200514 ZV Group Company Presentation 1Q20
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Company presentation May 2020 Group Structure FREE FLOAT Zignago Holding S.p.A. on the (MARZOTTO FAMILY) ITALIAN STOCK EXCHANGE 100% 65% 35% Santa Margherita Wine producer Zignago Vetro 2018 ZV Group consolidated 230,1 Mln € 420,5 mln € Zignago Power 100% 51% Vetro Revet Biomass electricity producer 100% 50% 100% 100% 7,3 mln € (*) Zignago Vetro Brosse Vetri Speciali Zignago Vetro Polska 56,9 mln € 186,3 mln € (*) 49,4 mln € 30% Vetreco 10% 15,5 mln € (*) Hugo Boss Fashion apparel Zignago Glass USA 50% Julia Vitrum 0,6 mln € (start up phase) Others *100% of turnover Note: in 1H19 Verreries Brosse has been renamed as Zignago Vetro Brosse and Huta Szkła Czechy as Zignago Vetro Polska 2 Milestones Portogruaro plant: Acquisition of specialty containers production Acquisition of Vetro Revet: Vetreco: cullet recycling F&B + C&P plants, then merged into Vetri Speciali cullet recycling 1979 1987 1994 1995 2002 2004 2007 2011 2013 2017 2019 Acquisition of Empoli Acquisition of VB in Listing on the Italian Stock Acquisition of HSC in Julia Vitrum (start up): plant: F&B France: luxury perfumery Exchange Poland: C&P + F&B cullet recycling A proven track record of successful acquisitions in and outside Italy across different Glass sectors 3 Presence in Selected Business Segments 2019 (€m) Market Segment Products Main Features Competitive Strengths Flexibility, efficiency and Food & technical know-how key for Beverage Zignago Vetro success Flexibility Sales € 230.1m Quality Focus on selected segments Cosmetics & of food & beverage and Perfumery cosmetics & perfumery Extraordinary high-quality, tailor- Quality Zignago Vetro Brosse Luxury made product offering and efficiency Sales € 56.9m Perfumery Innovation Focus on high-end perfumery market Zignago Vetro Polska Wide range of personalised Food & products for niches of the global Personalization Sales € 49.4m Beverage market of glass containers for Cosmetics & cosmetics and perfumery, and for Small-run production food and beverages Perf. Highly customized specialty glass Vetri Speciali Personalization Specialty containers produced in very short Sales € 186,3m Containers runs with strong focus on efficiency Small-run production Cullet Forefront technology to reprocess Vetreco Located in a strategic Sales €15,5m cullet to the highest standards of Recycling areas with strong color separation to yield the best potential to grow Vetro Revet quality of finished cullet Sales €7,3m Julia Vitrum (start up) 4 Manufacturing Facilities – international presence Geographical Presence Manufacturing Locations Revenues breakdown (2019 FY) Facility Location Portogruaro, (Venice) Italy Empoli (Florence) Italy Vieux Rouen sur Bresle (Normandie) France Trabki (Warsaw) Poland (decoration facility located with glass manufacturing) Ormelle (Treviso) Italy Julia Vitrum Pergine Valsugana (Trento) Gardolo (Trento) Vetro Revet Italy Vetreco San Vito al Tagliamento (Pordenone) Italy International presence with manufacturing plants in strategic European areas. Balanced revenues across the sectors focusing on niche areas and best mix opportunities 5 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 6 Commercial Presence and Customer Relationships Concentratio Customer n 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 7 Zignago Vetro Group: Sales and Profitability Track Record Sales and EBITDA (1988-2019) CAGR: +7,9% Euro (m) CAGR: +8,3% 8 Financial Performance – Zignago Vetro Group Revenues (€m) EBITDA (€m) 27,7% 28,1% 450 130 27,2% 30% 23,6% 25,1% 400 120 110 25% 350 100 20% 300 +11.7% 90 250 +11.7% 80 +4.4% 15% 200 +1.4% 376,5 420,5 70 118,1 150 318,5 322,9 337,0 60 104,3 10% 50 91,6 100 75,1 80,9 40 5% 50 30 0 20 0% 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 EBITDA (€m) Margin (%) EBIT (€m) Net Result (€m) 60 12,6% 11,8% 12,0% 14% 50 12% 9,1% 9,7% 40 10% 8% 30 53,1 6% 20 39,8 45,0 29,0 31,2 4% 10 2% 0 0% 2015 2016 2017 2018 2019 Net Results (€m) Margin (%) 9 1Q 2020 Revenues & Profitability ZIGNAGO VETRO GROUP Revenues (€m) EBITDA (€m) Net Result (€m) 120 30 30% 12 10,4% 12% 25,8% 24,4% 100 25 25% 10 10% 80 20 20% 8 6,9% 8% 60 +8.3% 15 15% 6 6% 100,6 109,0 26,0 26,5 10,5 40 10 10% 4 7,5 4% 20 5 5% 2 2% 0 0 0% 0 0% 1Q 2019 1Q 2020 1Q 2019 1Q 2020 1Q 2019 1Q 2020 EBITDA (€m) Margin (%) Net Results (€m) Margin (%) Net rersult impacted by 2,5 mln euro unrealized exchange difference Euro/PLN on a loan in euro from Zignago Vetro to Zignago Vetro Polska. 10 1Q 2020 Revenues & Profitability by BU ZIGNAGO VETRO ZIGNAGO VETRO BROSSE Revenues (€m) Revenues (€m) 20 60 50 15 40 +24.6% 10 30 63,9 17,8 51,3 -32.8% 20 5 12,0 10 0 0 1Q 2019 1Q 2020 1Q 2019 1Q 2020 EBITDA (€m) EBITDA (€m) 24,3% 24,4% 19,8% 18 25% 5 20% 15 20% 4 15% 12 15% 3 9 10% 15,6 10% 2 3,5 6 12,5 5% 1 3 5% 0 -0,4 0% 0 0% 1Q 2019 1Q 2020 -1 -5% 1Q 2019 1Q 2020 -3,4% EBITDA (€m) Margin (%) EBITDA (€m) Margin (%) 11 1Q 2020 Revenues & Profitability by BU VETRI SPECIALI (50%) ZIGNAGO VETRO POLSKA Revenues (€m) Revenues (€m) 25 15 20 12 15 9 -2.3% +0.7% 11,9 11,7 10 22,5 22,7 6 5 3 0 0 1Q 2019 1Q 2020 1Q 2019 1Q 2020 EBITDA (€m) EBITDA (€m) 29,8% 31,2% 31,8% 8 35% 4 24,9% 30% 30% 25% 6 3 25% 20% 20% 3,5 4 2 15% 7,0 7,2 15% 3,0 10% 2 10% 1 5% 5% 0 0% 0 0% 1Q 2019 1Q 2020 1Q 2019 1Q 2020 EBITDA (€m) Margin (%) EBITDA (€m) Margin (%) 12 Zignago Vetro Group - Balance Sheet Net Capital Employed (€m) Net Working Capital (€m) 30,4% 29,0% 140 500 24,8% 30% 120 23,2% 25% 400 100 300 80 20% 473,3 465,8 60 122,0 123,4 15% 200 372,5 417,2 102,5 311,9 40 80,1 87,3 10% 100 20 5% 0 0 0% 2016 2017 2018 2019 1Q 2020 2016 2017 2018 2019 1Q 2020 Net working Capital (€m) on sales (%) Net Equity (€m) Net Financial Debt (€m) 240 280 200 240 160 200 160 120 228,0 200,1 221,9 120 251,4 237,9 80 177,5 195,5 217,1 155,5 80 156,4 40 40 0 0 2016 2017 2018 2019 1Q 2020 2016 2017 2018 2019 1Q 2020 13 Zignago Vetro Group - Cash Flow From Operations and Capex Cash Flow from Operations (before capex) (€m) Capex (€m) 90 100 75 80 60 60 45 94,3 79,1 82,6 40 72,0 30 66,0 66,1 54,3 58,3 20 15 24,5 4,7 0 0 2016 2017 2018 2019 1Q 2020 2016 2017 2018 2019 1Q 2020 14 Financial structure, EPS and dividends Key financial structure ratios EPS and Dividend distribution (Euro) 2,50 0,80 74% 74% 72% 71% 71% 71% 71% 2,13 2,08 2,13 71% 70% 70% 0,70 1,93 70% 2,00 0,60 1,72 0,60 1,58 1,64 0,51 60% 0,50 0,45 1,50 1,31 0,422 0,38 0,40 1,07 0,40 0,35 0,35 0,360 0,98 0,33 0,320 0,30 50% 1,00 0,273 0,282 0,27 1,13 0,30 0,250 0,252 1,10 1,08 0,220 0,235 1,01 0,200 0,89 0,82 0,81 0,20 0,73 40% 0,50 0,70 0,64 0,10 0,00 0,00 30% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Indeb. Fin. Netto / EBITDA EPS Div per share Pay out % Indeb. Fin. Netto / Patr. Netto Pay out guidance: 70% of net group result 15 ESG: Environment Social Governance Our sustainable business approach Zignago Vetro Mission: To produce and market hollow glass containers for a range of market segments, in particular the food and beverages and cosmetics and perfumery sectors, with a particular focus on sustainability and with the aim of providing its customers with high quality, safe products while guaranteeing its shareholders and stakeholders ongoing value creation. 2020 Annual Report Environment Social Governance Glass: the perfectly sustainable raw material TRANSPARENCY, ELEGANCE & IDENTITY PERFECT PRESERVATION FOOD SAFETY TOTAL AND INFINITE RECYCLABILITY Hygienic, healthy, eco-friendly, infinitely recyclable and safe, glass is considered by the 78% of European consumers as the best packaging available in the Friends of Glass 2018 survey. Environment Social Governance Glass at the heart of a sustainable world: - Glass adapts perfectly to a circular economy as it is 100% recyclable, for an infinite number of times, and without deteriorating the quality of the new container; - For this reason, in the future, glass will increasingly be one of the alternatives to plastic and all packaging and non-recyclable materials; - Zignago Vetro aims to be a leader in the circular economy : glass cullet is indeed our main raw material and we deeply invest in glass cullet treatment plants through three companies (Vetreco S.r.l, Vetro Revet S.r.l and Julia Vitrum S.p.A.).