Positive growth trend continues, with increased orders in the first nine months of 2022

Sector: Producer Manufacturing

1H22 sales reached Euro 27.4 m, with a double-digit marginality. Clabo SpA, a worldwide leading player in the design and production of high-endrefrigerated showcases for the retail food industry with particular focus on the ice-cream,pastry & bakery and convenience store segments, recently reported solid and growing 1H22 results. The Company delivered strong sales at Euro 27.4 m, up 19,7% YoY, thanks to strategic choices that enabled the Company to defend itself against tensions in the logistics market and inflation trends.

The BPG (pastry, bar ice-cream shop) segment stood at Euro 15.5 m., higher than 1H21 (+8.2%); the current scenario confirms the recovery of the Ho.Re.Ca. market and the strong growth of the food retail channel driven by sales in North America, standing at Euro 11.8 m and marking +39.2% vs 1H21. Also in view of the excellent performance of orders, which in August showed a progressive increase of 15% over the previous year, Clabo is confident of achieving the previously communicated year-end revenue target of Euro 52-55 m.

EBITDA came in at Euro 3.3 m, slightly down by 12% from Euro 3.7 m reached last year, including the extraordinary government grant 'PPP' in the amount of Euro 0.84 m, equal to 10.8% of total revenues. The group was able to maintain a good level of marginality despite the sharp increase in the purchase prices of materials, which caused an increase in their incidence on Total Revenues of almost 5%. The resumption of trade fair events contributed to an increase in service costs, which in absolute terms grew by about one million. Efficiency in the use of labour continued, allowing the Group to decrease the incidence of personnel costs by 1.6% on Total Revenues. Net result amounted to Euro -0.37 m (Euro 0.61 m as at 30 June 2021), after IAS IFRS 16 depreciation and amortization of Euro 2.5 m. Net Financial Position, amounted to Euro 44 m, compared to Euro 41 m as of 31 December 2021, due to the increase in Net Operating Working Capital. The IFRS 16 effect amounts to Euro 0.59 m, mainly due to the effect of the real estate lease contracts of the subsidiary HMC.

Great third quarter 2022. In the first nine months of 2022, the Group is reporting an increase in turnover and orders of 23.9% and 13.3% respectively, compared to the first nine months of 2021. Thanks to a careful management of general costs, to improved conditions on the procurement markets, in terms of availability of materials, and to consolidation of the increases in purchase prices achieved over the past 12 months, that seem to be heading towards a gradual stabilization.

Estimates revision and TP update. Given the above and on the back of 1H22 results, we substantially confirmed our estimates by adjusting our EBITDA forecast so as to further confirm what was already estimated in our Update Note of April 2022. Based on our updated estimates and peers' multiple re-rating (c. -20% since our last report), we updated our target price to Euro 3.48 p.s. (3.83 pr.) providing for an upside on current stock price of 87%. The stock is currently trading at FY22E/23E EV/EBITDA multiples of 3.0x and 2.2x at an average discount of 15% to peers. At our target price the stock would be trading at 11.3x and 9.7x respectively.

Equity Research

UPDATE NOTE 1H22

Euronext Growth Milan

Target Price 3.48 (3.83 pr.)

Price (€ m) 1.85

Market Cap (€ m) 17.58

EV (€ m) 58.05

As of 24th October 2022

Share Data

Market

Euronext Growth Milan

Reuters/Bloomberg

CLA.MI/CLA:IM

ISIN

IT0005091324

N. of Shares

9,524,494

Free Float

38.41%

Main Shareholder

Cla.Bo.Fin S.r.l

Financials

2021A

2022E

2023E

2024E

Sales

44.2

51.3

56.5

60.7

YoY %

30%

16%

10%

7%

EBITDA

6.0

6.5

7.6

10.2

EBITDA %

12%

12%

13%

16%

EBIT

0.9

2.5

3.3

5.6

EBIT %

2%

5%

6%

9%

Net Income

(0.9)

(0.5)

0.4

2.9

Net Debt

40.5

39.6

35.9

33.2

Performance

1M

3M

6M

Absolute %

-8.9

-14.1

79.5

Relative (FTSE Italia Growth)

0.3

-7.7

43.2

52-week High/Low (Eu)

3.3

/

1.7

Research Department of

E d o ar d o F u m a g a l l i

e . f u m a g a l l i @ i r to p . co m

Tuesday, October 25, 2022 6:00 PM

1

Equity Research

UPDATE NOTE 1H22

Euronext Growth Milan

KEY FINANCIALS

Profit&Loss Statement

2020A

2021A

2022E

2023E

2024E

Sales

33.9

44.2

51.3

56.5

60.7

Revenues (VoP)

35.8

50.8

53.4

57.7

63.2

EBITDA Adj

(6.5)

6.0

6.5

7.6

10.2

EBITDA

(6.5)

6.0

6.5

7.6

10.2

EBIT Adj

(11.4)

0.9

0.0

0.0

0.0

EBIT

(11.4)

0.9

2.5

3.3

5.6

Financial Income (charges)

(2.1)

(2.4)

(2.4)

(2.3)

(2.1)

Pre-tax profit (loss)

(14.7)

(1.5)

0.1

1.0

3.5

Taxes

4.5

0.6

(0.6)

(0.6)

(0.7)

Net profit (loss)

(10.1)

(0.9)

(0.5)

0.4

2.9

Balance Sheet

Net working capital (NWC)

3.8

5.8

7.9

5.8

5.9

Net fixed assets

44.9

47.5

44.2

42.9

42.9

M/L Funds

(4.0)

(3.9)

(4.2)

(4.1)

(4.0)

Net Capital Employed

44.7

49.3

48.0

44.6

44.8

Net Debt (Cash)

37.5

40.5

39.6

35.9

33.2

Net Equity

7.2

8.9

8.3

8.7

11.6

Cash Flow

EBIT

(11.4)

0.9

2.5

3.3

5.6

D&A

4.9

5.1

4.0

4.3

4.6

Tax

4.5

0.6

(0.6)

(0.6)

(0.7)

Cahnge in M/L Funds

(2.0)

(0.1)

0.2

(0.1)

(0.1)

Gross Cash Flow

(4.0)

6.5

6.2

6.9

9.5

Change in NWC

4.3

(4.0)

(2.0)

1.8

(0.2)

Change in other current asset

2.6

2.1

(0.2)

0.3

0.1

Operating Cash Flow

2.9

4.6

4.0

9.0

9.4

Capex

(4.9)

(7.7)

(0.5)

(3.0)

(4.6)

Acquisitions

0.0

0.0

0.0

0.0

0.0

Change in other non-current asset

(0.1)

(0.0)

0.2

0.0

0.0

Financial Income (charges)

(2.1)

(2.4)

(2.4)

(2.3)

(2.1)

Free Cash Flow

(4.1)

(5.5)

1.3

3.7

2.7

Dividend

0.0

0.0

0.0

0.0

0.0

Change in Equity

(0.9)

2.6

0.0

(0.0)

0.0

Change in Net debt (Cash)

(5.0)

(3.0)

1.3

3.7

2.7

Check

Per Share Data

Current Price

€1.85

Total shares (mn)

9.5

EPS

(1.11)

(0.16)

(0.06)

0.04

0.30

DPS

0.00

0.00

0.00

0.00

0.00

FCF

(4.12)

(5.55)

1.33

3.73

2.69

Pay out ratio

0%

0%

0%

0%

0%

Ratios

EBITDA margin adj

-18.3%

11.8%

12.2%

13.1%

16.2%

EBITDA margin

-18.3%

11.8%

12.2%

13.1%

16.2%

EBIT margin adj

-32.0%

1.7%

0.0%

0.0%

0.0%

EBIT margin

-32.0%

1.7%

4.6%

5.6%

8.8%

Net Debt/Equity (Gearing)

523.1%

457.1%

476.5%

412.3%

286.8%

Net Debt/EBITDA

-5.74

6.74

6.10

4.75

3.24

Interest cover EBIT

-5.58

0.36

1.02

1.44

2.70

ROE

0.0%

0.0%

0.0%

0.0%

0.0%

ROCE

-35.7%

0.5%

6.3%

8.6%

13.9%

Free Cash Flow Yield

-221.6%

-298.5%

71.8%

200.7%

144.8%

Growth Rates

Sales

-31%

30%

16%

10%

7%

Revenues (VoP)

-35%

42%

5%

8%

10%

EBITDA

-203%

192%

8%

16%

36%

EBIT

-756%

108%

177%

33%

72%

Source: Group Consolidated Data & PMI Capital Research Estimates

Tuesday, October 25, 2022 6:00 PM

2

Equity Research

UPDATE NOTE 1H22

Euronext Growth Milan

Key Financials 1H22

Euro m

1H22A

1H21A

1H20A

2021A

2020A

Sales

27.4

22.8

18.5

44.2

33.9

YoY

20%

49%

-34%

30%

-31%

EBITDA

3.3

3.7

(3.6)

6.0

(6.5)

% on sales

12%

15%

-21%

12%

-18%

EBIT

0.8

1.4

(6.1)

0.9

(11.4)

% on sales

5%

-35%

1,7%

-32%

Pre-tax Result

(0.4)

0.4

(7.2)

(1.5)

(14.7)

Group's Net results

(0.37)

0.6

(5.9)

(0.9)

(10.1)

Net Working Capital

8.4

6.0

7.2

5.8

3.8

Fixed net assets

48.0

43.9

43.5

47.5

44.9

Funds

(2.8)

(7.0)

(6.7)

(3.9)

(4.0)

Net Capital Employed

53.7

45.1

44.9

49.3

44.7

Net Debt (Cash)

44.2

37.2

32.6

40.5

37.5

Group's Equity

9.5

7.9

12.3

8.9

7.2

Sources

53.7

45.1

44.9

49.3

44.7

Source: Group Data

Estimate revision - Euro m

2021A

2022E Old

2022E New

2023E Old

2023E New

2024E

Sales

44.2

51.3

51.3

56.5

56.5

60.7

yoy

30%

+16%

+16%

+10%

+10%

+7%

Revenues (VoP)

50.8

53.4

53.4

57.7

57.7

63.2

yoy

42%

+5%

+5%

+8%

+8%

+10%

EBITDA

6.0

8.7

6.5

9.6

7.6

10.2

yoy

192%

+44%

+8%

+11%

+16%

+36%

EBIT

0.9

4.6

2.5

5.3

3.3

5.6

yoy

108%

+420%

+177%

+15%

+33%

+72%

Pre tax profit

(1.5)

2.4

0.05

3.3

1.0

3.5

Net Profit

(0.9)

1.8

(0.5)

2.7

0.4

2.9

2021A

2022E Old

2022 New

2023 Old

2023 New

2024E

Net Working Capital (NWC)

5.8

5.3

7.9

5.7

5.8

5.9

Fixed net assets

47.5

44.2

44.2

42.9

42.9

42.9

Funds

(3.9)

(4.2)

(4.2)

(4.1)

(4.1)

(4.0)

Net Capital Employed

49.3

45.4

48.0

44.6

44.6

44.8

Net Financial Position (Cash)

40.5

34.8

39.6

31.3

35.9

33.2

Total Equity

8.9

10.6

8.3

13.3

8.7

11.6

Sources

49.3

45.4

48.0

44.6

44.6

44.8

Source: Company Data and PMI Capital Research Estimates

Tuesday, October 25, 2022 6:00 PM

3

Equity Research

UPDATE NOTE 1H22

Euronext Growth Milan

INDUSTRY COMPARISON

CLABO Spa (NSP-IT): PMI Capital Research estimates and Factset Data

EGM Sector: average data for listed on EGM included in the Producer Manufacturing sub sector: ATON Green Storage, Clabo, Cofle, Comer Industries, Esautomotion, Fervi, Gel, Gibus, Ilpra, Jonix, Marzocchi Pompe, Nusco, Omer, OSAI Automation System, Racing Force Group, Sciuker Frames, Sebino, Tenax International, Vimi Fasteners

Industry Peers: average data for a selected group industrial peers (see tables above for details)

Euronext Growth Milan: average financial and market data for all the companies listed on EGM, reported price performance data are related to the FTSE Italia Growth Index.

CLA-IT

Producer Manufacturing

XS0072

Clabo

EGM Sector

Peers Avg

FTSE Italia Growth

Key Financials

Revenues

44.2

94.0

403

31.5

EBITDA

6.0

14.9

63

4.8

EBITDA %

13.6%

15.8%

15.5%

15.3%

EBIT

0.9

10.9

45

1.7

EBIT %

2.0%

11.6%

11.2%

5.3%

Earnings

0.9

7.1

35

1.1

Earnings %

2.0%

7.5%

8.6%

3.4%

Net Debt

40.5

11.6

80

2.0

ND/EBITDA

6.8

0.8

1.3

0.4

FY18-20 Revenues CAGR

-20%

100%

24%

40%

FY21-23 Revenues CAGR

13%

12%

20%

23%

FY18-20 Earnings CAGR

200%

-7%

-2%

-8%

FY21-23 Earnings CAGR

64%

23%

15%

95%

Market Data

Market Cap

17.6

87.0

451

51.5

EV

58.1

98.0

1,176

54.5

Free Float

29.34%

27.46%

56.82%

33.81%

ADTT YTD (Eu k)

33,155

90,461

4,250,589

37,350

Market Multiples

EV/Sales 2022

1.1

1.0

1.2

1.7

EV/Sales 2023

1.0

0.9

1.1

1.2

EV/EBITDA 2022

8.9

5.9

8.9

10.1

EV/EBITDA 2023

7.6

5.0

7.6

6.9

EV/EBIT 2022

23.2

9.3

13.0

13.5

EV/EBIT 2023

17.6

7.5

10.8

10.2

P/E 2022

-116.2

16.9

16.8

22.1

P/E 2023

145.2

11.3

14.9

17.0

Earnings Yield

-0.9%

5.9%

5.9%

4.5%

Stock Performance

1D

-2.7%

-0.3%

1%

0.3%

1W

-3.2%

2.6%

2%

3.1%

1M

-7.7%

-1.6%

2%

1.5%

3M

-16.8%

-6.2%

1%

-3.3%

6M

-31.9%

-15.8%

-3%

-11.9%

YTD

-27.3%

-24.2%

-14%

-21.4%

1Y

-33.6%

-23.9%

-11%

-19.3%

Source: FactSet and PMI Capital data as of 24thOctober 2022, Group data and PMI Capital Research estimates for CLABO

Tuesday, October 25, 2022 6:00 PM

4

Equity Research

UPDATE NOTE 1H22

Euronext Growth Milan

VALUATION UPDATE

Valuation Summary

Method

Weight

Price

Equity Value

(Eu p.s.)

(Eu m)

Multiple analysis EV/EBITDA 22/23 and Peers

50%

2.01

19.11

DCF (WACC 6.6% and g 1.0%)

50%

4.96

47.26

Target Price

100%

3.48

33.18

Source: PMI Capital Research Estimates

Multiples Comparison

Sales

Sales

EBITDA %

NI

Companies

Market Cap

Price

YoY

%

2022E

22/21

2022E

2022E

Carel Industries SpA

2,010

20.10

515

22%

20%

12%

Indel B SpA

117

20.00

208

12%

13%

7%

LU-VE

459

20.65

591

20%

13%

7%

Luxfer Holdings PLC

442

16.13

429

35%

16%

9%

Munters Group AB

1,357

7.36

922

27%

13%

6%

Piovan SpA

408

7.61

479

69%

12%

6%

Average

799

15

524

31%

14%

8%

CLABO

17.58

1.8

51,318

16%

12%

-1%

Source: FactSet data as of 24th October 2022 and PMI Capital Research Estimates for CLABO

Companies

EV/EBITDA

22E

23E

24E

Carel Industries SpA

20.1

17.6

n.a.

Indel B SpA

5.4

5.0

4.0

LU-VE

8.2

7.8

7.1

Luxfer Holdings PLC

8.1

7.6

n.a.

Munters Group AB

14.1

10.2

8.2

Piovan SpA

8.6

7.7

7.2

Average

10.7

9.3

6.6

CLABO

8.9

7.7

5.7

Premium/Discount to Peers

-17%

-17%

-15%

Source: FactSet data as of 24th October 2022 and PMI Capital Research Estimates for CLABO

Tuesday, October 25, 2022 6:00 PM

5

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CLABO S.p.A. published this content on 26 October 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 October 2022 09:27:03 UTC.