Embellence Group (EMBELL) ABGSC Investor Days summary

Company overview and strategy

• Net sales in 2024 reached SEK 778 million with an EBITDA margin of 14.4% and 225 employees.

• Focus on premium interior decoration brands, especially wallpapers, complemented by textiles and rugs.

• Operates two segments: brand (five brands) and manufacturing, with global reach in over 100 countries.

• Strategic foundation includes strong finances, entrepreneurial culture, and a decentralized model.

• Six focus areas: organic growth, brand building, product and design innovation, geographic/channel expansion, group synergies, and strategic M&A.

Market and brand performance

• Global interior decoration market is $800 billion; wallpaper market is $10 billion, with 60% residential and 40% hospitality.

• Main markets are Europe and the U.S., focusing on the premium segment.

• Boråstapeter and Cole & Son are historic brands, celebrating 120 and 150 years respectively, with strong sales and global distribution.

• Wall&decò specializes in hospitality and technical wallpaper solutions, while Artscape focuses on window films, and Pappelina on rugs.

• Manufacturing segment supplies internal brands and external customers, with external sales at SEK 84 million in 2024.

Financial performance and targets

• Since IPO, sales CAGR is 8% and EBITDA margin CAGR is 12%.

• Long-term targets: SEK 1 billion net sales by 2028, EBITDA margin >15%, dividend payout 30-50% of net income, leverage <2.5x EBITDA.

• 2024 results: SEK 778 million sales (+5%), 14.4% EBITDA margin, 50% dividend payout, leverage reduced to 0.7x EBITDA.

• Q1 2024: SEK 202 million sales (-6% YoY), impacted by timing of large Artscape orders; margin improved to 16%.

• Manufacturing segment grew 39% in Q1, but future growth expected to normalize.