Lauma
investors’ page

You will find a presentation from Lauma on this page. You will find out about the prospects of the textile market, the positioning of the company, and its competitiveness. And also why it is worth investing in development together with our Holding.

What are the advantages
of the European market

Asian countries (India, China, and others) lead in textile production and exports
(63%). Europe is in second place with 24%.

Textiles bring European manufacturers about 66 billion euros annually. And LHM is among the leaders.

That is because 3 main factors determine the current market:

  • Environmental, Social, and Corporate Governance, ESG;
  • The necessity of producing small and medium-sized batches;
  • The growing demand for high-tech products requires laboratories for research and testing.

Exports by product categories (2019) in €Bn

The trends mean that manufacturers with solid areas of expertise are capturing a significant share of the market.

And business goes into specialization, into niche areas, rather than diversification of the products produced. At LHM these are woven, nonwoven, and medical textiles.

The EU market is highly fragmented with approximately 53,000 textile companies (11% of which are SMEs) in 2019. Lauma Health and Medical accounts for 27.5 billion in product revenues in the EU alone with a corporate structure of 3 production facilities (Latvia, Lithuania, and Germany).

Segmentation of the European textile market with LHM positioning

Corporate Structure at 2021

What's the advantage of our corporate system? It's simple.

The company developed from a single factory, Lauma Fabrics, which we turned into a solid foundation for other companies.

It is now not only Europe’s No. 1 textile manufacturer but also a Spin-off laboratory.

By allocating resources from the main company, we develop partner companies. They become independent facilities and adjust to market trends. The ultimate cost of such a company is higher than it would be as part of a single enterprise.

The growth strategy for the coming years is based on the company’s ability to offer unique and customized solutions to its customers, using its innovative capabilities and its way of spin-off companies from the Spin-off lab.

This strategy will allow LHM to become a plug-and-play platform that consolidates the market and strengthens the value chain.

Lauma doesn’t follow trends.
It creates them

Current certifications owned by LHM

Sustainable certifications
Quality certifications

Examples of certifications targeted by the group

ESG is a fundamental trend without which a player in the textile market cannot exist:

  • 57% of consumers are willing to give up harmful products in favor of eco-friendly materials;
  • An increasing number of regulations and initiatives (e.g. REACH, COP26, and others) by European governments

LHM is 100% insourcing and employs local workers. The company takes care of the environment by using biodegradable materials and renewable energy sources (water and solar). And the products are Oeko-Tex certified.

In the future, we plan to cover all 100,000 square meters of production area for solar panels. This is another trump card to the trend of going green and getting rid of spending on other energy sources.

The attractiveness of the European market for textile production

  • High demand for sophisticated and sustainable textile solutions (e.g. 12.1% annual growth in natural fibers since 2009), produced by expert players from the U.S. and Europe.
  • International players are locating their production in Europe because it is a site with low business risks.
  • + 53,000 new players in the EU textile market, of which 11% are small and medium-sized companies.

50 years

Against the enormous competition, Lauma has been successfully operating for more than 50 years. We are the ones consolidating the market, not adjusting to its know-how and trends.

Dynamic growth of the nonwoven textile market

New needs in the healthcare niche are a motivator for the textile industry boom. Lauma Medical produces compression products, elastic medical bandages, elastic waistbands, elastic braces, and maternity/lactation underwear. Thereby significantly closing the demand in the medical textile market.

1.4 million metric tons of nonwovens are imported annually. Germany, Poland, and Italy dominate the nonwovens market (41% of volume). One of LHM’s factories is in Germany, reinforcing the holding company’s capacity.

The company's financial results
are a clear proof of that

The consolidated analytical reports of the company are presented below.
Total revenues (€k)
EBITA (€k) and EBITA margin (%)
EBITT (€k) and EBIT margin (%)
Net result (€k) and net margin (%)
All of Lauma subsidiaries are profitable. The further growth strategy, the focus on the medical industry, and the allocation of underwear activities in 2020-21 are already bringing real figures. After the pandemic, we can see significant growth in all indicators of the subsidiaries. And we are not resting on our laurels.

Key reasons for investing

Lauma is Europe's No. 1 textile manufacturer.
We have been laying down trends in the
industry since 1969.
The machine shop is 100,000 square meters. In these
facilities, the company produces more than 50 million meters of materials annually.
High-quality standards and controls (ISO, Oeko-tex certificates).
Specialization in medical textiles, and production of sophisticated materials.
Integrated platform. Fulfill any order and deliver within 48 hours in Europe.
Environmentally conscious. 47% of energy is renewable. And the manufacturing materials are biodegradable.
Lauma is 100% insourcing. We only hire local employees and we comply with the labor laws of the European Union and the countries where our factories are located.
We unite the textile market through cash flow generation. The analytical EBITDA is approx. 16% in 2021 and a projected 25% in 2025, despite the acquisitions of the company and the allocation of new projects, and the opening of laboratories.

We plan to become a consolidated European platform.

The testing of new products, the creation of our product distribution sites,
and a planned IPO in 2023-24 are proof of that.

The company is in the hands of experienced corporate players

The future of your investment is secure and led by the company's key managers.

In 2021, LHM strengthened itself by hiring a highly qualified CEO. Management has extensive management experience in large corporations, entrepreneurship, and creating value businesses for safe investing.

Performance is supported by the company’s financial reports and accurate analysis of the future of the market.

Indrek Rahumaa
Group CEO (joined LHM in 2004)

Selected experience:

  • LHM: Group CEO (since 2019)
  • Lauma Fabrics: Chaiman (since 2004)
  • Sycamore investments (PE fund)
  • Managing Partner (since 2013)

Education:

Stolckholm School of Economics

Lauma is open to questions and proposals!

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