Zignago Vetro S.p.A. PRESS RELEASE The Board of Directors of Zignago Vetro S.p.A. approves the Interim Report at September 30, 2013 revenues in 9M 2013 total Euro 215.8 million, decreasing 3.8%; export revenues amount to Euro 81.5 million, 37.8% of total revenues. Ebitda of Euro 48.6 million (22.5% of revenues) impacted by production stoppage to facilitate scheduled refurbishment of a kiln. Group 9M 2013 Results 9M 2013 9M 2012 Cge.% (in Euro millions) (in Euro millions) Revenues 215.8 224.4-3.8% EBITDA 48.6 52.5-7.4% EBIT 28.3 33.5-15.6% Operating profit 28.7 34.0-15.6% Profit before taxes 26.8 32.6-17.7% Net profit 17.3 21.3-18.8% Capital expenditure 28.0 25.3 Free cash flow (after investments) 9.4 14.8 (before investments) 37.4 40.1 30.09.2013 30.09.2012 (in Euro millions) (in Euro millions) Financial debt (145.3) (123.0) Liquidity 41.6 35.6 Net financial debt (103.7) (87.4) 1
Group Q3 2013 Results 2013 2012 Change (Euro mln) (Euro mln) % Revenues 72.8 72.1 + 1% EBITDA 15.3 15.2 + 0.7% EBIT 8.6 9.0-4.5% Operating profit 8.5 8.9-4.8% Net profit 5.2 5.3-2.1% Fossalta di Portogruaro, November 5, 2013 The Board of Directors of Zignago Vetro S.p.A a company listed on the STAR segment of the Italian Stock Exchange - in a meeting held today chaired by Franco Grisan, approved the Interim Report at September 30, 2013. The report will be published in accordance with the terms required by law. The companies produce high quality glass containers for the Food and Beverage, Cosmetics and Perfumery industries and Speciality Glass bottles for wines and spirits, for the domestic and international markets. 9M 2013 Highlights In the first nine months of 2013, the glass container market performance was mixed, particularly in the Beverages & Food segment, with positive signals coming however from a number of segments and the export markets. Demand in the Perfumery and Cosmetic markets remains stable and more robust, in part due to emerging fashion trends. Consolidated revenues in the first nine months of 2013 amounted to Euro 215.8 million, compared to Euro 224.4 million in the same period of the previous year (- 3.8%). Export sales in the first nine months amounted to Euro 81.5 million, 37.8% of revenues (Euro 83.6 million in the first nine months of 2012: 37.2% of revenues). Consolidated Ebitda in the first nine months of 2013 amounted to Euro 48.6 million, a reduction of 7.4% compared to the first nine months of 2012 (Euro 52.5 million). The Ebitda margin was 22.5% (23.4% in 2012). The consolidated Ebit in the first nine months totalled Euro 28.3 million (-15.6% compared to Euro 33.5 million in 2012), with a margin of 13.1% (14.9% in 9M 2012). The consolidated operating profit was Euro 28.7 million, decreasing 15.6% on the previous year (Euro 34 million) a margin of 13.3% (15.2% in 2012). The Consolidated profit before taxes amounted to Euro 26.8 million in the first nine months of 2013 compared to Euro 32.6 million in the same period of 2012 (- 17.7%), with a margin of 12.4% (14.5% in 9M 2012). 2
The Consolidated net profit in the first nine months of 2013 amounted to Euro 17.3 million, a contraction of 18.8% compared to Euro 21.3 million in the first nine months of 2012 a margin of 8% (9.5% in 9M 2012). Balance sheet at September 30, 2013 Group capital expenditure in the first nine months totalled Euro 28 million (Euro 25.3 million in 2012). Fixed asset supplier payments amounted to Euro 27.9 million in 9M 2013 (Euro 25.2 million in 2012). The Group generated Free cash flow in the first nine months of the year, after investments, of Euro 9.4 million (Euro 14.8 million in 9M 2012) - before investments amounting to Euro 37.4 million (Euro 40.1 million in 9M 2012). The net financial debt of the Group at September 30, 2013 of Euro 103.7 million, compared to Euro 91.4 million at December 31, 2012 and Euro 87.4 million at September 30, 2012, decreased Euro 6.4 million in Q3 2013 (Euro 110.1 million at June 30, 2013). Dividends of Euro 21.6 million were distributed in 2013 compared to Euro 24.4 million in 2012. Group liquidity at the end of September 2013 amounted to Euro 41.6 million compared to Euro 44.7 million at the end of 2012 and Euro 35.6 million at September 30, 2012. Q3 2013 Highlights Consolidated net revenues in the third quarter of 2013 amounted to Euro 72.8 million compared to Euro 72.1 million in the same period of the previous year (+1%). Export sales reached Euro 26.7 million (Euro 27.5 million in 2012: - 2.7%). Consolidated Ebitda in the third quarter of 2013 totalled Euro 15.3 million, an increase of 0.7% compared to the same period in the previous year (Euro 15.2 million). The Ebitda margin was 21.0% (21.1% in the third quarter of 2012). The consolidated Ebit amounted to Euro 8.6 million (-4.5% compared to Euro 9 million in the third quarter of 2012) with a margin of 11.8% (12.4% in Q3 2012). The consolidated operating profit in the third quarter of 2013 was Euro 8.5 million, a decrease of 4.8% (Euro 8.9 million in the third quarter of 2012). The consolidated net profit in the third quarter of 2013 amounted to Euro 5.2 million (Euro 5.3 million in Q3 2012). *********************** 3
Outlook Despite the current market volatility, the Group expects in the final quarter of the year to confirm the results of the third quarter. *********************** Declaration The Executive Responsible for the preparation of the corporate and accounting documents, Mr. Roberto Celot, declares in accordance with Article 154 bis, paragraph 2, of the Consolidated Finance Act, that the accounting information contained in the present Consolidated Interim Report at September 30, 2013 corresponds to the underlying accounting documents, records and accounting entries. *********************** The Interim Report at September 30, 2013 will be made available to the public as soon as available and in accordance with law at the registered office of the company and on the company website www.zignagovetro.com For further information: Roberto Celot Chief Financial Officer & Investor relations manager Zignago Vetro S.p.A. 0421-246111 r.celot@zignagovetro.com 4
All the figures in the Consolidated Income Statement and Balance Sheet (Attachments No. 1, 2 & 3) reported below were prepared in accordance with IAS/IFRS international accounting standards, maintaining the management classification criteria normally utilised by management and by investors to evaluate the Group s results. Reclassified Consolidated Income Statement 9M 2013 and 2012 Revenues ATTACHMENT 1 Change Euro thou. % Euro thou. % % 215,781 100.0% 224,363 100.0% (3.8%) Changes in finished and semi-finished prod. and work in progress 8,803 4.1% 6,372 2.8% 38.2% Internal production of fixed assets 648 0.3% 194 0.1% n.s. Value of production 225,232 104.4% 230,929 102.9% (2.5%) Cost of goods and services (125,464) (58.1%) (127,488) (56.8%) (1.6%) Value added 99,768 46.2% 103,441 46.1% (3.6%) Labour costs (51,118) (23.7%) (50,930) (22.7%) 0.4% EBITDA 9M 2013 9M 2012 48,650 22.5% 52,511 23.4% (7.4%) Amortisation & depreciation (19,806) (9.2%) (18,692) (8.3%) 6.0% Provisions (581) (0.3%) (350) (0.2%) 66.0% EBIT 28,263 13.1% 33,469 14.9% (15.6%) Net recurring non-operating income 454 0.2% 572 0.3% (20.6%) O perating profit 28,717 13.3% 34,041 15.2% (15.6%) Net financial charges (1,785) (0.8%) (1,629) (0.7%) 9.6% Net exchange differences (144) --- 145 --- n.s. Profit before taxes 26,788 12.4% 32,557 14.5% (17.7%) Corporate income tax & regional tax (9,472) (4.4%) (11,241) (5.0%) (15.7%) (Tax-rate 9M 2013: 35.4%) (Tax-rate 9M 2012: 34.5%) Net profit 17,316 8.0% 21,316 9.5% (18.8%) 5
ATTACHMENT 2 Reclassified Consolidated Income Statement Q3 2013 and 2012 Q3 2013 Q3 2012 Change Euro thou. % Euro thou. % % Revenues 72,786 100.0% 72,095 100.0% 1.0% Changes in finished and semi-finished prod. and work in progress (1,741) (2.4%) 1,501 2.1% n.s. Internal production of fixed assets 411 0.6% 2 --- n.s. Value of production 71,456 98.2% 73,598 102.1% (2.9%) Cost of goods and services (40,079) (55.1%) (41,907) (58.1%) (4.4%) Value added 31,377 43.1% 31,691 44.0% (1.0%) Labour costs (16,056) (22.1%) (16,478) (22.9%) (2.6%) EBITDA 15,321 21.0% 15,213 21.1% 0.7% Amortisation & depreciation (6,681) (9.2%) (6,186) (8.6%) 8.0% Provisions (76) (0.1%) (57) (0.1%) 33.3% EBIT 8,564 11.8% 8,970 12.4% (4.5%) Net recurring non-operating income (73) --- (50) --- 46.0% Operating profit 8,491 11.7% 8,920 12.4% (4.8%) Net financial charges (672) (0.9%) (615) (0.9%) 9.3% Net exchange differences 166 0.2% (128) (0.2%) n.s. Profit before taxes 7,985 11.0% 8,177 11.3% (2.3%) Corporate income tax & regional tax (2,758) (3.8%) (2,845) (3.9%) (3.1%) (Tax-rate Q3 2013: 34.5%) (Tax-rate Q3 2012: 34.8%) Net profit before minority interest 5,227 7.2% 5,332 11.3% (2.0%) Minority interest profit --- --- 6 --- n.s. Net profit 5,227 7.2% 5,338 7.4% (2.1%) 6
ATTACHMENT 3 Reclassified Consolidated Balance Sheet 30.09.2013 30.06.2013 31.12.2012 30.09.2012 Euro thous. Euro thous. Euro thous. Euro thous. Trade receivables 58,661 63,087 63,337 59,839 Other receivables 5,082 6,167 9,047 3,611 Inventories 70,773 72,291 61,921 60,144 Current non-financial payables (59,170) (62,985) (62,029) (63,748) Payables on fixed assets (7,640) (7,083) (7,536) (6,415) A) Working capital 67,706 71,477 64,740 53,431 Net tangible and intangible assets 126,651 123,871 121,832 120,155 Goodwill 40,695 40,676 40,722 40,716 Non-consolidated investments and other medium/long-term assets 3,104 2,884 3,180 2,944 Non-current provisions and non-financial payables (13,725) (13,577) (13,594) (13,647) B) Net fixed capital 156,725 153,854 152,140 150,168 A+B= Net capital employed 224,431 225,331 216,880 203,599 Financed by: Short-term debt 111,252 122,154 107,095 98,037 Cash and cash equivalents (41,574) (43,145) (44,689) (35,624) Short-term net debt 69,678 79,009 62,406 62,413 Medium/long term debt 34,021 31,114 28,995 25,004 C) Net financial debt 103,699 110,123 91,401 87,417 Opening Shareholders' equity 125,479 125,479 118,316 118,316 Dividends (21,645) (21,645) (24,399) (24,399) Change in translation reserve (418) (715) 1,030 949 Net profit 17,316 12,089 30,532 21,316 D) Closing Shareholders equity 120,732 115,208 125,479 116,182 C+D= Total financial debt and 224,431 225,331 216,880 203,599 Shareholders equity 7
ATTACHMENT 4 Consolidated Income Statement (Euro thousands) Q3 2013 Q3 2012 9M 2013 9M 2012 2012 Revenues 72,786 72,095 215,781 224,363 298,751 Raw material, ancillary, consumables and goods (16,053) (14,519) (41,148) (44,385) (59,257) Services (24,851) (25,508) (73,159) (75,187) (99,274) Labour costs (16,056) (16,478) (51,118) (50,930) (68,055) Amortisation and depreciation (6,681) (6,186) (19,806) (18,692) (24,968) Other operating expenses (885) (512) (2,698) (1,894) (3,240) Other operating income 230 28 865 766 1,649 Operating profit 8,490 8,920 28,717 34,041 45,606 Financial income 190 215 670 692 983 Financial charges (860) (830) (2,455) (2,321) (3,269) Net exchange gains/(losses) 165 (128) (144) 145 158 Profit before taxes 7,985 8,177 26,788 32,557 43,478 Income taxes (2,758) (2,845) (9,472) (11,241) (12,946) Net profit before minority interests 5,227 5,332 17,316 21,316 30,532 Minority interest profit --- 6 --- --- --- Group net profit 5,227 5,338 17,316 21,316 30,532 Earnings per share: Basic (and diluted) earnings per share 0.066 0.068 0.220 0.271 0.36 Comprehensive Consolidated income statement (Euro thousands) Q3 2013 Q3 2012 9M 2013 9M 2012 2012 Group net profit 5,227 5,338 17,316 21,316 30,532 Otther comprehensive income statement items subsequently to be reclassified to net proft (loss) for the period Translation difference 297 490 (459) 949 976 Other profit (losses) net of the tax effect 297 490 (459) 949 976 Total comprehensive profit 5,524 5,828 16,857 22,265 31,508 Attributable to: - Group 5,524 5,828 16,857 22,265 31,508 - Minority interests --- --- --- --- --- 8
Consolidated Balance Sheet ATTACHMENT 5 (Euro thou.) 30.09.2013 30.06.2013 31.12.2012 30.09.2012 ASSETS Non-current assets Property, plant & equipment 126,267 123,614 121,559 119,876 Goodwill 40,695 40,676 40,722 40,716 Intangible assets 384 257 273 279 Equity investments 392 389 389 392 Other non-current assets 229 75 140 152 Deferred tax assets 2,483 2,420 2,651 2,400 Total non-current assets 170,450 167,431 165,734 163,815 Current assets Inventories 70,773 72,291 61,921 60,144 Trade receivables 58,661 63,087 63,337 59,839 Other current assets 2,695 3,904 4,637 2,778 Tax receivables 2,387 2,263 4,410 833 Cash and cash equivalents 41,574 43,145 44,689 35,624 Total current assets 176,090 184,690 178,994 159,218 TOTAL ASSETS 346,540 352,121 344,728 323,033 SHAREHOLDERS' EQUITY & LIABILITIES SHAREHOLDERS' EQUITY Share capital 8,800 8,800 8,800 8,800 Reserves 35,521 35,521 35,361 35,361 Acquisition of treasury shares (5,027) (5,027) (5,027) (5,027) Retained earnings 82,374 77,147 86,821 77,495 Other equity items (936) (1,233) (477) (447) Net profit for the period --- --- --- --- TOTAl SHAREHOLDERS' EQUITY 120,732 115,208 125,478 116,182 MINORITY INTEREST EQUITY --- --- --- --- TOTAL CONSOLIDATED SHAREHOLDERS' EQUITY 120,732 115,208 125,478 116,182 LIABILITIES Non-current liabilities Provisions for risks and charges 2,888 2,788 2,584 2,718 Post-employment benefit provision 6,931 6,879 7,063 6,618 Medium/long term loans 34,021 31,114 28,995 27,004 Other non-current liabilities 6 7 7 --- Deferred tax liabilities 3,900 3,903 3,940 4,021 Total non-current liabilities 47,746 44,691 42,589 40,361 Current liabilities Bank payables and current portion of medium/long term loans 111,252 122,154 107,095 96,327 Trade and other payables 46,984 51,473 51,405 48,996 Other current liabilities 16,065 17,915 17,239 15,984 Current income taxes 3,761 680 922 5,183 Total current liabilities 178,062 192,222 176,661 166,490 TOTAL LIABILITIES 225,808 236,913 219,250 206,851 TOTAL SHAREHOLDERS' EQ. & LIAB. 346,540 352,121 344,728 323,033 9
ATTACHMENT 6 Consolidated Cash Flow Statement (Euro thousands) 9M 2013 H1 2013 2012 9M 2012 CASH FLOW FROM OPERATING ACTIVITIES: Net profit 26,788 18,803 43,478 32,557 Adjustments to reconcile net profit with cash flow generated from operating activities: Minority interest profit --- --- --- --- Amortisation and depreciation 19,806 13,125 24,968 18,692 Losses/(gains) on disposals of property, plant and equipment 34 (107) (37) (128) Doubtful debt provision 180 125 201 100 Net changes in post-employment benefits (132) (184) 296 (149) Net change in other provisions 304 204 141 275 Financial income and net exchange effect Financial charges and net exchange effect (670) (480) (1,141) (692) 2,599 1,904 3,269 2,176 Income taxes paid in period (4,482) (4,614) (18,381) (8,171) Changes in operating assets and liabilities: Decrease (increase) in trade receivables 4,497 125 (260) 3,339 Decrease (increase) in other current assets 1,942 733 (783) (836) Decrease (increase) in inventories (8,852) (10,370) (8,498) (6,721) Increase (decrease) in trade payables (4,525) 485 (1,351) (2,638) Other current liabilities (1,174) 675 127 438 Other non-current assets and liabilities (64) 111 18 26 Total adjustments and changes 9,463 1,732 (1,431) 5,711 Net cash flow generated from operating activities (A) 36,251 20,535 42,047 38,268 CASH FLOW FROM INVESTING ACTIVITIES: Investments in intangible assets (293) (86) (186) (122) Investments in tangible assets (28,000) (17,767) (34,657) (24,651) Increase (decrease) in fixed asset payables 104 (417) 1,250 129 Investments (divestments) of financial assets (3) --- 2 Acquisition of investment, net of cash acquired --- --- (2,733) (2,733) Sales price of property, plant and equipment 3,345 2,338 4,661 3,339 Net cash flow from investing activities (24,847) (15,932) (31,663) (24,038) CASH FLOW FROM FINANCING ACTIVITIES: Interest paid in period (2,786) (1,559) (2,437) (2,145) Interest earned in period 670 480 983 692 Net change in short-term bank borrowings 4,344 14,714 7,909 (151) New medium/long term loans 9,737 8,283 18,448 7,500 Repayment of medium/long term loans (4,711) (6,164) (13,080) (6,784) Dividends (21,645) (21,645) (24,399) (24,399) Net cash flow from financing activities Change in balance sheet items due to exchange rate conversion Net change in cash and cash equivalents (C) (14,391) (5,891) (12,576) (25,287) (D) (128) (256) 422 222 (A+B+C+D) (3,115) (1,544) (1,770) (10,835) Cash available at beginning of the period 44,689 44,689 46,459 46,459 Cash available at end of the period 41,574 43,145 44,689 35,624 10
ATTACHMENT 7 Statement of changes in shareholders equity 11