Embellence Group (EMBELL) investor relations material

Strategic vision and market positioning

• Aims to become a global leader in premium interior decoration, focusing on wallpaper, textiles, and rugs.

• Operates a decentralized model to foster brand autonomy and creativity.

• Heritage brands with over 100 years of history, selling in 100 countries, with main markets in Sweden, UK, US, and Italy.

• Premium segment targeted within a $10 billion global wallpaper market, with Europe and US representing 60%.

• Sustainability is a core agenda, with goals to reduce CO2 emissions by 50% and waste by 5% annually until 2030.

Brand portfolio and supply chain

• Five brands: Boråstapeter, Cole & Son, Wall&decò, Pappelina, and Artscape, each with unique market focus.

• Manufacturing facilities in Sweden and Italy, with a mix of internal and external production for flexibility and scale.

• Recent investments in digital and traditional printing, with capital expenditures to rise to 2-3% of sales from 2024-2026.

• Borås Tapetfabrik is the largest wallpaper factory in the Nordics, serving both internal brands and external clients.

Financial performance and targets

• Rolling 12-month net sales at SEK 771 million, EBITDA margin at 14.3%, and net debt at 0.7x EBITDA.

• Cash conversion rate above 70%, generating SEK 285 million in cash over three years.

• Long-term targets: SEK 1 billion in sales and EBITDA margin above 15% by 2028.

• Dividend payout between 30-50% of net income, with last dividend at SEK 1.25 (50%).