Zignago Vetro Group. Company Overview. Borsa Italiana STAR Conference Milano. 06 March 2008

Transcription

1 Zignago Vetro Group Company Overview Borsa Italiana STAR Conference 28 - Milano 6 March 28

2 Zignago Holding Group Structure Zignago Vetro Group remains one of the priorities in Zignago Holding future strategy Shareholders Stake (%) Luca Marzotto 2.2 Nicolò Marzotto 19.5 Stefano Marzotto 19.3 Marco Donà dalle Rose 17.9 Gaetano Marzotto 16. Maria Rosaria Marzotto 2.6 Cristiana Marzotto 2.6 Margherita Marzotto 1.9 FIMIZ S.r.l. 1% 26 Zignago Holding Revenues Contribution Zignago Holding S.p.A. Santa Margherita S.p.A. 1% 65% Zignago Vetro Group Santa Margherita 23% Wine producer Glass containers manufacturer Industrie Zignago Santa Margherita S.p.A. 1% Zignago Vetro 66% (A) Others 11% Real estate (A) - Based on 1% of Zignago Vetro Group revenues 2

3 Milestones THE BEGINNING ZIGNAGO VETRO EXPANSION GROUP REORGANIZATION October 24 June 27 IZSM establishes Zignago Vetro S.p.A. conferring its glass production plants IZSM establishes Attività Industriali Friuli S.r.l. (51.% owned) which acquires a plant from an insolvency proceeding IZSM transfers its stakes in Attività Industriali Friuli and Vetrerie Venete to newly formed Vetri Speciali Zignago Vetro becomes a Listed Company in the Italian Stock Exchange (STAR Segment) 195's 198's 199's s June 26 Zignago Vetro acquires a plant in Empoli from an insolvency proceeding Industrie Zignago Santa Margherita ( IZSM ) builds its first glass production plant (jars and bottles) Zignago Vetro acquires the assets of Verreries Brosse S.A.S from an insolvency proceeding Zignago Vetro acquires the 43.5% stake in Vetri Speciali from IZSM December 26 IZSM sells its 1% stake in Zignago Vetro to Zignago Holding THE BEGINNING ZIGNAGO VETRO EXPANSION GROUP REORGANIZATION 3

4 Zignago Vetro Group Fast growing and profitable niche glass producer delivering a high and rising ROCE Significant positions in the Food & Beverage, Perfumery & Cosmetics markets, High-end Perfumery and Specialty Glass Containers In 27, Group revenues of 241m (33% generated abroad) and EBITDA of 64m (26.7% margin) Most profitable Group within the industry with historically above average margins The management has experience in the industry and turnarounds Strong track record in organic growth and selective acquisitions with a 14.1% CAGR over last 3 years 4

5 Our Presence in Selected Business Segments 27A Size ( m) Products Main Features Competitive Strengths Zignago Vetro Sales 158m Flexibility, efficiency and technical know-how key for success Focus on selected segments of food & beverage and cosmetics & perfumery Flexibility Quality Verreries Brosse Sales 45m Extraordinary high-quality, tailor-made product offering and efficiency Focus on high-end perfumery market Quality Innovation Vetri Speciali Sales 43m Highly customized specialty glass containers produced in very short runs with strong focus on efficiency Personalization Small-run production 5

6 International Presence with an Italian Footprint Vieux Rouen sur Bresle, France Paris, France Ormelle (TV) San Vito al Tagliamento (PN) Fossalta di Portogruaro (VE) Benicia, USA New Jersey, USA Trento Empoli (FI) Barcelona, Spain Pergine Valsugana (TN) Legend: Zignago Vetro Verreries Brosse Vetri Speciali Production and distribution Production Distribution 6

7 What Makes Us Different? Unique positioning and economic returns thanks to a distinctive business model Outperform market growth Maximise ROCE & profitability Competitive advantage 7

8 Flexible and Efficient Production Process Drives Profitability State-of-the-art, flexible manufacturing plants Flexible, efficient production Move towards more profitable market segments Multi-skilled, flexible workforce Flexible, efficient production React promptly to market changes and requests 8

9 Constant Innovation Boosts Sales Product Innovation Process Innovation New products equal to ca. 14% of total products Highly personalized and complex shapes State-of-the-art and in-house technology High know-how in moulds designing and process development 9

10 Provider of Top Glass Solutions not Simply Quality Glass Containers Corporate culture committed to highest quality of products and customer service Quality of Products Quality of Customer Service Designers ideas into feasible products Continuous improvement of plants operations Quality control over the whole process Prompt response to requests Tailor-made product offering Flexible planning On-time deliveries 1

11 Excellent Longstanding Client Relationships and Good Revenues Visibility Loyalty of customers retained by: Meeting and anticipating their needs Building effective partnerships Concentration rate of first 5 clients Customer loyalty 1 Zignago Vetro 15% 67% Verreries Brosse 49% 5% Vetri Speciali 16% 8% 1 % of clients present also the 2 previous years (data referred to 27) 11

12 Verreries Brosse: A Successful Turnaround Story Experienced management team with the ability to capitalise on future acquisition opportunities Rethinking of strategy 7 25% Fully exploit Verreries Brosse brand potential adopting Zignago Vetro state-of-the-art technology, flexible and efficient approach Capex trend ( m) 8,9 2,5 4,1 2,9 4,6 2, % 18, 13% 24,9 16% 17% 17% 36,3 29,8 3,9 21% 45,2 2% 15% 1% 5% Intermediate achievements Revenues ( m) EBITDA margin (%) % Sales per employee increased from ca. 64, in 22 to ca. 136, in 27 Verreries Brosse sold 14m units in 22, and 47.5m in 27 Zignago Vetro acquired Verreries Brosse in 22 following an insolvency proceeding and turned it into a successful business 12

13 Italian Food & Beverage Market Zignago Vetro 4-6 CAGR +4.6% Fast-growing demand in the wine segment boosted by strong exports Rebounding demand in the food segment ( m) CAGR +3.6% 6-9 CAGR +4.8% Increasing demand for higher quality of product and service Large multinational competitors focused on commodity products and standardizing service Large multinational comps are focused on volumes and standardised production, whereas Zignago Vetro is focused on selective segments requiring flexibility and service Source: Zignago Vetro Group 13

14 Global Cosmetics & Perfumery Market ZV + VB 4-6 CAGR +6.8% Increasing sophistication in the products packaging that can be met only by qualified manufacturers ( m) Globalisation of multinational customers creating growth opportunities for trusted suppliers CAGR +2.5% 6-9 CAGR +2.8% Shortening of products life driven by fashion cycles favouring fastreacting suppliers Verreries Brosse and Zignago Vetro compete successfully leveraging on R&D synergies and an integrated product offering Source: Zignago Vetro Group 14

15 Global Specialty Glass Containers Market 8 New, high-growing business Vetri Speciali 5-6 CAGR +4.5% Increasing demand fuelled by more sophisticated customer marketing for premium lines (e.g. in wines and spirits) ( m) 4 3 Robust demand for small quantities and special shapes and colours CAGR +8.1% 6-9 CAGR +8.5% Premium positioning Unique range of products and experienced sales force enable Vetri Speciali to meet special needs of a more sophisticated market Source: Zignago Vetro Group 15

16 Zignago Vetro Group: Positioned for Growth Flexibility, efficiency, innovation and quality are key competitive advantages Opportunities and room for fast moving players to outperform External growth opportunities Zignago Vetro Groups Model + Market Opportunities Growth & Profitability 16

17 Strong Track-record of Revenues Growth and Top of the Market Profitability ,1 Y-o-Y Growth +18.8% Revenues ( m) 4 Y-o-Y Y-o-Y 24,7 Growth +8.7% % 39,6 Growth 192,6 29, ,4% 25,9% EBITDA ( m) 25,7% 49,9 53,8 26,7% 64, EBITDA ( m) Margin (%) 25% 2% EBIT ( m) Net Result ( m) ,8% 14,9% 14,1% 11,5% 42,9 27,1 31,3 18, % 1% 5% % ,4% 8,7% 1.2 7,4% 6,6% ,8 15,4 1,7 24, % 8% 6% 4% 2% EBIT ( m) Margin (%) Net Results ( m) Margin (%) Extraordinary Items Source: Zignago Vetro Group 17

18 Solid Balance Sheet 1 to Support Organic and External Growth Net Capital Employed ( m) Net Working Capital ( m) ,5 132,1 121,9 123, ,% 21,4% 2,5% 16,6% 46,2 42,9 34,8 39,9 24% 2% 16% 12% 8% 4% % Net working Capital ( m) on sales (%) Net Equity ( m) Net Financial Debt ( m) ,1 18,8 77,2 61, ,5 46 3,4 23, Source: Zignago Vetro Group 1 Aggregated data is shown in 24 and 25 18

19 High and Stable Cash Flow From Operations Capex ( m) Cash Flow from Operations ( m) Net Capex related to Vetri Speciali acquisition , ,8 33,2 36,6 38, , 16,7 8,5 2, Capex mainly depends on furnaces refurbishment and capacity increase Pay-out ratio: approximately 7%, without extraordinary operations Source: Zignago Vetro Group 19

20 27 ZV results Revenues ( m) EBITDA and margin evolution , % 158, ,3% 26,6% 42,1 34, EBITDA ( m) Margin (%) 25% 2% 15% 1% 5% % Net result ( m) Net Financial Debt ( m) ,2 7,3% 19,8 9,9 12,5% 12% Net result ( m) Extraordinary Items Margin (%) 1% 8% 6% 4% 2% % ,4 5,

21 27 VB results Revenues ( m) EBITDA and margin evolution , % 45, ,7% 17,% 9,4 6, % 15% 1% 5% % EBITDA ( m) Margin (%) Net result ( m) Net Financial Debt ( m) 4 7,1% 2 3 6% ,% 1,1 3,2 3% , 12,3 % Net result ( m) Margin (%) 21

22 27 VS results (43,5%) Revenues ( m) EBITDA and margin evolution ,8 +8.3% 43, ,1% 3,6% 13,2 13,2 35% 3% 25% 2% 15% 1% 5% % EBITDA ( m) Margin (%) Net result ( m) Net Financial Debt ( m) 5 1,8% 11,9% 12% 4 4 9% ,3 5,1 6% 3% ,1 28,4 % Net result ( m) Margin (%) 22

23 Strategic Guidelines Corporate Market Optimise and expand production capacity Commitment to organic and external growth opportunities Continuous improvement of business model Growth + High Profitability Focus on higher value added and fast growing segments Strengthen competitive barriers Increase sophisticated clients 23

24 Zignago Vetro Group s Highlights Distinctive business model to boost sales, profitability and competitive barriers Highly skilled management team with experience in creating value and turnarounds Financial flexibility with a solid balance sheet and strong cash flow to support growth opportunities and dividend distribution GROWTH + HIGH PROFITABILITY Value creation for shareholders 24