Valtecne (VLT) Investor presentation summary

Financial performance highlights

• Revenues were stable at €17.1M (+0.4%), while value of production declined 7.4% to €15.9M, reflecting growth in medical and contraction in industrial segments.

• Medical devices now represent over two-thirds of the business, with their share of revenues rising from 59.3% to 68.3%.

• Adjusted EBITDA decreased 5.4% to €4.4M, but margin on value of production improved to 27.7% due to the higher weight of medical business.

• Net profit fell 7% to €2.2M, in line with the drop in value of production.

• Strong cash generation led to a positive net financial position of €4.4M at period end.

Segment performance and business mix

• Medical business line grew, offsetting declines in industrial, which was negatively impacted by macroeconomic conditions.

• Value of production decrease was mainly due to vendor-managed contracts and industrial segment weakness.

• Cost reductions of €1.1M helped maintain EBITDA levels despite lower industrial volumes.

Working capital and cash flow

• Days sales outstanding (DSO) and days payable outstanding (DPO) both decreased, with DPO falling more, negatively impacting cash flow.

• Free cash flow for the period was €2.0M, with operating cash flow largely offsetting changes in working capital and capex.