Zignago Vetro SpA · MIL:ZV
Zignago Vetro SpA — Q1 2020 Earnings Presentation
40 slides from Zignago Vetro SpA's earnings presentation, May 14, 2020
Slide 1: Company presentation May 2020
Company presentation May 2020
Slide 2: Group Structure
Group Structure FREE FLOAT Zignago Holding S.p.A. on the (MARZOTTO FAMILY) ITALIAN STOCK EXCHANGE 65% 35% 100% Santa Margherita Wine producer Zignago Vetro 2018 ZV Group consolidated 230,1 Mln € 420,5 mln € Zignago Power 100% 51% Vetro Revet Biomass electricity producer 100% 50% 100% 100% 7,3 mln €
Slide 3: Milestones
Milestones Portogruaro plant: Acquisition of specialty containers production Acquisition of Vetro Revet: Vetreco: cullet recycling F&B + C&P plants, then merged into Vetri Speciali cullet recycling 1979 1987 1994 1995 2002 2004 2007 2011 2013 2017 2019 Acquisition of Empoli Acquisition of VB in List
Slide 4: Presence in Selected Business Segments
Presence in Selected Business Segments 2019 (€m) Market Segment Products Main Features Competitive Strengths Flexibility, efficiency and Food & technical know-how key for Zignago Vetro Beverage success Flexibility Sales € 230.1m Focus on selected segments Quality Cosmetics & of food & beverage a
Slide 5: Manufacturing Facilities – international presence
Manufacturing Facilities – international presence Geographical Presence Manufacturing Locations Revenues breakdown (2019 FY) Facility Location Portogruaro, (Venice) Italy Empoli (Florence) Italy Vieux Rouen sur Bresle (Normandie) France Trabki (Warsaw) Poland (decoration facility located with glass
Slide 6: Business model
Business model Production of glass containers dedicated to a broad spectrum of sectors/markets, with a wide range of products: different colours, shapes and dimensions. High content of product innovation and customization. Standard Customized Innovative Specialty 6
Slide 7: Commercial Presence and Customer Relationships
Commercial Presence and Customer Relationships Concentratio Customer n rate of first loyalty1 5 clients 2 (Revenues) Zignago Vetro 15% 92% ZV Brosse 53% 93% Vetri Speciali 27% 94% ZV Polska 26% 73% 1 Revenues from clients present also the 2 previous years 2 Net of intercompany sales 7
Slide 8: Zignago Vetro Group: Sales and Profitability Track Record
Zignago Vetro Group: Sales and Profitability Track Record Sales and EBITDA (1988-2019) CAGR: +7,9% Euro (m) CAGR: +8,3% 8
Slide 9: Financial Performance – Zignago Vetro Group
Financial Performance – Zignago Vetro Group Revenues (€m) EBITDA (€m) 27,7% 28,1% 130 27,2% 30% 450 25,1% 120 23,6% 400 25% 110 350 100 300 90 20% +11.7% 250 +11.7% 80 15% 200 +1.4% +4.4% 420,5 70 118,1 337,0 376,5 60 104,3 150 318,5 322,9 91,6 10% 100 50 75,1 80,9 40 5% 50 30 0 20 0% 2015 2016 2017
Slide 10: 1Q 2020 Revenues & Profitability
1Q 2020 Revenues & Profitability ZIGNAGO VETRO GROUP Revenues (€m) EBITDA (€m) Net Result (€m) 120 30 30% 12 10,4% 12% 25,8% 24,4% 100 25 25% 10 10% 80 20 20% 8 6,9% 8% 60 +8.3% 15 15% 6 6% 100,6 109,0 26,0 26,5 10,5 40 10 10% 4 7,5 4% 20 5 5% 2 2% 0 0 0% 0 0% 1Q 2019 1Q 2020 1Q 2019 1Q 2020 1Q 2019
Slide 11: 1Q 2020 Revenues & Profitability by BU
1Q 2020 Revenues & Profitability by BU ZIGNAGO VETRO ZIGNAGO VETRO BROSSE Revenues (€m) Revenues (€m) 20 60 50 15 40 30 +24.6% 63,9 10 51,3 17,8 -32.8% 20 5 12,0 10 0 0 1Q 2019 1Q 2020 1Q 2019 1Q 2020 EBITDA (€m) EBITDA (€m) 24,3% 24,4% 19,8% 18 25% 5 20% 15 20% 4 15% 12 3 15% 10% 9 15,6 10% 2 3,5 6
Slide 12: 1Q 2020 Revenues & Profitability by BU
1Q 2020 Revenues & Profitability by BU VETRI SPECIALI (50%) ZIGNAGO VETRO POLSKA Revenues (€m) Revenues (€m) 25 15 20 12 15 9 +0.7% -2.3% 22,5 22,7 6 11,9 11,7 10 5 3 0 0 1Q 2019 1Q 2020 1Q 2019 1Q 2020 EBITDA (€m) EBITDA (€m) 29,8% 8 31,2% 31,8% 35% 4 24,9% 30% 30% 25% 6 25% 3 20% 20% 3,5 4 2 3,0 1
Slide 13: Zignago Vetro Group - Balance Sheet
Zignago Vetro Group - Balance Sheet Net Capital Employed (€m) Net Working Capital (€m) 30,4% 29,0% 500 140 24,8% 23,2% 30% 120 400 25% 100 300 80 20% 473,3 465,8 60 122,0 123,4 15% 200 372,5 417,2 102,5 311,9 40 80,1 87,3 10% 100 20 5% 0 0 0% 2016 2017 2018 2019 1Q 2020 2016 2017 2018 2019 1Q 2020 N
Slide 14: Cash Flow From Operations and Capex
Zignago Vetro Group - Cash Flow From Operations and Capex Cash Flow from Operations (before capex) (€m) Capex (€m) 90 100 75 80 60 60 45 94,3 79,1 82,6 40 72,0 30 58,3 66,0 66,1 54,3 20 15 24,5 4,7 0 0 2016 2017 2018 2019 1Q 2020 2016 2017 2018 2019 1Q 2020 14
Slide 15: Financial structure, EPS and dividends
Financial structure, EPS and dividends Key financial structure ratios EPS and Dividend distribution (Euro) 2,50 0,80 72% 74% 74% 71% 71% 71% 2,13 2,13 71% 71% 70% 70% 2,08 0,70 70% 1,93 2,00 0,60 1,72 0,60 1,58 1,64 0,51 0,45 60% 1,50 0,50 1,31 0,422 0,38 0,40 1,07 0,40 0,35 0,35 0,360 0,98 0,33 0,3
Slide 16: ESG: Environment Social Governance
ESG: Environment Social Governance Our sustainable business approach Zignago Vetro Mission: To produce and market hollow glass containers for a range of market segments, in particular the food and beverages and cosmetics and perfumery sectors, with a particular focus on sustainability and with the a
Slide 17: Environment Social Governance
Environment Social Governance Glass: the perfectly sustainable raw material TRANSPARENCY, ELEGANCE & IDENTITY PERFECT PRESERVATION FOOD SAFETY TOTAL AND INFINITE RECYCLABILITY Hygienic, healthy, eco-friendly, infinitely recyclable and safe, glass is considered by the 78% of European consumers as the
Slide 18: Environment Social Governance
Environment Social Governance Glass at the heart of a sustainable world: - Glass adapts perfectly to a circular economy as it is 100% recyclable, for an infinite number of times, and without deteriorating the quality of the new container; - For this reason, in the future, glass will increasingly be
Slide 19: Environment Social Governance
Environment Social Governance To fully spread and implement the sustainability principles within its business culture, Zignago Vetro has decided to build a complete ESG FRAMEWORK, which is structured as follows: - ESG GOVERNANCE: the Board of Directors has appointed an internal ESG Committee, made u
Slide 20: Environment Social Governance
Environment Social Governance Aware of its role for the sustainable development, Zignago Vetro has linked its activities to the 2030 Agenda of the United Nations, focusing mainly on the subsequent 12 Goals that are connected to 3 principal pillars: PILLARS Environment Social Governance Environment S
Slide 21: Environment: raw materials management
Environment: raw materials management To date, almost half of total raw material (46,5%) is recycled glass, marking a +8,4% increase with respect to last year. The use of recycled glass has a triple advantage: - saving of virgin raw materials - energy saving - lower CO2 emissions The aim of Zignago
Slide 22: Environment: energy efficiency
Environment: energy efficiency Zignago Vetro has made significant efforts to start a positive trend of energy efficiency both in terms of energy consumption per production output and of renewable energy self-production; this also results in a reduction of CO2 emissions per glass produced. In 2019, t
Slide 23: Environment: energy efficiency
Environment: energy efficiency In this scenario, the pursuit of the objective of a balanced mix among the energy sources is also important, trying to maximize the use of renewable and self-produced ones. From 2018 to 2019, the percentage of electricity that comes from renewable resources has increas
Slide 24: Environment: water management
Environment: water management Zignago Vetro is deeply concerned to protect the hydrogeological balance and to prevent any instability. - In 2019, the value of specific water consumption per ton of glass produced has significantly decreased by -33,9%, thanks to: - the implementation of closed-circuit
Slide 25: Environment: emissions
Environment: emissions Zignago Vetro is actively committed in decreasing the CO2 emissions: between 2018 and 2019, CO2 specific emissions have decreased by -5,7%. CO2 emissions (Scope 1 & 2) / Glass produced (ton With the aim to decrease the CO2 emissions, the Group has set the following CO2/ton) ta
Slide 26: Environment: waste management
Environment: waste management From 2018 to 2019, we got a general decrease of ordinary waste in relation to the ton of glass produced (-13,8%): this reduction is visible both for non-hazardous waste (-15,1%), and for hazardous waste (-6,9%). Total waste for destination: 5,7% 14% 4,4% 22,1% 20,7% 27,
Slide 27: Environment: projects for the environment
Environment: projects for the environment During 2019 we have supported the following projects: - MEGLIOINVETRO - ENDLESS OCEAN - PLATIC FREE POLICY - ENVIRONMENTAL EDUCATION IN SCHOOLS - TOGETHER FOR THE VENETO MOUNTAINS - TREEDOM - ESG CONFERENCES
Slide 28: Environment: 2020 Goals and 2025 strategic Goals
Environment: 2020 Goals and 2025 strategic Goals Regarding the pillar “Environment”, Zignago Vetro has set the following KPIs and targets: 2019 2020 2025 TOPIC KPIs Achieved Goal Goal Strategic Goal Raw materials % of recycled glass on 46,5% 49% 53,2% management total raw materials Energy consumptio
Slide 29: Social: human resources management
Social: human resources management In 2019, the Group steadily continues to represent a point of working opportunities: the employees’ headcount is of 1.733 people, with an increase of +54 people with respect to 2018, confirming the positive occupational trend and with a substantial maintenance of f
Slide 30: Social: health and safety in the workplace
Social: health and safety in the workplace The Group’s companies give the highest level of attention to the issues of health and safety in the workplace and prevention. In 2019, the safety protocols have been strengthened and the hours of training on workplace safety increased. Accidents – Frequency
Slide 31: Social: consumers’ Health & Safety
Social: consumers’ Health & Safety Zignago Vetro has obtained various certifications, confirming its attention towards its clients: - We are certified UNI EN 15593:2008 for the design and production of glass containers for alimentary usage. - We are certified ISO 9001:2015 for the design, production
Slide 32: Social: personnel training and development
Social: personnel training and development Zignago Vetro is actively engaged in improving personnel skills: - in each country in which the Group operates, there Training hours: are training programs structured according to the different needs, for all the professional categories; - in 2019, the Grou
Slide 33: Social: protection of diversity, equal opportunities and non-discrimination
Social: protection of diversity, equal opportunities and non-discrimination The management of Zignago Vetro companies is conducted with absolute respect for personal diversity and by ensuring equal opportunities. In particular, in Zignago Vetro we promote social inclusion policies: - since 2016, Zig
Slide 34: Social: suppliers’ management
Social: suppliers’ management Zignago Vetro fosters the sustainability culture along its entire supply chain, pursuing the following objectives: - engaging with suppliers who share philosophies in line with Zignago Vetro's policy and with the principles of ethical, social and environmental responsib
Slide 35: Social: 2020 Goals and 2025 strategic Goals
Social: 2020 Goals and 2025 strategic Goals Regarding the pillar “Social”, Zignago Vetro has set the following KPIs and targets: 2019 2020 2025 TOPIC KPIs Achieved Goal Goal Strategic Goal Human Resources Employees Headcount ∆%: +3,22% n.a. n.a. management Ongoing Ongoing Work-life balance initiativ
Slide 36: Governance: Board of Directors composition
Governance: Board of Directors composition The structure of Board of Directors e is characterized by gender and independency balance: Paolo Giacobbo Executive 46% Manuela Romei Independent Barbara Ravera Independent 54% Franco Moscetti Executive Stefano Marzotto Executive Luca Marzotto Executive Non
Slide 37: Governance: risk management system and fiscal transparency
Governance: risk management system and fiscal transparency The Group’s governance has an Internal Control and Risk Management System, aimed at identifying, measuring and monitoring the principal risks. The main bodies are: - the Board of Directors; - the Director in charge of the Internal Control an
Slide 38: Governance: 2020 Goals and 2025 strategic Goals
Governance: 2020 Goals and 2025 strategic Goals Regarding the pillar “Governance”, Zignago Vetro has set the following KPIs and targets: 2019 2020 2025 TOPIC KPIs Achieved Goal Goal Strategic Goal Fiscal transparency Corruption cases 0 0 0 Operative structure and committees able to Ongoing Ongoing G
Slide 39: ESG Roadmap: Keep growing together in a sustainable way
Environment Social Governance – Roadmap “Keep growing together in a sustainable way”
Slide 40: Contacts
Contacts: Roberto Celot CHIEF FINANCIAL OFFICER INVESTOR RELATIONS r.celot@zignagovetro.com TEL (+39) 0421 246 111 Zignago Vetro S.p.A. Via Ita Marzotto 8, 30025 Fossalta di Portogruaro (VE) – Italy P. Iva 00884050279 www.zignagovetro.com