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Neodecortech Earnings Release 2022

Nov 3, 2022

4087_rns_2022-11-03_08fe140f-dc62-4d52-b919-ac50d0c534a5.pdf

Earnings Release

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PRESS RELEASE

Neodecortech S.p.A.

Approval and publication of the Consolidated Interim Management Statement at 30 September 2022.

  • Revenue € 151.0 million: +20.4% versus 30 September 2021 (€ 125.4 million);
  • EBITDA € 15.6 million: +12.5% versus € 13.8 million at 30 September 2021, making for 10.3% of revenue;
  • EBITDA margin 10.3% of revenue, down slightly from 11% at 30 September 2021;
  • EBIT € 8.4 million (€ 7.2 million at 30 September 2021), making for 5.6% of revenue;
  • Consolidated net profit € 9.9 million (€ 4.5 million at 30 September 2021);
  • Adjusted net profit € 7.1 million, net of the non-recurring item relating to the write-off of the MICA payable of € 2.8 million;
  • Net financial debt at 30 September 2022 € 30.6 million, up slightly versus € 29.3 million at 31 December 2021, after capital expenditure of € 6.2 million, and in line with € 35.8 million at 30 September 2021, which still included the MICA payable of € 5 million;

Establishment of NDT Energy Srl.

Appointment of the acting Financial Reporting Manager

Filago, 3 November 2022

Neodecortech S.p.A. ("Neodecortech" or the "Company"), one of Europe's top players in the production of decorative papers for laminated panels and flooring used in interior design, listed on Euronext Milan, market organized and managed by Borsa Italiana S.p.A. - Euronext STAR Milan segment, announces that the Board of Directors met today and approved the Consolidated Interim Management Statement at 30 September 2022, which will be published within the time limits set forth by the relevant laws, together with the results of the limited audit currently underway.

CEO Luigi Cologni, commenting on the results at 30 September 2022: "With regard to the chain of decorative surfaces related to the furniture and furnishing market, both in terms of furniture and flooring, the growth trend seen since mid-2020 and throughout 2021 has come to a virtual halt since the beginning of July, with a resulting slowdown in incoming orders.

This is the result of a combination of intertwined factors: (i) continued increase in the cost of most of the strategic raw materials purchased by the Group; (ii) increase in energy costs; (iii) rising inflation rate; (iv) spike in interest rates on the capital market; (v) lower propensity to consume related also to the current Russian-Ukrainian conflict.

The deterioration in the macroeconomic sentiment has therefore partly prevented the increases in supply costs to be transferred to the sales prices charged to end customers, which explains the slight decrease in gross operating profit (despite the increase in sales in absolute terms).

More specifically, with regard to energy costs, Neodecortech and Cartiere di Guarcino are energy- and gas-intensive companies; as such, they have obtained tax credits under the various regulatory measures issued by the Government. However, it is only thanks to the remarkable performance of Bio Energia Guarcino that the net impact of the cost increases of the two energy carriers on the consolidated income statement was able to be offset.

The net financial position (approximately € 30.5 million), though up moderately versus the figure at 31 December last year (approximately € 29 million), is absolutely in line with the same period last year net of the effects of the MICA loan (adjusted NFP approximately € 30.8 million). This is a highly positive figure if one considers that, owing to the small decline in margins versus 31 December 2021, the period saw a temporary increase in financial debt due to the greater resort to short-term lines, attributable not only to the need to make advance supplies of a number of

Neodecortech S.p.A. Via Provinciale, 2 24040 Filago, Bergamo tel +39 035996111 fax +39 035995225 Capitale Sociale Euro 18.804.209,37 i.v. C.F. e R.I. 00725270151 P.IVA IT 02833670165 R.E.A. BG - 193331

strategic raw materials, but also to the lower incentives of Bio Energia Guarcino and the time gap of the transfer of cost increases to sales lists.

CONSOLIDATED OPERATING AND FINANCIAL HIGHLIGHTS AT 30 SEPTEMBER 2022

Consolidated net revenue at 30 September 2022 amounted to € 151.0 million, up by 20.4% versus € 125.4 million recorded in the same period of the prior year.

More specifically, sales of the Printed Decorative Paper Division were up by 7.1%. Sales of the Decorative Paper Division rose by 36.7%. Sales of the Energy Division grew by 20.4% versus the same period of the prior year.

Regarding Neodecortech and Cartiere di Guarcino alone, geographically speaking, sales performance was as follows:

(Euro thousands) 30 SEPTEMBER
2022
% 30 SEPTEMBER
2021
% Chg. % change
Italy 48,9 40,6% 40,0 40,0% 8,9 22,2%
Europe 55,6 46,1% 52,6 52,5% 3,0 5,8%
Asia / Middle East 1,3 1,1% 2,8 2,8% (1,5) (53,8%)
America 13,9 11,6% 3,7 3,7% 10,2 274,2%
Africa 0,8 0,6% 1,0 1,0% (0,2) (19,9%)
Totale 120,6 100,0% 100,1 100,0% 20,4 20,4%

As the table shows, the changes in Italy and Europe are worthy of note as is the strong improvement in sales in North America.

Other revenue at 30 September 2022 amounted to € 5.7 million (€ 1.6 million at 30 September 2021), increasing by € 4.1 million, due primarily to the recognition and certification at 30 September 2022 of tax credits of € 3.5 million for the first three quarters for energy- and gas-intensive companies to both Neodecortech and the subsidiary Cartiere di Guarcino.

At 30 September 2022, the cost of sales and other net operating costs amounted to € 130.2 million, accounting for 86.2% of revenue, up by 35.6% from € 61.8 million in the same period of the prior year (68.6% of revenue), as a result of price increases in the Group's strategic raw materials (resins, decorative paper, plastic film, pulp, titanium dioxide and animal fat), in transportation, and in energy carrier costs. That said, the increase in the cost of electricity and gas was alleviated by the above tax credits, so the actual increase is 32%.

Personnel expense amounted to € 15.7 million, down versus the same period of the prior year (€ 16.4 million), accounting for 10.4% of revenue (down from 13.1% at 30 September 2021). The number of employees at 30 September 2022 was 393 versus 406 at 31 December 2021.

EBITDA came to € 15.6 million (10.3% of revenue), a 12.5% increase in absolute terms versus € 13.8 million at 30 September 2021 (11% of revenue), and a slight decrease in percentage margin due to the mentioned effects of the increases in raw material prices and energy costs.

EBIT came to € 8.4 million (5.6% of revenue), up by 16.6% versus € 7.2 million (5.7% of revenue) in first nine months 2021.

Financial expense and income at 30 September 2022 reflect the net effect of the write -off of the time-barred financial payable to MICA (€ 5 million) and the related receivable from Andreotti Fotoincisioni (€ 1.3 million) totaling € 3.8 million. Net financial expense therefore amounted to € 0.9 million, down from € 1 million at 30 September 2021.

Profit before tax amounted to € 11.5 million (€ 7.7 million adjusted for the above effects) versus € 6.3 million at 30 September 2021.

The period at 30 September 2022 closes with net profit of € 9.9 million (6.6% of revenue) versus € 4.5 million at 30 September 2021 (3.6% of revenue).

Net profit adjusted from the effects of the write-off of the time-barred financial payable and receivable (net of tax effects) amounted to € 7.1 million, up by € 2.6 million versus 30 September 2021 (+58.5%).

Net financial debt at 30 September 2022 stood at € 30.6 million, increasing by approximately € 1 million versus 31 December 2021 (€ 29.3 million), related to higher cash use of working capital due to the greater difficulties in transferring raw material price increases and the need for advance suppliesof raw materials. Net financial debt was, instead, in line with the figure at 30 September 2021, since the € 35.8 million at such date included the € 5 million in financial payables to MICA written off in first quarter 2022.

Capital expenditure for the period amounted to € 6.2 million, lower than the budgeted plan; some expenditure in new facilities is expected to be postponed to 2023.

(Euro millions) 30/09/2022 % revenues 30/09/2021 % revenues Var. %
Revenues 151,0 100,0% 125,4 100,0% 20,4%
EBITDA 15,6 10,3% 13,8 11,0% 12,5%
EBIT 8,4 5,6% 7,2 5,7% 16,6%
Net Incom
e
9,9 6,6% 4,5 3,6% 122,7%
Adj Net Incom
e
7,1 4,7% 4,5 3,6% 58,5%
(Euro millions) 30.09.2022 30.09.2021 Chg. 31.12.2020 Chg.
Net F
inancial Debt
30,6 35,8
(5,2)
29,3 1,3
Net F
inancial Debt Adj
30,6 30,8
(0,2)
24,3 6,3

With regard to the period from 1 January 2022 to 30 September 2022, revenue and net financial debt are in line with the estimates in the 2022 Budget.

Impacts from the Coronavirus pandemic (COVID -19) and the conflict in Ukraine

The Group's consolidated operating and financial figures at 30 September 2022 confirm not to be greatly affected by the COVID-19 pandemic.

The Group continued to comply with national pandemic containment rules and the adoption and observance of safety protocols on the health of workers and third parties, also managing a few non-serious COVID-19 positive cases reported in September.

Specifically, the safety protocols were further updated following entry into force of the provisions set forth in Law Decree no. 172 of 26 November 2021 "Urgent measures for the containment of the COVID-19 epidemic and for the safe performance of economic and social activities", Law Decree no. 221 of 24 December 2021, Law Decree no. 229 of 30 December 2021 "Urgent measures for the containment of the spread of the COVID-19 epidemic and provisions on health surveillance" and Law Decree no. 1 of 7 January 2022, which required, from 15 February 2022, the obligation to check the "enhanced super green pass" for workers aged over 50. With Law Decree no. 24/2022 effective as from 25 March 2022, the Group adapted its safety protocols to the new provisions, as from 1 April 2022, no longer requiring the obligation to check the "enhanced super green pass" for workers over 50. Under the

tel +39 035996111 fax +39 035995225 Capitale Sociale Euro 18.804.209,37 i.v. C.F. e R.I. 00725270151 P.IVA IT 02833670165 R.E.A. BG - 193331

additional provisions of Law Decree 68/2022 of 16 June 2022, the Group's safety procedures and protocols were updated, strongly recommending the use of masks in the workplace, although this measure is no longer mandatory. On 31 August 2022, the Ministry of Health published Circular no. 37615, which changes the regulation of isolations in case of COVID-19 positivity: isolation is reduced to 5 days regardless of vaccination status, provided the person has tested negative and after at least 2 days with no symptoms.

The Russian-Ukrainian conflict produced direct and indirect impacts on the financial and operating results in first nine months 2022, but the event did not bring any interruption of operations at the Group's three production plants. Specifically, the direct impacts in terms of lower sales were modest, as the Group has no major sales in Russia, Ukraine or Belarus: in 2021, these sales accounted for less than 5% of total turnover.

On the purchasing front, direct impacts were felt on the prices of one of the strategic raw materials used, titanium dioxide, since Ukraine is traditionally one of its producers.

Additionally, the conflict is clearly having a major direct impact on the prices of energy carriers, i.e., electricity and gas.

The indirect impacts, however, as mentioned, are reflected in the lower propensity of users to consume durable goods, including furniture and flooring.

Lastly, with regard to the restrictions and sanctions adopted by the EU in response to the Russian military aggression against Ukraine, it should be noted that the Group is complying with all the measures introduced by the European Union.

From an IT point of view, the Group has long adopted stringent business continuity plans, guaranteeing the full operation of back-ups, including offline solutions, to protect company systems and data from possible cyber-attacks, which could intensify as a result of the Russian-Ukrainian conflict. Additionally, special operational response plans are in place to cope with any disruptions or limitations in the supply of both gas and electricity.

EVENTS AFTER THE END OF THE QUARTER

On 19 October 2022, NDT Energy S.r.l., a wholly-owned subsidiary of Neodecortech S.p.A., was established to build and operate a boiler for the recovery of processing waste at the Casoli (TE) production plant for the generation of thermal energy. Its commissioning will allow said plant to achieve self-sufficiency of thermal consumption. The plant will also allow for a major reduction in the environmental impact from waste disposal and methane gas consumption.

Neodecortech and Cartiere di Guarcino renewed the Tax Consolidation option with Finanziaria Valentini S.p.A. for the three-year period 2022-2024. For Bio Energia Guarcino, the option for the three-year period 2020-2022 remains in effect.

OUTLOOK FOR THE YEAR

The production plants of Neodecortech and Cartiere di Guarcino operated at full capacity throughout the first nine months of the year and are expected to be operational during the final months of the year. For Neodecortech, however, the reduction in incoming orders, which began at the start of the second half of the year, led to an initial reduction in production, thus in sales, as from end September. This decline will be felt in the last quarter of the year, forcing partial closures of the production plants in Filago (BG) and Casoli (TE), with a resort to the redundancy fund. Both Neodecortech and Cartiere di Guarcino are monitoring the potential risks of rationing and partial availability of electricity and gas.

tel +39 035996111 fax +39 035995225 Capitale Sociale Euro 18.804.209,37 i.v. C.F. e R.I. 00725270151 P.IVA IT 02833670165 R.E.A. BG - 193331

Against this backdrop, despite the changed macroeconomic sentiment and the abovementioned related critical issues, but taking also account of the good performance recorded in the first nine months, the Group believes that it can close 2022 basically in line with the results forecast in the 2022 Budget, leveraging on the fact of being an integrated supply chain Group and having within its scope a power plant producing electricity from renewable sources, which guarantees full availability of electricity and partial availability of thermal energy to Cartiere. On the financial front too, it continues to pursue the policy of monitoring financial costs (despite the current increase in interest rates), optimizing short- and medium-long term lines of credit, and containing the net financial position.

The Group continues to pursue its policy of sustainability laid out in the 2021-2023 ESG Plan, by implementing a number of ongoing projects, especially in the area of emission reduction and in the social sphere.

No particularly negative impacts are expected from the trend of the COVID-19 pandemic, despite a slight resurgence.

***

ALTERNATIVE PERFORMANCE MEASURES

The definition of the main APMs used by the Neodecortech Group is given below:

  • EBITDA and EBIT: alternative performance measures not defined by IFRS but used by Group Management to monitor and measure its performance, as they are not affected by volatility, due to the effects of the range of criteria for determining taxable income, the amount and characteristics of the capital employed and - for EBITDA - the amortization/depreciation policies. These measures are also commonly used by analysts and investorsto assess company performance;
  • ADJUSTED EBITDA and ADJUSTED NET PROFIT: measures used by Management to strip EBITDA and net income respectively of the effect of non-recurring cost and revenue components;
  • OPERATING WORKING CAPITAL, NET WORKING CAPITAL, FIXED ASSETS and NET INVESTED CAPITAL: they allow a better assessment of both the ability to meet short-term trade commitments through current trade assets and the consistency of the structure of loans and sources of financing in terms of time;
  • NET FINANCIAL DEBT: the figure shown is in line with the value of net financial debt determined in accordance with the recommendations of CESR (Committee of European Securities Regulators) of 10 February 2005 and referred to by CONSOB. This measure allows a better assessment of the overall level of debt, capital strength and debt repayability.

The Consolidated Interim Management Statement at 30 September 2022 of the Neodecortech Group, approved by the Board of Directors today, will be published, in accordance with current regulations, at the Company's registered office and made available on the Company website at www.neodecortech.it, as well as at the authorized storage mechanism ., within the time limits set forth by the relevant laws, together with the results of the limited audit currently underway.

The Financial Reporting Manager, Fabio Zanobini, declares, pursuant to paragraph 2 of Article 154 -bis of the Consolidated Finance Law, that the accounting information contained herein is consistent with the underlying accounting documents, books and records.

Attached are the consolidated income statement, consolidated statement of financial position, and consolidated statement of cash flows at 30 September 2022, the limited audit of which is still underway.

APPOINTMENT OF THE ACTING FINANCIAL REPORTING MANAGER

The Board of Directors also resolved, with the positive opinion of the Board of Statutory Auditors, on the appointment of Francesca Terrinoni, Group Head of Administration, as acting Financial Reporting Manager pursuant

Neodecortech S.p.A. Via Provinciale, 2 24040 Filago, Bergamo tel +39 035996111 fax +39 035995225 Capitale Sociale Euro 18.804.209,37 i.v. C.F. e R.I. 00725270151 P.IVA IT 02833670165 R.E.A. BG - 193331

to Article 154-bis of Legislative Decree no. 58 of 24 February 1998 ("TUF") and Article 26 of the Company Bylaws, effective until the appointment of the new Financial Reporting Manager, given that the procedure for the selection of the candidate to replace Fabio Zanobini is underway.

The appointment of Francesca Terrinoni as acting Financial Reporting Manager will take effect from the date of termination of employment of Fabio Zanobini with the Company and his role as Financial Reporting Manager, therefore from 6 November 2022.

Ms. Terrinoni's curriculum vitae is available on the Company website (www.neodecortech.it) Investors/Corporate-Governance section.

In accordance with the requirements of the Instructions to the Italian Stock Exchange Regulation, it is hereby announced that, to the best of the Company's knowledge, to date Ms. Terrinoni holds no. 25,450 shares of the Company.

C.F. e R.I. 00725270151 P.IVA IT 02833670165 R.E.A. BG - 193331

CONSOLIDATED INCOME STATEMENT AT 30 SEPTEMBER 2022

CONSOLIDATED INCOME STATEMENT AT 30 SEPTEMBER 2022
(Euro thousands) 30 SEPTEM
BER
2022
% 30 SEPTEM
BER
2021
% Chg. % change
R
evenue fro
m sales and services
150.976 100,0% 125.383 100,0% 25.593 20,4%
Changes in work in progress, semi-finished and finished products 4.730 3,1% (729) (0,6%) 5.459 (748,8%)
Other revenue 5.740 3,8% 1.604 1,3% 4.136 257,9%
Value o
f P
ro
ductio
n
161.447 106,9% 126.258 100,7% 35.189 27,9%
Raw and ancillary materials and consum. (104.368) (69,1%) (78.422) (62,5%) (25.946) 33,1%
Other operating expense (25.827) (17,1%) (17.621) (14,1%) (8.206) 46,6%
Value A
dded
31.251 20,7% 30.215 24,1% 1.036 3,4%
Personnel expense (15.681) (10,4%) (16.378) (13,1%) 697 (4,3%)
EB
IT
D
A
15.570 10,3% 13.837 11,0% 1.733 12,5%
Amortization and depreciation (7.119) (4,7%) (6.561) (5,2%) (558) 8,5%
Allocations (55) (0,0%) (77) (0,1%) 22 (28,6%)
EB
IT
8.396 5,6% 7.199 5,7% 1.197 16,6%
Financial expense (2.196) (1,5%) (1.042) (0,8%) (1.154) 110,7%
Financial income 5.332 3,5% 167 0,1% 5.165 3092,8%
P
ro
fit/
(lo
ss) befo
re tax
11.532 7,6% 6.324 5,0% 5.208 82,4%
Income tax (1.586) (1,1%) (1.857) (1,5%) 271 (14,6%)
P
ro
fit/
(lo
ss) fo
r the perio
d
9.947 6,6% 4.467 3,6% 5.480 122,7%

C.F. e R.I. 00725270151 P.IVA IT 02833670165 R.E.A. BG - 193331

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT 30 SEPTEMBER 2022

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT 30 SEPTEMBER 2022
A
ssets
30 SEPTEM
BER
2022
% 31 DECEM
BER 2021
% Chg. % change
(Euro thousands)
Intangible assets 960 0,6% 1.551 0,9% (591) (38,1%)
Tangible assets 78.287 46,7% 78.561 46,5% (274) (0,3%)
Other non-current assets 485 0,3% 19 0,0% 466 2452,6%
Non-current financial receivables 445 0,3% 1.757 1,0% (1.312) (74,7%)
Deferred tax assets 1.542 0,9% 1.985 1,2% (443) (22,3%)
N
o
n-current assets
81.720 48,7% 83.873 49,6% (2.153) (2,6%)
Inventory 45.968 27,4% 40.603 24,0% 5.365 13,2%
Trade receivables 26.231 15,6% 26.632 15,7% (401) (1,5%)
Receivables from tax consolidation 564 0,3% 1.129 0,7% (565) (50,0%)
Tax receivables 4.340 2,6% 2.299 1,4% 2.041 88,8%
Current financial receivables 0 0,0% 0 0,0% 0 0,0%
Other current receivables 1.522 0,9% 1.084 0,6% 438 40,4%
Cash funds 7.410 4,4% 13.491 8,0% (6.081) (45,1%)
C
urrent assets
86.034 51,3% 85.238 50,4% 796 0,9%
T
o
tal assets
167.754 100,0% 169.111 100,0% (1.357) (0,8%)
Equity and liabilities 30 SEPTEM
BER
2022
% 31 DECEM
BER 2021
% Chg. % change
Equity and liabilities 30 SEPTEM
BER
2022 % 31 DECEM
BER 2021
% Chg. % change
(Euro thousands)
Share capital 18.804 11,2% 18.804 11,1% 0 0,0%
Share premium reserve 18.864 11,2% 18.864 11,2% 0 0,0%
Other reserves 24.995 14,9% 17.348 10,3% 7.647 44,1%
Prior years' profit (loss) 6.201 3,7% 8.761 5,2% (2.560) (29,2%)
Profit (loss) for the period 9.947 5,9% 6.688 4,0% 3.259 48,7%
Equity 78.811 47,0% 70.465 41,7% 8.346 11,8%
Provisions for risks and charges 704 0,4% 977 0,6% (273) (27,9%)
Deferred tax 6.206 3,7% 6.150 3,6% 56 0,9%
Post-employment benefits 2.099 1,3% 2.587 1,5% (488) (18,9%)
Non-current financial liabilities 14.080 8,4% 23.220 13,7% (9.140) (39,4%)
N
o
n-current liabilities
23.089 13,8% 32.934 19,5% (9.845) (29,9%)
Trade payables 34.706 20,7% 39.832 23,6% (5.126) (12,9%)
Payables from tax consolidation 965 0,6% 816 0,5% 149 18,3%
Tax payables 691 0,4% 773 0,5% (82) (10,6%)
Current financial liabilities 23.908 14,3% 19.616 11,6% 4.292 21,9%
Other current payables 5.584 3,3% 4.674 2,8% 910 19,5%
C
urrent liabilities
65.854 39,3% 65.711 38,9% 143 0,2%
T
o
tal equity and liabilities
167.754 100,0% 169.111 100,0% (1.357) (0,8%)

C.F. e R.I. 00725270151 P.IVA IT 02833670165 R.E.A. BG - 193331

CONSOLIDATED STATEMENT OF NET FINANCIAL DEBT AT 30 SEPTEMBER 2022

(Euro thousands) 30
SEPTEM
BER
2022
31 DECEM
BER
2021
Chg. 30
SEPTEM
BER
2021
Chg.
A. Cash funds
B. Cash and cash equivalents (7.410)
0
(13.491)
0
6.081
0
(8.801)
0
1.391
0
C. Other current financial assets (12) 0 (12) (64) 52
D
. C
ash (A
) + (B
) + (C
)
(7.422) (13.491) 6.069 (8.865) 1.443
E. Current financial debt 16.955 13.608 3.347 13.652 3.303
F. Current portion of non-current debt 6.966 6.008 958 5.905 1.061
G. C
urrent financial debt (E)+(F
)
23.921 19.616 4.305 19.557 4.364
H. Net current financial debt (G)-(D) 16.499 6.125 10.374 10.692 5.807
I. Non-current financial debt 14.080 23.220 (9.140) 25.090 (11.010)
J. Debt instruments 0 0 0 0 0
K. Trade payables and other non-current payables 0 0 0 0 0
L. N
o
n-current financial debt (I)+(J)+(K)
14.080 23.220 (9.140) 25.090 (11.010)
M
. T
o
tal financial debt (H
)+(L)
30.579 29.345 1.234 35.783 (5.204)

C.F. e R.I. 00725270151 P.IVA IT 02833670165 R.E.A. BG - 193331

CONSOLIDATED STATEMENT OF CASH FLOWS AT 30 SEPTEMBER 2022

30 SEPTEMBER 30 SEPTEMBER
(Euro thousands) 2022 2021
Profit (loss) for the period 9.947 4.467
Income tax 1.307 1.998
Deferred/(prepaid) tax 279 (141)
Interest expense/(interest income) (3.136) 1.305
(Dividends received) 0 0
(Gains)/losses from disposal of assets (15) (210)
1 Profit (loss) for the period before income tax, interest, 8.381 7.419
dividends and gains/losses from disposals
Adjustments for non-monetary items that had no
balancing entry in net w
orking capital:
Allocation to post-employment benefits 123 61
Allocations to other provisions 162 263
Amortization and depreciation of fixed assets 7.119 6.561
Write-dow
ns for impairment losses
0 0
Other adjustments for non-monetary items (1.259) (1.509)
2 Cash flow before changes in NWC 14.526 12.794
Changes in net w
orking capital
Decrease/(increase) in receivables from customers 502 (3.835)
Decrease/(increase) in inventory (5.560) (280)
Increase/(decrease) in payables to suppliers (5.126) 4.835
Decrease/(increase) in other receivables (1.576) (2.302)
Increase/(decrease) in other payables 958 1.728
Other changes in net w
orking capital
3 Cash flow after changes in NWC
0
3.725
0
12.940
Other adjustments
Interest received/(paid) (715) (504)
(Income tax paid) (326) (103)
(Gains)/losses from disposal of assets 0 0
Dividends received 0 0
(Utilization of provisions) (295) (454)
(Utilization of provisions for post-employment benefits) (123) (120)
4 Cash flow after other adjustments 2.265 11.758

C.F. e R.I. 00725270151 P.IVA IT 02833670165 R.E.A. BG - 193331

A Cash flow from operations 2.265 11.758
Property, plant and equipment (6.057) (6.184)
(Purchase) (6.057) (6.223)
Disposal 0 39
Intangible fixed assets (126) (280)
(Purchase) (126) (280)
Disposal 0 0
Financial fixed assets (30) (287)
(Purchase) (30) (363)
Disposal 0 76
Current financial assets 0 0
(Purchase) 0 0
disposal 0 0
Proceeds from disposal of assets 15 210
B Cash flow from investing activities (6.198) (6.541)
Liabilities 149 (2.746)
Increase (decrease) in short-term bank payables 2.522 1.023
New
loans
2.500 0
Repayment of loan (3.323) (2.809)
Financial liabilities to other lenders (1.550) (1.008)
Change in financial receivables from other lenders 0 47
Equity (2.298) (1.206)
Share capital increase 0 0
Sale (purchase) of treasury shares (320) 0
Other changes in equity (1.978) (1.206)
C Cash flow from financing activities (2.149) (3.952)
Increase (decrease) in cash funds (A ± B ± C) (6.081) 1.265
Cash funds at 1 January 2022 13.491 7.536
Cash funds at 30 September 2022 7.410 8.801

C.F. e R.I. 00725270151 P.IVA IT 02833670165 R.E.A. BG - 193331

Neodecortech S.p.A.

Neodecortech is one of Europe's top players in the production of decorative papers for laminated panels and flooring used in interior design. The Group's business is in the production of complete and technologically advanced solutions for the realization of interior design projects, covering all stages of the production process for the production of decorative paper, from raw material management, through surface finishing and impregnation, up to the finished product and the management of end-of-line logistics. The Group offers 7 product categories: decorative papers; decorative printings; finish foil; melamine film; PPF and PPLF; laminates; EOS anti-fingerprint surfaces. (www.neodecortech.it).

ISIN Code ordinary shares: IT0005275778

For further information:

Investor Relator
Neodecortech S.p.A.
T +39 035 99 63 02
F +39 035 99 52 25
Luigi Cologni
[email protected]
www.neodecortech.it

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This press release is for informational purposes only and does not constitute an offer to the public or an invitation to subscribe or purchase financial instruments in Italy or any other country where such offer or solicitation would be subject to restrictions or authorization by local authorities or otherwise prohibited by law. This press release may not be published, distributed or transmitted to the United States, Canada, Australia or Japan. The shares mentioned in this press release cannot be offered or sold in either Italy or the United States or any other jurisdiction without registration under the applicable provisions or an exemption from the obligation to register under the applicable provisions. The shares mentioned in this press release have not been and will not be registered under the US Securities Act of 1933 nor under the applicable provisions in Italy, Australia, Canada, Japan or any other jurisdiction.

There will be no offer to the public of the Company's shares either in Italy or in the United States, Australia, Canada or Japan or elsewhere.

C.F. e R.I. 00725270151 P.IVA IT 02833670165 R.E.A. BG - 193331