Embellence Group (EMBELL) ABGSC Investor Days summary

Company overview and brand portfolio

• Operates five brands focused on premium wallpaper and decorative products, with sales in over 100 countries; key markets are Sweden, U.S., U.K., and Italy.

• Brands include Borås Tapeter (market leader in Sweden/Nordics), Cole & Son (UK-based, prestigious clients), Wall&decò (Italy, technical wallpaper), Pappelina (rugs), and Artscape (window film, strong in North America).

Strategic direction and ambitions

• Aims to be a leader in interior decoration, focusing on premium wallpaper and expanding into textiles and rugs.

• Emphasizes an entrepreneurial, decentralized culture, leveraging brand autonomy and group synergies.

• Strategy centers on profitable organic growth, brand development, product innovation, and sustainability.

• Geographic expansion targets North America and Mediterranean countries, with retail as the main channel.

• Growth expected in hospitality and direct-to-consumer channels, with continued selective add-on acquisitions.

Financial performance and targets

• Maintains strong finances: gross margin near 60%, EBITDA margin 14.6%, and improved net profit and cash flow.

• Targets SEK 1 billion in organic net sales by 2028, EBITDA margin of at least 15%, dividend payout of 30%-50% of net income, and leverage below 2.5.

• Despite a challenging retail market, achieved sales growth of 5% and improved flexibility to manage downturns.