Ermenegildo Zegna N.v. · NYSE:ZGN
Ermenegildo Zegna — FY2023 Earnings Presentation
35 slides from Ermenegildo Zegna's earnings presentation, Jan 31, 2024
Slide 1: FY/4Q 2023 Preliminary Revenues
FY/4Q 2023 PRELIMINARY REVENUES January 31, 2024 4Q 2023 and FY 2023 Revenues are Preliminary and Unaudited. DATE 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, revenues on a constant currency basis (Consta
Slide 3: Ermenegildo Zegna Group
Ermenegildo Zegna Group “lam very proud of the Group’s success over the past year, which is demonstrated by our strong and continued revenues growth. The significant increase in our revenues in 2023, and especially from our network of directly operated stores, is a clear indication that demand for o
Slide 4: Group Key Highlights
GROUP KEY HIGHLIGHTS 4Q 2023 Revenues1 FY 2023 Revenues1 €570 million €1.9 billion +40.1% YoY +27.6% YoY +42.9% cFX2 +29.7% cFX2 +19.6% organic2 +19.3% organic2 Medium-term Outlook (vs 2023E) > 10% compounded annual revenues growth c. 20% compounded annual Adjusted EBIT3 growth Solid cash generation
Slide 5: Select Highlights and Recent Events
SELECT HIGHLIGHTS AND RECENT EVENTS ZEGNA Our Focus on Execution THOM BROWNE • Thom Browne upcoming fashion show in New York, February 14, 2024 • ZEGNA renews eyewear partnership with Marcolin • ZEGNA announced a long-term license agreement TOM FORD FASHION with Give Back Beauty for fragrances and c
Slide 6: Group Revenues
GROUP REVENUES • FY 2023 revenues of €1.9 billion • +27.6% YoY • +29.7% in cFX • +19.3% organic growth • 4Q 2023 revenues of €570 million • +40.1% YoY • +42.9% in cFX • +19.6% organic growth • Continued double-digit growth for Zegna and Thom Browne revenues in 4Q • Zegna segment revenues reach €385
Slide 7: Revenues by Segment
REVENUES BY SEGMENT Ermenegildo Zegna Group
Slide 8: 4Q 2023 and FY 2023 Revenues by Segment
4Q 2023 AND FY 2023 REVENUES BY SEGMENT ZEGNA THOM BROWNE TOM FORD FASHION 4Q 2023: €385 million* 4Q 2023: €99 million 4Q 2023: €97 million* (+15.2% YoY, +18.2% organic growth) (+30.2% YoY, +24.6% organic growth) FY 2023: €1,322 million* April 29 – December 31: €236 million* FY 2023: €380 million (+
Slide 9: Revenues by Geography
REVENUES BY GEOGRAPHY Ermenegildo Zegna Group
Slide 10: 4Q 2023 and FY 2023 Revenues by Geography
4Q 2023 AND FY 2023 REVENUES BY GEOGRAPHY North America 4Q 2023: €132 million (+60.1% YoY, +60.9% cFX and APAC +3.2% organic growth) FY 2023: €417 million (+41.6% YoY, +40.4% cFX and 4Q 2023: €241 million (+39.0% YoY, +44.3% cFX +11.4% organic growth) and +32.0% organic growth) FY 2023: €788 million
Slide 11: 4Q 2023 and FY 2023 Revenues by Geography
4Q 2023 AND FY 2023 REVENUES BY GEOGRAPHY • North America highest reported growth also supported by Tom Ford Fashion consolidation • Double-digit organic growth across all regions for both FY 2023 and 4Q FY 2023 REVENUES BY GEOGRAPHY 2023, with the exception of North America in 4Q 2023 Latin America
Slide 12: Revenues by Product Line
REVENUES BY PRODUCT LINE Ermenegildo Zegna Group iil i}
Slide 13: 4Q 2023 and FY 2023 Revenues by Product Line
4Q 2023 AND FY 2023 REVENUES BY PRODUCT LINE Zegna-Branded Products FY 2023 REVENUES • €326 million in 4Q 2023 (+18.8% YoY, +20.9% organic); €1,109 million in FY 2023 (+20.1% YoY, +22.3% organic) BY PRODUCT LINE • Luxury leisurewear revenues performed strongly, now making up ~50% of revenues. Footwe
Slide 14: Revenues by Channel
REVENUES BY CHANNEL Ermenegildo Zegna Group
Slide 15: 4Q 2023 and FY 2023 Revenues by Channel - DTC
4Q 2023 AND FY 2023 REVENUES BY CHANNEL - DTC Strong double-digit organic growth across Zegna-Branded Thom Browne Products and Thom Browne in FY 2023 • €57 million in 4Q 2023 (+33.0% YoY, +13.3% organic) • €400 million in 4Q 2023 (+ 46.3% YoY, +24.3% organic) • €183 million in FY 2023 (+25.9% YoY, +
Slide 16: 4Q 2023 and FY 2023 Revenues by Channel - Wholesale
4Q 2023 AND FY 2023 REVENUES BY CHANNEL - WHOLESALE Impact of deliveries shifts and conversions of wholesale Thom Browne doors • €41 million in 4Q 2023 (+25.8% YoY, +39.7% organic) • €169 million in 4Q 2023 (+27.6% YoY, +8.9% organic) • Low base of comparison in 4Q 2022 • €635 million in FY 2023 (+1
Slide 17: Mono-Brand Store Network
MONO-BRAND1 STORE NETWORK At December 31, 2023 At December 31, 2022 Thom Tom Ford Thom Stores Zegna Group Zegna Group Browne Fashion Browne EMEA (2) 71 9 4 84 65 10 75 Americas (3) 59 7 12 78 53 7 60 APAC 123 70 35 228 121 46 167 Total Direct to Consumer (DTC) 253 86 51 390 239 63 302 EMEA (2) 55 7
Slide 18: Outlook
OUTLOOK 18
Slide 19: Medium Term Outlook
MEDIUM TERM OUTLOOK • Deliver over 10% compounded annual revenues growth • Adjusted EBIT CAGR of ~20% • Solid cash generation • Base year is 2023E Assuming no major future worsening of the global geopolitical, health, macroeconomic and financial markets situation, and no other unforeseen events. 19
Slide 20: Q&A
Q&A Ermenegildo Zegna Group 20
Slide 21: Appendix
APPENDIX 21
Slide 22: Group Revenues by Segment (Preliminary and Unaudited)
GROUP REVENUES BY SEGMENT (PRELIMINARY AND UNAUDITED) 22
Slide 23: Group Revenues by Segment - Reconciliation Tables
GROUP REVENUES BY SEGMENT (PRELIMINARY AND UNAUDITED) Reconciliation Tables The tables above show a reconciliation of revenue growth for the twelve months ended December 31, 2023 and for the three months ended December 31, 2023 to organic growth for the same periods by 23 segment and at the Group le
Slide 24: Group Revenues by Product Line (Preliminary and Unaudited)
GROUP REVENUES BY PRODUCT LINE (PRELIMINARY AND UNAUDITED) 24
Slide 25: Group Revenues by Product Line - Reconciliation Tables
GROUP REVENUES BY PRODUCT LINE (PRELIMINARY AND UNAUDITED) Reconciliation Tables The tables above show a reconciliation of revenue growth for the twelve months ended December 31, 2023 and for the three months ended December 31, 2023 to organic growth for the same periods by product line and at the G
Slide 26: Group Revenues by Sales Channel (Preliminary and Unaudited)
GROUP REVENUES BY SALES CHANNEL (PRELIMINARY AND UNAUDITED) 26
Slide 27: Group Revenues by Sales Channel - Reconciliation Tables 1
GROUP REVENUES BY SALES CHANNEL (PRELIMINARY AND UNAUDITED) Reconciliation Tables /1 The table above shows a reconciliation of revenue growth for the twelve months ended December 31 to organic growth for the same period by sales channel and at the Group level. 27
Slide 28: Group Revenues by Sales Channel - Reconciliation Tables 2
GROUP REVENUES BY SALES CHANNEL (PRELIMINARY AND UNAUDITED) Reconciliation Tables /2 The table above shows a reconciliation of revenue growth for the three months ended December 31 to organic growth for the same period by sales channel and at the Group level. 28
Slide 29: Group Revenues by Geographical Area (Preliminary and Unaudited)
GROUP REVENUES BY GEOGRAPHICAL AREA (PRELIMINARY AND UNAUDITED) 29
Slide 30: Group Revenues by Geographical Area - Reconciliation Tables 1
GROUP REVENUES BY GEOGRAPHICAL AREA (PRELIMINARY AND UNAUDITED) Reconciliation Tables/1 The table above show a reconciliation of revenue growth for the twelve months ended December 31, 2023 to organic growth for the same periods by geographical area and at the Group level. 30
Slide 31: Group Revenues by Geographical Area - Reconciliation Tables 2
GROUP REVENUES BY GEOGRAPHICAL AREA (PRELIMINARY AND UNAUDITED) Reconciliation Tables/2 The table above show a reconciliation of revenue growth for the three months ended December 31, 2023 to organic growth for the same periods by geographical area and at the Group level. 31
Slide 32: 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, revenues on a constant currency basis (Constant Currency
Slide 33: Non-IFRS Financial Measures
Non-IFRS Financial Measures Constant Currency Revenues. In addition to presenting our revenues on a current currency basis, we also present certain revenue information on a constant currency basis (Constant Currency), which excludes the effects of foreign currency translation from our subsidiaries w
Slide 34: 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) cFX growth: means growth at constant currency. For the description of constant currency calcu
Slide 35: Investor Relations Contacts
INVESTOR RELATIONS CONTACTS Investor Relations / Group Communications / Media Francesca Di Pasquantonio / Clementina Tito ir@zegna.com / corporatepress@zegna.com 35