Ermenegildo Zegna N.v. · NYSE:ZGN
Ermenegildo Zegna — FY2021 Earnings Presentation
37 slides from Ermenegildo Zegna's earnings presentation, Apr 7, 2022
Slide 1: FY 2021 Results
FY 2021 RESULTS April 7, 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 earnings before interest, taxes, depreciation and amortiza
Slide 3: FY 2021 Highlights
FY 2021 HIGHLIGHTS REVENUES ADJUSTED EBIT * € millions € millions and % of revenues 2021 1,292 2021 149 11.5% 2020 1,015 2020 20 2.0% 2019 1,321 2019 107 8.1% ADJUSTED BASIC EARNINGS PER SHARE * NET FINANCIAL INDEBTEDNESS/(CASH € € millions SURPLUS)* 2021 0.33 2021 (145) 2020 (0.04) 2020 7 2019 0.20
Slide 4: 2021: Key Milestones
2021: KEY MILESTONES THOM BROWNE: NYSE LISTING ZEGNA: ONE BRAND STRATEGY STRENGHTHENED BRAND AWARENESS Picture Picture Picture • December 20, 2021: a key • One Brand strategy: the pillar of • A unique brand with broad-based milestone Zegna growth and profitability opportunities ambitions • First Ita
Slide 5: 2021 Key Milestones
2021 KEY MILESTONES VERTICAL INTEGRATION & INDUSTRIAL DISTRIBUTION/DIGITAL SUSTAINABILITY KNOW-HOW Picture Picture Picture • Proud of our industrial heritage and of • Rebranding: stores in line with new • Sustainability is part of our heritage: Made in Italy image, boutiques by end 2022 published ou
Slide 6: A Leading, Modern and Integrated Group
A LEADING, MODERN AND INTEGRATED GROUP ZEGNA SEGMENT THOM BROWNE SEGMENT ZEGNA BRAND: LEADER IN GLOBAL ONE OF A KIND MADE IN ITALY LUXURY DISTINCTIVE MODERN LUXURY LUXURY MENSWEAR* TEXTILE LABORATORY PLATFORM LEVERAGING THE GROWTH OF LUXURY ONE-OF-A-KIND PLATFORM PRODUCING THE A UNIQUE BRAND WITH BR
Slide 7: Zegna Group Road to Tomorrow: Zegna Belongs to Today
ZEGNA GROUP ROAD TO TOMORROW ZEGNA BELONGS TO TODAY, EVOLVING ALONGSIDE OUR CLIENTS • Continue to capitalize on and benefit from the ongoing casualization in menswear and desire for luxury leisurewear • Focusing on our iconic products while attracting new customers and more creative collaborations i
Slide 8: Road to Tomorrow: Luxury Textile Laboratory Platform & Third Party Brands
ZEGNA GROUP ROAD TO TOMORROW LUXURY TEXTILE LABORATORY PLATFORM & THIRD PARTY BRANDS • One-of-a-kind craftsmanship that services our own brands as well as major global luxury players • Balancing vertical integration benefits with flexibility • Focus on strengthening and expanding our competences • S
Slide 9: Road to Tomorrow: Thom Browne: Distinctive Modern Luxury
ZEGNA GROUP ROAD TO TOMORROW THOM BROWNE: DISTINCTIVE MODERN LUXURY • Thom Browne is a unique brand anchored to the product “substance” and with museum-worth design • Continued strong growth across every channel and geography, and in both Men’s and Women’s • Unique levers of growth: womenswear and a
Slide 10: Road to Tomorrow: Doubling Down on High-Performing Markets
ZEGNA GROUP ROAD TO TOMORROW DOUBLING DOWN ON HIGH-PERFORMING MARKETS • Significant growth in the US and UAE and a rebound in Europe • Brand elevation and luxury leisurewear changing brand perception in US and Europe, driving healthy DTC performance • Still more potential in Greater China Region (or
Slide 11: FY 2021 Revenues
FY 2021 REVENUES ^ 2020-2021 REVENUES BRIDGE BY GEOGRAPHY € millions • Revenues of €1,292 million, +27% º vs. 2020 and -2% vs. 2019 • Strong Performance by Zegna segment: Revenues €1,035 million ,+23% vs. 2020 and - 11% vs. 2019 • Exceptional Revenue Growth from Thom 2019 Adjusted EBIT 2021 Adjusted
Slide 12: FY 2021 Profitability & Cash: Dynamic Progress
FY 2021 PROFITABILITY & CASH: DYNAMIC PROGRESS • Adjusted EBIT of €149 million, growth of 7.5x vs 2020 and FY ADJUSTED EBIT & % OF REVENUES +39% vs. 2019 € millions • Adjusted EBIT as % of revenues of 11.5% vs. 8.1% in 2019, ahead of approximately 10% previously announced guidance on February 1, and
Slide 13: FY 2021 Results – Zegna Segment
FY 2021 RESULTS – ZEGNA SEGMENT 13
Slide 14: FY 2021 Results – Zegna Segment
FY 2021 RESULTS – ZEGNA SEGMENT ZEGNA SEGMENT REVENUES AHEAD OF PLAN* € millions • Strong revenue growth in Zegna segment (+23% vs 2020A), with revenues exceeding the € 1 billion mark • Adjusted EBIT as % of revenues 10.7% vs Plan* 8% and improving by +3pp compared to 2019 • Costs normalizing vs 202
Slide 15: FY 2021 Results – Thom Browne Segment
FY 2021 RESULTS – THOM BROWNE SEGMENT 15
Slide 16: FY 2021 Results – Thom Browne Segment
FY 2021 RESULTS – THOM BROWNE SEGMENT THOM BROWNE SEGMENT REVENUES AHEAD OF PLAN* • Strong revenue growth in Thom Browne segment (+47% € millions vs 2020) • Adjusted EBIT €38 million vs. Plan* of €31 million • as % of revenues in line with Plan* at 14.4% • Growth related costs • DOS network expansio
Slide 17: FY 2021 Results - Group
BO Fermenegildo Zegna Group FY 2021 RESULTS - GROUP — a am Ne a Ee Diag nesl
Slide 18: FY 2021 Results - Income Statement Highlights
FY 2021 RESULTS - INCOME STATEMENT HIGHLIGHTS DISECTING ADJUSTMENTS • Costs related to the Business Combination * of €205 million • Of which 72% are non-cash transaction accounting adjustments • Other adjustments equal to €17 million before taxes • Mostly related to early termination of leases, impa
Slide 19: FY 2021 Capex & Trade Working Capital
FY 2021 CAPEX & TRADE WORKING CAPITAL Incidence of TWC back to pre-Covid levels Investing in Retail, IT and Industrial Platform % of revenues % of revenues • New store openings for Thom Browne (+14 DOS), mix of • Significant improvement in Trade Working Capital relocations/renewals for Zegna • Inven
Slide 20: FY 2022 Key Priorities
FY 2022 KEY PRIORITIES FOCUS ON LONG-TERM GROWTH AND VALUE CREATION • Operating ahead of the Plan presented in July 2021 *. Adjusted EBIT as % of revenues exceeded Group’s own guidance of “around 10%” published on February 1, 2022 • Continue to execute on the One Brand strategy for Zegna and growth
Slide 21: FY 2022 Guidance
FY 2022 GUIDANCE SUCCESSFULLY MOVING FORWARD MORE QUICKLY THAN ANTICIPATED € millions GROUP REVENUES AHEAD OF PLAN* • Monitoring and adapting to complex environment • Geopolitical turmoil and resurgence of Covid-19 pandemic, especially in China • Dynamic start of the year in retail, solid order coll
Slide 22: Ermenegildo Zegna Group
Ermenegildo Zegna Group
Slide 23: Appendix
Ermenegildo Zegna Group APPENDIX
Slide 24: FY 2021 Results – Revenues Recap
FY 2021 RESULTS – REVENUES RECAP € Million € Million 1,321 1,292 1,015 EMEA includes Europe, Middle East and Africa. North America includes the United States of America and Canada. Latin America includes Mexico, Brazil and other Central and South American countries. APAC includes the Greater China R
Slide 25: Monobrand Store Network
Monobrand 1 store network Thom Browne increasing DTC points-of-sale, Zegna streamlining its footprint as of December 31 st, 2021 as of December 31 st, 2020 as of December 31 st, 2019 THOM THOM THOM # Stores ZEGNA GROUP ZEGNA2 GROUP ZEGNA GROUP BROWNE BROWNE BROWNE EMEA 69 9 78 71 6 77 73 5 78 Americ
Slide 26: FY 2021 Results - Bridge from Reported P&L to P&L Net of Adjustments
FY 2021 RESULTS - BRIDGE FROM REPORTED P&L TO P&L NET OF ADJUSTEMENTS COSTS RELATED 2021A (Euro Million in Actual Fx) 2021A TO THE BUSINESS ADJUSTMENTS NET OF ADJUSTMENTS COMBINATION * Revenues 1,292.4 1,292.4 Other income 8.3 - (1.3) 7.0 Cost of raw materials and consumables (309.6) - - (309.6) Pur
Slide 27: 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 earnings before interest, taxes, depreciation and amortization (“Adju
Slide 28: Non-IFRS Financial Measures
Non-IFRS Financial Measures Adjusted Profit/(Loss) represents (Loss)/Profit for the year adjusted for income and costs (net of tax effects) which are significant in nature and that management considers not reflective of underlying activities, including, for one or all of the years presented, costs r
Slide 29: Non-IFRS Financial Measures
Non-IFRS Financial Measures Adjusted EBIT See explanatory notes on slides 27-28 29
Slide 30: Non-IFRS Financial Measures
Non-IFRS Financial Measures Adjusted EBITDA See explanatory notes on slides 27-28 30
Slide 31: Non-IFRS Financial Measures
Non-IFRS Financial Measures Adjusted Profit/(Loss) See explanatory notes on slides 27-28 31
Slide 32: Non-IFRS Financial Measures
Non-IFRS Financial Measures Adjusted Basic Earnings per Share and Adjusted Diluted Earnings per Share See explanatory notes on slides 27-28 32
Slide 33: Non-IFRS Financial Measures
Non-IFRS Financial Measures Net Financial Indebtedness/(Cash Surplus) (*) Includes only the “bonds” and “other” components of the “Other non-current financial liabilities” line item from Zegna’s consolidated statement of financial position. (**) Includes only the “securities” component of the “Other
Slide 34: Non-IFRS Financial Measures
Non-IFRS Financial Measures Trade Working Capital See explanatory notes on slides 27-28 34
Slide 35: Non-IFRS Financial Measures
Non-IFRS Financial Measures Capital Expenditure (Euro thousands, except percentages) For the years ended December 31, 2021 2020 2019 Payments for property, plant and equipment 79,699 27,630 46,113 Payments for intangible assets 14,627 11,524 13,392 Capital expenditure 94,326 39,154 59,505 2021 figur
Slide 36: 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
Slide 37: Investor Relations Contact
INVESTOR RELATIONS CONTACT Investor Relations Francesca Di Pasquantonio francesca.dipasquantonio@zegna.com +39 335 5837669 Media Domenico Galluccio domenico.galluccio@zegna.com +39 335 538 7288 37