Zignago Vetro Group Company Overview October 2009
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 1.9 FIMIZ S.r.l. 100% Zignago Holding S.p.A. Free float 35% Zignago Vetro Group Santa Margherita S.p.A. 100% 65% Glass containers Wine producer manufacturer Zignago Immobiliare Zignago Power S.r.l. 100% S.p.A. 100% Electricity producer Real estate (*) the share capital is owned by Luca Marzotto, Nicolò Marzotto, Stefano Marzotto and Gaetano Marzotto 2
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 S.p.A. owned) which and Vetrerie Italian Stock conferring its acquires a plant Venete to newly Exchange (STAR glass production from an formed Vetri Segment) plants insolvency Speciali proceeding 1950's 1980's 1990's 2002 2004 2006 2007 1950’s 1987 2002 June 2006 Industrie Zignago Zignago Vetro Zignago Vetro Zignago Vetro Santa Margherita acquires a plant acquires the acquires the 43.5% (“IZSM”) builds in Empoli from assets of stake in Vetri Speciali its first glass an insolvency Verreries Brosse from IZSM production plant proceeding S.A.S from an (jars and bottles) insolvency December 2006 proceeding IZSM sells its 100% stake in Zignago Vetro to Zignago Holding THE BEGINNING ZIGNAGO VETRO EXPANSION GROUP REORGANIZATION 3
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 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 4
Our Presence in Selected Business Segments 2008A Size (€m) Products Main Features Competitive Strengths Flexibility, efficiency and � technical know-how key for Zignago Vetro Flexibility success � Sales €161m Quality Focus on selected segments of food & beverage and cosmetics & perfumery Extraordinary high-quality, � tailor-made product offering Verreries Brosse Quality and efficiency � Sales €48m Innovation Focus on high-end perfumery market � Highly customized specialty Personalization Vetri Speciali glass containers produced in � very short runs with strong focus Sales €52m Small-run on efficiency production (43,5% stake) 5
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 Speciali Production and distribution Production Distribution 6
What Makes Us Different? Unique positioning and economic returns thanks to a distinctive business model Outperform market growth Maximise ROCE & profitability Competitive advantage 7
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 loyalty 1 clients 15% 71% Zignago Vetro 48% 44% Verreries Brosse Group 13% 70% Vetri Speciali 8 1 % of clients present also the 2 previous years (data referred to 2008)
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 20% adopting Zignago Vetro state-of-the-art technology, 17% 17% flexible and efficient approach 16% 47,8 50 45,2 13% 15% Capex trend (€m) 40 36,3 9% 30,9 10% 13,8 29,8 30 24,9 8,9 5% 18,0 4,6 4,1 20 2,9 2,5 2,4 10 0% 2002 2003 2004 2005 2006 2007 2008 2002 2003 2004 2005 2006 2007 2008 Revenues (€m) EBITDA margin (%) Intermediate achievements Zignago Vetro acquired Verreries Brosse in � Sales per employee increased from ca. €64,000 in 2002 to ca. €148.000 in 2008 2002 following an insolvency proceeding and turned it into a successful business � Verreries Brosse sold 14m units in 2002, and 50.5m in 2008 9
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 10
Strong Revenues Growth and Top of the Market Profitability Revenues (€m) EBITDA (€m) 27,2% 300 80 26,7% 25,9% 250 25,7% 70 200 60 25% 50 150 69,9 256,7 +6.7% 64,3 240,7 +14.9% 40 209,4 100 53,8 192,6 +8.7% 49,9 30 50 20 20% 0 2005 2006 2007 2008 2005 2006 2007 2008 EBITDA (€m) Margin (%) EBIT (€m) Net Result (€m) 13,1% 17,8% 18,5% 50 40 14,9% 45 12% 10,4% 14,1% 35 40 15% 30 8,7% 10% 35 25 7,4% 30 8% 10% 25 20 47,6 42,9 33,7 20 15 6% 24,9 31,3 15 27,1 5% 10 16,8 15,4 10 4% 5 5 0 2% 0 0% 2005 2006 2007 2008 2005 2006 2007 2008 EBIT (€m) Margin (%) Net Results (€m) Margin (%) Source: Zignago Vetro Group 11
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 12
Solid Balance Sheet to Support Organic and External Growth Net Capital Employed (€m) Net Working Capital (€m) 160 24,0% 140 60 24% 20,5% 120 50 20% 16,3% 15,8% 100 40 16% 80 151,9 30 12% 132,1 123,2 121,9 60 46,2 43 41,8 20 8% 38,1 40 10 4% 20 0 0% 0 2005 2006 2007 2008 2005 2006 2007 2008 Net working Capital (€m) on sales (%) Net Equity (€m) Net Financial Debt (€m) 120 80 100 60 80 60 40 108,8 62,4 60,5 89,5 40 77,2 46 61,3 20 20 23,3 0 0 2005 2006 2007 2008 2005 2006 2007 2008 Source: Zignago Vetro Group 13 Aggregated data is shown in 2005
Cash Flow From Operations and Capex Cash Flow from Operations (before capex) (€m) Capex (€m) 50 45 45 40 40 35 35 VS 30 Net Capex 30 acquisition related to VS 25 acquisition 25 21,5 47,1 42,2 44,1 20 20 36,6 33,2 15 15 20,5 10 10 16,7 11,0 5 5 0 0 2005 2006 2007 2008 2005 2006 2007 2008 Capex mainly depends on furnaces refurbishment and capacity increase Pay-out ratio: 70% of 2008 Group net result 14
Healthy financial structure, EPS and dividends EPS and Dividend distribution (Euro) Key financial structure ratios 70% 70% 1,6 0,600 70% 1,4 0,500 1,1 57% 0,421 1,2 60% 0,400 0,311 0,9 1,0 0,300 50% 1,0 0,7 0,8 0,295 0,193 0,200 0,218 0,6 0,7 40% 0,6 0,100 0,4 0,11 0,000 30% 2006 2007 2008 2006 2007 2008 Net financial debt / EBITDA EPS Div per share Pay out % Net financial debt / Net Equity 15
Zignago Vetro Group 1H09 EBITDA (€m) Revenues (€m) 40 27,8% 26,9% 30% 120 100 30 80 20% 128,8 20 60 34,6 -16,5% 107,5 29,8 40 10% 10 20 0 0 0% 1H08 1H09 1H08 1H09 EBITDA (€m) Margin (%) Net Result (€m) Net Financial Debt (Cash)(€m) 13,6% 20 15% 80 10,9% 15 60 10% 85,7 10 17,5 40 5% 11,8 55,7 5 20 0 0% 0 1H08 1H09 30.06.08 30.06.09 16
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 strategy, flexibility and � First months of 2009 should be the innovation key element for facing ones more affected difficult market conditions � Benefits from energy cost slow-down � Positive results expected 17
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