LETTER TO STAKEHOLDERS
INVESTMENTS, PRODUCTS AND PROCESSES TO CONTINUE GROWING WITH CONSOLIDATED ECONOMIC RESULTS AT TOP LEVELS
In another year like 2023, marked by deep uncertainty, with a complex macroeconomic scenario made extremely difficult by the incessant international conflicts and the increase in interest rates, the Cefla Group achieved excellent economic and financial results.
2023 closed with an EBITDA of 92 million euro and an overall Net Result of 66 million, confirming and improving on the excellent results achieved in 2022.
The Cefla Group’s consolidated financial statements show the outstanding economic and financial results achieved as of 31 December 2023.
Revenues amounted to 684.9 million euro, up by 5.8% compared to 2022; revenues referred to Italy only also increased by 4.2 percentage points, reaching a share of 47.2% of the total revenues recorded by the Group. An increase attributable to an increase in contracted work awarded to the Engineering BU operating mainly on the plant engineering domestic market. The Net Equity rose to 403 million euro, up 15% compared to 2022, which further confirms the Company’s asset-related solidity.
The Net Financial Position showed a positive balance of 74 million euro at the close of the financial year, confirming the excellent financial situation of the Group whose operational management created the liquidity needed to self-finance current operations and various investments over the business year.
Significant results to seal a time of specific strategic actions implemented by the individual Business Units to protect their operating results and preserve their market shares - threatened by the current complex and uncertain global socio-economic scenario:
• the Engineering BU’s focus on the European Green Deal and energy transition program, with the development of new fuel cell systems in the Energy sector;
• a strategy based on streamlining and change, both operational and organisational, implemented by the Finishing BU to maintain its market leadership;
• the focus on management of supply chains and production continuity, and the continuous investments made by the Medical Equipment BU in new products, human resources and digitalisation projects are just some of the strategic actions implemented in 2023 by the Cefla Group to “create value over time”. In line with our mission and growth objectives, 2023 was characterised by important investments:
• approximately 13.5 million euro in research, development and innovation activities channelled to the Group’s Business Units to successfully maintain their competitive edge in their respective reference markets;
• approximately 2.5 million euro in activities related to sustainability and energy efficiency for the reduction of energy consumption at the Imola HQ; these investments resulted in a 7% reduction in TEPs (tonnes of oil equivalent) in 2023 compared to the previous year.
“Despite the current extremely uncertain global scenario, Cefla rests firmly on solid foundations, with a very large customer portfolio, an excellent reputation and increased international visibility thanks to the outstanding results we have achieved. Our group has turned networking between different markets into its true strength: our approach to the future may be changing and evolving but accountability, commitment and focus on innovation will continue to be our objectives” declared President Gianmaria Balducci
Gianmaria Balducci - Cefla BoD Chairman
ECONOMIC FINANCIAL INDICATORS 2023
ENGINEERING | FINISHING | MEDICAL
BUSINESS UNIT ENGINEERING
“TECHNOLOGY TO ENHANCE YOUR WELLBEING”.
PARTNERSHIP, SYSTEM INTEGRATION, EFFICIENCY: MAKING SURE THAT THE SPACES THAT WE CREATE ENHANCE HUMAN WELL-BEING.
For over 90 years the mission of the Engineering BU has been to improve the conditions and quality of life of all people, building and managing over time technologically cutting-edge systems, making the environments in which we live healthy, comfortable and welcoming.
The entrepreneurial spirit which is the hallmark of Cefla Group is also shared by the Engineering BU, which managed to become diversified, while also drawing strength from its combination of skills and common objectives in a system integration perspective. Today, with its 3 Business Lines - EPC Contracting, Global Service and Energy - Cefla designs, builds and manages technological systems, hi-tech process plants and energy generation systems in civil and industrial environments: “with our integrated vision we are the go-to partner for our customers, ensuring compliance with the highest certified quality and safety standards”.
The wealth of experience acquired and the continuous application of innovative technology, engineering and IT have enabled and continue to enable us to implement complex, top-flight projects, with functional solutions designed to ensure comfort, efficiency, productivity and environmental protection.
During 2023, despite the challenges linked to inflation and procurement issues, a substantial increase in revenues was recorded - a highly positive indicator of the effectiveness of the strategy implemented to identify growth opportunities - as well as an improvement in operational performance.
The expansion project of BL Global Service continues - supporting companies in the management of their structural and production assets and providing business transformation assistance - with a particular focus on maintenance engineering and the development of innovative technological solutions, designed to contribute to the creation of the “factory of the future”.
Cefla is also active in the Multiutility sector, a strategic area of development for the Engineering BU, including the construction and management of (low, medium, high voltage) electricity networks, water and sewerage networks, gas networks and district heating to meet the lighting, water and heating requirements of local populations. Among the most important contracts awarded to the BU is the renewed Framework Agreement with UnipolSai Assicurazioni S.p.A, extraordinary maintenance services for Leonardo Group, including the construction and turnkey implementation of a new paint-finishing centre at their factory in Caselle Nord.
Works are being completed at the UnipolSai Management Centre in Milan and at the Cineca Data Centre at the Bologna Tecnopolo. Expansion works at the new headquarters of Tema Sinergie S.p.A. in Faenza are underway in general contracting mode. The construction and system renovation of UnipolSai Assicurazioni S.p.A.’s office building in Turin, Corso Galileo Galilei (Towers A and B, lower blocks) was also secured.
In the Energy sector, works for the construction of an Energy Hub integrated into the new Pizzoli production plant (trigeneration and thermal, water and compressed air power plant) were completed and at the end of 2023, all six engines of the new A2A Gencogas S.p.A.’s 110 MW methane gas plant in Cassano D’Adda were switched on. Revamping works also started in 2023 for the cogeneration plant (total power 23.4 MWe) to be used in the Capacity Market and for the production of electricity and steam for users served by the company Tecnoparco Valbasento S.p.A.
In the last quarter of 2023, one year after the announcement of the partnership with Bloom Energy for the marketing and servicing of Fuel Cells in Italy, NOVA was presented to local and regional institutions. The first fuel cell cogeneration plant in Europe was installed at our headquarters: in addition to producing electricity, it is capable of producing heat without harmful emissions of pollutants into the atmosphere. This solution - which has turned Cefla into the first company in Europe to test a complete and cutting-edge solution for producing clean energy - is part of the European Green Deal and energy transition program.
Leonardo’s House, Data Centre, Cineca (Italy)
Plant for A2A, Cassano D’Adda (Italy)
NOVA, a fuel cell plant, at our Imola headquarters
BUSINESS UNIT FINISHING
“THE MOST TRUSTED SURFACE FINISHING PARTNER, IN EVERYTHING YOU SEE”.
FOR OVER 60 YEARS, THE FINISHING BU HAS BEEN DESIGNING, PRODUCING AND MARKETING COATING, WRAPPING AND DIGITAL PRINTING SYSTEMS FOR MATERIALS INCLUDING WOOD, GLASS, PLASTIC AND METAL. THANKS TO ITS WIDE RANGE OF SOLUTIONS, CEFLA FINISHING IS A WORLD LEADER IN THE WOOD FINISHING SECTOR - RELYING ON A SET PRIORITIES INCLUDING EXPERIENCE, INNOVATION AND GLOBAL CUSTOMER SERVICE. THE SEARCH FOR INNOVATIVE AND RELIABLE SOLUTIONS IS THE STRATEGY ADOPTED TO GROW AND BECOME AN INDUSTRY BENCHMARK ALSO AS FAR AS FINISHING OF OTHER MATERIALS IS CONCERNED.
2023 saw an increase in revenues thanks to a strategy of streamlining and operational changes. Despite significant investments in international trade fairs and events, Cefla recorded an increase in profitability, countering the risk of recession.
The Cefla Finishing brand and territorial coverage have made it possible to promptly leverage market opportunities, especially in the Western world. The “New Coming” sector showed a faster growth than the “Furniture” core business.
The BU pursues the objective of ensuring integrated and reliable application processes, responding to trends in customisation, digitalisation, sustainability, functionality of customer products and processes. In the field of technological evolution, the development of the FCS (Fast Color Switch) fast colour changeover system on the Easy machine was completed.
Spraying products in the entry-level segment, such as Prima Evo and Mito, also completed their evolution process. Major projects were launched concerning the range of drying ovens, in particular the Omnidry vertical ovens, to improve productivity and operational efficiency. These ongoing developments aim to increase sustainability, reducing the environmental impact throughout the finishing supply chain.
In 2023, a system was activated for managing the edge coating process on the Smartedge machine and a new range of Smartclean Pro brushing machines was launched.
A new feature was implemented to optimise the build-up capacity of overhead airlines and a new conveyor system was designed with trays on ground chains.
In digital printing, decoration on polymer-based reels was further improved installing roll-to-roll lines with Single Pass machines. A digital print quality monitoring and correction system (PQS) was also developed.
Investments were completed for the expansion and automation of the Düspohl warehouses in Germany.
As for after-sales service, the use of CRM systems and remote servicing were promoted, increasingly relying on IT connectivity for the machinery.
Spray coater “Prima EVO”
PRO”
Overhead line for frames
“Easy FCS” sprayer
BUSINESS UNIT MEDICAL EQUIPMENT
“THE MOST RECOGNIZED PROVIDER OF CBCT IMAGING AND DENTISTRY SOLUTIONS, CHOSEN TO DELIVER A HIGH-QUALITY HEALTHCARE EXPERIENCE”.
CEFLA MEDICAL EQUIPMENT: YOUR GLOBAL PARTNER FOR DENTISTRY AND RADIOLOGY
The Medical Equipment BU offers excellent solutions for the dental, radiological and veterinary markets through a number of brands and distribution networks.
The product range of the Medical Equipment BU includes:
• Dental chairs and units
• Dynamic instruments
• Autoclaves and devices for instruments cleaning and disinfection
• 2D and 3D digital radiology
• Diagnostic and image management software
• Personalised dental implants and orthodontic devices
With its Anthos, Castellini, Stern Weber, MyRay, NewTom, Mocom, Winsix, GlobalWin and Bialigner brands, the Cefla Group is a leading industry player widely acknowledged internationally in terms of quality and innovation.
In 2023, the Medical Equipment BU had to deal with a slowdown in the rate of global economic growth due to restrictive monetary policies implemented by central banks and the continuing international geopolitical crises.
In 2023 the BU also experienced critical issues due to an unstable scenario, growing operating costs and a sluggish market.
Despite the global economic picture, the growth in costs and slower markets, the Medical Equipment BU, through actions aimed at preserving volumes and operating margins, achieved results for the year that allowed the 2022-2024 industrial plan to be confirmed with indicators of improvement compared to preset objectives.
2023 was also characterised by a major focus of industrial activities on the management of supply chains and on production continuity and by a considerable growth in investments in new products, personnel organisation and digitalisation projects, as well as by the launch of new dental unit models.
The introduction of new products in the Imaging segments is expected for the second part of 2024. As far as the industrial part is concerned, work will proceed with the expansion of the logistics and production area in the main factory in Imola.
Castellini AREA
Myray - Myscan WL
Newtom - Giano HR
“CUSTOMISED SOLUTIONS FOR LED AND INDUSTRIAL APPLICATIONS”.
Our subsidiary company C-LED S.r.l. designs and implements technologies for the Lighting industry and has several business lines:
• LED modules and lamps for the Retail, Refrigeration, Industrial and Automation sectors;
• industrial lighting for processes that use vision systems (fruit and seed sorting, etc.) and for automatic ferrous material recycling machines;
• horticulture and floriculture lighting products for greenhouses, vertical farms and micropropagation labs (together referred to as the ‘Growing’ sector);
• indoor air sanitization and purification systems that use photocatalysis technology (with UV-A LEDs).
The company offers outstanding expertise in electronics, in terms of both design and production and assembly of circuit boards, modules and lighting fixtures - all relying on LED technology. Thanks to the integration of design and production, while maintaining flexibility and short lead times, a high level of customised product quality is guaranteed, also made possible by the modernisation of the testing process after the introduction of a new line for LED control automation in 2023.
During 2023, staff were trained and a dedicated area was set up for the assembly of electrical panels of the Finishing BU - with a resulting positive impact on third-party customers, too.
During 2023, industrial illuminators used in sorting processes were engineered, thanks to the special wavelengths of SWIR LEDS which allow surface molecular analysis of the materials being tested to be carried out. This technique allows “good” produce to besorted from any waste or impurities occurring in the production process of seeds, fruit, grains, etc.
Also in 2023, the new “Venti” LED lamp was developed to be used as a specific source of lighting to promote growth in controlled environments such as Vertical Farms, with technology based on specific spectra, luminous fluxes, efficiency and geometries.
The 2023 turnover was substantially in line with that of 2022. Globally, the entire industrial lighting sector experienced a considerable downturn mainly due to geopolitical uncertainties and also to substantial Arab contracts being awarded to businesses based in the Middle Eastern area, and not to European countries. By contrast, the Growing business recorded a substantial increase, leading to a doubling of its turnover compared to the previous year.
“Verty” lamp for horticulture
LED lamp installation, Menin Floriculture Nursery
PURE-device air sanitization
DIFFERENT ROUTES TO ONE GOAL: EXCELLENCE.
Cefla is made up of several companies operating in different contexts and fields, but sharing the same important objectives.
The Business Units bring together skills and capabilities to achieve important goals in their respective contexts united by a common project in which networks of relationships and talents complement and support each other.
Stern Weber Polska Sp.Z.o.o. 51% Cefla s.c.
Holmo S.p.A. 33,21% Cefla s.c.
CEFLA S.C.
Cefla France Sarl 100% Cefla s.c.
Cefla s.c.
BioSAF IN S.r.l. 100% Cefla s.c.
Consorzio Cameri 12 Baie 95% Cefla s.c. 5% Cefla Tech S.r.l.
Bryo S.p.a. 25% Cefla s.c.
Idrica Est Soc. Cons. a r.l. 65% Cefla sc.
C-TECH Soc. Cons. a r.l. 80% Cefla s.c. 20% Cefla Tech S.r.l.
Exalens S.r.l. 60% Cefla s.c.
Elettromeccanica F.E.R. S.r.l. 100% Cefla s.c.
SOCIETÀ PRODUTTIVE Manufacturing site s
SALES OFFICES Italy
SOCIETÀ COMMERCIALI S ales o ffices MANUFACTURING SITES
Poland
Varsaw
China
United Arab Emirates
Via Selice Provinciale, 23/a 40026 - Imola (BO) Italy
Tel. +39 0542 653111
cefla.com