Introduction to Italmobiliare

Italmobiliare is an Italian holding company that, despite having nearly 80 years of history, only truly began its journey as the holding company we know today in 2016. In fact, its beginnings are somewhat peculiar, as it was founded in 1946 by the cement company Italcementi, as a vehicle to hold investments outside of the construction materials sector. Its early years were focused on investments in the automotive sector and local credit companies. In 1979, it acquired a majority stake in Italcementi and became the holding for the entire group (with a strong dependence on Italcementi). In 1984, it made its IPO, and in the following years, it continued investing in credit companies, publishing media, and the automotive sector.

Investment Strategy

Italmobiliare Investment Holdings focuses on acquiring small to mid-sized non-listed Italian companies with an emphasis on high quality, aiming for a medium-term investment horizon. The goal is to leverage its knowledge, experience, and corporate governance to scale these companies and make them larger and more efficient, preparing them for potential sale or IPO.

The current portfolio of non-listed assets showcases a diverse range of sectors, primarily focused on Italy and Europe, which accounts for approximately 90% of sales. However, one of the characteristics of the companies they target is their potential for internationalization, so this percentage should continue to decrease in the coming years.

Italmobiliare’s portfolio can be divided into five different segments, which are detailed as follows:

• Portfolio Companies: This includes 11 affiliated companies (most of which have a majority stake) to leverage Italmobiliare’s expertise in managing business operations and driving growth. The companies contributing the most to NAV are Caffè Borbone, Santa Maria Novella, Tecnica, Italgen, and Casa della Salute.
• Private Equity Funds: These funds aim to capitalize on opportunities in geographical areas or business sectors where Italmobiliare is not directly involved while fostering potential business development in diversified sectors. 40% of the value of these investments is managed through a management company in which they own 100% (one of the 11 portfolio companies).
• Other Investments: This segment consists of minority investments across various sectors (both listed and unlisted companies) that offer promising growth prospects or stable investment returns For Example, they have an stake in Argea (a competitor of Italian Wine Brands)
• Real Estate: This aspect is a legacy from their transaction with HeidelbergCement, which involved acquiring several assets in Italy, primarily in Rome.
• Financial Investments, trading & liquidity

Italmobiliare primarily focuses on investments in private companies, mainly through direct investment in significant stakes that enable them to have an important role managing the companies leveraging its experience, financial resources and network. Despite being private companies, Italmobiliare exercises a lot of transparency by publishing the financial statements of the companies and providing detailed information about them