Zignago Vetro SpA · MIL:ZV
Zignago Vetro SpA — Investor Presentation (October 2019)
28 slides from Zignago Vetro SpA's investor presentation, October 2019
Slide 1: Company presentation
Company presentation October 2019
Slide 2: Group Structure
Group Structure FREE FLOAT Zignago Holding S.p.A. on the (MARZOTTO FAMILY) ITALIAN STOCK EXCHANGE Santa Margherita 100% S.p.A. 65% 35% Wine producer 2018 Zignago Vetro ZV Group consolidated 201,4 Mln € 376,5 Mln € 51% Vetro Revet 100% 4,9 Mln € (*) Zignago Power S.r.l. 100% 50% 100% 100% Electricity
Slide 3: Milestones
Milestones Portogruaro plant: Acquisition of specialty containers production Acquisition of Revet: cullet Vetreco: cullet recycling F&B + C&P plants, then merged into Vetri Speciali recycling 1979 1987 1994 1995 2002 2004 2007 2011 2013 2017 2019 Acquisition of Empoli Acquisition of VB in Listing on
Slide 4: Presence in Selected Business Segments
Presence in Selected Business Segments 2018 (€m) Market Segment Products Main Features Competitive Strengths Flexibility, efficiency and Food & technical know-how key for Zignago Vetro Beverage success ✓ Flexibility Sales € 201.4m Focus on selected segments ✓ Quality Cosmetics & of food & beverage a
Slide 5: Manufacturing Facilities – international presence
Manufacturing Facilities – international presence Geographical Presence Manufacturing Locations Revenues breakdown (2018 FY) Facility Location Portogruaro, (Venice) Italy Cosmetics & Food & Empoli Perfumery Beverage (Florence) Italy 30% 44% Vieux Rouen sur Bresle (Normandie) France Other Trabki (War
Slide 6: Business model
Business model Production of glass containers dedicated to a broad spectrum of sectors/markets, with a wide range of products: different colours, shapes and dimensions. High content of product innovation and customization. Standard Customized Innovative Specialty
Slide 7: Commercial Presence and Customer Relationships
Commercial Presence and Customer Relationships Concentration Customer rate of first loyalty1 5 clients 2 (Revenues) Zignago Vetro 15% 92% ZV Brosse 53% 93% Vetri Speciali 27% 94% ZV Polska 26% 73% 1 Revenues from clients present also the 2 previous years 2 Net of intercompany sales
Slide 8: Zignago Vetro Group: Sales and Profitability Track Record
Zignago Vetro Group: Sales and Profitability Track Record Sales and EBITDA (1988-2018) CAGR: +7,7% 376 350 337 319 323 Euro (m) 299 302 291 292 300 265 257 241 250 230 209 193 200 162 142 150 133 CAGR: +8,0% 104 109 94 93 95 104 90 92 100 82 81 71 77 75 70 71 70 67 66 62 64 62 58 57 54 49 50 40 43 4
Slide 9: Financial Performance – Zignago Vetro Group
Financial Performance – Zignago Vetro Group Revenues (€m) EBITDA (€m) 350 27,2% 27,7% 110 30% 25,1% 300 100 21,8% 23,6% 25% 90 250 +11.7% 80 20% 200 +1.4% +4.4% 70 +5,5% 104,3 15% 150 376,5 60 91,6 322,9 337,0 302,0 318,5 50 75,1 80,9 10% 100 40 65,8 * 5% 50 30 * * * 20 0% 0 2014 2015 2016 2017 2018
Slide 10: 1H 2019 Revenues & Profitability
1H 2019 Revenues & Profitability ZIGNAGO VETRO GROUP Revenues (€m) EBITDA (€m) Net Result (€m) 27,1% 26,8% 30% 25 10,5% 10,7% 12% 210 60 180 25% 10% 20 150 20% 8% 40 120 15 +10.4% 209,7 15% 6% 90 189,9 56,3 22,4 51,4 10 20,0 20 10% 4% 60 30 5% 5 2% 0 0 0% 0 0% 1H 2018 1H 2019 1H 2018 1H 2019 1H 2018
Slide 11: 1H 2019 Revenues & Profitability
1H 2019 Revenues & Profitability ZIGNAGO VETRO ZIGNAGO VETRO BROSSE Revenues (€m) Revenues (€m) 120 35 30 90 25 60 20 101,4 +8.4% 109,9 15 31,7 +2.6% 32,5 30 10 5 0 0 1H 2018 1H 2019 1H 2018 1H 2019 EBITDA (€m) EBITDA (€m) 28,7% 24,2% 30% 22,4% 25% 30 8 25% 17,6% 20% 20% 6 20 15% 15% 29,1 26,6 4 10%
Slide 12: 1H 2019 Revenues & Profitability
1H 2019 Revenues & Profitability VETRI SPECIALI (50%) ZIGNAGO VETRO POLSKA Revenues (€m) Revenues (€m) 50 25 40 20 30 15 +16.2% 47,8 20,6 +16.7% 24,0 20 41,1 10 10 5 0 0 1H 2018 1H 2019 1H 2018 1H 2019 EBITDA (€m) EBITDA (€m) 33,7% 20 27,8% 35% 26,4% 30% 30% 23,1% 15 6 25% 25% 20% 20% 10 4 15% 15% 1
Slide 13: Zignago Vetro Group - Solid Balance Sheet
Zignago Vetro Group - Solid Balance Sheet Net Capital Employed (€m) Net Working Capital (€m) 500 30,4% 450 140 25,1% 24,8% 30% 400 120 23,2% 20,0% 25% 350 100 300 20% 80 250 466,8 15% 200 417,2 60 121,2 372,5 102,5 87,3 150 311,9 40 79,9 80,1 10% 241,5 274,6 60,5 100 20 * * 5% 50 * * * * 0 0% 0 2014
Slide 14: Cash Flow From Operations and Capex
Zignago Vetro Group - Cash Flow From Operations and Capex Cash Flow from Operations (before capex) (€m) Capex (€m) 80 100 80 60 60 40 79,1 94,3 40 58,3 72,0 53,2 54,9 54,3 66,0 20 30,0 49,3 45,9 38,4 20 * * * * * * 0 0 2014 2015 2016 2017 2018 1H 2019 2014 2015 2016 2017 2018 1H 2019 Capex mainly de
Slide 15: Financial structure, EPS and dividends
Financial structure, EPS and dividends Key financial structure ratios EPS and Dividend distribution (Euro) 80% 74% 74% ,600 72% 70% 71% 71% 71% 71% 71% 70% 70% ,500 0,45 0,51 0,38 0,40 ,400 0,35 0,35 0,360 60% 0,32 0,33 0,320 0,30 0,273 0,282 0,27 ,300 0,250 0,252 0,221 0,220 0,235 0,200 50% ,200 40
Slide 16: Annex: Zignago Vetro's Sustainability Program
Annex Zignago Vetro’s Sustainability Program
Slide 17: Zignago Vetro's Sustainability Program
Zignago Vetro’s Sustainability Program Main topics: Environment Social Governance • Resources • Labor Management • Shareholders Consumptions • Health and Safety • Board of Directors • Carbon Emissions • Community • Internal Control and • Waste Management Risk Management System The Board of Directors
Slide 18: Environment: Resources Consumptions
Environment: Resources Consumptions Use of cullet (glass scraps from recycling) Raw materials 44% 42,93% Improve the use of glass scraps from recycling 42% 40,80% (cullet) and decrease consumptions of raw 40% materials 37,70% 38% 36% 34% 2016 2017 2018 Energies Decrease of energy consumption is driv
Slide 19: Environment: Water, Carbon Emissions and Waste Disposal
Environment: Water, Carbon Emissions and Waste Disposal Water Water consumption 105 100,0 Water consumptions significantly decreased since 2016 100 thanks to capex and controls. 95 90 84,2 Steady decrease of specific consumptions. 85 80,3 80 75 70 65 60 55 50 2016 2017 2018 CO2 Emissions CO2 emissio
Slide 20: Environment: Good performance evaluation according to certified entities
Environment: Good performance evaluation according to certified entities Score confirmation : “B” We’ve improved our score from 50 to 55 (Glass sector range from 30 to 60)
Slide 21: Social: Labor management
Social: Labor management Headcount Employee headcount (n. persons) ZV Group steadily continues to represent a 1.800 point of working opportunities 1.600 1.400 1.200 1.000 2016 2017 2018 Training Training hours 20.000 ZV Group is actively engaged in improving 18.000 personnel skills, at all levels an
Slide 22: Social: Labor management
Social: Labor management Special project started in June 2018: employment of people with disabilities for the selection and re-packaging of glass containers in Zignago Vetro Social inclusion: cooperation with small companies in a region with high unemployment rate Extensive Welfare program for all t
Slide 23: Community: Social Projects
Community: Social Projects Participation in the educational program “Surfing Participation in the 2019 project Glass”, during the school year 2018-2019 “Insieme Per La Montagna Veneta” Leader of a special project for the families of Meyer Tuscany Hospital for children. Economics support accomplishme
Slide 24: Social: Health and safety
Social: Health and safety Accidents - Frequency Accidents – Frequency (index) ZG Group is focused in preventing accidents. 30 25 Number of casualties has steadily decreased. 20 15 10 5 0 2016 2017 2018 Accidents - Gravity Accidents – Gravity (index) Strong focus on safety to reduce the gravity of ac
Slide 25: Governance: Shareholders
Governance: Shareholders Shareholders structure ZIGNAGO VETRO’S SHAREHOLDERS STRUCTURE Shareholders holding more than 5% of share capital: - Zignago Holding: 65% 35% Free Float Zignago Holding 65% Shares with special rights Shares are nominative, freely transferable and indivisible and each has a ri
Slide 26: Governance: Board of Directors
Governance: Board of Directors Paolo Giacobbo President and CEO Executive - Independency: ar. 45% of Board Members Nicolò Marzotto Vice-President Alessia Antonelli Board member Independent - Gender: Women ar. 40% - Men ar. 60% Ferdinando Businaro Board member Roberto Cardini Board member Executive -
Slide 27: Governance: Internal Control and Risk Management System
Governance: Internal Control and Risk Management System ICRMS is integrated into the organization and corporate governance of the Company. It - ensures an adequate management of the company’s risk exposure, - ensures the correct management of the business, - ensures the achievement of the strategic
Slide 28: Governance: Internal Control and Risk Management System
Governance: Internal Control and Risk Management System The principal conditions adopted for achieving the strategic and operational objectives, as well as the monitoring of the efficacy and efficiency of the activities and the safeguarding of the company’s assets, are as follows: • Drawing up of ob