Ermenegildo Zegna N.v. · NYSE:ZGN
Ermenegildo Zegna — FY2022 Earnings Presentation
25 slides from Ermenegildo Zegna's earnings presentation, Jan 25, 2023
Slide 1: FY 2022 Preliminary Revenues
FY 2022 PRELIMINARY REVENUES January 25, 2023 FY 2022 and 4Q 2022 Revenues are preliminary and unaudited. 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, Net Financial Indebtedness/(Cash Surplus) and
Slide 3: Group Key Highlights
GROUP KEY HIGHLIGHTS Revenue Growth ex-GCR 4 FY 2022 Revenues1 FY 2022 +42% YoY / +38.6% cFX €1,493 million 4Q 2022 +15.5% YoY +24.7% YoY / +21.1% cFX +11.0% cFX 2,3 Adjusted EBIT3 and Profit Cash Surplus 3 Group expects a moderate improvement in Adjusted EBIT and a The Group expects a Cash Surplus
Slide 4: 4Q 2022, FY 2022 and Recent Developments
4Q 2022, FY 2022 AND RECENT DEVELOPMENTS ZEGNA MADE IN ITALY TEXTILE PLATFORM Our Road to Iconicity Our Road to Excellence and Traceability • Zegna One Brand Strategy: full roll-out • Strong B2B growth completed in July • Tom Ford license transitioned from • Zegna Clienteling app (Z2C) rollout manuf
Slide 5: FY 2022 Group Revenues
FY 2022 GROUP REVENUES • Revenues of €1,493 million, +15.5% YoY, +11.0% YoY in cFX • Continued growth momentum for both Zegna and Thom Browne • Zegna Segment +13.7% YoY • Thom Browne Segment +25.3% YoY • Both were impacted by Covid-19-related disruptions in the GCR throughout 2022, particularly seve
Slide 6: Revenues by Segment
Ermenegildo Zegna Group
Slide 7: FY 2022 and 4Q 2022 Revenues by Segment
FY 2022 AND 4Q 2022 REVENUES BY SEGMENT ZEGNA THOM BROWNE FY 2022: €1,177 million (+13.7% YoY) FY 2022: €331 million (+25.3% YoY) 4Q 2022: €334 million (-2.2% YoY) 4Q 2022: €76 million (+11.5% YoY) • Success of Zegna One Brand strategy • Growth across all lines, especially womenswear • Repositioning
Slide 8: Revenues by Geography
Ermenegildo Zegna Group REVENUES BY GEOGRAPHY
Slide 9: A two-speed world: Revenues by Geography
FY 2022 and 4Q 2022 REVENUES BY GEOGRAPHY North America Greater China Region APAC FY 2022: €295 million (+54.1% YoY) FY 2022: €494 million (-16.1% YoY) FY 2022: €645 million (-7.4% YoY) 4Q 2022: €82 million (+26.7% YoY) 4Q 2022: €131 million (-30.3% YoY) 4Q 2022: €173 million (-21.7% YoY) APAC (ex.
Slide 10: Revenues by Product Line
Ermenegildo Zegna Group AMMAR AEA EEQULCCET EET Sete rereccagqadcg iagea oP in REVENUES:BY PRODUCT LINE
Slide 11: FY 2022 and 4Q 2022 Revenues by Product Line
FY 2022 AND 4Q 2022 REVENUES BY PRODUCT LINE Zegna-Branded Products: +9% YoY in FY 2022; -2.7% YoY in 4Q 2022 • In 4Q +23.2% in cFX excluding GCR, benefitting from the roll-out of the One Brand collection since July 2022 • Shoes exceptional performance throughout the year • Strong rebound in tailori
Slide 12: Revenues by Channel
Ermenegildo Zegna Group REVENUES BY CHANNEL’,
Slide 13: FY 2022 and 4Q 2022 Revenues by Channel
FY 2022 AND 4Q 2022 REVENUES BY CHANNEL • Wholesale*: • +30.7% YoY in FY 2022; pushed by all product lines results • Continued to perform well in 4Q 2022; +16.1% YoY on an easy basis of comparison, especially for Thom Browne • DTC • Grew high-single-digit YoY in FY 2022; -6.8% YoY in 4Q 2022 • Both
Slide 14: FY 2022 Guidance Update
FY 2022 GUIDANCE UPDATE • Despite the significant headwinds from the Greater China Region, for FY 2022 the Group expects a moderate improvement in Adjusted EBIT and a substantial improvement in Profit compared to 2021 • The Group continues to expect an increase in Cash Surplus in the second half of
Slide 15: Ermenegildo Zegna Group
Ermenegildo Zegna Group
Slide 16: Appendix
Ermenegildo Zegna Group \ APPENDIX
Slide 17: Monobrand Store Network
MONOBRAND1 STORE NETWORK Group monobrand stores 500 as of December 31th, 2022 As of December 31, 2022 As of December 31, 2021 # Stores Zegna Thom Browne Zegna Group Zegna Thom Browne Zegna Group EMEA 65 10 75 69 9 78 Americas (2) 53 7 60 50 5 55 APAC 121 46 167 126 38 164 Total Direct to Customer (D
Slide 18: Group Revenues by Segment (Unaudited)
GROUP REVENUES BY SEGMENT (UNAUDITED) △% vs FY △% vs Q4 (€ thousands, except FY 2022 △% vs FY 2021 at 4Q 2022 △% vs 4Q 2021 at FY 2021 4Q 2021 percentages) Preliminary 2021 constant Preliminary 2021 constant currency currency Unaudited Unaudited Unaudited Revenues 1,492,840 1,292,402 15.5% 11.0% 406
Slide 19: Group Revenues by Product Line (Unaudited)
GROUP REVENUES BY PRODUCT LINE (UNAUDITED) (€ thousands, except FY 2022 △% vs FY △% vs 4Q 2022 △% vs 4Q △% vs FY 2021 FY 2021 4Q 2021 Q4 2021 percentages) Preliminary 2021 Preliminary 2021 at at constant constant Unaudited Unaudited Unaudited currency currency Revenues 1,492,840 1,292,402 15.5 % 11.
Slide 20: Group Revenues by Geographical Area (Unaudited)
GROUP REVENUES BY GEOGRAPHICAL AREA (UNAUDITED) △% vs FY △% vs Q4 (€ thousands, except FY 2022 △% vs FY 2021 at 4Q 2022 △% vs 4Q 2021 at FY 2021 4Q 2021 percentages) Preliminary 2021 constant Preliminary 2021 constant currency currency Unaudited Unaudited Unaudited Revenues 1,492,840 1,292,402 15.5%
Slide 21: Group Revenues by Channel (Unaudited)
GROUP REVENUES BY CHANNEL (UNAUDITED) △% vs FY △% vs Q4 (€ thousands, except FY 2022 % on % on △% vs FY 2021 at 4Q 2022 % on % on △% vs 4Q 2021 at FY 2021 4Q 2021 percentages) Preliminary Revenues Revenues 2021 constant Preliminary Revenues Revenues 2021 constant currency currency Unaudited Unaudite
Slide 22: 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, Net Financial Indebtedness/(Cash Surplus) and revenues o
Slide 23: Non-IFRS Financial Measures
Non-IFRS Financial Measures Net Financial Indebtedness/(Cash Surplus). Net Financial Indebtedness/(Cash Surplus) is defined as the sum of financial borrowings (current and non-current), derivative financial instruments, loans and certain other financial liabilities (recorded within other non-current
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) cFX growth: means growth at constant currency. For the description of constant currency calcu
Slide 25: Investor Relations Contact
INVESTOR RELATIONS CONTACT Investor Relations Investor Relations/Group Communications Francesca Di Pasquantonio francesca.dipasquantonio@zegna.com +39 335 5837669 Clementina Tito clementina.tito@zegna.com Media Brunswick Group Brendan Riley / Daria Danelli / Marie Jensen briley@brunswickgroup.com /