Zignago Vetro SpA · MIL:ZV
Zignago Vetro SpA — Star Conference 2009
24 slides from Zignago Vetro SpA's conference presentation, Mar 25, 2009
Slide 1: Zignago Vetro Group Company Overview
Zignago Vetro Group Company Overview Star Conference 2009 Milan, 25 March 2009
Slide 2: Zignago Holding Group Structure
Zignago Holding Group Structure Zignago Vetro Group is a priority in Zignago Holding’s strategy Shareholders Stake (%) Luca Marzotto 20.2 Nicolò Marzotto 19.5 Stefano Marzotto 19.3 Gaetano Marzotto 16.0 M.D.D.R. S.r.l. (*) 17.9 Maria Rosaria Marzotto 2.6 Cristiana Marzotto 2.6 Margherita Marzotto 1.
Slide 3: Milestones
Milestones THE BEGINNING ZIGNAGO VETRO EXPANSION GROUP REORGANIZATION 1979 1994-1995 October 2004 June 2007 IZSM IZSM establishes IZSM transfers its Zignago Vetro establishes Attività Industriali stakes in Attività becomes a Listed Zignago Vetro Friuli S.r.l. (51.0% Industriali Friuli Company in the
Slide 4: Zignago Vetro Group
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 2008, Group revenues of €256,7m (33% generated abroad) and EBITDA o
Slide 5: Our Presence in Selected Business Segments
Our Presence in Selected Business Segments 2008A Size (€m) Products Main Features Competitive Strengths Flexibility, efficiency and technical know-how key for Zignago Vetro success Flexibility Sales €161m Focus on selected segments Quality of food & beverage and cosmetics & perfumery Extraordinary h
Slide 6: International Presence with an Italian Footprint
International Presence with an Italian Footprint Paris, France Ormelle (TV) Vieux Rouen sur Bresle, France 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 Sp
Slide 7: What Makes Us Different?
What Makes Us Different? Unique positioning and economic returns thanks to a distinctive business model Outperform market growth Maximise ROCE & profitability Competitive advantage 7
Slide 8: Flexible and Efficient Production Process Drives Profitability
Flexible and Efficient Production Process Drives Profitability State-of-the-art, Flexible, Move towards more flexible manufacturing plants efficient production profitable market segments Multi-skilled, Flexible, React promptly to market flexible workforce efficient production changes and requests 8
Slide 9: Constant Innovation Boosts Sales
Constant Innovation Boosts Sales Product Innovation Process Innovation New products equal to ca. 14% of State-of-the-art and in-house total products technology Highly personalized and complex High know-how in moulds designing shapes and process development 9
Slide 10: Provider of Top Glass Solutions not Simply Quality Glass Containers
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 Prompt response to requests Continuous improvement of plants’ Ta
Slide 11: Excellent Longstanding Client Relationships and Good Revenues Visibility
Excellent Longstanding Client Relationships and Good Revenues Visibility Loyalty of customers retained by: Meeting and anticipating their needs Building effective partnerships Concentration Customer rate of first 5 loyalty1 clients Zignago Vetro 15% 71% Verreries Brosse 48% 44% Group Vetri Speciali
Slide 12: Verreries Brosse: A Successful Turnaround Story
Verreries Brosse: A Successful Turnaround Story Experienced management team with the ability to capitalise on future acquisition opportunities 70 25% Rethinking of strategy 21% 20% Fully exploit Verreries Brosse brand potential 60 adopting Zignago Vetro state-of-the-art technology, 20% 17% 17% flexi
Slide 13: Zignago Vetro Group: Positioned for Growth
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 Market Growth & + Groups’ Model Opportunities Profitability 13
Slide 14: Strong Revenues Growth and Top of the Market Profitability
Strong Revenues Growth and Top of the Market Profitability Revenues (€m) EBITDA (€m) 300 27,2% 80 26,7% 25,9% 250 70 25,7% 200 60 25% 150 50 +6.7% 256.7 64,3 69,9 100 192.6 +8.7% 209.4 +14.9% 240.7 40 49,9 53,8 30 50 20 20% 0 2005 2006 2007 2008 2005 2006 2007 2008 EBITDA (€m) Margin (%) EBIT (€m) N
Slide 15: Strong track record in sales and profitability
Strong track record in sales and profitability Euro (m) ZV Group 250 200 ZV 150 100 ZV Group 50 ZV 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Sales EBITDA 15
Slide 16: Solid Balance Sheet to Support Organic and External Growth
Solid Balance Sheet to Support Organic and External Growth Net Capital Employed (€m) Net Working Capital (€m) 160 24.0% 140 60 20.5% 24% 120 50 16.3% 20% 15.8% 100 40 16% 80 151.9 30 12% 60 132.1 121.9 123.2 20 46.2 43 41.8 8% 40 38.1 10 4% 20 0 0% 0 2005 2006 2007 2008 2005 2006 2007 2008 Net worki
Slide 17: Cash Flow From Operations and Capex
Cash Flow From Operations and Capex Cash Flow from Operations (before capex) (€m) Capex (€m) 50 45 45 40 40 35 35 30 VS 30 Net Capex related to VS acquisition 25 acquisition 25 21.5 47.1 20 42.2 44.1 20 36.6 15 33.2 15 10 10 20.5 16.7 5 5 11.0 0 0 2005 2006 2007 2008 2005 2006 2007 2008 Capex mainly
Slide 18: Healthy financial structure, EPS and dividends
Healthy financial structure, EPS and dividends Key financial structure ratios EPS and Dividend distribution (Euro) 1,6 70% 70% 0,600 70% 1,4 0,500 1,1 57% 0,421 1,2 60% 0,400 0,311 1,0 0,9 0,9 0,9 0,300 50% 0,193 0,295 0,8 0,200 0,218 0,8 40% 0,6 0,7 0,100 0,11 0,4 0,000 30% 2006 2007 2008 2006 2007
Slide 19: ZV results - FYs '07 and '08
ZV results - FYs ‘07 and ‘08 Revenues (€m) EBITDA and margin evolution 160 26.6% 26.2% 140 45 25% 120 40 35 20% 100 30 80 158.1 160.8 25 15% +1.7% 60 20 42.1 42.1 10% 15 40 10 5% 20 5 0 0 0% 2007 2008 2007 2008 EBITDA (€m) Margin (%) Net result (€m) Net Financial Debt (€m) 35 15.5% 30 12.5% 15% 10 2
Slide 20: VB results - FYs '07 and '08
VB results - FYs ‘07 and ‘08 Revenues (€m) EBITDA and margin evolution 50 20.7% 20.2% 45 10 20% 40 35 8 15% 30 25 6 45.2 +5.8% 47.8 9.4 9.6 10% 20 4 15 2 5% 10 5 0 0% 0 2007 2008 2007 2008 EBITDA (€m) Margin (%) Net result (€m) Net Financial Debt (€m) 4 7.1% 6.8% 8% 20 3 6% 15 2 4% 3.2 3.2 10 20.4 1
Slide 21: VS results (43.5%) - FYs '07 and '08
VS results (43.5%) - FYs ‘07 and ‘08 Revenues (€m) EBITDA and margin evolution 34.9% 50 20 35% 18 30.5% 16 30% 40 14 25% 30 12 20% 10 43.2 +20.9% 52.2 8 18.2 15% 20 6 13.2 10% 10 4 2 5% 0 0 0% 2007 2008 2007 2008 EBITDA (€m) Margin (%) Net result (€m) Net Financial Debt (€m) 17.6% 40 10 11.9% 0.6 15
Slide 22: Group Strategic Guidelines
Group Strategic Guidelines Corporate Market Focus on higher value Optimise and expand added and fast growing production capacity segments Growth Commitment to organic and external growth + Strengthen competitive barriers opportunities High Continuous Profitability Increase sophisticated improvement
Slide 23: 2009 outlook
2009 outlook Market Company First months of 2009 affected by Stable customer base and good important turbolence in the global relationships markets with slow down also of demand of glass containers Final markets more resilient to global economical weakness De-stocking in the supply chain Niche strat
Slide 24: Zignago Vetro Group's Highlights
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 an