Ermenegildo Zegna N.v. · NYSE:ZGN
Ermenegildo Zegna — SPAC Merger (November 2021)
91 slides from Ermenegildo Zegna's SPAC merger presentation, Nov 22, 2021
Slide 1: Our Road – Analyst presentation
OUR ROAD Analyst presentation 23 November 2021 CONFIDENTIAL
Slide 2: Our Team
OUR TEAM ERMENEGILDO GIANLUCA EDOARDO RODRIGO BAZAN ALESSANDRO THOM FRANCIS GROS CHRISTIAN LUCA LO CURZIO ANTONIO (GILDO) ZEGNA TAGLIABUE ZEGNA SARTORI BROWNE FODDIS GATTI Group CEO Group COO Chief Marketing, Thom Browne Zegna Thom Browne Region Head of Region Head of Region Head of IIAC Advisor EME
Slide 3: Table of Contents
TABLE OF CONTENTS 1. What makes Ermenegildo Zegna Group different 2. Our Road to tomorrow 3. Focus on Zegna 4. The Thom Browne factor 5. Focus on Zegna Group’s key regions 6. Key financials overview 2 C CO ON NF FIID DE EN NT TIIA AL L
Slide 4: Our Vision, Our Road
OUR VISION, OUR ROAD …AND LET ME TELL YOU WHY WE WERE ALL WEARING A SUIT, AND TODAY I’M NOT… SECTION 1 3 C CO ON NF FIID DE EN NT TIIA AL L
Slide 5: Ermenegildo Zegna Group
Ermenegildo Zegna Group My name is Ermenegildo «Gildo» Zegna. What am I ‘doing i in New York?
Slide 6: Zegna FW 2021 collection
Zegna FW 2021 collection 5 CONFIDENTIAL
Slide 7: Strong footprint in Greater China Region
1 Strong footprint in Greater China Region Shenzhen MixC Hangzhou MixC Shanghai Taikoo Li Note: 6 1. Greater China Region (“GCR”) includes the following: the Chinese mainland, Hong Kong SAR, Macao SAR and Taiwan CONFIDENTIAL
Slide 8: Thom Browne FW 2021 collection
Thom Browne FW 2021 collection 7 CONFIDENTIAL
Slide 9: Craftsmanship excellence
Craftsmanship excellence 8 CONFIDENTIAL
Slide 10: What makes Ermenegildo Zegna Group different
1. What makes Ermenegildo Zegna Group different A UNIQUE OPPORTUNITY IN THE LUXURY SPACE 1. HERITAGE AND SUSTAINABILITY AT OUR CORE 4. OUR NATURAL PLATFORM FOR GROWTH IN THE LUXURY SPACE 2. OUR MADE IN ITALY LUXURY TEXTILE LABORATORY PLATFORM 5. OUR EXPERIENCED MANAGEMENT TEAM COMBINING FAMILY AND O
Slide 11: Heritage and sustainability at our core
1.1 What makes Ermenegildo Zegna Group different 1 HERITAGE AND SUSTAINABILITY AT OUR CORE ACTIONS SPEAK LOUDER THAN WORDS * *Oasi Zegna was demerged as part of the real estate business disposition occurred prior to the consummation of a potential transaction 10 C CO ON NF FIID DE EN NT TIIA AL L
Slide 12: Heritage and sustainability at our core: actions speak louder than words
1.1 What makes Ermenegildo Zegna Group different 1 HERITAGE AND SUSTAINABILITY AT OUR CORE ACTIONS SPEAK LOUDER THAN WORDS Circular and vertically 1 The Green Soul of Zegna integrated business model Our community 01 #UseTheExisting - Zegna's Threads Prime Matter 15% waste commitment to use more Modi
Slide 13: Made in Italy luxury textile laboratory platform
1.2 What makes Ermenegildo Zegna Group different 2 THE MADE IN ITALY LUXURY TEXTILE LABORATORY PLATFORM 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
Slide 14: Our own luxury textile laboratory
1.2 What makes Ermenegildo Zegna Group different 2 THE MADE IN ITALY LUXURY TEXTILE LABORATORY PLATFORM OUR UNIQUE STORY OF VERTICAL INTEGRATION OUR OWN LUXURY TEXTILE LABORATORY Serving proprietary brands Long-standing and historical… PROCUREMENT ✓ Privileged procurement of finest fibres and fabric
Slide 15: Our key innovation initiatives
1.2 What makes Ermenegildo Zegna Group different 2 THE MADE IN ITALY LUXURY TEXTILE LABORATORY PLATFORM OUR KEY INNOVATION INITIATIVES Made-to-Measure #UseTheExisting Digitalization of the garment making the dream of zero waste possible the king of services from design, to sampling and customer cust
Slide 16: A global group and pioneer in China
1.3 What makes Ermenegildo Zegna Group different 3 A GLOBAL GROUP AND PIONEER IN CHINA 3 Zegna Group presence in Greater China Zegna brand performance in China vs. Selected Peers 1 Zegna Group 2021E Apparel & Accessories revenue split by region (€m) Brand Awareness 92% Gen Z awareness Rest of APAC G
Slide 17: Our natural platform for growth: why Thom Browne
1.4 What makes Ermenegildo Zegna Group different 4 OUR NATURAL PLATFORM FOR GROWTH IN THE LUXURY SPACE The benefits of the WHY THOM BROWNE? 1 (Revenues, US$m) Platform: ▪ Increase exposure to a new younger customer base ~2x ✓ Fully-fledged “modular” ▪ Established iconic brand with 271 luxury textile
Slide 18: Section
SECTION 2 17 CONFIDENTIAL
Slide 19: Our Road to tomorrow – business plan
2. Our Road to tomorrow OUR ROAD TO TOMORROW – BUSINESS PLAN WITH MULTIPLE TOUCHPOINTS Key positive market tailwinds Key growth levers 1 PRODUCT CATEGORIES and MADE-TO-MEASURE Casualisation + 2 SALES CHANNEL MIX + 3 Digital & Direct Contact GEOGRAPHICAL FOOTPRINT = 4 PROFITABILITY China Inorganic op
Slide 20: Leisurewear: our long-term opportunity
2.1 Our Road to tomorrow 1 LEISUREWEAR: OUR LONG-TERM OPPORTUNITY • The Group’s main reference market is luxury FROM STATUS… …TO COMFORT menswear and accessories May 2021 2016A 2019A 2023E YTD Luxury Leisurewear @ 51% ZEGNA LUXURY LEISUREWEAR 38% 45% 53% • Growth of luxury menswear has been supporte
Slide 21: Made-to-measure: our key competitive advantage
ibdroot\projects\IBD-LN\roland2021\674153_1\22. Investor Day Materials\2021.11 Zegna Investor Day - GS Draft v4.pptx 2.1 Our Road to tomorrow 1 MADE-TO-MEASURE: OUR KEY COMPETITIVE ADVANTAGE MTM/MTO Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 ˜˜˜˜˜ TAILORED JACKETS ˜ Limited Limited Limited Limited Limited O
Slide 22: Zegna belongs to today: one brand
2.1 Our Road to tomorrow 1 ZEGNA BELONGS TO TODAY OUR NEW ERA ONE BRAND Why? Goal Business impacts ✓ Streamlined and focused collection ONE BRAND ✓ Different average selling prices together with visual similarity disorient the clients ✓ Unique and immediately recognizable brand Entry price ✓ Creatio
Slide 23: How we will grow the Thom Browne brand
Company/Rodrigo to review 2.1 Our Road to tomorrow 1 HOW WE WILL GROW THE THOM BROWNE BRAND Expansion Womenswear of clients Brand awareness & Accessories • Continue the successful • Pursue a very significant • Expand brand development of our expansion of clients, awareness and product strategies wit
Slide 24: Sales channel mix – consolidating towards a DTC focused model
ibdroot\projects\IBD-LN\roland2021\674153_1\22. Investor Day Materials\2021.11 Zegna Investor Day - GS Draft v4.pptx 2.2 Our Road to tomorrow 2 OUR SALES CHANNEL MIX − CONSOLIDATING TOWARDS A DTC FOCUSED MODEL • Focus on productivity 1 Reinforced as Other 17% • E-commerce acceleration predominant •
Slide 25: Our attractive geographical footprint
ibdroot\projects\IBD-LN\roland2021\674153_1\22. Investor Day Materials\2021.11 Zegna Investor Day - GS Draft v4.pptx 2.3 Our Road to tomorrow 3 OUR ATTRACTIVE GEOGRAPHICAL FOOTPRINT Personal Luxury Goods Market Evolution (€bn) Zegna Group Core Revenues Evolution by Geography 1 Other 1 % Global Marke
Slide 26: Multiple levers supporting our profitability expansion
2.4 Our Road to tomorrow 4 MULTIPLE LEVERS SUPPORTING OUR PROFITABILITY EXPANSION Pricing leverage Revenue density increase High-end quality 110 years of excellence One Brand strategy supported by best-in-class Pricing & mix leverage heritage benefits craftmanship Vertical integration Prime global b
Slide 27: Growth levers reflected in our financial targets
2. Our Road to tomorrow GROWTH LEVERS CLEARLY REFLECTED IN OUR FINANCIAL TARGETS Core revenues (€m) Core Adj. EBIT (€m) 1,476 9% 12% 1,207 173 652 55 554 111 306 31 230 119 518 80 423 2021E 2023E 2021E 2023E 1 2 3 Zegna Luxury Leisurewear Thom Browne Other categories Zegna Thom Browne Core Adj. EBIT
Slide 28: Focus on Zegna
Focus on Zegna SECTION 3 27 C CO ON NF FIID DE EN NT TIIA AL L
Slide 29: From tailoring to luxury leisurewear: our hero products
3. Focus on Zegna FROM TAILORING TO LUXURY LEISUREWEAR OUR HERO PRODUCTS 28 CONFIDENTIAL
Slide 30: Beyond boundaries
3. Focus on Zegna FROM TAILORING TO LUXURY LEISUREWEAR BEYOND BOUNDARIES 29 CONFIDENTIAL
Slide 31: Fashion show
3. Focus on Zegna FROM TAILORING TO LUXURY LEISUREWEAR FASHION SHOW 30 CONFIDENTIAL
Slide 32: Holiday season in Oasi
3. Focus on Zegna FROM TAILORING TO LUXURY LEISUREWEAR HOLIDAY SEASON IN OASI 31 CONFIDENTIAL
Slide 33: Our new retail experience
3. Focus on Zegna FROM TAILORING TO LUXURY LEISUREWEAR OUR NEW RETAIL EXPERIENCE Boston Shanghai Dubai 32 CONFIDENTIAL
Slide 34: Zegna belongs to today: the (re)set
3. Focus on Zegna ZEGNA BELONGS TO TODAY THE (RE)SET In order to retain its relevance, strengthen positioning and attract new customers, we believe a brand needs to… A B C …create iconic products …focus on being recognized visually …attract new customers that define you ONE BRAND ONE MESSAGE WITH RE
Slide 35: Our new era: one brand
3.A Focus on Zegna ZEGNA BELONGS TO TODAY OUR NEW ERA TODAY TOMORROW ONE BRAND A STRONG SINGLE BRAND, WITH A NEW SIGNIFIER EXPECTED TO BE LAUNCHED SOON Source: Company information 34 34 CONFIDENTIAL
Slide 36: Creating our icons: the Triple Stitch
3.B Focus on Zegna ZEGNA BELONGS TO TODAY CREATING OUR ICONS The Triple Stitch: a successful iconic product delivering superior growth Triple Stitch sneakers have been extremely successful, as demonstrated by the superior growth they generated across channels despite COVID-19 Triple Stitch collectio
Slide 37: Attracting new customers: Zegna x Fear of God
3.C Focus on Zegna ZEGNA BELONGS TO TODAY ATTRACTING NEW CUSTOMERS ZEGNA X FEAR OF GOD collaboration - Data points on a successful initiative Key KPIs Collection revenues split Best selling items 1 By region (%) REST OF APAC 10% EMEA 10% AMERICAS 18% GREATER CHINA REGION 62% 1 By channel (%) By cust
Slide 38: Our omnichannel strategy
3. Focus on Zegna ZEGNA BELONGS TO TODAY OUR OMNICHANNEL STRATEGY A B Seamlessly integrated across multiple touchpoints Key third parties Clienteling App & Remote Sales Current E-Concessions One Brand Strategy, new Logo and Signifier – • Full-fledged roll-out of clienteling app started Main visibili
Slide 39: The Thom Browne factor
The Thom Browne factor SECTION 4 38 CONFIDENTIAL
Slide 40: Distinctive modern luxury
4. The Thom Browne factor DISTINCTIVE MODERN LUXURY The Thom Browne Team Source: Company information 39 CONFIDENTIAL
Slide 41: Thom Browne distinctive modern luxury: revenues and growth
4. The Thom Browne factor DISTINCTIVE MODERN LUXURY Womenswear 26% 30% 38% as % of revenues ~15% CAGR ~25% 361 CAGR 271 139 Revenues 1 (US$m) Before acquisition Today Tomorrow (2018A) (2021E) (2023E) +~4% +~4% 2 Adj. EBIT as % of ~10% 14% 18% revenues +44 +25 3 Total retail network 32 76 101 ✓ Full
Slide 42: Distinctive modern luxury
4. The Thom Browne factor DISTINCTIVE MODERN LUXURY A creative, thought-provoking designer with a strong tailoring aesthetic, Thom Browne is recognized for creating and establishing a new silhouette in menswear Source: Company information 41 41 CONFIDENTIAL
Slide 43: Craftmanship
4. The Thom Browne factor DISTINCTIVE MODERN LUXURY Craftmanship Source: Company information 42 CONFIDENTIAL
Slide 44: Brand awareness
4. The Thom Browne factor DISTINCTIVE MODERN LUXURY Brand awareness Cardi B Danai Gurira Maisie Williams Janelle Monàe OBJ Timothée Chalamet Pusha T Cole Sprouse Brie Larson Xiao Wen Ju Kristen Stewart Liu Wen LaKeith Stanfield Lee Pace LeBron James BTS Source: Company information 43 CONFIDENTIAL
Slide 45: Thom Browne store concept
Rodrigo Bazan to review 4. The Thom Browne factor DISTINCTIVE MODERN LUXURY The store is unexpected, yet designed to feel like the interior of a home; always protected from view with either venetian blinds or a marble façade Source: Company information 44 44 CONFIDENTIAL CONFIDENTIAL
Slide 46: Focus on Zegna Group's key regions
Focus on Zegna Group’s key regions SECTION 5 45 C CO ON NF FIID DE EN NT TIIA AL L
Slide 47: Zegna Branded Products: focus on EMEA
5. Focus on Zegna Group’s key regions 1 2 ZEGNA BRANDED PRODUCTS : FOCUS ON EMEA As of June 30, 2021 Our strategic initiatives in the region Experiencing recovery driven by local consumers on the back of well received products/collections Focus on store productivity leveraging a new and successful a
Slide 48: Zegna Branded Products: focus on APAC
5. Focus on Zegna Group’s key regions 1 2 ZEGNA BRANDED PRODUCTS : FOCUS ON APAC As of June 30, 2021 Our strategic initiatives in the region Growth in China to remain key focus – Organic growth, with opportunities in travel retail and with very selective expansion into new cities; leverage of Hainan
Slide 49: Zegna Branded Products: focus on Americas
5. Focus on Zegna Group’s key regions 1 2 ZEGNA BRANDED PRODUCTS : FOCUS ON AMERICAS As of June 30, 2021 Our strategic initiatives in the region 9 One Brand to drive heightened awareness and expand customer reach Channel − Strong focus on DTC through solid organic growth and 50 move to concessions;
Slide 50: Thom Browne worldwide store distribution
5. Focus on Zegna Group’s key regions THOM BROWNE WORLDWIDE STORE DISTRIBUTION As of June 30, 2021 2 5 3 2 3 3 20 15 14 8 2 2 DTC Wholesale monobrand Source: Company information 49 CONFIDENTIAL
Slide 51: Key financials overview
Key financials overview SECTION 6 50 CONFIDENTIAL
Slide 52: Our Road to tomorrow – business plan with multiple touchpoints
6. Key financials overview OUR ROAD TO TOMORROW – BUSINESS PLAN WITH MULTIPLE TOUCHPOINTS Key positive Key growth levers Detail by brand market tailwinds Luxury Leisurewear & Leather Accessories PRODUCT CATEGORIES and MADE-TO-MEASURE Womenswear and accessories Casualisation + Retail footprint optimi
Slide 53: Zegna Group's numbers at a glance
6. Key financials overview ZEGNA GROUP’S NUMBERS AT A GLANCE 2021E 2021E 1 Greater China Region share of Core revenues 2 Apparel & Accessories revenues €1,207m 51% (vs. 41% in 2019) 2021E 2021E 3 DTC share of Apparel & Core Adj. EBITDA 2 Accessories revenues €264m 77% (vs. 74% in 2019) 2021E 2021E 4
Slide 54: Zegna Group key financials
6. Key financials overview ZEGNA GROUP KEY FINANCIALS Core revenues (€m) Core Adj. EBIT (€m) +11% (23%) +20% +11% +10% 9% 9% 2% 9% 11% 12% including Thom Browne 12 1 months contribution 1,476 173 1,342 1,271 1,306 142 1,207 1,173 1 112 111 1,005 109 24 2018A 2019A 2020A 2021E 2022E 2023E 2018A 2019A
Slide 55: Zegna Group 1H 2021 reported results
6. Key financials overview ZEGNA GROUP 1H 2021 REPORTED RESULTS (2021 vs 2020) Revenues (€m) Adj. EBIT (€m) +50% as % of revenues 603 67 11% 143 28 20% 402 63 39 8% 1 466 342 (53) (52) 1 1 (5) 1H 20A 1H 21A (3) 1H 20A 1H 21A Zegna Segment Thom Browne Segment Zegna Group Inter-segment eliminations So
Slide 56: Core revenues evolution by product category
6. Key financials overview ZEGNA GROUP (€m) CORE REVENUES EVOLUTION BY PRODUCT CATEGORY (€M) CAGR +3.1% CAGR 2019A-23E growth mostly driven by knitwear, outerwear, jersey, “new jackets” and growth mostly driven by sneakers “new trousers” 28 4 1,476 76 19 9 12 45 (14%) 54 1,306 95 180 126 +4% 18 1,20
Slide 57: Core revenues evolution by geography
6. Key financials overview ZEGNA GROUP CORE REVENUES EVOLUTION BY GEOGRAPHY ( (€ €M m)) +3.1% CAGR CAGR 2019A-23E 4 1,476 28 45 88 19 54 (14%) 44 1,306 180 60 126 +4% 18 1,207 Textile & 97 Strategic 15 (2%) 200 75 110 Alliances 151 • return to pre-COVID levels 76 206 • Americas decline vs. 2019 Whol
Slide 58: Zegna Group Core Adj. EBIT evolution
6. Key financials overview ZEGNA GROUP CORE ADJ. EBIT EVOLUTION From 2019A to 2020A Adj. EBIT From 2020A to 2021E Adj. EBIT From 2021E to 2023E Adj. EBIT Dec-YE COVID-19 Breakup Recovery Phase Expansion Phase 2019A 2020A 2021E Starting Core Adj. EBIT 9% 2% 9% €112m €24m €111m ∆ revenues ~(€300m) ~+€
Slide 59: Focus on Zegna Segment key financials
6. Key financials overview 1 FOCUS ON ZEGNA SEGMENT KEY FINANCIALS Core revenues (€m) Core Adj. EBIT (€m) (0%) (28%) +18% +10% +9% 9% 8% n.m. 8% 9% 10% 119 1,179 1,153 1,150 1,082 108 985 97 96 834 80 (5) 2018A 2019A 2020A 2021E 2022E 2023E 2018A 2019A 2020A 2021E 2022E 2023E 2 x% Core revenues y-o-
Slide 60: Focus on Thom Browne Segment key financials
6. Key financials overview FOCUS ON THOM BROWNE SEGMENT KEY FINANCIALS Revenues (€m) Adj. EBIT (€m) 1 2 +37% +12% +28% +17% +14% n.m. 10% 16% 14% 17% 18% 306 268 55 230 46 including Thom Browne 3 12 months contribution 180 161 31 29 117 • 2 Thom Browne consolidated 16 since 30-Nov-18 19 3 19 n.m. 20
Slide 61: Thank you
THANK YOU 60 CONFIDENTIAL
Slide 62: Appendix — Operations
Appendix — Operations 61 C CO ON NF FIID DE EN NT TIIA AL L
Slide 63: A leading, innovative and integrated group
A LEADING, INNOVATIVE AND INTEGRATED GROUP… ZEGNA SEGMENT THOM BROWNE SEGMENT The Group at a glance 1 Branded Products Strategic 2▪ At the forefront Other ▪ “Create something Alliances 1% of the modern man 6% that people want, an idea, Textile €1.2bn THOM BROWNE. ▪ Our New Era: 6% commitment” Segmen
Slide 64: Firmly positioned in the structurally attractive luxury market
…FIRMLY POSITIONED IN THE STRUCTURALLY ATTRACTIVE LUXURY MARKET Personal Luxury Goods Market Evolution (€bn) Key Drivers of Market Growth 1 % Global Market 15% 23% 23-26% 30-33% 380 Casualisation Digital & Direct Contact 360 295 281 250 217 China Emotions & Experientiality 76 Point of View on Future
Slide 65: Leveraging our strong brand DNA to increase our reach
LEVERAGING OUR STRONG BRAND DNA TO INCREASE OUR REACH Deeply entrenched customers Sharing our values with consumers 1 Customers profiles Multiple Deep and loyal customer base touchpoints to 2 Spending behaviour follow and support customers 3 Trends of purchase Evolving with our customers’ changing h
Slide 66: Sales channel mix
SALES CHANNEL MIX Distribution 1 Americas - 39 Greater China Outlets Region 83% Zegna.com 238 82 1 Branded Products DTC Concessions Other e-Commerce 2 DOS EMEA - 71 Rest of APAC Platforms Travel Retail 46 2020A Revenues: €637m 2 Department Online and Franchises Multibrand Wholesale Multibrand Specia
Slide 67: Zegna Group supply chain strategy
LOGISTICS ZEGNA GROUP SUPPLY CHAIN STRATEGY: FULL CONTROL ON KEY ELEMENTS OF THE CHAIN ~70% in Italy Control level Design Prototyping / samples Production • Sleeve units • Sleeve units • Shirts • Made-To-Measure • Belts • Most of Knitwear In-house • Knitwear • ½ of Shirts • Most of shoes • Most of B
Slide 68: Supply chain footprint: plants and distribution centers
LOGISTICS SUPPLY CHAIN FOOTPRINT: PLANTS AND DISTRIBUTION CENTERS Lanificio Zegna (BI) Mendrisio (CH), Sleeves units, shirts, Focus on Central Europe - Mens fabrics trousers - San Pietro Mosezzo + - (2 )Parma - Outerwear and leather accessories (NO) - (Sleeve units) Ismaco (Istanbul) - Shirts New Je
Slide 69: Appendix — Transaction structure and governance
Appendix — Transaction structure and governance 68 CONFIDENTIAL
Slide 70: Transaction structure
TRANSACTION STRUCTURE Sources & Uses Key Transaction Highlights Sources ($m) Uses ($m) Headline Valuation Existing Shareholders Rollover Equity 1,554 Existing Shareholders Rollover Equity 1,554 5 $3,135m ~18x Cash in Trust 403 Primary Proceeds 261 1,11 2,11 Core Enterprise Value 2022E Adj. EBIT Mult
Slide 71: A family business run as a top public company
A FAMILY BUSINESS RUN AS A TOP PUBLIC COMPANY STRENGTHENING THE STRUCTURE IN THE TRANSITION TO PUBLIC COMPANY Board of Directors TODAY 39 Board of Group CEO 2 8 BoD members; 4 external Directors Group C-Suite 5 <1 4 5 <1 Chief Chief Group Group Marketing, Investor Operating HR & General Digital & Re
Slide 72: Appendix — Financials
Appendix — Financials 71 CONFIDENTIAL
Slide 73: Zegna Group's key financials
ZEGNA GROUP’S KEY FINANCIALS (€m) 2021E 2021E 2021E 2021E 2021E 2021E Greater China Region share of 3 1 DTC share of Apparel & Core revenues Core Adj. EBITDA Core Adj. EBIT Core net financial Apparel & Accessories 2 4 Accessories revenues indebtedness 2 revenues €1,207m €264m €111m €84m 51% 77% (vs.
Slide 74: Core revenues evolution by channel
ZEGNA GROUP (€m) CORE REVENUES EVOLUTION BY CHANNEL (€M) +3.1% CAGR CAGR 2019A-23E 28 4 1,476 74 19 164 54 (14%) 1,306 180 126 +4% Textile & 18 1,207 driven by Thom Browne Wholesale growth and Zegna recovery Strategic 97 (close to 2019 levels); Travel Retail as a key factor in APAC 15 Alliances 75 1
Slide 75: Zegna Group core net financial indebtedness
ZEGNA GROUP 1 CORE NET FINANCIAL INDEBTEDNESS • including €11m impact from 2 acquisitions announced in 2021 • total impact of one-off cash outflows of €92m • includes impact of one-off cash outflows such as: €43m purchase 84 price and related charges for the acquisition of 50% of the New 4 Bond Stre
Slide 76: Core adj. operating cash flow
ZEGNA GROUP 1 CORE ADJ. OPERATING CASH FLOW (MANAGEMENT ESTIMATES) 81 64 4 2018A 2019A 2020A Core net cash flows from 256 239 136 2 operating activities Core operating capex (57) (57) (33) Core payment of lease liabilities (117) (118) (98) Source: Company information and estimates Notes: See Glossar
Slide 77: Glossary
GLOSSARY METRIC DEFINITION The “core” measures included in this presentation are unaudited. Such measures exclude certain businesses of the Company divested (by way of one or more demergers or other transfers) prior to the consummation of the Transaction (such divestitures, collectively, the “Dispos
Slide 78: Summary non-IFRS core financials (1/2)
SUMMARY NON-IFRS CORE FINANCIALS (1/2) Key income statement items (€m) 1 €m 2018A 2019A 2020A 2021E 2022E 2023E 1,153 1,150 834 Zegna Segment core revenues 985 1,082 1,179 Thom Browne Segment revenues 19 161 180 230 268 306 Eliminations between Segments (0) (6) (8) (8) (8) (9) Core revenues 1,173 1,
Slide 79: Summary non-IFRS core financials (2/2)
SUMMARY NON-IFRS CORE FINANCIALS (2/2) Key balance sheet and cash flow items (€m) €m 2018A 2019A 2020A 1 Core Net Financial Indebtedness 10 18 32 556 546 443 Core IFRS16 lease liabilities 310 308 320 Core inventories Core trade receivables 164 178 140 Core trade payables and customer advances (226)
Slide 80: IFRS reconciliations (1/6)
IFRS RECONCILIATIONS (1/6) Core revenues reconciliation (€m) €m 2018A 2019A 2020A Zegna Segment Core revenues 1,153 1,150 834 Thom Browne Segment revenues 19 161 180 Eliminations between Segments (0) (6) (8) Core revenues 1,173 1,306 1,005 10 16 10 Disposition reversal Revenues (IFRS) 1,183 1,321 1,
Slide 81: IFRS reconciliations (2/6)
IFRS RECONCILIATIONS (2/6) Core Adj. EBIT reconciliation (€m) €m 2018A 2019A 2020A 1H 20A 1H 21A Zegna Segment Core Adj. EBIT 108 97 (5) Thom Browne Segment Adj. EBIT 1 16 29 Core Adj. EBIT 109 112 24 Disposition Reversal (3) (5) (4) Adj. EBIT 105 107 20 (52) 67 1 Adjustments / Reconciling Items (10
Slide 82: IFRS reconciliations (3/6)
IFRS RECONCILIATIONS (3/6) Core Adj. EBITDA reconciliation (€m) €m 2018A 2019A 2020A Core Adj. EBITDA 262 282 193 Disposition reversal (2) (7) (7) Adj. EBITDA 260 275 186 Depreciation and amortization (154) (168) (166) 1 Adjustments / Reconciling Items (10) (19) (43) Operating profit (IFRS) 95 89 (2
Slide 83: IFRS reconciliations (4/6)
IFRS RECONCILIATIONS (4/6) Key balance sheet items reconciliation (€m) €m 2018A 2019A 2020A 1 Core Net Financial Indebtedness 10 18 32 Disposition reversal (26) (28) (25) Net Financial Indebtedness (16) (10) 7 Core IFRS16 lease liabilities 556 546 443 Disposition reversal (8) (38) (35) IFRS16 lease
Slide 84: IFRS reconciliations (5/6)
IFRS RECONCILIATIONS (5/6) Key balance sheet items reconciliation – focus on Core Net Financial Indebtedness (€m) €m 2018A 2019A 2020A Non current borrowings 620 514 559 Current borrowings 143 106 106 Derivative financial instruments 12 14 13 Other non current financial liabilities (Bonds and other)
Slide 85: IFRS reconciliations (5/6)
IFRS RECONCILIATIONS (5/6) Key balance sheet items reconciliation – focus on Core Net Financial Indebtedness (€m) €m 2018A 2019A 2020A 1H 21A Non-current borrowings 620 514 559 533 Current borrowings 143 106 106 182 Derivative financial instruments - Liabilities 12 14 13 9 Other non-current financia
Slide 86: IFRS reconciliations (6/6)
IFRS RECONCILIATIONS (6/6) Key cash flow items reconciliation (€m) €m 2018A 2019A 2020A 193 174 71 Net cash flows from operating activities 20 27 21 Cash-out of interest add-back 33 31 36 Cash-out of income taxes add-back Net cash flows from operating activities, excluding income taxes paid and inte
Slide 87: DOS network evolution
DOS NETWORK EVOLUTION 1 2 2 Zegna Branded Products (# DOS ) Thom Browne (# DOS ) at year end at year end 6 (1) 7 244 [ ] (6) 238 5 68 3 46 39 3 9 19 9 65 71 38 16 4 45 46 6 13 34 88 82 15 2020A Greater Rest of EMEA Americas 2023E 2020A Greater Rest of EMEA Americas 2023E China APAC China APAC Region
Slide 88: Investindustrial Acquisition Corp. overview
INVESTINDUSTRIAL ACQUISITION CORP. OVERVIEW Team Overview Investindustrial Overview Investindustrial Acquisition Corp. Leadership Advisory Board European leader with strong presence in Southern Europe • Founded in 1990 with backing from an industrial conglomerate, active since the late 20th century
Slide 89: Risk factors
RISK FACTORS All references to Zegna refer to the business of Ermenegildo Zegna Holditalia S.p.A. and its consolidated subsidiaries. The risks presented below are certain of the general risks related to the business of Zegna and to the contemplated business combination and such list is not exhaustiv
Slide 90: Disclaimer (1/2)
DISCLAIMER (1/2) Confidentiality and Disclosures This presentation (the “Presentation”) is provided for information purposes only and has been prepared in connection with a possible business combination (a “Transaction”) involving Ermenegildo Zegna Holditalia S.p.A. (the “Company”) and a special pur
Slide 91: Disclaimer (2/2)
DISCLAIMER (2/2) Non IFRS Financial Measures The document includes certain non-IFRS financial measures (including on a forward-looking basis), such as Adjusted EBIT, Adjusted EBITDA, Net Financial Indebtedness, Operating Capex and Adjusted Operating Cash Flow. These non-IFRS measures are an addition
Ermenegildo Zegna Group — SPAC Merger (November 2021) on 6ix