Ermenegildo Zegna N.v. · NYSE:ZGN
Ermenegildo Zegna — Q3 2022 Earnings Presentation
25 slides from Ermenegildo Zegna's earnings presentation, Oct 27, 2022
Slide 1: 3Q 2022 Revenues
3Q 2022 REVENUES October 27, 2022 1
Slide 2: Disclaimer
DISCLAIMER Non-IFRS Financial Measures Zegna’s management monitors and evaluates operating and financial performance using several non-IFRS financial measures including: adjusted earnings before interest and taxes (“Adjusted EBIT”), Adjusted EBIT Margin, and Net Financial Indebtedness/(Cash Surplus)
Slide 3: Some of the Quarter's Key Highlights
SOME OF THE QUARTER’S KEY HIGHLIGHTS 3
Slide 4: 3Q 2022 and 9M 2022 Group Revenues Overview
3Q 2022 and 9M 2022 GROUP REVENUES OVERVIEW 3Q 2022 9M 2022 €357 million €1,086 million +27.5% y-o-y +22.9% y-o-y 4
Slide 5: 3Q 2022 Key Highlights
3Q 2022 KEY HIGHLIGHTS ZEGNA MADE IN ITALY TEXTILE PLATFORM Our Road to Iconicity Our Road to Excellence and Traceability • Full deployment of Zegna One Brand in July • Strength of B2B continues in 3Q • 205 stores (148 DOS) with the new logo since • Textile revenues + 33.3%, Third Party launch of th
Slide 6: 3Q 2022: "Our Road" Key Highlights
3Q 2022: “OUR ROAD” KEY HIGHLIGHTS CONTINUED EXECUTION OF “OUR ROAD” STRATEGY - ON TRACK TO ACHIEVE MID-TERM TARGETS Diversified global presence and broad-based strength REVENUES • Excellent 3Q despite a still disrupted global environment ~2.0 • Global revenues showed an acceleration in 3Q, with a g
Slide 7: "Our Road": Key Strategic Priorities
“OUR ROAD”: KEY STRATEGIC PRIORITIES ZEGNA THOM BROWNE • Continue to execute on One Brand strategy • Continue to execute on the growth roadmap • Further capitalize on luxury leisurewear repositioning, distinctive • Double number of (end) clients while increasing engagement with strengths and buildin
Slide 8: 3Q 2022 and 9M 2022 Group Revenues: Highlights
3Q 2022 and 9M 2022 GROUP REVENUES: HIGHLIGHTS • Revenues of €1,086 million in 9M 2022, + 22.9% y-o-y • Revenues of 357 million in 3Q 2022, + 27.5%, from + 16.3% in 2Q 2022 and + 25.4% in 1Q 2022 • In 3Q, double-digit growth in all segments, product lines, channels, and geographies (with the excepti
Slide 9: 3Q 2022 Group Revenues by Segment
3Q 2022 GROUP REVENUES BY SEGMENT Both segments growing at solid double-digit Revenues by Segment: y-o-y % change in 3Q 2022 • Zegna segment +21.5% in 9M, accelerating in 3Q at +27.2% from + 11% in 2Q 2022 and +27.1% in 1Q 2022 • Thom Browne segment +30.1% in 9M, steady in 3Q at +29.5% • Both see br
Slide 10: 3Q 2022 Group Revenues by Geography
3Q 2022 GROUP REVENUES BY GEOGRAPHY Revenues by Geography^ : y-o-y % change Positive across all regions • Tougher comparison base in 3Q for EMEA and US • +42.8% revenues increase in EMEA led by the MEA region almost doubling revenues in 3Q • consistent double-digit performance in all other countries
Slide 11: 3Q 2022 Group Revenues by Product Line
3Q 2022 GROUP REVENUES BY PRODUCT LINE All product lines grew by double digits Revenues by Product Line ^: y-o-y % change +70.0% • Zegna branded products accelerated in 3Q at +18.6% vs +64.6% +64.2% +56.8% +4.4% in 2Q and +22.1% in 1Q +60.0% +48.4% +50.0% • Recovery in GCR +40.7% +40.0% • Shoes, lux
Slide 12: 3Q 2022 Group Revenues by Channel
3Q 2022 GROUP REVENUES BY CHANNEL DTC acceleration in 3Q 2022 Revenues by Channel ^: y-o-y % change • DTC +15.5% compared to 9M21, accelerating in 3Q to +20.7% thanks to a ~+20% performance by both Zegna and Thom Browne • DTC Zegna branded products +20.5% in 3Q • strong EMEA (MEA almost doubling rev
Slide 13: FY 2022 Guidance
FY 2022 GUIDANCE • Monitoring and adapting to the complex environment • Macro uncertainties, geopolitical turmoil, and resurgence of Covid-19 pandemic in the Greater China Region • Dynamic retail, solid order collection, and positive pricing for FW22 and SS23 • FY22 Revenues Guidance: mid-teens reve
Slide 14: Q&A
Ermenegildo Zegna Group Q&A
Slide 15: Appendix
Ermenegildo Zegna Group
Slide 16: 3Q 2022 Group Revenues by Segment
3Q 2022 GROUP REVENUES BY SEGMENT 9M 2022 9M 2021 Δ% vs 9M 1H 2022 1H 2021 Δ% vs 1H 3Q 2022 3Q 2021 Δ% vs 3Q (€ thousands, except percentages) UNAUDITED UNAUDITED 2021 UNAUDITED UNAUDITED 2021 UNAUDITED UNAUDITED 2021 Revenues 1,085,867 883,328 +22.9% 728,993 603,340 +20.8% 356,874 279,988 +27.5% -
Slide 17: 3Q 2022 Group Revenues by Geography
3Q 2022 GROUP REVENUES BY GEOGRAPHY 9M 2022 9M 2021 Δ% vs 9M 1H 2022 1H 2021 3Q 2022 3Q 2021 Δ% vs 3Q (€ thousands, except percentages) Δ% vs 1H 2021 UNAUDITED UNAUDITED 2021 UNAUDITED UNAUDITED UNAUDITED UNAUDITED 2021 Revenues 1,085,867 883,328 +22.9% 728,993 603,340 +20.8% 356,874 279,988 +27.5%
Slide 18: 3Q 2022 Group Revenues by Product Line
3Q 2022 GROUP REVENUES BY PRODUCT LINE 9M 2022 9M 2021 Δ% vs 9M 1H 2022 1H 2021 3Q 2022 3Q 2021 Δ% vs 3Q (€ thousands, except percentages) Δ% vs 1H 2021 UNAUDITED UNAUDITED 2021 UNAUDITED UNAUDITED UNAUDITED UNAUDITED 2021 Revenues 1,085,867 883,328 +22.9% 728,993 603,340 +20.8% 356,874 279,988 +27.
Slide 19: 3Q 2022 Group Revenues by Channel
3Q 2022 GROUP REVENUES BY CHANNEL 9M 2022 % on 9M 2021 % on Δ% vs 9M 1H 2022 1H 2021 3Q 2022 3Q 2021 Δ% vs 3Q (€ thousands, except percentages) Δ% vs 1H 2021 UNAUDITED rev. UNAUDITED rev. 2021 UNAUDITED UNAUDITED UNAUDITED UNAUDITED 2021 Revenues 1,085,867 100% 883,328 100% +22.9% 728,993 603,340 +2
Slide 20: Monobrand Store Network
MONOBRAND1 STORE NETWORK Thom Browne increasing DTC points-of-sale, Zegna streamlining its footprint as of September 30th, 2022 as of December 31st, 2021 THOM THOM # Stores ZEGNA GROUP ZEGNA GROUP BROWNE BROWNE EMEA 66 10 76 69 9 78 Americas 52 6 58 50 5 55 APAC 124 41 165 126 38 164 DTC 242 57 299
Slide 21: Non-IFRS Financial Measures
Non-IFRS Financial Measures Zegna’s management monitors and evaluates operating and financial performance using several non-IFRS financial measures including: adjusted earnings before interest and taxes (“Adjusted EBIT”), Adjusted EBIT Margin, and Net Financial Indebtedness/(Cash Surplus). Zegna’s m
Slide 22: Non-IFRS Financial Measures: Adjusted EBIT
Non-IFRS Financial Measures Adjusted EBIT For the six months ended June 30, (€ thousands) 2022 2021 Profit 21,021 32,234 Income taxes 27,050 32,284 Financial income (15,901) (32,531) Financial expenses 41,965 16,685 Exchange losses 9,893 2,728 Result from investments accounted for using the equity m
Slide 23: Non-IFRS Financial Measures: Net Financial Indebtedness/(Cash Surplus)
Non-IFRS Financial Measures Net Financial Indebtedness/(Cash Surplus) (€ thousands) At June 30, 2022 At December 31, 2021 Non-current borrowings 306,178 471,646 Current borrowings 246,470 157,292 Derivative financial instruments - Liabilities 21,483 14,138 Other non-current financial liabilities (ot
Slide 24: Glossary and Definitions
Glossary and Definitions (1) y-o-y: used to refer to year-on-year growth rate. All growth rates are at actual currency (2) Growth rates in this presentation are year-on-year unless specified differently (3) FX: means foreign exchange or currency (4) M: may be used to refer to million (5) d-d: means
Slide 25: Investor Relations Contact
INVESTOR RELATIONS CONTACT Investor Relations & Group Corporate Communications Francesca Di Pasquantonio francesca.dipasquantonio@zegna.com +39 335 5837669 25