Zignago Vetro Group Company Overview October 2009 Zignago Holding - - PowerPoint PPT Presentation

Zignago Vetro Group

Company Overview October 2009

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65% 100% 100%

Zignago Holding Group Structure

Zignago Vetro Group is a priority in Zignago Holding’s strategy

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 1.9 Zignago Holding S.p.A. Santa Margherita S.p.A. Wine producer Real estate FIMIZ S.r.l. 100% Zignago Immobiliare S.p.A. Shareholders Stake (%) (*) the share capital is owned by Luca Marzotto, Nicolò Marzotto, Stefano Marzotto and Gaetano Marzotto Zignago Power S.r.l. Electricity producer

Zignago Vetro Group Glass containers manufacturer

100% Free float 35%

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Milestones

1979 1994-1995 October 2004 June 2007 IZSM establishes Zignago Vetro S.p.A. conferring its glass production plants IZSM establishes Attività Industriali Friuli S.r.l. (51.0%

• wned) 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)

1950's 1980's 1990's 2002 2004 2006 2007

1950’s 1987 2002 June 2006 Zignago Vetro acquires the 43.5% stake in Vetri Speciali from IZSM December 2006 IZSM sells its 100% stake in Zignago Vetro to Zignago Holding

THE BEGINNING ZIGNAGO VETRO EXPANSION GROUP REORGANIZATION THE BEGINNING ZIGNAGO VETRO EXPANSION GROUP REORGANIZATION

Industrie Zignago Santa Margherita (“IZSM”) builds its first glass production plant (jars and bottles) Zignago Vetro acquires a plant in Empoli from an insolvency proceeding Zignago Vetro acquires the assets of Verreries Brosse S.A.S from an insolvency proceeding

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Zignago Vetro Group

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 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

Fast growing and profitable niche glass producer delivering a high and rising ROCE

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Competitive Strengths Main Features Products 2008A Size (€m)

Our Presence in Selected Business Segments

• Personalization
• Small-run

production

Vetri Speciali

Highly customized specialty glass containers produced in very short runs with strong focus

• n efficiency

Sales €52m (43,5% stake)

• Innovation
• Quality

Verreries Brosse

Extraordinary high-quality, tailor-made product offering and efficiency Focus on high-end perfumery market

Sales €48m

Zignago Vetro

• Flexibility

Flexibility, efficiency and technical know-how key for success Focus on selected segments

• f food & beverage and

cosmetics & perfumery

• Quality

Sales €161m

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International Presence with an Italian Footprint

Legend:

Production and distribution Distribution Production Zignago Vetro Verreries Brosse Vetri Speciali

New Jersey, USA Empoli (FI) Fossalta di Portogruaro (VE) Barcelona, Spain San Vito al Tagliamento (PN) Ormelle (TV) Paris, France Trento Benicia, USA Pergine Valsugana (TN) Vieux Rouen sur Bresle, France

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What Makes Us Different?

Outperform market growth Maximise ROCE & profitability Competitive advantage

Unique positioning and economic returns thanks to a distinctive business model

8

70% 13%

Vetri Speciali

44% 48%

Verreries Brosse

71% 15%

Zignago Vetro

Customer loyalty1 Concentration rate of first 5 clients

Loyalty of customers retained by: Meeting and anticipating their needs Building effective partnerships

Excellent Longstanding Client Relationships and Good Revenues Visibility

1 % of clients present also the 2 previous years (data referred to 2008)

Group

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Fully exploit Verreries Brosse brand potential adopting Zignago Vetro state-of-the-art technology, flexible and efficient approach

Verreries Brosse: A Successful Turnaround Story

Rethinking of strategy

Zignago Vetro acquired Verreries Brosse in 2002 following an insolvency proceeding and turned it into a successful business

Sales per employee increased from ca. €64,000 in 2002 to ca. €148.000 in 2008 Verreries Brosse sold 14m units in 2002, and 50.5m in 2008

Experienced management team with the ability to capitalise on future acquisition opportunities Capex trend (€m) Intermediate achievements

8,9 2,5 4,1 2,9 4,6 2,4 13,8

2002 2003 2004 2005 2006 2007 2008

18,0 24,9 29,8 30,9 36,3 45,2 47,8 9% 13% 16% 17% 17% 21% 20%

10 20 30 40 50 60 70 2002 2003 2004 2005 2006 2007 2008 0% 5% 10% 15% 20% 25%

Revenues (€m) EBITDA margin (%)

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Growth & Profitability Market Opportunities Zignago Vetro Groups’ Model

+

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

11 16,8 15,4 24,9 33,7

8,7% 7,4% 10,4% 13,1% 5 10 15 20 25 30 35 40 2005 2006 2007 2008 2% 4% 6% 8% 10% 12%

Net Results (€m) Margin (%)

192,6 209,4 240,7 256,7

50 100 150 200 250 300 2005 2006 2007 2008

Strong Revenues Growth and Top of the Market Profitability

Revenues (€m) EBITDA (€m) EBIT (€m) Net Result (€m)

Source: Zignago Vetro Group

+8.7% +14.9%

49,9 53,8 64,3 69,9

25,9% 26,7% 27,2% 25,7% 20 30 40 50 60 70 80 2005 2006 2007 2008 20% 25%

EBITDA (€m) Margin (%) 27,1 31,3 42,9 47,6

14,1% 14,9% 17,8% 18,5% 5 10 15 20 25 30 35 40 45 50 2005 2006 2007 2008 0% 5% 10% 15%

EBIT (€m) Margin (%)

+6.7%

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Strong track record in sales and profitability

50 100 150 200 250 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Euro (m)

Sales EBITDA ZV Group ZV Group ZV ZV

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Solid Balance Sheet to Support Organic and External Growth

Aggregated data is shown in 2005

132,1 121,9 123,2 151,9

20 40 60 80 100 120 140 160 2005 2006 2007 2008

Net Capital Employed (€m) Net Working Capital (€m) Net Equity (€m) 46,2 43 38,1 41,8

24,0% 15,8% 16,3% 20,5% 10 20 30 40 50 60 2005 2006 2007 2008 0% 4% 8% 12% 16% 20% 24%

Net working Capital (€m)

• n sales (%)

Net Financial Debt (€m) 108,8 61,3 77,2 89,5

20 40 60 80 100 120 2005 2006 2007 2008

23,3 60,5 46 62,4

20 40 60 80 2005 2006 2007 2008

Source: Zignago Vetro Group

14 Capex (€m) Cash Flow from Operations (before capex) (€m)

Cash Flow From Operations and Capex

Capex mainly depends on furnaces refurbishment and capacity increase Pay-out ratio: 70% of 2008 Group net result 16,7 11,0 20,5 42,2

21,5

5 10 15 20 25 30 35 40 45 2005 2006 2007 2008

Net Capex related to VS acquisition

33,2 36,6 44,1 47,1

5 10 15 20 25 30 35 40 45 50 2005 2006 2007 2008

VS acquisition

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Healthy financial structure, EPS and dividends

EPS and Dividend distribution (Euro) Key financial structure ratios

0,421 0,311 0,193 0,11 0,218 0,295 57% 70% 70% 0,000 0,100 0,200 0,300 0,400 0,500 0,600 2006 2007 2008 30% 40% 50% 60% 70%

EPS Div per share Pay out %

0,9 0,7 1,1 0,7 1,0 0,6 0,4 0,6 0,8 1,0 1,2 1,4 1,6 2006 2007 2008 Net financial debt / EBITDA Net financial debt / Net Equity

16 128,8 107,5

20 40 60 80 100 120 1H08 1H09

Zignago Vetro Group 1H09

• 16,5%

Revenues (€m)

29,8 34,6

27,8% 26,9% 10 20 30 40 1H08 1H09 0% 10% 20% 30%

EBITDA (€m) Margin (%)

EBITDA (€m)

17,5 11,8

13,6% 10,9% 5 10 15 20 1H08 1H09 0% 5% 10% 15%

Net Result (€m)

85,7 55,7

20 40 60 80 30.06.08 30.06.09

Net Financial Debt (Cash)(€m)

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2009 outlook

Company Market

• First months of 2009 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 2009 should be the
• nes 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