Zignago Vetro Group · Zignago Vetro Group Company Overview Borsa Italiana STAR Conference 2008 -...
Transcript of Zignago Vetro Group · Zignago Vetro Group Company Overview Borsa Italiana STAR Conference 2008 -...
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65%
100%
100%
Zignago Holding Group Structure
(A) - Based on 100% of Zignago Vetro Group revenues
Zignago Vetro Group remains one of the priorities i n Zignago Holding future strategy
2006 Zignago Holding Revenues Contribution
Luca Marzotto 20.2Nicolò Marzotto 19.5
Stefano Marzotto 19.3 Marco Donà dalle Rose 17.9 Gaetano Marzotto 16.0 Maria Rosaria Marzotto 2.6
Cristiana Marzotto 2.6Margherita Marzotto 1.9
Zignago Holding S.p.A.
Zignago Vetro Group
Glass containersmanufacturer
Santa Margherita S.p.A.
Wine producer
Real estate
FIMIZ S.r.l.
100%
Industrie Zignago SantaMargherita S.p.A.
Shareholders Stake (%)
Santa
Margherita
23%
Others
11%
Zignago Vetro
66% (A)
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Milestones
1979 1994-1995 October 2004 June 2007IZSM
establishes Zignago Vetro
S.p.A. conferring its
glass production plants
IZSM establishes Attività Industriali Friuli S.r.l. (51.0%
owned) 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 2006Zignago Vetro
acquires the 43.5% stake in Vetri Speciali
from IZSM
December 2006IZSM sells its 100%
stake in Zignago Vetro to Zignago
Holding
THE BEGINNING ZIGNAGO VETRO EXPANSION GROUP REORGANIZ ATION
THE BEGINNING ZIGNAGO VETRO EXPANSION GROUP REORGANIZ ATION
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 & Cosmeticsmarkets, High-end Perfumery and Specialty Glass Containers
� In 2007, Group revenues of €241m (33% generated abroad) and EBITDA of€64m (26.7% margin)
� Most profitable Group within the industry with historically above averagemargins
� The management has experience in the industry and turnarounds
� Strong track record in organic growth and selective acquisitions with a14.1% CAGR over last 3 years
Fast growing and profitable niche glass producer de livering a high and rising ROCE
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Competitive StrengthsMain FeaturesProducts2007A Size (€m)
Our Presence in Selected Business Segments
� Personalization
� Small-runproduction
Vetri SpecialiHighly customized specialtyglass containers produced invery short runs with strong focuson efficiencySales €43m
� Innovation
� QualityVerreries BrosseExtraordinary high-quality,tailor-made product offeringand efficiency
Focus on high-end perfumerymarket
Sales €45m
Zignago Vetro � Flexibility
Flexibility, efficiency andtechnical know-how key forsuccess
Focus on selected segmentsof food & beverage andcosmetics & perfumery
� QualitySales €158m
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International Presence with an Italian Footprint
Legend:
Production and distribution DistributionProductionZignago 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
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State-of-the-art,flexible manufacturing plants
Flexible and Efficient Production Process Drives Profi tability
Multi-skilled,flexible workforce
React promptly to marketchanges and requests
Move towards moreprofitable market segments
Flexible,efficient production
Flexible,efficient production
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Process InnovationProduct Innovation
Constant Innovation Boosts Sales
� New products equal to ca. 14% oftotal products
� Highly personalized and complexshapes
� State-of-the-art and in-housetechnology
� High know-how in moulds designingand process development
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Provider of Top Glass Solutions not Simply Quality Glass Containers
Corporate culture committed to highest quality of p roducts and customer service
� Designers’ ideas into feasible products
� Continuous improvement of plants’operations
� Quality control over the whole process
Quality of Products Quality of Customer Service
� Prompt response to requests
� Tailor-made product offering
� Flexible planning
� On-time deliveries
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80%16%Vetri Speciali
50%49%Verreries Brosse
67%15%Zignago Vetro
Customerloyalty 1
Concentrationrate of first 5
clients
Loyalty of customers retained by:
� Meeting and anticipating their needs� Building effective partnerships
Excellent Longstanding Client Relationships and Goo dRevenues Visibility
1 % of clients present also the 2 previous years (data referred to 2007)
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� Fully exploit Verreries Brosse brand potentialadopting 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 in2002 following an insolvency proceeding and
turned it into a successful business
� Sales per employee increased from ca. €64,000in 2002 to ca. €136,000 in 2007
� Verreries Brosse sold 14m units in 2002, and47.5m in 2007
Experienced management team with the ability to cap italise on future acquisition opportunities
Capex trend (€m)
Intermediate achievements
8,9
2,54,1
2,94,6
2,4
2002 2003 2004 2005 2006 2007
18,0
24,929,8 30,9
36,3
45,2
9%
13%
16%17% 17%
21%
10
20
30
40
50
60
70
2002 2003 2004 2005 2006 20070%
5%
10%
15%
20%
25%
Revenues (€m) EBITDA margin (%)
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Italian Food & Beverage Market
� Fast-growing demand in the winesegment boosted by strong exports
� Rebounding demand in the foodsegment
� Increasing demand for higherquality of product and service
� Large multinational competitorsfocused on commodity products andstandardizing service
Source: Zignago Vetro Group
Large multinational comps are focused on volumes an d standardised production,whereas Zignago Vetro is focused on selective segme nts requiring flexibility and service
0
200
400
600
800
1000
1200
1400
1600
1800
2004 2006 2009
04-06CAGR
+3.6%
06-09CAGR
+4.8%
Zignago Vetro04-06 CAGR +4.6%
(€m
)
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0
200
400
600
800
1000
1200
1400
1600
2004 2006 2009
Global Cosmetics & Perfumery Market
� Increasing sophistication in theproducts’ packaging that can be metonly by qualified manufacturers
� Globalisation of multinationalcustomers creating growthopportunities for trusted suppliers
� Shortening of products’ life drivenby fashion cycles favouring fast-reacting suppliers
Source: Zignago Vetro Group
Verreries Brosse and Zignago Vetro compete successf ully leveraging onR&D synergies and an integrated product offering
04-06CAGR
+2.5%
06-09CAGR
+2.8%
ZV + VB04-06 CAGR +6.8%
(€m
)
15
0
100
200
300
400
500
600
700
800
2004 2006 2009
Global Specialty Glass Containers Market
� New, high-growing business
� Increasing demand fuelled by moresophisticated customer marketingfor premium lines(e.g. in wines and spirits)
� Robust demand for small quantitiesand special shapes and colours
� Premium positioning
Source: Zignago Vetro Group
Unique range of products and experienced sales forc e enable Vetri Specialito meet special needs of a more sophisticated marke t
04-06CAGR
+8.1%
06-09CAGR
+8.5%
Vetri Speciali05-06 CAGR +4.5%
(€m
)
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Growth &Profitability
MarketOpportunities
Zignago VetroGroups’ Model
+
Zignago Vetro Group: Positioned for Growth
Flexibility, efficiency, innovation and quality are key competitive advantages
Opportunities and room for fast moving players to o utperform
External growth opportunities
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10,716,8 15,4
24,9
6,6%
8,7%
7,4%
10,4%
0
5
10
15
20
25
30
2004 2005 2006 20072%
4%
6%
8%
10%
Net Results (€m) Margin (%)
2.5
162,1 192,6 209,4 240,7
0
50
100
150
200
250
300
2004 2005 2006 2007
Strong Track-record of Revenues Growth and Top of the M arketProfitability
Revenues (€m) EBITDA (€m)
EBIT (€m) Net Result (€m)
Source: Zignago Vetro Group
Y-o-YGrowth
+18.8%
Y-o-YGrowth
+8.7% 39,649,9 53,8
64,3
24,4%
25,7%
26,7%25,9%
20
30
40
50
60
70
2004 2005 2006 200720%
25%
EBITDA (€m) Margin (%)
18,627,1 31,3
42,9
11,5%
14,1% 14,9%17,8%
05
1015202530354045
2004 2005 2006 20070%
5%
10%
15%
EBIT (€m) Margin (%)
Y-o-YGrowth
+14.9%
1.1
Extraordinary Items
1.2
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Solid Balance Sheet 1 to Support Organic and External Growth
1 Aggregated data is shown in 2004 and 2005
132,5 132,1 121,9 123,2
0
20
40
60
80
100
120
140
160
2004 2005 2006 2007
Net Capital Employed (€m) Net Working Capital (€m)
Net Equity (€m)
34,846,2 42,9 39,9
21,4% 20,5%
16,6%
24,0%
0
10
20
30
40
50
60
2004 2005 2006 20070%
4%
8%
12%
16%
20%
24%
Net working Capital (€m) on sales (%)
Net Financial Debt (€m)
102,1 108,8
61,377,2
0
20
40
60
80
100
120
2004 2005 2006 2007
30,4 23,3
60,546
0
20
40
60
80
2004 2005 2006 2007
Source: Zignago Vetro Group
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Capex (€m) Cash Flow from Operations (€m)
High and Stable Cash Flow From Operations
Capex mainly depends on furnaces refurbishment and capacity increase
Pay-out ratio: approximately 70%, without extraordi nary operations
11,0
16,7
8,5
20,5
21,5
0
5
10
15
20
25
30
35
2004 2005 2006 2007
Net Capex related toVetri Speciali acquisition
Source: Zignago Vetro Group
32,8 33,236,6 38,0
0
5
10
15
20
25
30
35
40
2004 2005 2006 2007
20
34,442,1
25,3% 26,6%
05
1015202530354045
2006 20070%
5%
10%
15%
20%
25%
EBITDA (€m) Margin (%)
9,9
19,8
12,5%
7,3%
0
5
10
15
20
25
2006 20070%
2%
4%
6%
8%
10%
12%
16,4
5,30
5
10
15
20
2006 2007
135,9158,1
020406080
100120140160
2006 2007
2007 ZV results
Revenues (€m) EBITDA and margin evolution
Net result (€m) Net Financial Debt (€m)
+16.3%
1,2
Net result (€m) Extraordinary Items Margin (%)
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45,236,3
51015202530354045
2006 2007
2007 VB results
Revenues (€m) EBITDA and margin evolution
Net result (€m) Net Financial Debt (€m)
+24.3%
16,012,3
0
5
10
15
20
2006 2007
6,29,4
17,0%
20,7%
0
2
4
6
8
10
12
2006 20070%
5%
10%
15%
20%
EBITDA (€m) Margin (%)
3,2
1,1
3,0%
7,1%
0
1
2
3
4
2006 20070%
3%
6%
Net result (€m) Margin (%)
22
2007 VS results (43,5%)
Revenues (€m) EBITDA and margin evolution
Net result (€m) Net Financial Debt (€m)
28,1 28,4
0
10
20
30
40
2006 2007
4,35,1
11,9%10,8%
0
1
2
3
4
5
2006 20070%
3%
6%
9%
12%
Net result (€m) Margin (%)
13,2 13,2
30,6%33,1%
0
5
10
15
2006 20070%
5%
10%
15%20%
25%
30%
35%
EBITDA (€m) Margin (%)
43,239,8
10
20
30
40
2006 2007
+8.3%
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Strategic Guidelines
MarketCorporate
Focus on higher valueadded and fast growing
segments
Strengthen competitivebarriers
Increase sophisticatedclients
Continuousimprovement of businessmodel
Commitment to organicand external growthopportunities
Optimise and expandproduction capacity
Growth+
HighProfitability
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GROWTH + HIGH PROFITABILITY
Zignago Vetro Group’s Highlights
Highly skilled management team with experience in c reating value and turnarounds
Financial flexibility with a solid balance sheet an d strong cash flow to supportgrowth opportunities and dividend distribution
Distinctive business model to boost sales, profitab ility and competitive barriers
Value creation for shareholders