Zignago Vetro Group. Company Overview. Star Conference 2009 Milan, 25 March 2009

Transcription

1 Zignago Vetro Group Company Overview Star Conference 29 Milan, 25 March 29

2 Zignago Holding Group Structure Zignago Vetro Group is a priority in Zignago Holding s strategy Shareholders Stake (%) Luca Marzotto 2.2 Nicolò Marzotto 19.5 Stefano Marzotto 19.3 Gaetano Marzotto 16. M.D.D.R. S.r.l. (*) 17.9 Maria Rosaria Marzotto 2.6 Cristiana Marzotto 2.6 Margherita Marzotto 1.9 FIMIZ S.r.l. 1% Zignago Holding S.p.A. Santa Margherita S.p.A. Wine producer 1% 65% Zignago Vetro Group Glass containers manufacturer Zignago Immobiliare S.p.A. 1% 1% Zignago Power S.r.l. Real estate Electricity producer (*) the share capital is owned by Luca Marzotto, Nicolò Marzotto, Stefano Marzotto and Gaetano Marzotto 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 28, Group revenues of 256,7m (33% generated abroad) and EBITDA of 69,9m (27.2% 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 +12,2% CAGR in revenues over last 3 years 4

5 Our Presence in Selected Business Segments 28A Size ( m) Products Main Features Competitive Strengths Zignago Vetro Sales 161m Flexibility, efficiency and technical know-how key for success Focus on selected segments of food & beverage and cosmetics & perfumery Flexibility Quality Verreries Brosse Sales 48m Extraordinary high-quality, tailor-made product offering and efficiency Focus on high-end perfumery market Quality Innovation Vetri Speciali Sales 52m (43,5% stake) 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% 71% Verreries Brosse 48% 44% Group Vetri Speciali 13% 7% 1 % of clients present also the 2 previous years (data referred to 28) 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) % 13% % 17% 17% % 2% % 15% 1% % % Intermediate achievements Revenues ( m) EBITDA margin (%) Sales per employee increased from ca. 64, in 22 to ca in 28 Verreries Brosse sold 14m units in 22, and 5.5m in 28 Zignago Vetro acquired Verreries Brosse in 22 following an insolvency proceeding and turned it into a successful business 12

13 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 13

14 Strong Revenues Growth and Top of the Market Profitability Revenues ( m) EBITDA ( m) ,9% 25,7% 26,7% 27,2% % % % % ,3 69,9 49,9 53, EBITDA ( m) Margin (%) 2% EBIT ( m) Net Result ( m) % 14.9% % 18.5% % 1% 5% % % 7.4% % % % 1% 8% 6% 4% 2% EBIT ( m) Margin (%) Net Results ( m) Margin (%) Extraordinary Items Source: Zignago Vetro Group 14

15 Strong track record in sales and profitability Euro (m) 25 ZV Group 2 15 ZV 1 ZV Group 5 ZV Sales EBITDA 15

16 Solid Balance Sheet to Support Organic and External Growth Net Capital Employed ( m) Net Working Capital ( m) % 2.5% 15.8% 16.3% % 2% 16% 12% 8% 4% % Net working Capital ( m) on sales (%) Net Equity ( m) Net Financial Debt ( m) ,8 61,3 77,2 89, Source: Zignago Vetro Group Aggregated data is shown in 25 16

17 Cash Flow From Operations and Capex Cash Flow from Operations (before capex) ( m) Capex ( m) Net Capex related to VS acquisition VS acquisition Capex mainly depends on furnaces refurbishment and capacity increase Pay-out ratio: 7% of 28 Group net result 17

18 Healthy financial structure, EPS and dividends Key financial structure ratios EPS and Dividend distribution (Euro) 1,6 1,4 1,2 1,,8,6,4 1,1,9,9,9,8, ,6,5,4,3,2,1, 7% 7% 57%,421,311,193,295,218, % 6% 5% 4% 3% Net financial debt / EBITDA EPS Div per share Pay out % Net financial debt / Net Equity 18

19 ZV results - FYs 7 and 8 Revenues ( m) EBITDA and margin evolution % % 26.2% EBITDA ( m) Margin (%) 25% 2% 15% 1% 5% % Net result ( m) Net Financial Debt ( m) % 12.5% Net result ( m) Margin (%) Extr. items 15% 1% 5% %

20 VB results - FYs 7 and 8 Revenues ( m) EBITDA and margin evolution % % 2.2% EBITDA ( m) Margin (%) 2% 15% 1% 5% % Net result ( m) Net Financial Debt ( m) % 6.8% 8% 6% % 2% % Net result ( m) Margin (%) 2

21 VS results (43.5%) - FYs 7 and 8 Revenues ( m) EBITDA and margin evolution % % 3.5% EBITDA ( m) Margin (%) 35% 3% 25% 2% 15% 1% 5% % Net result ( m) Net Financial Debt ( m) % 17.6%.6 15% % 5% Net result ( m) Margin (%) % Extr. items

22 Group 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 22

23 29 outlook Market Company First months of 29 affected by important turbolence in the global markets with slow down also of demand of glass containers De-stocking in the supply chain First months of 29 should be the ones more affected Stable customer base and good relationships Final markets more resilient to global economical weakness Niche strategy, flexibility and innovation key element for facing difficult market conditions Benefits from energy cost slow-down Positive results expected 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