Zignago Vetro Group Company Overview March 215
Zignago Holding Group Structure Zignago Holding S.p.A. (MARZOTTO FAMILY) FREE FLOAT on the ITALIAN STOCK EXCHANGE (since 27) 65% 35% Santa Margherita S.p.A. Wine producer 1% Zignago Vetro SpA 161,7 mln Euro Zignago Power S.r.l. Electricity producer Zignago Immobiliare S.r.l. Real estate 1% 1% Verreries Brosse 54,3 mln Euro 1% 5% 1% 3% Vetri Speciali 139,3 mln Euro (*) Huta Szkla Czechy 19,8 mln Euro Vetreco 9,1 mln Euro (*) 214 figures (*) figures referred to 1% The only listed glass manufacturer in Italy 2
Milestones Portogruaro plant: F&B + C&P Acquisition of Specialty containers production plants, then merged into Vetri Speciali Establishment of Vetreco: Cullet recycling 1987 22 27 211 1979 1994 1995 24 213 Acquisition of Empoli plant: F&B Acquisition of VB in France: Luxury Perfumery Listing on the Italian Stock Exchange Acquisition of HSC in Poland: C&P and F&B A proven track record of successful acquisitions in and outside Italy across different Glass sectors 3
Presence in Selected Business Segments 214 ( m) Market Segment Products Main Features Competitive Strengths Zignago Vetro Sales 161.7m Food & Beverage Cosmetics & Perfumery Flexibility, efficiency and technical know-how key for success Focus on selected segments of food & beverage and cosmetics & perfumery Flexibility Quality Verreries Brosse Sales 54.3m Luxury Perfumery Extraordinary high-quality, tailormade product offering and efficiency Focus on high-end perfumery market Quality Innovation Huta Szkła Czechy Sales 19.8m Food & Beverage Cosmetics & Perf. Wide range of personalised products for niches of the global market of glass containers for cosmetics and perfumery, and for food and beverages Personalization Small-run production Vetri Speciali Sales 69.6m (5%) Specialty Containers Highly customized specialty glass containers produced in very short runs with strong focus on efficiency Personalization Small-run production Vetreco Sales 2.7m (3%) Cullet Recycling Forefront technology to reprocess cullet to the highest standards of color separation to yield the best quality of finished cullet Located in a strategic area with strong potential to grow 4
Manufacturing Facilities international presence Geographical Presence Manufacturing Locations Revenues breakdown (214FY) Facility Location Portogruaro, (Venice) Italy Empoli (Florence) Italy Vieux Rouen sur Bresle (Normandie) France Trabki (Warsaw) Poland (decoration facility located with manufacturing) Ormelle (Treviso) Italy Pergine Valsugana (Trento) Italy Note: Excludes Vetreco plant (3% owned) San Vito al Tagliamento (Pordenone) Italy International presence with manufacturing plants in strategic European areas. Balanced revenues across the sectors focusing on niche areas and best mix opportunities 5
Business model and Client Relationships Concentration rate of first 5 clients 2 Customer loyalty 1 (Revenues) Zignago Vetro 18% 88% Verreries Brosse 45% 98% Vetri Speciali 22% 95% HSC 27% 86% 1 Revenues from clients present also the 2 previous years (data referred to 214) 2 Net of intercompany sales 6
Financial Performance Revenues ( m) EBITDA ( m) 3 25 2 15 1 5 +2.6% +1.% -2.2% 298,8 292,3 264,9 291,2 +3.3% 32, 8 7 6 5 4 3 2 26,7% 26,4% 23,6% 22,9% 21,8% 7,7 76,9 7,6 67, 65,8 EBITDA ( m) Margin (%) 25% 2% 15% 1% 5% % EBIT ( m) Net Result ( m) 5 45 4 35 3 25 2 15 1 5 18,% 17,9% 47,7 52,2 15,1% 45, 13,9% 12,2% 4,6 36,9 15% 1% 5% % 4, 35, 3, 25, 2, 15, 1, 5,, 12,8% 12,% 1,3% 8,9% 7,9% 33,8 34,9 3,9 26,1 23,8 12% 1% 8% 6% 4% 2% % EBIT ( m) Margin (%) Net Results ( m) Margin (%) 7
Zignago Vetro Group: Sales and Profitability Track Record Sales and EBITDA (1988-214) Euro (m) 35 3 291,2 CAGR: +8,% 31,9 256,7 25 2 192,6 15 132,7 1 62,1 49,3 5 4,4 1,5 11,1 1,5 89,5 94,9 27,3 23,7 33,4 49,9 69,9 76,9 CAGR: +7,3% 65,9 1988 1989 199 1991 1992 1993 1994 1995 1996 1997 1998 1999 2 21 22 23 24 25 26 27 28 29 Sales EBITDA Profitable growth with record revenues in 214 driven by both inorganic and organic expansion 8
Solid Balance Sheet to Support Organic and External Growth Net Capital Employed ( m) Net Working Capital ( m) 25 2 15 1 5 183,5 196,6 216,9 235,4 241,5 8 7 6 5 4 3 2 1 21,7% 21,7% 26,% 28% 2,% 24% 16,% 17,3% 2% 16% 76, 64,7 64,7 12% 6,5 42,3 5,4 8% 4% % 21 211 212 212 213 214 Net working Capital ( m) on sales (%) Net Equity ( m) Net Financial Debt ( m) 14 12 12 1 1 8 8 6 4 2 18,1 118,3 125,5 129,6 133,8 6 4 2 75,5 75,5 91,4 15,8 17,7 9
Cash Flow From Operations and Capex Cash Flow from Operations (before capex) ( m) Capex ( m) 7, 5 65, 6, 55, 45 4 5, 45, 4, 35, 3, 25, 2, 15, 1, 5,, Net Capex related to VS acquisition 62,3 54,7 41,3 39,9 67, * 35 3 25 2 15 1 5 2,7 7,6 49,3 36, 3,7 32,3 22,4 * of which 13,8 mln for debts to suppliers of capex at year end HSC acquisition Capex mainly depends on furnaces refurbishment and capacity increase 1
Financial structure, EPS and dividends Key financial structure ratios EPS and Dividend distribution (Euro) 1,6 1,4 1,2 1,,8,6,4 1,6 1,6 1,3 1,3 1,1 1,,9,7,9,8,8,7,7,7,6,6 27 28 29,6,4,2, 7% 7% 7% 71% 74% 74%(1) 71% 71%,42,42,44,31,35,35,3,27,3,22,24,3,31,25,22,2(1) 27 28 29 7% 6% 5% 4% 3% Net financial debt / EBITDA EPS Div per share Pay out % Net financial debt / Net Equity (1) 215 Board of Directors proposal EPS: since 212 calculated on 88 mln shares (after a scrip issue of 1%) Pay out guidance: 7% of net group result 11