LETTER TO STAKEHOLDERS
CEFLA CLOSES 2024 WITH A MAJOR EQUITY-RELATED AND FINANCIAL STRENGTHENING AND A SUBSTANTIAL NET PROFIT
Solid economic results, asset-related and financial growth, and strategic investments in innovation and sustainability confirm the Group’s leadership. The year 2024 closed with an Overall Net Profit of 69.5 million euros, up by 5% with respect to the previous year.
The Business Units reaffirm their operational solidity and sharp focus on technological innovation.
Despite a global macroeconomic backdrop characterized by moderate growth and persistent uncertainty, 2024 saw the Cefla Group reaffirm its solidity and achieve key goals that strengthen our foundations for the future.
Our daily actions continue to focus on creating value over time, ensuring development for future generations and satisfaction for all our stakeholders. At the heart of our commitment lies our identity as a cooperative company: a people-friendly way of doing business based on sharing, involvement and reciprocity. These values build ever-stronger trust, security and stability: they underpin our strength and guide our every decision.
A year of outstanding performance. In 2024, we navigated a challenging economic scenario with resilience and strategic vision. With consolidated revenues of 666 million euros - slightly down on the previous year (-2.7%) - we posted exceptional performance in terms of profitability and net worth.
Net Profit reached an all-time high, touching 69.5 million euros, an increase of 5.1% compared to 2023. Group solidity is demonstrated by a Net Equity that soared to an extraordinary 599 million euros (+49%), a result achieved thanks also to a rise in the value of our financial investments. The Net Financial Position reached a record-breaking 113 million euros, confirming our outstanding ability to generate liquidity and manage capital efficiently.
Our Business Units: key strengths. These results stem from the dedication and skills of our three Business Units, all three of which are united by a shared project:
• Engineering BU: demonstrated excellent adaptability and increased its operating EBITDA by 8% despite a slight decline in revenues. Leadership was further strengthened by involvement in major projects, such as management
of Hera’s water supply networks, a renovation project for Toyota, the Cineca Data Center and works at the Cameri airport. Continued, vigorous efforts to transition to greener energy took the form of NOVA fuel cells, digitalization and the EN.VISION platform.
• Finishing BU: Despite a shrinking global market, the BU confirmed its leadership, maintained profitability and achieved the highest order conversion rate ever. Innovation remains our guiding light, with significant developments in digital printing, sustainable solutions and automation driving continuous growth.
• Medical Equipment BU: revenues touched 304 million euros (+1%) and the BU effectively defended both market shares and margins despite a generalised slowdown in the industry. We have intensified investment in Research and Development to prepare for the launch of innovative new products in 2025, for all segments: Imaging, Treatment and Sterilization.
A well-deserved round of applause also goes to C-LED: despite a complex scenario, its revenues remained in line with those of the previous year and the company is now preparing for a 2025 of growth, driven by the horticultural sector and UV technologies.
Innovation is the key to our future growth. In 2024 we invested 15.2 million euros in Research, Development and Innovation, a cross-sector commitment that fuels continuous improvements in our products and processes. From energy sustainability to AI, from the digitalization of construction sites to the most advanced medical imaging, Cefla invests in tomorrow.
Looking ahead we look to the future with confidence, eager to face new challenges. The 2025-27 Plan provides us with a roadmap for investment in competitiveness, sustainability and innovation. We shall continue to strengthen our global presence, optimize processes and focus on digitalization and cybersecurity, an area that has already undergone significant reinforcement.
“Our commitment is essential to maintaining our technological leadership, successfully addressing future challenges and pursuing customer satisfaction through excellence and continuous innovation”.
Cefla BoD Chairman
ECONOMIC FINANCIAL INDICATORS 2024 SALES REVENUES BY GEOGRAPHICAL AREA
PROFIT Mln. of € Mln. of € Mln. of € Mln. of €
BUSINESS UNIT ENGINEERING
“TECHNOLOGY TO ENHANCE YOUR WELLBEING”.
EFFICIENCY, PARTNERSHIP, SYSTEM INTEGRATION: MAKING THE SPACES WE BUILD PLACES OF WELLBEING.
For more than 90 years, the Engineering BU’s mission has been to improve people’s quality of life by building and managing technologically advanced systems that provide healthy, comfortable, welcoming, efficient places in which to live and work.
Over time, the BU has succeeded in diversifying its business, drawing strength from a combination of skills and shared goals. Today, it operates according to the principles of efficiency and savings. It complies with rigorous certified quality and safety standards. Moreover, it has established itself as a key partner in areas such as the construction of complex building systems, the Facility Management of real estate and manufacturing assets, the establishment and control of primary resource supply networks in the Multiutility sector, and energy management through the deployment of high-efficiency, sustainable power plants
The quest for efficiency is now the driving force behind our most innovative projects and has, over the years, allowed us to help our customers achieve their most complex goals.
Unrivalled experience and the continuous application of technological, design and IT innovations has allowedand still allows - the company to complete complex, high-end, ambitious projects that aim not only to improve efficiency and productivity but also safeguard resources and the environment, making us a reliable, visionary, Italy-wide partner.
The economic results of 2024 reflect an ability to adapt to market challenges while maintaining solid operating performance. Despite a slight falloff in operating revenues, EBITDA increased markedly by 8%, reaching 12 million euros, confirming the BU’s ability to maximize
opportunities in the highest-margin segments, further strengthening its economic integrity.
In 2024, collaboration with Hera to construct and manage water supply networks in the Imola, Ravenna and Modena areas was undoubtedly one of the most important projects. These four-year contracts include emergency response, unscheduled maintenance and new construction works. Thanks to the integration of advanced technological platforms (which feature IoT systems and, above all, AI) such as EN.VISION, the Business Unit is developing cutting-edge, always-on infrastructure monitoring and prediction systems that reduce energy/water waste and in-atmosphere emissions.
On the ‘construction’ front, the Engineering BU completed the Cineca Data Center at the Tecnopolo in Bologna, a facility that has been awarded LEED Platinum certification, the gold standard in terms of sustainability. This data center hosts the Leonardo supercomputer, one of the world’s most powerful. Vital for the European scientific community, this project has strengthened the BU’s leadership in this sector.
Cefla Engineering continues to lead the energy transition with innovative solutions such as NOVA by Cefla: this uses fuel cells to produce electrical and thermal energy, has an efficiency of over 80% and involves no combustion, thus producing clean, reliable energy, 24/7. The BU recently partnered with Visa Cash App Racing Bulls - a Faenza-based Formula 1 racing team - to help them reduce their environmental impact: for example, the plant will be powered by sustainable fuel. Environmental sustainability and projects that enhance companies’ efficiency and enable their transition to greener energy sources are key strategic corporate priorities.
BUSINESS UNIT FINISHING
“THE MOST TRUSTED SURFACE FINISHING PARTNER, IN EVERYTHING YOU SEE”
IN 2024, THE FINISHING BUSINESS UNIT CONFIRMED ITS TECHNOLOGICAL LEADERSHIP IN THE FINISHING SECTOR BY DEMONSTRATING INDUSTRIAL SOLIDITY, OPERATIONAL EFFICIENCY AND A FAR-REACHING PRESENCE ON GLOBAL MARKETS.
It was a steady year with a good balance of continuity, innovation, strategic vision and organisational capacity. The main branches performed strongly, steepening the upward trajectory: the Charlotte (NC) branch exceeded expectations, driving development in North America; the Düspohl (Germany) and CFES (China) branches, despite the complexity of their relative markets, performed in line with goals, confirming the resilience of the BU at global level.
The speed at which orders were converted into revenues – made possible by the joint experience of the technical-production area and the far reach of sales operations – demonstrated the effectiveness of a lean, reactive organisation that is able to ensure operational continuity even in the most dynamic of contexts.
The Sales area has undergone a profound renewal: redistribution of territories, the introduction of roles dedicated to Key Account management, a sharp sector-related focus and a new end-to-end approach to design have resulted in a strategic transformation that seeks to strengthen ties with the market by making it more dynamic and proactive.
Development of new products continues to be a crucial part of our competitive strategy: it is vital to maintaining leadership and makes us responsive to customization, digitalization and sustainability needs. Numerous innovations have been applied throughout the range, with major developments in both industrial digital printing and the finishing of shaped panels, edges and flat panels. And that’s not all: patented colour chan-
geover systems have been introduced, the entry-level sprayer range has been renewed and the Smartclean brushing platform has been upgraded. In the edges and profiles segments, innovative solutions that allow for efficient management of small batches and complex geometries - in compliance with the most recent manufacturing flexibility standards - have emerged.
At industrial level, an electrical panel insourcing project was launched at the Imola hub. In parallel, the transfer of vacuum skills from the Meckenheim plant was completed for the German hub, while lean logic and intralogistics integration/harmonisation work was concluded at Düspohl.
In the Service sector, logistics underwent a centralisation process to take quality to the next level; at the same time, an experimental spare parts price benchmarking program was launched, the aim being to optimise the range and enhance the value perceived by the customer.
Participation in 21 international trade fairs and events – in places as diverse as Europe, America, India, the United Arab Emirates, China and Sri Lanka –helped consolidate the brand’s global visibility, underscoring the BU’s active, continuous commitment to the geographical areas of greatest strategic importance.
Lastly, a reduction in near misses, from 24 to 6, highlighted the constant focus on health and safety in the workplace, an essential cornerstone of truly sustainable development.
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 designs, produces and markets solutions for the dental, radiological and veterinary markets through a number of brands and distribution networks.
High-performance and built to exacting standards, the devices meet the needs of the medical profession, most notably in the dental and X-ray fields.
Cefla Medical Equipment is a global partner that provides:
• Patient chairs and dental units
• Dynamic instrumentation
• Autoclaves and other devices for cleansing and disinfecting instruments
• Intraoral and extraoral 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, Cefla Medical Equipment delivers internationally renowned quality and innovation.
In 2024, the BU faced a complex scenario characterised by macroeconomic instability, rising costs and a market slowdown.
Targeted action was therefore taken to defend profitability and maintain market shares.
Industrial projects focused on efficiency-enhancing measures, control of warehouse stock turnover, greater investment in research and development, and on the inclusion of new professional figures.
The combined action of these initiatives ensured further improvements to the contribution margin.
In 2025, the introduction of new products is planned. The Imaging area will launch the new Neowise image management and processing platform with integrated
AI functions, the new 2D and 3D Panoramic models and the new Intraoral scanner.
The Treatment Centre area will make new accessories available; it will also provide a camera incorporated in the operating lamp and restyle some of the models.
The Sterilization area will provide the market with the latest Autoclaves 2025 platform: this will replace all the models and versions in the previous range.
On the manufacturing side, expansion of the logistics-production area in the Imola plant continues apace and is expected to be completed by early 2026. Reorganization of the Research and Development area will continue to ensure returns on planned investments.
With a European recession possible, a sharp focus on constant, global improvements in all business areas will be essential if we are to counter likely weaknesses in the medical equipment market.
“CUSTOMISED SOLUTIONS FOR LED AND INDUSTRIAL APPLICATIONS”.
A 2024 OF STABILITY AND INNOVATION, WITH PROSPECTS FOR GROWTH IN THE HORTICULTURAL SECTOR
Our subsidiary company C-LED S.r.l. designs and implements technologies for the Lighting industry and has several business lines:
• LED lighting for horticulture and floriculture: used in Greenhouses, Vertical farms, Micropropagation Labs and Growing chambers (collectively referred to as the ‘Growing’ sector);
• industrial lighting for processes that use vision systems (fruit, seed and grain sorting, etc.) and for automatic ferrous-vitreous material recycling machines;
• UV LED lighting for monitoring flying insects and industrial applications such as the polymerization of resins, lacquers and glues;
• LED modules and lights for the Retail, Refrigeration, Industrial and Automation sectors;
• indoor air sanitization and purification systems that use UVA/UVC LED photocatalysis technology.
C-LED mainly operates in the lighting design field where - by using LEDs that cover the full electromagnetic spectrum, from UV to short-wave infrared (SWIR) - it is able to create a vast range of lighting products for industrial, civil, medical and other sectors/applications.
Expertise in the implementation of lighting ‘recipes’designed to stimulate the growth of all plant varieties in a controlled environment - has led to the development of a broad range of horticultural lamps (Combo, Verty, Slim, Slim Evo, Circular, Futura) that differ in terms of shape, power and growth spectrum.
During 2024, UV LED lamps were designed and engineered to replace the now-obsolete fluorescent (ETL) lighting used in automatic machines that require specific wavelengths to perform industrial processes.
Seamless integration of design with manufacturing guarantees outstanding product quality, maintains flexibility and ensures fast delivery times.
The year 2024 also saw the establishment of an entire area dedicated to the assembly/soldering of circuit boards for the Medical Equipment BU, with staff training ensuring deliveries are able to keep pace with daily demand.
Despite a scenario in which electronics/lighting companies faced serious obstacles to growth, with many seeing their business contract by 20-25%, revenues for 2024 (4.6 million euros) were perfectly in line with those achieved in 2023.
In 2025 C-LED expects to see a significant increase in sales, driven by fast-growing demand throughout the horticultural sector.
The outlook for the entire UV and IR lighting sector is equally encouraging.
MANUFACTURING SITES
China
United Arab Emirates
Warsaw
(Bo)
Varese
Via Selice Provinciale, 23/a 40026 - Imola (BO) Italy
Tel. +39 0542 653111 cefla.com
ENGINEERING