210503 GZV Presentation 1Q 21 - zignagovetro.com

1

03/05/2021

Company Presentation& Financial Results

Summary

Zignago Vetro organization

Financial results

3

4

5

6

7

8

10

17

18

19

COMPANY STRUCTURE

ZIGNAGO HOLDING

OUR CORE BUSINESS

INTERNATIONAL PRESENCE

BUSINESS UNITS

ZIGNAGO VETRO MILESTONES

ZV GROUP – BALANCE SHEET

ZV GROUP – CASH FLOW FROM OPERATION & CAPEX

FINANCIAL STRUCTURE, EPS & DIVIDENDS

BUSINESS MODEL

COMMERCIAL PRESENCE

2021 COMPANY PRESENTATIONFINANCIAL RESULTS 2

9 OUR IDENTITY

11

Annex

20 ESG APPROACH12

SALES AND PROFITABILITY TRACK RECORD

141Q 2021 REVENUES & PROFITABILITY

15 1Q 2021 REVENUES & PROFITABILITY BY BU

Company structure

3

Zignago Vetro

238,6 mln€

65%

Zignago Holding S.p.A.(MARZOTTO FAMILY)

35%

FREE FLOAT on the ITALIAN STOCK EXCHANGE

100%

Zignago Vetro Brosse

34,0 mln€ Zignago Vetro Polska

48,0 mln€

100%

Vetri Speciali

192,0 mln€ (*)

50%

Zignago Glass USA

1,0 mln€

100%

51%

30%

Vetro Revet

7,5 mln€ (*)

Vetreco

17,8 mln€ (*)

Julia Vitrum

(start up)

ZV Group consolidated

406,6 mln€ 2020 data

*100% of turnover** since September 2020

2021 COMPANY PRESENTATIONFINANCIAL RESULTS

40%

70%

Tre.Ve. (**)

Nuova Ro-Co /

Garbellini(**)

70%

Zignago Holding

Zignago Vetro is the parent company of a group of glassworks. It is part of Zignago Holding S.p.A, a dynamic organization located in North-East Italy, consisting of a diversified portfolio of businesses controlled and owned by the Marzotto Family.

4

Glass

containersRenewable

energyFine wines Fashion/retail

Others


Zignago Vetro milestones

5

1979 1987 1994 1995 2002 2004 2007 2011 2013 2017 2019

PortogruaroPlant: F&B + C&P + Pharma

Acquisition of the Empoliplant: F&B

Acquisition of 3 companies producing specialty containers, later merged into Vetri Speciali

Acquisition of Zignago VetroBrosse in France: luxury perfumery & spirits

Listed on the Italian Stock Exchange

Acquisition of Zignago VetroPolska in Poland: C&P + F&B

Vetreco: recycling of glass cullet

Acquisition of Vetro Revet: recycling of glass cullet.

Julia Vitrum(start-up): recycling of glass cullet


Business Units

6

2020 (€m) MARKET SEGMENTS PRODUCTS MAIN CHARACTERISTICS COMPETITIVE ADVANTAGE

ZIGNAGO VETROSales € 238,6

Food & BeverageCosmetics & Perfumery

Flexibility, efficiency, and technical know-how are keys to success.

Focus on selected segments of food & beverage and cosmetics & perfumery.

Flexibility

Quality

ZIGNAGO VETRO BROSSESales € 34,0

Luxury Perfumery

Extraordinary catalogue of high-quality and efficient products.

Focus on the luxury perfumes market.

Quality

Innovation

ZIGNAGO VETRO POLSKASales € 48,0

Food & BeverageCosmetics & Perfumery

Wide range of personalized productsfor niches of the global glass containers

market for cosmetics & perfumery and for food & beverage.

Personalization

Production of small lots

VETRI SPECIALISales € 192,0

Special containersHighly personalized special glass containers,

produced in very small lotswith the utmost attention to efficiency.

Personalization

Production of small lots

VETRECOSales € 17,8

VETRO REVETSales € 7,5

JULIA VITRUMSales € n.a.

Glass cullet recycling

Cutting-edge technology for processing cullet according to the highest standards of

color separation to produce the best quality of finished

cullet.

Located in strategic areas with a strong growth

potential


Glass companies Sales office HQ Glass recycling

International presence

7

Trabki, Poland

Empoli

Empoli, Italy

Viuex Rouen sur Bresle & Paris, France

Pergine Valsugana, GardoloOrmelleSan Vito al Tagliamento

Italy

San Vito al Tagliamento, Italy

Supino, Italy

Miami, USA


Fossalta di Portogruaro

Italy

Zignago Vetro Group is among the leading producers of hollow glass containers in Italy and is one of the most important players on an international level. Our main markets are:

- Food and Beverage

- Cosmetics and Perfumery

- Specialty Containers

Thanks to our know-how and flexibility, we are uniquely positioned to produce a broad spectrum of products, standard & customized, with different colours, shapes and dimensions, for these markets.

8

Our core business


Group429,6 Mln €

F&B C&P Specialty Other

2020 data

50%

4%

23%

23%

MISSIONEnsuring and enhancing the best products, quality and service to our valued customers, keeping a particular focus on the sustainability aspects.

STRATEGYWe are a dynamic Group, with a strong international mindset.

TRADITIONCombining business goals with social and ethical vision, by focusing on sustainability.

9

Our identity

VALUES

Quality Flexibility Innovation Efficiency Service Sustainability


PEOPLE

Business model

PEOPLEAn essential and distinctive element of the Group’s success.

FLEXIBILITY AND EFFICIENCYZignago Vetro Group offers products that differ greatly, ranging from standard to customized items, to those offering very significant innovations, up to the production of specialty containers featuring shapes, colors, dimensions, and production lots that are extremely far from the conventional ones.

INNOVATIONWe pay a high attention in both product and process innovation, with the aim to realize our products in the best possible way.

QUALITYIntended as an added value that is expressed through flexibility in responding to changing market demands, after-sales assistance, and a transparent and collaborative approach.


Commercial presence

11

Concentration rate of

the first 5 clients1

Customer loyalty

(revenues)2

Zignavo Vetro 17% 96%

ZV Brosse 45% 90%

ZV Polska 25% 89%

Vetri Speciali 27% 92%

1 Net of intercompany sales2 Revenues from customers present also in the previous 2 years


12

Sales and profitability track record

40 4349

58 57 6271

8290 94 93 95

104 109

133142

162

193

209

241

257

230

265

291299

292302

319 323337

376

421407

10 11 11 14 12 1118 23 27 26 25 24 23 29 33 35 40

50 5464 70

6271 77

70 67 6675 81

92 104118 107

0

50

100

150

200

250

300

350

400

450

1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Sales EBITDA

CAGR: +7,5%Sales and EBITDA (1988-2020)

CAGR: +7,5%

Euro (m)


13

Sales and profitability track record

31,239,8 45,0

53,145,6

9,7%

11,8% 12,0% 12,6%11,2%

0%

2%

4%

6%

8%

10%

12%

14%

0

10

20

30

40

50

60

2016 2017 2018 2019 2020

Net Results (€m) Margin (%)

Revenues (€m) EBITDA (€m)

EBIT (€m) Net Result (€m)

80,9 91,6104,3

118,1106,6

25,1%27,2% 27,7% 28,1%

26,2%

0%

5%

10%

15%

20%

25%

30%

2030405060708090

100110120130

2016 2017 2018 2019 2020

EBITDA (€m) Margin (%)

47,4 53,364,5 69,2

53,8

14,7%15,8%

17,1% 16,4%

13,2%

0%

5%

10%

15%

0

10

20

30

40

50

60

70

2016 2017 2018 2019 2020

EBIT (€m) Margin (%)

322,9 337,0 376,5 420,5 406,6

050

100150200250300350400450

2016 2017 2018 2019 2020

-3.3%+11.7%

+11.7%+4.4%


1Q 2021 revenues & profitability

14

Revenues (€m) EBITDA (€m) Net Result (€m)

ZIGNAGO VETRO GROUP

26,5 28,4

24,4%25,8%

0%

5%

10%

15%

20%

25%

30%

0

5

10

15

20

25

30

35

1Q 2020 1Q 2021


7,5

11,5

6,9%

10,4%

0%

2%

4%

6%

8%

10%

12%

0

5

10

15

1Q 2020 1Q 2021

Net Results (€m)

109,0 110,2

0

20

40

60

80

100

120

1Q 2020 1Q 2021

+1.1%


1Q 2021 revenues & profitability by BU

15

Revenues (€m)

EBITDA (€m)

Revenues (€m)

EBITDA (€m)

ZIGNAGO VETRO ZIGNAGO VETRO BROSSE

12,010,6

0

2

4

6

8

10

12

1Q 2020 1Q 2021

-11.7%

15,6 15,3

24,4% 24,6%

0%

5%

10%

15%

20%

25%

30%

0

5

10

15

20

1Q 2020 1Q 2021


-0,4

0,9

-3,4%

8,4%

-5%

0%

5%

10%

-0,5

0,0

0,5

1,0

1Q 2020 1Q 2021


63,9 62,3

0

20

40

60

80

1Q 2020 1Q 2021

-2.6%


1Q 2021 revenues & profitability by BU

16

Revenues (€m)

EBITDA (€m)

Revenues (€m)

EBITDA (€m)

VETRI SPECIALI (50%) ZIGNAGO VETRO POLSKA

22,727,6

0

5

10

15

20

25

30

1Q 2020 1Q 2021

+21.8%

11,7 12,4

0

5

10

15

1Q 2020 1Q 2021

+6.3%

7,2 7,9

31,8%28,6%

0%

5%

10%

15%

20%

25%

30%

35%

0

2

4

6

8

10

1Q 2020 1Q 2021


3,5 3,6

29,8% 28,8%

0%

5%

10%

15%

20%

25%

30%

35%

0

1

2

3

4

5

1Q 2020 1Q 2021



372,5 417,2473,3 487,2 490,7

0

100

200

300

400

500

2017 2018 2019 2020 1Q 2021

195,5 217,1251,4 257,2 249,4

0

40

80

120

160

200

240

280

2017 2018 2019 2020 1Q 2021

177,5 200,1 221,9 230,0 241,2

0

50

100

150

200

250

2017 2018 2019 2020 1Q 2021

ZV Group – Balance sheet

17

Net Capital Employed (€m) Net Working Capital (€m)

Net Equity (€m) Net Financial Debt (€m)

102,587,3

122,0 127,3 138,1

30,4%

23,2%

29,0%31,3%

0%

5%

10%

15%

20%

25%

30%

0

20

40

60

80

100

120

140

2017 2018 2019 2020 1Q 2021

Net working Capital (€m) on sales (%)


ZV Group – Cash flow from operation & capex

18

Cash Flow from Operations (before capex) (€m) Capex (€m)

66,0

94,3

66,1

42,7

7,00

20

40

60

80

100

2017 2018 2019 2020 1Q 2021


58,3

79,1 82,693,2

16,6

17,4%

21,0%

19,6%

22,9%

0%

5%

10%

15%

20%

25%

0

20

40

60

80

100

2017 2018 2019 2020 1Q 2021

CF OPERATIONS on sales (%)

Financial structure, EPS & dividends

19

Key financial structure ratios EPS and Dividend distribution (Euro)

Pay out guidance: 69,2% of net group result

0,98

1,31

1,58 1,641,72

1,93

2,13 2,08 2,13

2,41

0,640,73

0,82 0,810,89

1,011,10 1,08 1,13 1,12

0,00

0,50

1,00

1,50

2,00

2,50

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Indeb. Fin. Netto / EBITDA

Indeb. Fin. Netto / Patr. Netto


0,40

0,35

0,300,27

0,330,35

0,45

0,51

0,60

0,52

0,2820,250

0,220 0,2000,235

0,252

0,3200,360

0,422

0,360

71% 72%74% 74%

71% 71% 71% 70% 70% 69,2%

30%

40%

50%

60%

70%

0,10

0,20

0,30

0,40

0,50

0,60

0,70

0,80

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

EPS Div per share Pay out %

20

03/05/2021

AnnexESG Approach

21

ESG (Environment, Social, Governance)

ANNEXESG APPROACH

Produce and market glass containers for the

Food & Beverage and the Cosmetics &

Perfumery sector, with a particular focus on

sustainability and with the aim of providing our

customers with safe and high-quality products,

while ensuring continuous value creation for

our shareholders and stakeholders.

Our Mission:

22

ESG (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 13 Goals that are connected to 3 main pillars:

PILLARS

Environment

Social Governance

Environment Social Governance

The entire analysis and defined KPIs are available on the Sustainability Report (https://zignagovetro.com/esg-kpi-e-reports/).

ANNEXESG APPROACH

23

2020 main Environmental achievements vs 2019:

– the % of PCR used on total glass produced has increased

by +14,6%;

– CO2 specific emissions (Scope 1 and 2) have decreased

by -6,2%;

– the energy consumption per ton of glass produced have

decreased by -2,1%;

– the % of electricity from renewable resources has

increased by +9,1%;

ESG - Environment

During 2020, the use of electricity from renewable

resources has saved 47.000 ton of CO2 emissions.

– specific water consumption per ton of glass

produced has significantly decreased by -20,3%;

– ordinary waste per ton of glass produced has

increased by +13,8%* (due to a normal fluctuation

on waste production and to an increase in

cleaning and sanitization of the working areas).

– total absence of environmental accidents in all

the sites of the Group.

ANNEXESG APPROACH

24

For the first time, in 2020, the Group provides full disclosure on the management of its packaging materials:

% of recycled

packaging in 2019

% of recycled

packaging in 2020

Pallets 62,6% 66,2%

Layer pads 64,6% 79,6%

% recycled materials

in the packaging used

in 2019

% recycled materials

in the packaging used

in 2020

Shrink wrap 25,9% 26,1%

Box and

cardboard64,8% 72,8%

Layer pads 41,2% 42,3%

ESG - Environment

ANNEXESG APPROACH

25

In January 2020 we’ve started a special project dedicated to the reduction of CO2 emissions. The aim is to improve our

performance and get significant reduction of CO2 emissions, by focusing on those of Scope 2 and Scope 3.

ESG - Environment

Electricity purchased from the network

Fuel and energy related activities

Employees commuting

Wastes

Business travel

Upstream and downstream transportation and distribution

End-of-life treatment of sold

products

Purchased goods and services

ANNEXESG APPROACH

26

Certifications

Zignago Vetro Italy

(Fossalta)

Zignago Vetro Italy

(Empoli)Zignago Vetro Brosse Zignago Vetro Polska

ISO 9001(Product quality)

Within 2021

ISO 14001(Environment)

Within 2022

ISO 50001(Energy)

Within 2023 Within 2023 - Within 2021

ISO 45001(Workplace safety)

Within 2024 Within 2023 - Within 2025

FSSC 22000(Food safety)

Within 2022 - Within 2023

UNI EN 15593(Food safety)

- -

The Group has elaborated a strategic program for the achievement of various certifications in the next 5 years:

In 2021, Zignago Vetro Italy (Empoli) has achieved the FSSC

22000.

ANNEXESG APPROACH

27

ESG - Social

2020 main Social achievements vs 2019:

- the outgoing employees’ turnover has decreased by -4%; whereas the female workforce has increased,

representing the 31% of the total workforce;

- Corporate Welfare Plan implemented in ZV Itlay;

- insurance policy extended for situations outside of work;

- smart-working implemented in all the compatible business functions;

- starting of a social inclusion project with Futura Social Cooperative;

- the accidents’ trend has decreased by -2,2%;

- the number of training hours has increased by +11,9%;

- implementation of the supplier’s Code of Conduct: subscribed by the 74% of suppliers;

ANNEXESG APPROACH

Workplace measures:

- all plants have been equipped with protection measures and policy to guarantee the health and safety of our employees;

- smart-working options have been implemented in all the compatible business functions;

- a specific insurance policy coverage for Covid-19 has been activated for all the employees;

- babysitting service has been granted to some key job positions, in order to guarantee the possibility to work;

- specific agreements have been signed with trade unions to safeguard our employees.

28

Social: Covid-19 measures

Given the emergency situation caused by Covid-19, Zignago Vetro has implemented numerous actions to protect the health & safety of its

employees and all its stakeholders:

Solidarity program:

- 1 Million Euros has been donated by Zignago Group to the town hospital to build a

Recovery Room in the intensive care unit;

- Zignago Vetro has also made donations in support of the Veneto and Tuscany

regions (25.000 euros each);

- 10.000 fabric masks have been produced thanks to the 1.000 meters of washable

fabric donated by Zignago Holding;

- glass bottles have been donated to a local pharmacy, to be filled with hand

sanitizers;

- masks and hand sanitizers have been offered also to the city-hall, in order to promote

the local school opening.

ANNEXESG APPROACH

29

Governance: Board of Directors

ANNEXESG APPROACH

The structure of Board of Directors is characterized by gender and independency balance:

Name and last name

ExecutiveNot executiveIndependent

Minority list

Paolo Giacobbo E

Roberto Cardini E

Gaetano Marzotto NE

Stefano Marzotto E

Nicolò Marzotto NE

Luca Marzotto NE

Ferdinando Businaro NE

Alessia Antonelli NE, I

Giorgina Gallo NE, I

Daniela Manzoni NE, I

Franco Moscetti NE, I

Manuela Romei NE, I

Barbara Ravera NE, I, LM

Independent Directors

Non-IndependentDirectors

Female

Male

Also, starting from November 1st , 2020, we’ve separated the Chairman’s position from the CEO’s one.

30

Governance: risk management system & fiscal transparency

ANNEXESG APPROACH

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 and Risk Management System;

- the Control and Risks Committee;

- the Internal Audit Manager;

- the Board of Statutory Auditors;

- the Supervisory Board.

The main elements upon which the Internal Control System is based are as follows:

- The Ethics Code;

- Organizational structure;

- Powers and delegations.

The Group's operations are based on the maximum levels of fiscal accuracy:

- the Group has registered 0 cases of corruption;

- the financial data are subject to a double control by the auditing company and the

fiscal advisors used by the Group’s companies.

31

Governance: ESG Framework

ANNEXESG APPROACH

Since 2019 Zignago Vetro has implemented a complete ESG FRAMEWORK, which is structured as follows:

- ESG POLICY

- ESG ORGANIZATIONAL STRUCTURE:

- ESG COMMITTEE

- ESG COORDINATOR

- ESG CONSULTANTS

- ESG GOVERNANCE:

- ESG STRATEGY

- ESG POLICIES

- ESG’S OBJECTIVES SYSTEM & MEASUREMENT OF THEIR ACHIEVEMENT

ESG PERFORMANCE-RELATED PAY:

from 2020, the company has linked a significant component of performance-related pay remuneration to the

achievement of specific ESG objectives.

The results achieved in 2020 have satisfied 97% of the objectives.

32

Environment: KPIs and Goals

TOPIC KPIs 2020

Achieved Goal

2021

Goal

2026

Strategic Goal

Raw materials

management

% of PCR used on total glass produced

48,0% 52,0% 57,0%

Packaging

management

% of recycled packaging or packaging containing

recycled materialIncreased Keep Increasing Keep Increasing

Energy efficiency

Energy consumption per ton of glass produced

∆%: -2,1% ∆%: -0,6% ∆%: -9,6%

% of electricity from renewable resources

44,3% 46% 81%

Water managementSpecific water consumption per ton of glass produced

∆%: -20,3% ∆%: -25,4% ∆%: -40,8%

Emissions

CO2 specific emissions (Scope 1 and 2)

∆%: -6,2% ∆%: -1,2% ∆%: -25,9%

Sustainable logisticsMultimodal transport

systemKeep implementing Keep implementing

Waste ManagementOrdinary waste per ton of glass

produced ∆%: +13,8% n.a. n.a.

Biodiversity # of environmental accidents 0 0 0

Environment-related

projects Supported initiatives 10+ supported projects

0,25% of the consolidated annual

result dedicated to these initiatives

0,25% of the consolidated annual result dedicated to

these initiatives

ANNEXESG APPROACH

33

Social: KPIs and Goals

TOPIC KPIs 2020

Achieved Goal

2021

Goal

2026

Strategic Goal

Human Resources

management

Outgoing turnover ∆%: -4% n.a. n.a.

Work-life balance initiatives Implemented Ongoing Ongoing

Corporate Welfare plan Implemented in Italy To be extended in other

plantsTo be extended in

other plants

Health and safety in the

workplaceAccidents’ trend ∆%: -2,2% Keep lowering Keep lowering

Consumers’ Health &

Safety

Defective products affecting consumers’ H&S

0 cases 0 cases 0 cases

Personnel training N. of training hours 18.884 Improve the n. of hours Improve the n. of hours

Protection of diversity,

equal opportunities and

non-discrimination

Social inclusion policiesSocial inclusion project

in ItalyImprove social inclusion

policiesImprove social inclusion

policies

Suppliers’ management

Favoring local suppliers & implementation of the

Suppliers’ Code of ConductAchieved Ongoing Ongoing

Social-related projects Supported initiatives 10+ supported projects


these initiatives


these initiatives

ANNEXESG APPROACH

34

Governance: KPIs and Goals

TOPIC KPIs2020

Achieved Goal

2021

Goal

2026

Strategic Goal

Fiscal transparency Corruption cases 0 0 0

Governance structure

Operative structure and committees able to

guarantee proper level of management quality

Achieved Ongoing achievement Ongoing achievement

Remuneration system

Component of incentive remuneration linked to ESG

targets achievementImplemented

Ongoing implementation

Ongoing implementation

Internal Control and Risk

Management System

Operative structure and committees able to

guarantee proper risk management

Achieved Ongoing achievement Ongoing achievement

ANNEXESG APPROACH

Zignago Vetro S.p.A.Via Ita Marzotto 8, 30025 Fossalta di Portogruaro (VE) – Italy

Tel (+39) 0421 246111 - [email protected]

Contacts:

Roberto CelotCFO & IR

[email protected]

210503 GZV Presentation 1Q 21 - zignagovetro.com

Documents

Transcript of 210503 GZV Presentation 1Q 21 - zignagovetro.com