decorative printed papers

Produced in woodgrain, stone and fancy designs, our décor papers become the surfaces used in the furniture and floo- ring industries.

Décor Papers

Semi-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 designs and 51 products divided into 6 families

17

• 1. Neodecortech at a glance

Melamine Films

Melamine 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 tiles

Our printed plastic films offer the same high resemblance to natural materials as our Decorative papers, despite being produced on a plastic

• substrate. They are employed

in the production of high perfor- mance flooring materials (LVT) and vertical surfaces.

Laminates

Decorative 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

18

• 1. Neodecortech at a glance

Laminate Finish Foil Décor Paper Melamine Film Luxury Vinyl Tiles

PRODUCT LINES

20

• 1. Neodecortech at a glance

GROUP FIGURES 2018

Revenues ( ¤ M)

133,3 M 4/5 1/5 52% 370

Core revenues Energy Plant adjusted revenues EBITDA Adjusted Margin EBITDA Adjusted (€ M)

*Excluded Energy post turnover

Export* Employees

= +

14,2 % 19 M

Unaudited management data

21

• 1. Neodecortech at a glance

REVENUES 2018 BREAKDOWN BY SBU

Unaudited management data

Bio Energia Guarcino S.r.l. 22% Neodecortech S.p.A. 34,4% Cartiere di Guarcino S.p.A. 43,6%

EP PM PI L

22

• 1. Neodecortech at a glance

LUIGI COLOGNI - Chairman & CEO

• 55, 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.

MARCO GIUSSANI - CFO

• 52, Degree in Business Administration;
• 1994, started his career as controller in Versace Profumi, then

joined WellaGroup;

• 2001, joined a subsidiary of SAECO, as Head of Administration

and Human Resources;

• After nine years, joined Confalonieri S.p.A and Corbetta Fia srl

as Head of Administration and Human Resources.

MASSIMO GIORGILLI - Executive Director

• 50, 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.

MANAGEMENT TEAM

23

• 1. Neodecortech at a glance

COMPANY GOVERNANCE

BOARDS OF DIRECTORS Chairman & CEO: Luigi Cologni Executive Director on Cartiera and BEG: Massimo Giorgilli 1 Non executive Directors: Cristina Valentini 3 Independent Directors: Andrea Soprani, Livia Aliberti Amidani and Franco Megali. Men Women Set up of a Committee for Risk Control, Remuneration and Appointments and for Related Party Transactions. Respect for gender equality in the Board of Directors Adoption of a Code

• f Conduct – comply
• r explain

Evaluation

• f the members of

the Board

• f Directors

and of the Board

• f Statutory

Auditors

24

• 1. Neodecortech at a glance

SHAREHOLDERS

Valentini Family Market, including treasury shares AZ Fund 1 63,86% 30,94% 5,20 %

25

• 1. Neodecortech at a glance

NEODECORTECH: MAIN HISTORICAL MILESTONES NEODECORTECH: MAIN HISTORICAL MILESTONES

1947

Establishment of

2003

Acquisition of CONFALONIERI and CARTIERE DI GUARCINO by Finanziaria Valentini

2017

Group reorganization and IPO on AIM Italia

1990

Establishment of

2006

Establishment of

1960

Confalonieri focuses on decorative papers for laminates and finished panels

1999

Set up of a second machine at Cartiere di Guarcino

2010

Confalonieri’s showroom renewal End 2015 Confalonieri starts printing PPF and inaugurates its new internal Studio for décor implementation (LAB) Source: Neodecortech

Sept 2018

Acquisition of CORBETTA FIA business unit

• 2. MARKET

28

• 2. Market

400mt (Ex China)

TOTAL PAPER AND PAPERBOARD MARKET

Graphic paper

7%

0.19%

16% 8%

Container board Tissue Paperboard & other papers Speciality paper

Décor paper market

Source: Decor Paper Market Research 2017 - Munksjo

38% 31%

29

• 2. Market

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

563 655 631 625 662 690 710 745 505 560 540 530 545 565 586 265 285 290 270 285 275 274 87 90 85 90 95 100 100

Americas Asia Europa

Décor Paper (Tons/1000) Laminate fmooring market

0% CAGR

• 3.43% 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 99 280 285 281 630 605 635

FOCUS ON SELECTED NICHES

Total paper and paperboard market 400mt (Ex China)

31

• 2. Market

122

DÉCOR PAPER MARKET

Printers 340 Impregnators 144 L HPL/CLP , LPL/DPL Lamination on wood substrates

NDT - Confalonieri 2.2% NDT - Texte

229 53 690 86 340 339 58

Furniture, Laminate Flooring, Interior Applications, Etc.

22

Source: Decor Paper Market Research 2018 - Munksjo

World market in 2017: 1.515 m Metric Tons

• 765k ex China
• 800k China

Decor paper producers 765

NDT - Cartiera 5.3%

32

• 2. 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 12 493 875 15 31 32 80 17 100 75 47 53 163 92 17 393 800

PRODUCTION PRODUCTION PRODUCTION PRODUCTION PRODUCTION PRODUCTION PRODUCTION DEMAND DEMAND DEMAND DEMAND DEMAND DEMAND DEMAND NET NET NET NET NET NET NET

WEST EUROPE NORTH AMERICA SOUTH AMERICA MIDDLE EAST / OTHERS

Source: Decor Paper Market Research 2018 - Munksjo

33

• 2. Market

NEODECORTECH: GEOGRAPHICAL REACH

AMERICAS AFRICA ASIA EUROPE ITALY

10% 2% 26% 56% 5.4%

Sales organisation:

sales activities are mainly carried out by 5 internal area managers, together with 7 agents in certain areas (Belgium, Turkey, Brasil, Russia, Far East, North America) requiring on-site direct presence.

• n-site agents

Revenues by geographical area: export 74%

Note: revenues by geography excluding energy plant revenues Decor Impreg LVT Backer Base Unicolor

34

• 2. Market

STRATEGIC POSITIONING

Low Integration/Diversifjcation (Print – Pre-impregnated – Melamine Impregnation – PPF – PPLF) High Low Product range High

Unauditet management data

high low turnover EUR m - 2018

Paper Producers Décor 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)**

690 354 255

BMK + DKB (GER) Toppan (JAP)

118 183

452 219 114

Khoeler (GER)

65

Neodecortech

Paper Mill

48

Panigada (ITA)

7

Giacosa (ITA)

Technocell (GER) Malta Décor (POL) Hans Schmid (GER)

69 69

Lamigraf (SPA) Dilong (CN)

80 106

100

18 18 15 13 15

87 57 11

Hoffsummer (GER)

Chiyoda (B+JAP)**

35

• 2. Market

STRATEGIC POSITIONING

Low price – retail market Limited product range Wide product range High price – design products

Small niche producers Big diversifjed groups

Neodecortech

Chinese producers

• 3. FINANCIALS

38

• 3. Financials

CONSOLIDATED REVENUES

Consolidates revenue includes revenue and other revenue

20.0

• 40.0

60.0 80.0 100.0 120.0 2016 2018 1st half 2019 1st half 2019 2017 1st half 2018 1st half 2018 115.6 133.3 68,7 127.5 67,2

Consolidated (€/M)

20.0

• 40.0

60.0 80.0 100.0 120.0 2016 2018 2017 104.0 11.6 115.6 103.8 53.9 54.2 29.5 13.3 14.5 133,3 67,2 68.7 104.5 23.0 127.7

By category (€/M)

Not Energy Energy

39

• 3. Financials

REVENUES BREAKDOWN

Revenue by products* (€/M)

*- Analysis excluding energy plant

• Aggregated data

Revenue 2017 5.0

• 10.0

15.0 20.0 25.0 30.0 35.0

CDG NDT

Backer paper 3.7

1st half 2018 1st half 2018 1st half 2018 1st half 2018 1st half 2018 1st half 2018 1st half 2019 1st half 2019 1st half 2019 1st half 2019 1st half 2019 1st half 2019

15.6 Unicolor paper 15.3 Base paper Decorative printing PPF Laminati 2.1 Revenue 2018 14.3 4.2 13.4 13.3

1st half 2018 1st half 2019

3.7 Melamine film 3.2 2.4 4.3

1st half 2018 1st half 2019

Finish Foil 1.4 1.1 12,5

41

• 3. 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 0.9 0.2 Cost of rental 0.3% 0,2% 68% 63,3% Cost of Raw Materials 38.8 40.4 2.6 Energy 4% 4% 2.3 7.8 Services 13% 12% 7.0 11.0 Personel 18% 15% 9.2 0.1 Other 1% 1% 0.7

COSTS BREAKDOWN

• Tot. Operative Costs

€ 61.2 Variable Costs: € 47.3 Fixed Costs: € 13.9

1st half 2019

• Tot. Operative Costs

€ 59.7 Variable Costs: € 46.6 Fixed Costs: € 13.2

1st half 2018

42

• 3. 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 17.9 7.2 8.5 13,6%* 10,9%* 12,9%* 2017 1st half 2018 1st half 2018 1st half 2019 1st half 2019 15.2 8.2 8.7 12,2%* 12.5%* 13.2%*

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 7,9%* 2018 19.0 14,5%* 2017 15.2 12,3%* (2.3%) +22% Variation * % EBITDA on Revenues EBITDA netted by contingent liabilities and assets * % EBITDA ADJ on Revenues

43

• 3. Financials

NET INCOME - ANALYSIS

2.0 4.0 6.0 7.0

• 4.4

2016 3.9%* 4.0 2017 3.3%* 6.0 2.7 1.1 4.6%* 4%* 1.7%* 2018 1st half 2018 1st half 2019

Net income (€/M) Net Income adjusted (€/M)

2.0 4.0 6.0 7.0

• 1.3

3,2 2016 1st half 2018 1.2%* 4.8%* 7.3 5,6%* 2018 4.8 2,3 3.7%* 3,4%* 2017 1st half 2019 +52% Variation * % NET INCOME on Revenues * % NET INCOME ADJ on Revenues (28%)

44

• 3. 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 30.1 23.4 36.0 32.6 35.7 33.2 28.7 29.2 2018 1st half 2018 1st half 2019 Tot: 26.8 Tot: 29.5 Tot: 29.9 26.3 32.1 33.6 2017 Tot: 24.9

• Inventory increases due to pre-buying
• Receivables decrease due to assignment
• f receivable without recourse

45

• 3. Financials
• 2.0

4.0 6.0 8.0 Cash 31/12/2018 +6.5 +8.0 Operational cash flow NWC changes

• 3.6
• 2.1

Capex

• 1,7
• 3,1

Bank Debts Other financial debts Dividends payment

• 2.0

Acquisition

• wn shares
• 0,5

Other changes Cash 30/06/2019 +1.5 10.0 12.0 14.0 16.0

CASH FLOW ANALYSIS (€/M)

46

• 3. Financials

NET FINANCIAL POSITION

Net fjnancial position (€/M)

20.0 40.0 60.0 80.0 Current Debt Non Current Debt 2016 33.3 23.8 Tot: 57.1 2018 1st half 2019 28.1 25.8 16.2 22.4 Tot: 44.3 Tot: 48.2 2017 1st half 2018 31.8 31.2 15.1 21.9 Tot: 47.0 Tot: 53.1

• 10.2 M
• 6,5 M

Variation

47

• 3. Financials

DEBT MATURITY

Debt Repayment plan (€/M)

0,5 1.0 1.5 2.0 2.5 3.0 3.5 4.5 4.0 2.4 4.8 4.7 3.4 2.5 2.4 2.1 1.6 0,7 06.2019 2020 2021 2022 2023 2024 2025 2026 2027

48

• 3. Financials

INCOME STATEMENT

Consolidated Figures in € Thousands 30 Giu. 2019 % On Revenues 30 Giu. 2018 % On Revenues Change Change % Revenue from sales and services 66.4 100% 65.8 100% 607 1% Changes in work in progress, semi-fjnished and fjnished products 452 1.0% 724 1% 1.2 163% Other revenue 2.2 3% 1.3 2% 873 68% Value of Production 68.1 103% 67.8 103% 304 1% Consumption of raw, ancillary and consumable materials 38.8 58% 40.4 61% 1.6 4% Other operating expense 11.1 17% 10.0 15% 1.1 11% Value Added before non-recurring events 18.2 28% 17.4 26% 867 5% Cost of personnel* 11.1 17% 9.2 14% 1.9 20% EBITDA before non-recurring events 7.2 11% 8.2 13% 1.0 12% Amortization, depreciation 4.2 6% 3.5 5% 653 19% Allocations

• EBIT before non-recurring events

3.1 5% 4.7 7% 1.7 35% Non-recurring components 146 0% 35 0% 112 323% EBIT 2.9 4% 4.7 7% 1.8 38% Financial components 976 2% 1.5 2% 540 36% Exchange gains and losses 19

• 254

0% 723 108% Result before tax 1.9 3% 3.4 5% 1.5 44% Income tax 797 1% 677 1% 120 18% Result for the year 1.1 2% 2.7 4% 1.6 60% *Cost of personnel includes, as at 30 June 2019, € 1,149 thousand attributable to the Stock Grant Program; as at 30 June 2018, the Program amounted to € 535 thousand.

49

• 3. Financials

BALANCE SHEET STATEMENT

Reclassifjed Consolidated Statement of Financial Position (Euro thousand) 30 giu 2019 31 dec 2018 Delta Delta % Trade receivables 23.4 24.0 (631) (2,6%) Inventories 35.7 36.0 (251)

• 0,7%

Trade payables (29.2) (33.2) 4.0 (12,1%) Operating Working Capital 30.0 26.8 3.2 11,7% Other current receivables 5.9 5.8 140 2,4% Other current payables (5.4) (4.3) (1.2) 27,1% Tax (1.9) (1.9) (53) 2,9% Net Working Capital 28.6 26.5 2.0 7,8% Property, plant and equipment 77.3 76.7 631 0,8% Goodwill

• 0,0%

Intangible assets 3.2 3.5 (335)

• 9,7%

Available for sale financial assets 2.4 2.2 189 8,6% Non-current financial assets not included in the NFP 3.5 1.7 1.8 105,6% Other non-current assets 36 37 (1) 100% Fixed assets 86.3 84.0 2.3 2,7% Post-employment benefit provisions (3.0) (2.9) (122) 4,2% Provisions for risks and costs (455) (456) 1

• 0,3%

Deferred tax assets and liabilities (4.5) (4.3) (241) 5,7% Net Invested Capital 106.9 103.0 4.0 3,8% Equity and Liabilities 58.6 58.6 (30)

• 0,1%

Cash and cash equivalents (1.5) (6.5) 5.0

• 77,5%

Other current financial receivables (3)

• (3)

100,0% Current financial liabilities 23.9 22.7 1.2 5,4% Non-current financial liabilities 25.8 28.1 (2.271) (8,1%) Net Financial Debt 48.3 44.3 4.0 9,0% Net Equity and Net Debt 106.9 103.0 4.0 3,8%

• 4. GROWTH STRATEGY

52

• 4. 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 track record Strong and well balanced customer base Customer loyalty Strong integration with clients High growth potential and high margins Strong cash fmow generation

53

• 4. Growth strategy

INVESTMENT OPPURTUNITIES

New technologies Machine improvement Market expansion 10 mln 10 mln 15 mln

• Further investments in film laminations
• Digital printing
• Increase process efficiency
• Increase product quality
• Adopt Industry 4.0 technology
• Increase market share
• Acquire new markets

Area Investment Investment rationale

54

• 4. Growth strategy

OFFER STRUCTURE AND REMEDY SHARES - September 2017

Trading market

AIM Italia Main Market within March 2020

Offer structure

Capital Increase Euro 12.4m Remedy shares 2017-2018 Transition on MTA within 30 months Institutional Offer up to Euro 12mln Free float 27,2%

Lock Up

Until listing on Main Market, or 3 years

Remedy shares

2017 2018 Ebitda 15 M 17 M Net Income 4,5 M 7 M

• 5. APPENDIX

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• 5. Appendix

Neodecortech is a Group formed of three companies sharing the same vision and a clear industrial strategy, providing the interior design industry with high-end products enhanced by distinctive Italian flair. A leading player from the onset in the decorative laminates industry, the Company strives to position itself as a highly proactive partner, constantly committed to monitoring and interpreting the new trends in style. The Group is a leader in the production of decorative paper for laminated panels and flooring. Neodecortech’s activity revolves around the production

• f complete and cutting-edge solutions for interior design projects, covering

every phase of the decorative papers production process: from raw material management to the finished product and management of end-of-line logistics, through a special finish and impregnation treatment.

MISSION

57

• 5. Appendix

Integrity, accuracy and transparency, attention to the individual, professionalism and expertise, research and constant improvement, efficacy and cost effectiveness, respect for the environment, quality and rapidity, creativity and originality.

VALUES OF THE GROUP

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• 5. Appendix

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 fulfilment. For every stakeholder, the Neodecortech Code of Ethics

• ffers the ethical principles on

which all its activities are based.

Neodecortech

Environment Clients and prospects Financial market Suppliers Competitors Human resources Public administration and institutions Local community and territory

THE STAKEHOLDERS

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• 5. Appendix

* Neodecortech only

ALL GROUP COMPANIES HAVE THE FOLLOWING IN PLACE: Code of Ethics Organisational Model pursuant to Legislative Decree 231/2001 QAS Policy 100% Made in Italy* FSC – Chain of Custody UNI EN ISO 9001 UNI EN ISO 14001 OH SAS 18001 UNI CEI ISO 50001

CERTIFICATES

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• 5. Appendix

KEY CONTACTS

Luigi Cologni Email: l.cologni@neodecortech.it Massimo Giorgilli Email: m.giorgilli@cdgspa.com Marco Giussani Email: m.giussani@neodecortech.it ISSUER NOMAD AND SPECIALIST Stefano Taioli Email: stefano.taioli@bper.it Camilla Pellegrini E-mail: camilla.pellegrini@bper.it Massimo Sgabussi Email: massimo.sgabussi@bper.it Davide Navasotti E-mail: davide.navasotti@bper.it