Ermenegildo Zegna N.v. · NYSE:ZGN
Ermenegildo Zegna — Investor Day (May 2022)
135 slides from Ermenegildo Zegna's investor day presentation, May 17, 2022
Slide 1: Capital Markets Day
CAPITAL MARKETS DAY Oasi Zegna, 17TH May, 2022 17/05/22 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”), Net Financial Indebtedness/(Cash Surplus) and Capital Expenditure.
Slide 3: Agenda
CAPITAL MARKETS DAY OASI ZEGNA, TRIVERO MAY 17TH 2022 AGENDA 1. GILDO ZEGNA WELCOME, INTRODUCTION AND LONGTERM VISION AND GOALS 2. EDOARDO ZEGNA SUSTAINABILITY STRATEGY: FROM OASI ZEGNA TO SUSTAINABILITY AND ESG COMMITMENTS 3. GILDO ZEGNA THE EZ GROUP INDUSTRIAL EXCELLENCE 4. EDOARDO ZEGNA ZEGNA: WH
Slide 4: Our Road to Tomorrow
OUR ROAD TO TOMORROW 17/05/22 4
Slide 5: Our Road to Tomorrow
OUR ROAD TO TOMORROW OUR ROAD BEGAN WITH A VISION AND A DREAM OF A MAN WHO TRANSFORMED IDEAS INTO FABRICS, WEAVING A FOREST, A COMMUNITY AND A NEW STYLE OF LIFE INSPIRED BY THE JOURNEY HE TRAVELED SO FAR, WE MOVE FORWARD ON OUR ROAD TO TOMORROW 17/05/22 5
Slide 6: Our Road to Tomorrow
OUR ROAD TO TOMORROW THE ROAD AHEAD THAT ZEGNA KEEPS RUNNING ORIGINATED IN 1910, UNWINDING THROUGH ERA DEFINING MILESTONES WHILST POINTING FIRMLY TOWARD WHAT’S NEXT 17/05/22 6
Slide 7: Our Road to Tomorrow
OUR ROAD TO TOMORROW SUCH LANDMARKS INCLUDE THE ORIGINATION OF A WOOL MILL THAT TURNED INTO A LUXURY MENSWEAR BRAND ZEGNA, WHICH SPAWNED A WHOLE GROUP, ENCOMPASSING THE BRAND THOM BROWNE; AN UNRIVALLED TEXTILE MANUFACTURING PLATFORM; AN ENVIRONMENTAL PROJECT SET UP EARLY ON, KNOWN AS OASI ZEGNA; LAS
Slide 8: Our Road to Tomorrow
OUR ROAD TO TOMORROW THIS ROAD IS OUR INSPIRATION AS IT DEFINES OUR PATH, WOVEN INTO EVERYTHING WE DO FOR OVER 110 YEARS BY ECHOING THE ESSENTIAL TRUTH OF OUR FOUNDER ERMENEGILDO TO WEAVE THE FABRIC OF A TOMORROW THAT FEELS WORTHY OF OUR DREAMS 17/05/22 8
Slide 9: Our Road to Tomorrow Is About
OUR ROAD TO TOMORROW IS ABOUT _OUR BRANDS _OUR LUXURY TEXTILE LABORATORY PLATFORM _OUR SUSTAINABILITY / ESG AMBITIONS _OUR MEDIUMTERM GOALS 17/05/22 9
Slide 10: Fabric Is Our Super Power
FABRIC IS OUR SUPER POWER THE ESSENTIAL TRUTH OF ZEGNA HAS BEEN WOVEN INTO EVERYTHING WE DO FOR OVER 110 YEARS IT’S OUR FABRIC WHICH WAS THE BOLD AMBITION OF OUR FOUNDER TO BE A FORCE FOR GOOD IN THE WORLD OUR FABRIC TALKS ABOUT OUR CULTURE OF BEAUTY AS FAR AS ZEGNA REMAINS AN INDUSTRIOUS MASTER OF
Slide 11: Fabric Is Our Nature
FABRIC IS OUR NATURE SOURCED FROM ALL OVER THE WORLD WHERE EXCELLENCE IS, WE SHARE OUR FABRICS WITH OTHER BRANDS AND CREATORS AS FAR AS WE ACT AS A PLATFORM FOR THEIR IMAGINATION IN A CONSTANT QUEST FOR CREATIVITY, INNOVATION AND QUALITY FABRIC IS ELEMENTAL TO ZEGNA. IT IS OUR HEARTBEAT, OUR PASSION
Slide 12: Excellence Is Our Credo
EXCELLENCE IS OUR CREDO EXELLENCE IS INSTRUMENTAL IN GENERATING NEW THOUGHT, IN CREATING CONNECTIONS AND DIALOGUE, IN PRODUCING VALUES SHARED COLLECTIVELY AND INTERNATIONALLY EXCELLENCE IS INDEED A DEEP ORGANIC PLATFORM, BEING THE RESULT OF AN ETHOS THAT KEEPS TOGETHER PEOPLE AND ENVIRONMENT, VALUES
Slide 13: Our Ethic of Beauty
OUR ETHIC OF BEAUTY VERTICALLY INTEGRATED AND WITH A WIDENING SPAN OF ACTIVITIES, THE IDENTITY OF ZEGNA IS BASED ON A FEARLESS VISION AND A CONTINUOUS QUEST FOR INNOVATION, FOSTERING BEAUTY AS A VALUE INVESTING IN A CULTURE OF BEAUTY FOR THE BRAND MEANS PROMOTING KNOWLEDGE AND A SOCIAL CAPITAL OF RE
Slide 14: Responsibility Is Our Mindset
RESPONSIBILITY IS OUR MINDSET AT THE CORE, WHAT SETS OUR GROUP APART, IS THE VIEW OF THE INDUSTRY AS SOMETHING INTEGRATED INTO THE WIDER SOCIAL SCENARIO, LOCAL AS WELL AS GLOBAL AT ZEGNA GROUP, RESPONSIBILITY MEANS THAT INDUSTRIAL ACTIVITIES SHOULD NOT HARM THE ENVIRONMENT, TO CREATE A LIFESTYLE WHI
Slide 15: A Cross-Generational Mission
A CROSS-GENERATIONAL MISSION SUCH ATTENTION TO THE WORLD OUTSIDE THE FACTORY IS MANDATORY FOR THE GROUP: THE MISSION, PASSED ON FROM ONE GENERATION TO THE NEXT TOGETHER WITH VISIONARY ENTREPRENEURIAL FINESSE,TO CREATING BEAUTIFUL THINGS OF THE FINEST QUALITY, KNOWING THAT BEAUTY AND ETHICS, WHICH ES
Slide 16: A Leading, Modern and Integrated Group
A LEADING, MODERN AND INTEGRATED GROUP ZEGNASEGMENT THOM BROWNE SEGMENT ZEGNABRAND:LEADERINGLOBAL ONE OF A KIND MADE IN ITALY LUXURY TEXTILE DISTINCTIVE MODERN LUXURY LUXURYMENSWEAR* LABORATORY PLATFORM LEVERAGINGTHE GROWTH OF LUXURY LEISUREWEAR ONE-OF-A-KIND PLATFORM PRODUCING THE HIGHEST A UNIQUE
Slide 17: The Luxury Industry Is Changing
THE LUXURY INDUSTRY IS CHANGING 17/05/22 17
Slide 18: And We Changed With It
AND WE CHANGED WITH IT…. … OUR ROAD TO TOMORROW NOW AS A PUBLIC COMPANY 17/05/22 18
Slide 19: The Luxury Industry Changed: Consumers Are Younger and More Domestic
THE LUXURY 2019-2021: INDUSTRY CHANGED: WE CHANGED WITH IT CONSUMERS ARE… • ATTRACTING NEW CONSUMERS WHILE CULTIVATING THE LOYALTY OF EXISTING CUSTOMERS YOUNGER • FROM FORMAL TO LUXURY LEISUREWEAR • ZEGNA AS ONE BRAND AND THOM BROWNE • CRM TOOLS AND LOCAL CLIENT ENGAGEMENT MORE DOMESTIC • COMMUNICAT
Slide 20: The Luxury Industry Changed: Consumers Are More Connected, Selective
THE LUXURY 2019-2021: INDUSTRY CHANGED: WE CHANGED WITH IT CONSUMERS ARE… • DEVELOPED A FULLY INTEGRATED OMNICHANNEL APPROACH ACROSS MULTIPLE TOUCHPOINTS MORE • DIGITAL AS A SERVICE CONNECTED • THE POWER OF DATA ANALYTICS • LEVERAGE ON SUSTAINABILITY DNA AND BOLDLY COMMUNICATE BRAND VALUES • DEVELOP
Slide 21: A 112 Years Young Company with Vast Opportunities
WE ARE A 112 YEARS YOUNG COMPANY… …WITH VAST OPPORTUNITIES AHEAD OF US • MARKET SHARE OPPORTUNITY AND UNDERLYING CASUALWEAR AND LEISUREWEAR MARKET GROWTH TO DRIVE A REBALANCING IN GEO MIX • FOCUS ON DIRECT DISTRIBUTION AND OMNICHANNEL PRODUCTIVITY • OPPORTUNITY IN OUR RETAIL NETWORK • ACCELERATE ON
Slide 22: Zegna One Brand Strategy
ZEGNA ONE BRAND STRATEGY FOCUSED UNIQUENESS AND DISTINCTIVENESS OF THE BRAND UNDISPUTED AUTHORITY IN MEN CATEGORIES AUTHENTICITY AND QUALITY AS KEY VALUES IDENTIFY AND AMPLIFY ON KEY PILLARS PRICING REFLECTIVE OF PRODUCT QUALITY 17/05/22 22
Slide 23: Thom Browne High Potential
THOM BROWNE HIGH POTENTIAL THOM BROWNE IS A SMALL, ICONIC PLAYER, WITH THE POTENTIAL TO DOUBLE IN THE MID TERM 17/05/22 23
Slide 24: Our Made in Italy Platform
OUR MADE IN ITALY PLATFORM OUR TEXTILE AND MANUFACTURING PLATFORMS TO SUPPORT THIS GROWTH INDUSTRIAL KNOW-HOW & MADE IN ITALY • INTERNALIZATION OF CORE COMPETENCES A UNIQUE COMPETITIVE ADVANTAGE • MADE IN ITALY OVER 75%* VERTICAL INTEGRATION • CONSOLIDATION AND FURTHER INVESTMENTS • HIRING IN ITALY
Slide 25: Investing in Our Assets
INVESTING IN OUR ASSETS INVESTING IN OUR BRANDS • STEPPING UP MARKETING INVESTMENTS TO SUPPORT GROWTH INVESTING IN PEOPLE • MADE IN ITALY MANUFACTURING PLATFORM SUPPORTS • ITALIAN NET HIRING • NURTURE TALENTS • ACCADEMIA DEI MESTIERI • DRIVING INCLUSIVITY: REFUGEES INITIATIVE 17/05/22 25
Slide 26: Investing in Our Assets
INVESTING IN OUR ASSETS INVESTING IN TECHNOLOGY & DISTRIBUTION • STRENGTHENING OMNICHANNEL • CRM AND CLIENTELING CAPABILITIES – Z2C (Zegna To Consumer) • ALWAYS UPDATING OUR RETAIL NETWORK &THOM BROWNE FOOTPRINT EXPANSION INVESTING IN INNOVATION • SOURCING: QUALITY AND TRACEABILITY • PRODUCT/MATERIA
Slide 27: Sustainability
SUSTAINABILITY OUR COMMITMENT TO SUSTAINABILITY OUR LEGACY:TRUE TO OUR ROOTS AND OUR VALUES MADE IN ITALY LUXURY TEXTILE PLATFORM • TRACEABILITY • CIRCULARITY • RENEWABLE ENERGY • RESPECT FOR THE WORKFORCE WALK THE WALK : EMBED ESG VALUES IN OUR PRODUCTS OASI AS A SYNONYM OF SUSTAINABILITY • OASI CA
Slide 28: Our Medium Term Financial Ambition
OUR MEDIUM TERM FINANCIAL AMBITION…. REVENUES - € BILLION ADJ. EBIT AS % OF REVENUES ˜2.0 >15.0% 11.5% 1.3 2021 Mid-term 2021 Mid-term 17/05/22 28
Slide 29: Sustainability Strategy: From Oasi Zegna to ESG Commitments
SUSTAINABILITY STRATEGY: FROM OASI ZEGNA TO SUSTAINABILITY AND ESG COMMITMENTS 17/05/22 29
Slide 30: Our Road to Tomorrow
OUR ROAD TO TOMORROW 1930: ERMENEGILDO ZEGNA SUSTAINABILITY REPORT A DREAM BECAME REALITY 1. GIVE LIFE TO A MOUNTAIN 1. PLANTED MORE THAN 500,000 TREES 2. DEVELOPED OUR HOMETOWN, 2. BUILD A COMMUNITY BUILDING A HOSPITAL, AN AND GIVE BACK ORPHANAGE, AND A SWIMMING POOL 3. CONNECT TO THE WORLD 3. BUIL
Slide 31: We Asked Our Stakeholders What Matters to Them
OUR ROAD TO TOMORROW 2022:WEASKED OUR STAKEHOLDERS WHAT MATTERS TO THEM TOP MATERIALS TOPICS Importance of selected topics according to Stakeholders - scores 1 to 4 Human & Employees Sustainable Carbon Emissions Labor Rights Well Being Sourcing & Energy MGMT Packaging & Raw Materials DE&I Traceabili
Slide 32: Our Commitments
OUR ROAD TO TOMORROW OUR COMMITMENTS COMMITMENT 1 COMMITMENT 2 COMMITMENT 3 MADE IN ITALY,TRANSPARENTLY! WEAVING THE FABRIC OF TOMORROW TRUE OASI, HOME OF OUR VALUES TO OUR FOUNDER’S VISION 17/05/22 32
Slide 33: Commitment 1: Made in Italy, Transparently
OUR ROAD TO TOMORROW OUR COMMITMENTS COMMITMENT 1: MADE IN ITALY, TRANSPARENTLY! WE ARE PROUDLY ITALIAN AND WE COMMIT TO HAVING THE MAJORITY OF OUR VALUE CHAIN IN ITALY, MARKING THE CLOTHING WE PRODUCE WITH A “MADE IN” LABEL THAT REFLECTS THE HIGHEST QUALITY AND CRAFTMANSHIP IN THE WORLD WE COMMIT T
Slide 34: Commitment 1 Made in Italy, Transparently
OUR ROAD TO TOMORROW TRANSPARENCY RESPONSIBLE & TRACEABILITY SOURCING AND COMMITMENT 1 OF PRODUCTS SUPPLY CHAINS AND PRODUCTIONS AREAS OF MADE IN ITALY, INTERVENTION TRANSPARENTLY! GOVERNANCE AND SOURCING POLICIES 17/05/22 34
Slide 35: Commitment 2: Weaving the Fabric of Tomorrow
OUR ROAD TO TOMORROW OUR COMMITMENTS COMMITMENT 2: WEAVING THE FABRIC OF TOMORROW TRUE TO FOUNDER’S VISION SINCE 1910, WE HAVE CULTIVATED ITALIAN CRAFTSMANSHIP AND KNOW-HOW AND INVESTED IN THE ITALIAN COMMUNITIES. THIS IS ONE OF THE WAYS WE GIVE BACK TO WHO HAS GIVEN US THE MOST, ITALY. WE ALSO WANT
Slide 36: Commitment 2 Weaving the Fabric of Tomorrow
OUR ROAD TO TOMORROW COMMITMENT 2 COLLABORATIONS WITH UNIVERSITIES RESPONSIBLE FARMING WEAVING NGOS AND INSTITUTIONS THE FABRIC AREAS OF INTERVENTION OF A TOMORROW TRUE TO OUR FOUNDER’S VISION DIVERSITY, EQUITY & INCLUSION EMPLOYEES’ WELL-BEING 17/05/22 36
Slide 37: Commitment 3: Oasi, Home of Our Values
OUR ROAD TO TOMORROW OUR COMMITMENTS COMMITMENT 3: OASI, HOME OF OUR VALUES OASI AS ONGOING ACTIONS OF SUSTAINABLE IDENTITY OASI ZEGNA IS OUR ECOSYSTEM. IT IS A UNIQUE EXAMPLE OF A MAN-GROWN NATURAL TERRITORY WITH A PERFECT BALANCE OF PEOPLE, NATURE, AND WILDLIFE IT ALSO EMBODIES OUR VISION AND A MI
Slide 38: Commitment 3 Oasi, Home of Our Values
OUR ROAD TO TOMORROW COMMITMENT 3 OASI, HOME CLIMATE CHANGE, PRESENCE & OF OUR VALUES WATER, CHEMICALS, BIODIVERSITY & PLASTICS AREAS OF INTERVENTION ENGAGEMENT WITH LOCAL COMMUNITIES OASI AS ONGOING ACTIONS OF SUSTAINABLE IDENTITY 17/05/22 38
Slide 39: Commitment 1: Made in Italy, Transparently
COMMITMENT 1: MADE IN ITALY, TRANSPARENTLY! • TOP PRIORITY* RAW MATERIALS WITH AT LEAST 50% TRACED TO GEOGRAPHY OF ORIGIN AND FROM LOWER-IMPACT SOURCES BY 2026 • >90% MADE IN ITALY SUPPLY OF YARNS & FABRICS BY 2025 • PRODUCT RAW MATERIALS TRACKING: >95% OF PRODUCTS ENABLED WITH A PRODUCT TRACEABILIT
Slide 40: Commitment 2: Weaving the Fabric of Tomorrow
COMMITMENT 2: WEAVING THE FABRIC OF TOMORROW • DEVELOP A BIODIVERSITY LABORATORY IN OASI ZEGNA, IN COLLABORATION WITH NGOS AND UNIVERSITIES, TO STUDY IMPACT AND ADAPTATION STRATEGIES TO CLIMATE CHANGE FOR ALPINE ENVIRONMENTS • IMPACT INVESTING ON WOOL, CASHMERE & COTTON RAW MATERIAL SOURCES WITH REG
Slide 41: Commitment 3: Oasi, Home of Our Values
COMMITMENT3: OASI, HOME OF OUR VALUES • CLIMATE CHANGE COMMITMENT WITH SBTI, TARGETS SUBMITTED BY 2022 • 100% ELECTRICITY FROM RENEWABLE SOURCES IN EUROPE & US BY 2024, 100% FOR THE GROUP BY 2027 (SCOPE 2) • 100% FULLY ELECTRIC OF PLUG-IN HYBRID CORPORATE VEHICLES BY 2025 (SCOPE 1) • ASSESS WATER FO
Slide 42: Industrial Excellence
INDUSTRIAL EXCELLENCE FROM TRADITION TO INNOVATION AND TECH 17/05/22 42
Slide 43: Industrial Excellence: Our Story of Vertical Integration
INDUSTRIAL EXCELLENCE OUR UNIQUE STORY OF VERTICAL INTEGRATION FROM SHEEP TO SHOP, FROM MEN TO TERRITORY, FROM FACTORY TO PEOPLE THIS IS OUR FOUNDER’S ORIGINAL DREAM: A FULLY INTEGRATED STRUCTURE CONNECTING ANIMALS TO HUMANS,THE NATURAL ENVIRONMENT TO LOCAL COMMUNITIES, WITH A CIRCULAR SUPPLY CHAIN
Slide 44: Industrial Excellence
INDUSTRIAL EXCELLENCE FROM TRADITION TO INNOVATION & TECHNOLOGY: OUR UNIQUE STORY OF VERTICAL INTEGRATION • WE ARE PROUDLY INDUSTRIAL • ONE-OF-A-KIND CRAFTSMANSHIP (THAT SERVICES OUR OWN BRANDS AS WELL AS MAJOR GLOBAL LUXURY PLAYERS) 17/05/22 44
Slide 45: Supply Chain Footprint
SUPPLY CHAIN FOOTPRINT PLANTS AND DISTRIBUTION CENTERS Ubertino (Biella) Cappellificio Cervo (Biella) (BI) (BI) Lanificio Zegna (BI) Mendrisio (CH) Mens fabrics Sleeves units, shirts, trousers Mendrisio (CH) New Jersey SanPietro Mosezzo (NO) Parma sleeve units, shirts, trousers Second level Sleeve u
Slide 46: Industrial Excellence Rooted in Supply Chain Control
INDUSTRIAL EXCELLENCE ROOTED IN SUPPLY CHAIN CONTROL ZEGNA GROUP SUPPLY CHAIN STRATEGY: FULL CONTROL ON KEY ELEMENTS OF THE CHAIN >75% MADE IN ITALY* CONTROL LEVEL DESIGN PROTOTYPING/SAMPLES PRODUCTION • SLEEVE UNITS • SHIRTS • SLEEVE UNITS • BELTS • MADE-TO-MEASURE IN-HOUSE • KNITWEAR • MOST OF KNI
Slide 47: Industrial Excellence: Vertical Integration
INDUSTRIAL EXCELLENCE FROM TRADITION TO INNOVATION &TECHNOLOGY: OUR UNIQUE STORY OFVERTICAL INTEGRATION PROCUREMENT • PRIVILEGED PROCUREMENT OF FINEST FIBRES AND FABRICS • LONG-STANDING RELATIONSHIPSWITH SUPPLIERS • ENHANCEDTRACEABILITY AND QUALITY CONTROL OF THE RAW MATERIALS RESEARCH AND INNOVATIO
Slide 48: Industrial Excellence: Key Competitive Advantage
INDUSTRIAL EXCELLENCE SUPPLY CHAIN CONTROL AND INDUSTRIAL OPERATIONS EXCELLENCE A KEY COMPETITIVE ADVANTAGE • QUALITY OF PRODUCTS AND SERVICES • PROCESSES CONTROL • INNOVATION OF PRODUCT AND PROCESS • REDUCTION OF COMPLEXITIES • SPEED • RELIABILITY • SOURCING ANDTRACEABILITY • SCALE BENEFITS 17/05/2
Slide 49: Industrial Excellence: #UsetheExisting, Made-to-Measure, Digitalization
INDUSTRIAL EXCELLENCE #UsetheExisting Made-To-Measure Digitalization of the garment Making the dream of zero waste possible The king of services From design, to sampling and customer customization 1. 01. Prime Matter SWATCHBOOK Threads 15% waste 2. PATTERN BASED 3DSAMPLES 3. #UsetheExisting Fabric c
Slide 50: Made-to-Measure: Our Key Competitive Advantage
MADE-TO-MEASURE: OUR KEY COMPETITIVE ADVANTAGE CONFIDENTIAL 1MTM/MTO PEER 1 PEER 2 PEER 3 PEER 4 PEER 5 TAILORED JACKETS TAILORED LIMITED LIMITED LIMITED LIMITED LIMITED JACKETS OUTERWEAR OUTERWEAR JERSEY KNITWEAR DENIM LLC SHOES Service 3-4 weeks1 4-7 weeks 5 weeks na 6-8 weeks na Source: Company i
Slide 51: Investing in Our Competitive Advantage: Capex and People
INDUSTRIAL EXCELLENCE INVESTING IN OUR COMPETITIVE ADVANTAGE: CAPEX AND PEOPLE • CONTINUINGTO INVEST IN OUR SUPPLY CHAIN AND STRENGTHENING OURVERTICAL INTEGRATION THROUGH SELECTIVE ACQUISITIONS • BIAGIOLI LATEST EXAMPLE, MORE OPPORTUNITIES AHEAD • EXPANSION OF CAPACITY • HEADCOUNT GROWTH IN ITALY •
Slide 52: We Innovate Efficiently
WE INNOVATE… …EFFICIENTLY MTM ULTRAFAST: 15 DAYS FROM ORDER TO CUSTOMER HANDS INDUSTRIAL FIXED COSTS EFFICIENCIES -12% 3000 N. OF PIECES 2100 SEASON TO DATE (9 MAY) 650 SS21 FW21 SS22 2019 2021 N. OF STORES 1 7 7 8 CATEGORIES OFFERED PROTOTYPING LEAD TIMES SUPPLIERS RATIONALIZATION SHIRT SLEEVE UNIT
Slide 53: Supply Chain Upcoming Projects
SUPPLY CHAIN UPCOMING PROJECTS PROJECT LOCATION TARGET NEW HIRINGS (BC) EXPECTED TIMING INTERNAL OUTWEAR PARMA INTERNAL PRODUCTION GROWTH TO MEET THE DEPARTMENT GROWTH EXPECTED MTM QUANTITIES INCREASE (2X) 18 GO LIVE 4Q 22 LEATHER ACCESSORIES PARMA RAW MATERIALS LOGISTICS PROCESS IMPROVEMENT (FROM 3
Slide 54: The Made in Italy Luxury Platform
THE MADE IN ITALY LUXURY PLATFORM OUR COMPETENCES ARE ROOTED IN ITALY Established Established Established Established Established Established Established Established 1910 1932 1960 1912 1897 1970 1981 1967 Acquired Acquired Acquired Acquired Acquired Acquired Acquired Acquired – 2009 2012 2016 2018
Slide 55: The Made in Italy Luxury Platform
THE MADE IN ITALY LUXURY PLATFORM OUR COMPETENCESARE ROOTED IN ITALY Vicenza BiellaDistrict Bonotto Lanificio Zegna Carpi Tessitura Ubertino Gruppo Dondi Pettinatura diVerrone Pistoia Filati Biagioli 17/05/22 55
Slide 56: The Biggest Textile Luxury Manufacturing Platform in Italy
THE BIGGEST TEXTILE LUXURY MANUFACTURING PLATFORM IN ITALY REVENUES OF €102 MILLION* >650 PEOPLE POTENTIAL FOR BOLT ON ADDITIONS *Revenues net of eliminations 17/05/22 56
Slide 57: Lanificio Ermenegildo Zegna
LANIFICIO ERMENEGILDO ZEGNA WEAVERS OF EXCELLENCE FOUNDED IN 1910 BY ERMENEGILDO ZEGNA, IT IS THE BACKBONE OF THE GROUP GLOBALLY RENOWNED FOR THE UNMATCHED LEVEL OF QUALITY AND UNIQUENESS OF ITS FABRICS FULLY VERTICALLY INTEGRATED, WITH A CENTENNIAL COMMITMENT TO EXCELLENCE AND SUSTAINABILITY COMBIN
Slide 58: Lanificio Ermenegildo Zegna
LANIFICIO ERMENEGILDO ZEGNA OUR PRECIOUS TEXTILES FROM OUR PRECIOUS FABRICS –THE CORE OF OUR PRODUCTS LANIFICIO TESSITURA di NOVARA DEA DIVISION LANIFICIO’S COLLECTION INCLUDES FABRICS ACQUIRED IN 2009,TESSITURA DI NOVARA THE WOOL MILL DIVISION SPECIALIZED FOR SUITING AND SOFT ACCESSORIES MADE IS SP
Slide 59: Lanificio Bonotto
LANIFICIO BONOTTO THE SLOW FACTORY BONOTTO: UNCONVENTIONAL THINKING WHERE ART AND DESIGN MEET THE INDUSTRY MOSTLY WOMEN’S FABRICS SLOW FACTORY MOVEMENT: A MANIFESTO AGAINST THE INDUSTRIAL STANDARDISATION AND MASS PRODUCTION AT LOW COST HANDCRAFTMASHIP, CREATIVITY AND R&D ARE KEY CREATIVITY ALSO INSP
Slide 60: Gruppo Dondi
GRUPPO DONDI LUXURIOUS KNITTING ITALIAN LEADER IN MANUFACTURING HIGH-QUALITY JERSEY FOR MENS-WEAR AND WOMENSWEAR TOP-QUALITY AND INNOVATIVE PRODUCTS ALMOST 1,4 MILLION MTS PER YEAR OF KNITTED FABRICS PRODUCED WITH OVER 110 CUTTING-EDGE CIRCULAR MACHINES THREE LINES OF PRODUCT: • DONDI JERSEY®: MADE
Slide 61: Tessitura Ubertino
TESSITURA UBERTINO ONE, TWO, TWEED BOUTIQUE MILL DEDICATED FOR MORE THAN 30 YEARS TO THE CREATION OF HIGH-END CREATIVE TWEEDS FOR WOMENSWEAR PRODUCTION IS LIMITED, CUSTOMIZABLE AND OF THE HIGHEST QUALITY FABRICS WOVEN TO PRESERVE THE QUALITY OF THE RAW MATERIAL AND TO ALLOW THE CREATION OF HIGH-END
Slide 62: Pettinatura di Verrone
PETTINATURA DI VERRONE COMBING THE MOST PRECIOUS FIBRES BIGGEST ITALIAN COMBING MILL AND LEADER IN SUPERFINE WOOL FIRST STAGE MANUFACTURING, PROCESSING ALMOST 3.000 TONS OF WOOL EACH YEAR NOT ONLY WOOL: PETTINATURA DI VERRONE PROCESSES AND SUPPLIES THE MOST PRECIOUS ANIMAL FIBERS IN THE WORLD MERINO
Slide 63: Filati Biagioli Modesto
FILATI BIAGIOLI MODESTO IN 2021, ZEGNA GROUP AND PRADA GROUP HAVE ACQUIRED THE MAJORITY SHAREHOLDING IN FILATI BIAGIOLI MODESTO S.P.A., A COMPANY BASED IN MONTALE, PISTOIA, ITALY FOR OVER A CENTURY, IT HAS EXCELLED IN THE PRODUCTION OF CASHMERE AND OTHER NOBLE YARNS AND OFFERED SUPERIORITY IN THE PR
Slide 64: A Sustainable Laboratory Platform
A SUSTAINABLE LABORATORY PLATFORM OUR CERTIFICATIONS’ PORTFOLIO 17/05/22 17/05/22 64 64
Slide 65: Authentico: Transparent Supply Chain from Farm to Wool Tops
AUTHENTICO®: A TRANSPARENT SUPPLY CHAIN FROM FARM GATE TO WOOL TOPS • CERTIFICATION PROTOCOL FOR WOOL FIBER, GUARANTEEING THE FOLLOWING: • TRACEABILITY FROM GROWER TO WOOL MILL • GROWER-CENTRIC PROTOCOL, ALLOWING GROWERS TO BRING INTO THE AUTHENTICO CERTIFICATION ALSO WOOLS ALREADY CERTIFIED UNDER O
Slide 66: Zegna: What Sets Us Apart
ZEGNA: WHAT SETS US APART 17/05/22 66
Slide 67: What Sets Us Apart
WHAT SETS US APART 17/05/22 67
Slide 68: Are We the Best Kept Secret in Luxury?
Threads 15% waste Garments 15%waste ARE WE THE BEST KEPT SECRET IN LUXURY? 17/05/22 68
Slide 69: The New Brand Positioning
THE NEW BRAND POSITIONING 1. FROM 3 BRANDS TO ONLY ONE 2. NEW BRANDING POSITIONING (RE)BRANDING 17/05/22 69
Slide 70: Leisurewear: Our Long-Term Opportunity
LEISUREWEAR: OUR LONG-TERM OPPORTUNITY FROM STATUS… …TO COMFORT •THE GROUP’S MAIN REFERENCE MARKET IS LUXURY MENSWEAR AND ACCESSORIES 2016 2019 2021 ZEGNA •GROWTH OF LUXURY MENSWEAR HAS BEEN SUPPORTED BY CASUALWEAR,WHILE FORMAL LUXURY 38% 45% 50% LEISUREWEAR WEAR HAS BEEN IN STRUCTURAL DECLINE AND H
Slide 71: Zegna Brand Positioning
ZEGNA BRAND POSITIONING +34% THE POSITIVE TREND OF ORGANIC Ermenegildo Zegna SEARCHES ON GOOGLE REFLECTS THE IMPACT OF ZEGNA’S REBRANDING STRATEGY, STARTED IN Q4 2021: +129% AS A MATTER OF FACT, "ZEGNA" HAS ZEGNA BECOME THE TOP KEYWORD IN 2022, SURPASSING "ERMENEGILDO ZEGNA". +137% Zegna Triple Stit
Slide 72: Growing Brand Awareness
GROWING BRAND AWARENESS 2021 WECHAT FOLLOWER BASE GROWTH : +32% (VS. 2020) ZEGNA BRAND SEARCH ON GOOGLE PLATFORM: +129% (VS. PY) 2021 WEIBO TOTAL ENGAGEMENT GROWTH : +205% (VS. 2020) ZEGNA DOUYIN CHALLENGE 2021 2,5B VIEWS (JUST ON OUTDOOR CAPSULE) Source: Adobe Analytics. Media Platform, Google 17/0
Slide 73: Road to Iconicity: Triple Stitch Case Study
ROAD TO… ICONICITY TRIPLE STITCH CASE STUDY 17/05/22 73
Slide 74: Triple Stitch Case Study: Road to 100Mil
TRIPLE STITCH CASE STUDY ROAD TO 100MIL 2020 2021 2022 Estimate 2023 Estimate 400% 100% 100% YEAR-ON- YEAR-ON- YEAR-ON- YEAR YEAR YEAR MKT SPEND 2%* MKT SPEND 2.8%* MKT SPEND 5.3%* ESTIMATED MKT SPEND 8%* *Mkt spend as a % of Triple Stitch yearly Revenues 17/05/22 74
Slide 75: Triple Stitch Penetration on New Customers Is 42% Higher Than Average
TRIPLE STITCH PENETRATION ON NEW CUSTOMERS IS 42% HIGHER THAN AVERAGE Note: Mix of NEW calculated on global revenues during 12past months (May 14° 2021- May 12° 2022) 17/05/22 75
Slide 76: Road to Iconicity: Building €100Mil Blocks
ROAD TO ICONICITY: BUILDING €100MIL BLOCKS 17/05/22 76
Slide 77: Icons Power = Brand Recognizability and Pricing Power
ICONS POWER = BRAND RECOGNIZABILITY AND PRICING POWER +MSD +HSD SS21 SS22 FW21 FW22 17/05/22 77
Slide 78: Road to Iconicity: Building €100 Mil Blocks
ROAD TO ICONICITY: BUILDING €100 MIL BLOCKS TRIPLE STITCH OASI CASHMERE MADE-TO- MEASURE + ESSENTIALS OPPORTUNITY COLLABORATION OPPORTUNITY 17/05/22 78
Slide 79: Oasi Cashmere – Road to Transparency
OUR ROAD TO ICONICITY OASI CASHMERE – ROAD TO TRANSPARENCY FROM QR CODE TO MONGOLIA TO ITALY TRANSPARENCY OASI ZEGNA 17/05/22 79
Slide 80: Essentials: Complexity Reduction to Accelerate Growth
ESSENTIALS: COMPLEXITY REDUCTION TO ACCELERATE GROWTH ESSENTIAL RETAIL SALES AND SHARE EVOLUTION, FROM 16% IN 2019 TO 32% IN 2022E (35% H2) ESSENTIAL 16% 32% ESSENTIAL 84% 68% SEASONAL 2019 2022 E Note: MTM and Licensing Excluded. DTC only without outlets 17/05/22 80
Slide 81: Icons and Collabs: Enhance Our Core to New Customers
ICONS AND COLLABS: ENHANCE OUR CORE TO NEW CUSTOMERS IN AN AUTHENTIC WAY • ALWAYS AHEAD OF MARKET CHANGES WITH LOWER RISK • ENHANCING BRAND VISIBILITY AND AMPLIFIER OF MESSAGES • FEEDS POP IN AND POP UPS 17/05/22 81
Slide 82: Unique Zegna Experiences
UNIQUE ZEGNA EXPERIENCES WHAT SETS US APART 17/05/22 82
Slide 83: The Zegna Clienteling App
THE ZEGNA CLIENTELING APP: EMPOWERING OUR RETAIL TEAMS TO UNLOCK THEIR OMNI-POTENTIAL VIA ZEGNA CLIENTELING APP 2021 Q1 2022 USA pilot go-live Global Roll-out ZEGNA CLIENTELING APP PAST 30 DAYS PERFORMANCE as % of Total Boutique Revenues • Access omni-channel client information • Creation of styling
Slide 84: Zegna Styling Configurator: The Future of Styling and Service
ZEGNA STYLING CONFIGURATOR: THE FUTURE OF STYLING AND SERVICE STARTING AS A LABORATORY IN Q42022 AND FULL DEPLOYMENT IN 2023 SHOW DIFFERENT CREATE NEW LOOKS PLAY WITH COLORS AND FABRICS SEE HIGH QUALITY DETAILS CONFIGURATIONS 17/05/22 84
Slide 85: Threads 15% waste Garments
Threads 15% waste Garments 15%waste 17/05/22 85
Slide 86: Retail Excellence
RETAIL EXCELLENCE 17/05/22 86
Slide 87: Our Goals
OUR GOALS CREATE A INCREASE DOUBLE OUR UNIQUELY THE SPEND OF PRODUCTIVITY RECOGNIZABLE HIGH POTENTIAL IN THE ZEGNA RETAIL CLIENTS LONG TERM* EXPERIENCE Note: *as per guidance, 2021 boutique plus outlet plus concession productivity to grow by 50% in the medium-term and by 100% in the long term 17/05/
Slide 88: The Relationship Business Model
THE RELATIONSHIP BUSINESS MODEL 1 2 3 BUILDING RELATIONSHIPS BRINGING RELATIONSHIPS SHAPING ZEGNA’S VIA CLIENTELING TO THE NEXT LEVEL FUTURE 17/05/22 88
Slide 89: We Are Social Creatures. Everything Starts with Relationships
WE ARE SOCIAL CREATURES. EVERYTHING STARTS WITH RELATIONSHIPS. AS A LUXURY BRAND, WE ARE IN THE BUSINESS OF BUILDING RELATIONSHIPS WITH OUR CLIENTS. CLIENTELING ALLOWS US TO BUILD THESE RELATIONSHIPS WITH OUR CLIENTS BEYOND ZEGNA STORES’ FOUR WALLS 17/05/22 89
Slide 90: Clienteling as a Productivity Driver
CLIENTELING AS A PRODUCTIVITY DRIVER = ZEGNA CUSTOMER ADVISOR WITH A COMPLETE A ZEGNA CLIENTELING APP ZEGNA STORE 17/05/22 90
Slide 91: Why Clienteling?
WHY CLIENTELING? SPEND BY CUSTOMER TYPE +50% • CUSTOMER ADVISORS ARE BETTER PREPARED FOR UPCOMING APPOINTMENTS • IMPROVED BUSINESS PLANNING RESULTING IN STRONGER LOCAL BUSINESS • SAME STORE FOOTPRINT, INCREASED SALES WALK IN CLIENTING SALES PERSON STYLIST Note: Jan-April 2022, USA for Boutiques 17/0
Slide 92: Our Journey to Date
OUR JOURNEY TO DATE 2021 2022 Mid-term PILOT GLOBAL FULL POTENTIAL ROLL-OUT 37% 50% 2022 YTD USA boutique revenues Note: Clienteling revenues calculated as Boutiques sales generated within 30 days from when a customer advisor has made a personal outreach via the proprietary Zegna Clienteling App. Pe
Slide 93: How We've Succeeded So Far
HOW WE’VE SUCCEEDED SO FAR PEOPLE TECHNOLOGY OUTPUT 98% + = Boutique transactions Identified with client profile • Hiring • Proprietary Zegna • Compensation Clienteling App Note: Jan-April 2022, USA for Boutiques 17/05/22 93
Slide 94: The Focus on Building Relationships Is Paying Off
THE FOCUS ON BUILDING RELATIONSHIPS IS PAYING OFF 92%* +15% GLOBAL NPS GLOBAL NPS 2021 USA BOUTIQUE 2020 2021 > 1200 RESPONDENTS Note: Net Promoter Score post purchase customer survey (“How likely are you to recommend this boutique to a friend or colleague?”). * % of net promoters 17/05/22 94
Slide 95: The Right Message, the Right Place, the Right Time
THE RIGHT MESSAGE, THE RIGHT PLACE, THE RIGHT TIME 360 SINGLE CUSTOMER VIEW KNOW YOUR CUSTOMER… PREDICTIVE AND PRESCRIPTIVE BEHAVIOR …ANTICIPATE THEIR “NEEDS” STYLING CONFIGURATOR …WITH A PERSONALIZED OFFER 17/05/22 95
Slide 96: The Relationship Business Model
THE RELATIONSHIP BUSINESS MODEL 1 2 3 BUILDING RELATIONSHIPS BRINGING RELATIONSHIPS SHAPING ZEGNA’S VIA CLIENTELING TO THE NEXT LEVEL FUTURE 17/05/22 96
Slide 97: Building Relationships Through Zegna Experiences That Money Cannot Buy
BUILDING RELATIONSHIPS THROUGH ZEGNA EXPERIENCES THAT MONEY CANNOT BUY 2017 - ONGOING 2021 - 2022 Mid-term CIRCLE 300 “CIRCLE 3000” FULL POTENTIAL US pilot €250M* * Potential sales from expanding from circle 300 to circle 3000 17/05/22 97
Slide 98: Huge Opportunity at the Top of the Pyramid
WHY? WE SEE A HUGE OPPORTUNITY AT THE TOP OF THE PYRAMID THERE ARE >5,000,000 INDIVIDUALS WHO COULD AFFORD TO SPEND YEARLY >€50K AT ZEGNA NUMBER OF INDIVIDUALS 2020 ULTRAHNWI 0.2M USD 30M+ (1%OFTOTAL) MID-TIER MILLIONAIRES 1.9M USD5M - USD30M (9% OF TOTAL) MILLIONAIRESNEXTDOOR 18.0M USD1M- USD5M (90
Slide 99: We Have These Relationships: How to Get More?
WE HAVE THESE RELATIONSHIPS: HOW TO GET MORE? • BE WHERE THEY ARE • BE PART OF THEIR LIVES 30% PART OF ZEGNA DATABASE 17/05/22 99
Slide 100: The Relationship Business Model Is Shaping Everything We Do
THE RELATIONSHIP BUSINESS MODEL IS SHAPING EVERYTHING WE DO HIRING CRM THE RELATIONSHIP BUSINESS MODEL REAL CONTENT ESTATE MARKETING MERCHANDISING OTHER… 17/05/22 100
Slide 101: Our Marketing Strategy: Relationship Marketing
OUR MARKETING STRATEGY:RELATIONSHIP MARKETING MASS FEW SOHO NYC PRIVATE AIRPORT LOS ANGELES <10% CAPTIVE AUDIENCE 100% CAPTIVE AUDIENCE Frieze art fair + SuperBowl 17/05/22 101
Slide 102: Relationship Marketing Is the Future of Client Acquisition
RELATIONSHIP MARKETING IS THE FUTURE OF CLIENT ACQUISITION PRIVATE FAMILY LUXURY MEMBERS & PRIVATE INVESTMENT HOTELS & SPORTS AVIATION FIRMS & TECH RESTAURANTS CLUBS FUNDS 17/05/22 102
Slide 103: Our Retail Strategy: One-of-a-Kind Experiences
OUR RETAIL STRATEGY: ONE-OF-A-KIND EXPERIENCES PAST PRESENT SHOPPING MALL 1 NEWBURY STREET “ONE OF MANY” “ONE OF A KIND” Note: ZEGNA Boston opened Nov 6, 2021 17/05/22 103
Slide 104: Relationship Model Retail: Half the Rent, 3x the Productivity
RELATIONSHIP MODEL RETAIL: HALF THE RENT, 3X THE PRODUCTIVITY SIZE RENT FULL PRICE REVENUES NET SQ. FT -46% -45% +78% MALL 1 NEWBURY ST. MALL 1 NEWBURY ST. MALL 1 NEWBURY ST. SHARE OF NEW CLIENTS INCREASED BY 66% FULL PRICE PRODUCTIVITY >3x WITH HALF RENT Note: ZEGNA Boston opened Nov 6, 2021 17/05/
Slide 105: The Relationship Business Model
THE RELATIONSHIP BUSINESS MODEL 1 2 3 BUILDING RELATIONSHIPS BRINGING RELATIONSHIPS SHAPING ZEGNA’S VIA CLIENTELING TO THE NEXT LEVEL FUTURE 17/05/22 105
Slide 106: Scaling Beyond 3000: Being an Integral Part of Every Customer's Life
SCALING BEYOND 3000: BEING AN INTEGRAL PART OF EVERY CUSTOMERS’ LIVES 2020-ONGOING 2022-FUTURE 2010-2019 CUSTOMER COMES WE NEED TO BE IN OUR EXPECTATION: WE NEED TO GO TO CUSTOMER TO YOU CUSTOMERS LIFE GOAL: HOW CAN WE SELL TO OUR CUSTOMER IS NOT COMING HOW CAN WE BE IN OUR WALK-IN MORE UNITS? ANYMO
Slide 107: How Far Can We Go? Will We Always Need Stores?
HOW FAR CAN WE GO? WILL WE ALWAYS NEED STORES? GROSS DOMESTIC PRODUCT SELECTED ECONOMIES, 2019 $TRN TEASER: WHAT COULD THE IMPACT ON PRODUCTIVITY OF “ZEGNA AT HOME” BE? 17/05/22 107
Slide 108: Using the Power of Relationships to Drive Productivity
THE OUTCOME: USING THE POWER OF RELATIONSHIPS TO CREATE A UNIQUE ZEGNA RETAIL EXPERIENCE, DRIVING PRODUCTIVITY Traffic x Conversion x Average Ticket Value Productivity = Net selling sqm Note: *as per guidance, 2021 boutique plus outlet plus concession productivity to grow by 50% in the medium-term a
Slide 109: Thom Browne. New York
THOM BROWNE. NEW YORK 17/05/22 109
Slide 110: 17/05/22
17/05/22 110
Slide 111: Key Mid-Term Goals
KEY MID-TERM GOALS… • Continue on path to double revenues in the mid-term • Double number of (end) clients while increasing engagement with our current client base 17/05/22 111
Slide 112: Product Strategies
PRODUCT STRATEGIES… Accelerate the development of women’s business (to exceed 40% of total revenues) Grow category business across men’s and women’s, Focusing on: • Outerwear • Sportswear • Shirting • Accessories/footwear Internalize key categories such as eyewear and childrenswear. Both are very pr
Slide 113: Direct to Consumer (DTC) Business
DIRECT TO CONSUMER (DTC) BUSINESS… CONTINUE THE DTC DEVELOPMENT ANCHORED ON: • Retail network of 90 to 100 DOS (out of c.150 monobrand stores) by 2026, growing clients faster than stores • Maintain our “right-size-store” strategy, to keep strong profitability across the entire retail network • Explo
Slide 114: Retail Expansion
RETAIL EXPANSION… OPPORTUNITIES FOR RETAIL EXPANSION AND BROADER GEOGRAPHICAL COVERAGE • Current key markets with strong further potential: North America, China, Korea • Japan and Europe/UK are focus area • Potential for expansion in southeast Asia and Middle East • New retail markets for evaluation
Slide 115: E-Business
E-BUSINESS… • Strong focus on e-business, keeping strong double-digit penetration of our DTC business 17/05/22 115
Slide 116: E-Business: Establish Focus for Each Store Front
E-BUSINESS… ESTABLISH FOCUS FOR EACH STORE FRONT … BRAND SITE… …E-CONCESSIONS… …SOCIAL COMMERCE… CLIENT… LOYAL TO BRAND LIKES BRAND LOYAL TO BRAND COMPLETE PRICE RANGE SELECT PRICE RANGE COMPLETE PRICE RANGE CURATED PRODUCT COMPLETE CATEGORY RANGE SELECT CATEGORY RANGE COMPLETE CATEGORY RANGE PRODUC
Slide 117: Marketing
MARKETING… Significantly grow our global brand awareness and achieve 10 times greater visibility through: • 1/3 shows, vip/celebrities, and events • 1/3 global digital communication and marketing • 1/3 local client activations 17/05/22 117
Slide 118: Client Value Management
CLIENT VALUE MANAGEMENT… • Complete the rollout of Salesforce • Ensure single client view and efficient customer program • Continue to evolve our global and regional client program • Target 500 sales associates globally, all digitally connected • Increase return business from one-time clients 17/05/
Slide 119: E-Business: Establish Focus for Each Store Front
E-BUSINESS… ESTABLISH FOCUS FOR EACH STORE FRONT EMPOWERED DTC SINGLE CLIENT VIEW CONNECTED SYSTEMS HOLISTIC CLIENT OMNICHANNEL CLIENT SALES WITH SINGLE WITH SMART TO DELIVER PROGRAM DRIVING SERVICES, LOCALIZED STOCK VIEW, SINGLE SEGMENTATION PERSONALIZED LOYALTY AND TO SUPPORT SALES CLIENT VIEW AND
Slide 120: Closing Remarks
CLOSING REMARKS… 17/05/22 120
Slide 121: Q1 Update & Guidance
Q1 UPDATE & GUIDANCE 17/05/22 121
Slide 122: Encouraging Results from Plan Execution
ENCOURAGING RESULTS FROM PLAN EXECUTION 2021 REVENUES NEARLY BACK TO 2019 LEVELS DTC: STRONG OUTPERFORMANCE, STRONG CUSTOMER RESPONSE TO OUR BRANDS HIGHER QUALITY OF SALES WITH FULL PRICE SELLTHROUGH IMPROVING AND LOWER MARKDOWNS 2021 GROUP E-COMMERCE REVENUES MORE THAN DOUBLED VS. 2019 ADJ. EBITAS
Slide 123: Encouraging Results from Plan Execution
ENCOURAGING RESULTS FROM PLAN EXECUTION GROUP REVENUESAHEAD OF PLAN* GROUPADJ. EBIT ONEYEARAHEAD OF PLAN* 1.207 1.342 1.467 1.292 111 142 173 149 9% 11% 12% 11.5% 2021 Plan* 2022 Plan* 2023 Plan* 2021 A 2021 Plan* 2022 Plan* 2023 Plan* 2021 A * The Zegna Group’s Plan was published at the time of the
Slide 124: 2022 Started Well – Q1 2022 Sales Review
2022 STARTED WELL – Q1 2022 SALES REVIEW Q1 UNAUDITED (Euro thousands in Actual FX) Q1 2022A UNAUDITED Q1 2021A UNAUDITED % vs 2021A GROUP REVENUES BREAKDOWN GROUP REVENUES 377,579 301,194 +25.4% BY SEGMENT Q1 REVENUES @ 377.6M€, ZEGNA SEGMENT 283,523 223,056 +27.1% +25.4% COMPARED TO Q1 2021 THOM B
Slide 125: 2022 Started Well – Q1 2022 Sales Review
2022 STARTED WELL – Q1 2022 SALES REVIEW (Euro thousands in Actual FX) Q1 2022A UNAUDITED Q1 2021A UNAUDITED % vs 2021A Q1 UNAUDITED GROUP REVENUES GROUP REVENUES 377,579 301,194 +25.4% BREAKDOWN BY GEOGRAPHY EMEA 134,456 96,812 +38.9% UNITED STATES (+97.2%) Of Which Italy 64,091 48,159 +33.1% AND E
Slide 126: 2022 Started Well – Q1 2022 Sales Review
2022 STARTED WELL – Q1 2022 SALES REVIEW Q1 UNAUDITED (Euro thousands in Actual FX) Q1 2022A UNAUDITED Q1 2021A UNAUDITED % vs 2021A GROUP REVENUES BREAKDOWN GROUP REVENUES 377,579 301,194 +25.4% BY PRODUCT LINE ALL PRODUCT LINES Zegna branded products1 223,979 183,483 +22.1% GROWING STRONGLY Thom B
Slide 127: 2022 Started Well – Q1 2022 Sales Review
2022 STARTED WELL – Q1 2022 SALES REVIEW Q1 UNAUDITED (Euro thousands in Actual FX) Q1 2022A UNAUDITED % on Revenue Q1 2021A UNAUDITED % on Revenue % vs 2021A GROUP REVENUES BREAKDOWN BY CHANNEL GROUP REVENUES 377,579 100% 301,194 100% +25.4% +23.1% DTC DTC Zegna branded products1 183,909 149,228 +2
Slide 128: Monobrand Store Network as of March 31st 2022
MONOBRAND 1 STORE NETWORK AS OF MARCH 31ST 2022 GROUP MONOBRAND STORES @ 526 AS OF MARCH 31ST 2022 OF WHICH 295 DIRECTLY OPERATED as of March 31st, 2022 as of December 31st, 2021 as of December 31st, 2020 THOM THOM # STORES ZEGNA GROUP ZEGNA GROUP ZEGNA2 THOM BROWNE GROUP BROWNE BROWNE EMEA 69 9 78
Slide 129: 2022 Guidance Confirmed
2022 GUIDANCE CONFIRMED PREVIOUSLY COMMUNICATED 2022FY GUIDANCE BY GEOGRAPHY BY PRODUCT LINE BY CHANNEL KEY ASSUMPTIONS ON 2022 REVENUES ZEGNA TEXTILE AND GREATER US & RUSSIA/ THOM BRANDED THIRD PARTY E-COMMERCE OPERATIONS CHINA EMEA UKRAINE BROWNE PRODUCTS BRANDS Disruption Continue to No further G
Slide 130: Road to 2 Billion Euro Revenues
ROAD TO 2 BILLION EURO REVENUES KEY DRIVERS ZEGNA SEGMENT THOM BROWNE SEGMENT ALREADY IN GOOD SHAPE, ROOM FOR STORE PRODUCTIVITY GOAL ˃50%VS 2021 IMPROVEMENT IN SOME MARKETS PLANNED FOR FW22, BUT STILL PRICE/MIX INCREASE ROOM TO GROW KILLER CATEGORIES, ICONS, MTM CATEGORY EXPANSION LEATHER,WOMEN, LI
Slide 131: Road to 15% Adjusted EBIT on Revenues
ROAD TO 15% ADJUSTED EBIT ON REVENUES DRIVERS > 15% • STORE PRODUCTIVITY (ALSO BY REDUCING NOT-NEEDED SQM) • HIGHER INCIDENCE OF CONTINUATIVE ITEMS 11.5% (AND LOWER LEFTOVER COSTS) • INCREASING INITIAL MARGIN (DUE TO PRICE INCREASE) • OPERATIONAL LEVERAGE, INCLUDING BETTER INDUSTRIAL FIXED COST ABSO
Slide 132: Q&A
Q&A 17/05/22 132
Slide 133: 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”), Net Financial Indebtedness/(Cash Surplus), and Capital Expenditure. Zegna’s ma
Slide 134: Non-IFRS Financial Measures
NON-IFRS FINANCIAL MEASURES Adjusted EBIT (Euro thousands) For the year ended December 31, 2021 (Loss)/Profit for the year (127,661) Income taxes 30,702 Financial income (45,889) Financial expenses 43,823 Exchange losses/(gains) 7,791 Result from investments accounted for using the equity method (2,
Slide 135: Non-IFRS Financial Measures
NON-IFRS FINANCIAL MEASURES Explanatory Notes (1) Costs related to the Business Combination include: (a) €114,963 thousand relating to share-based payments for listing services recognized as the excess of the fair value of Zegna ordinary shares issued as part of the Business Combination and the fair