International Design Group

Overview Key strengths Key risks Portfolio of well-known owned brands including Flos, Louis Poulsen, and B&B Italia. Fragmented and competitive high-end design market, which is subject to discretionary spending. Solid reputation in the high-end design furniture market supporting the license agreement with LVMH to develop the Maison Fendi product offering. Supply chain constraints and logistic challenges, which could temporarily hit volume expansion. Premium price positioning translating into an ability to manage inflationary pressures and support resilient S&P Global Ratings-adjusted EBITDA margin of 23%-24%. Execution risk behind growth initiatives such as the management of the new license business, direct-to-consumer expansion, integration of new acquisitions, and diversification in Asia-Pacific. Expanding e-commerce penetration accounting for 12% of total sales supported by recent acquisition

...International Design Group (IDG) benefits from positive sales growth prospects in 2022, which we expect in the 18%-21% range. This reflects the positive underlying demand for high-end furniture and lighting products in the residential segment as well as a marked recovery in the commercial segment (15%-20% of total sales 2021) after the intense pressure experienced in 2020 and 2021 from COVID-19-related restrictions. Furthermore, we believe that a strong U.S. dollar should support higher exports to the U.S. this year. For first-quarter 2022 (ended March 31), IDG posted 190 million in sales, a 18.3% increase compared with the same period a year earlier, pro forma the acquisition of YDesign (a U.S.-based high end lighting and furniture e-commerce platform) completed in 2021). The growth was balanced across the different brands, with Flos posting the higher growth rate at about 20%, while B&B Italia and Louis Poulsen delivered solid 15.5% and 13.5% top line expansions, respectively. On a like-for-like...

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