Zignago

ZIGNAGO

November 2001

ZIGNAGO GROUPZIGNAGO GROUP

www.zignago.com

www.zignago.com

ZIGNAGO

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ZIGNAGO CONSOLIDATED RESULTS

___________________________________________________________________________

THIRD QUARTER 2001AND

YEAR 2000 ___________________________________________________________________________

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BY SECTOR

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3

2

BY SECTOR

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3

2

BY GEOGRAPHIC AREA

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53

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BY GEOGRAPHIC AREA

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53

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At 30.09.01 At 30.09.001 Glass 58% Glass 57%2 Wine 24% Wine 21%3 Linen 18% Linen 22%

At 30.09.01 At 30.09.001 Italy 68% Italy 70%2 E.U. countries 13% E.U. countries 14%3 North America 15% North America 12%4 Asia 1% Asia 1%5 Other countries 3% Other countries 3%

SALES AT 30.09.01 Euro 171 Million (+ 2.9% from 2000)

EXPORT Euro 54 Million (+5,9% from 2000)

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BY SECTOR

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BY SECTOR

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At 31.12.00 At 31.12.991 Glass 54% Glass 57%2 Wine 23% Wine 22%3 Linen 23% Linen 21%

At 31.12.00 At 31.12.991 Italy 69% Italy 71%2 E.U. countries 15% E.U. countries 14%3 North America 13% North America 12%4 Other European c. 1% Other European c. 1%5 Other countries 2% Other countries 2%

SALES AT 31.12.00 Euro 227.6 million (+ 9.7% from 1999)

BY GEOGRAPHIC AREA

453

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BY GEOGRAPHIC AREA

453

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ZIGNAGO

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Euro ml. 30.09.01 30.09.00 31.12.00

Net Sales 171.0 166.2 227.6

EBITDA 44.5 41.0 57.0% of Net Sales 25.1% 24.7% 25.1%

EBIT 24.3 27.8 39.3% of Net Sales 13.7% 16.7% 17,3%

Extraordinary Income (0.7) - 1.3

Net Income 14.9 15.8 31.7% Of Net Sales 8.4% 9.5% 14.0%

Cash Flow 34.6 28.7 48.4% of Value of Production 19.6% 17.3% 21.3%

Group Profit & Loss

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Euro ml. 30.09.01 30.09.00 31.12.00

Net debt (cash) (45.9) (68.8) (66.0)

Minorities 15.5 12.9 14.6

Net equity 211.5 164.4 207.1

Invested capital 181.1 108.6 155.7

Capital Expenditures 32.6 19.3 38.0

Employees 1.483 1.437 1.347

Group Financial Highlights

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Group Performance ‘93 - ‘00Group Performance ‘93 - ‘00

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31/1

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Sales EBIT

SALES + 98%EBITDA + 170%EBIT + 268%

Trend of Net Sales and EBIT In the period the increase of theconsolidated net sales has been satisfactory (+ 14% average per year)

Our companies' growth rates have beenfaster than the average for theirindustries.

The increase of EBITDA was doublethat of net sales

The increase of EBIT was triplethat of net sales

Euro ml.

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Group Performance ‘93 - ‘00Group Performance ‘93 - ‘00

0,0%

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25,0%

EB

IT (

%)

EBITDA EBIT

1993 2000

EBITDA 18.3% 25.0%

EBIT 9.3% 17.3%

EBITDA and EBIT as a % of Sales

EBITDA and EBIT growth has beenconstant due to our ability to managecyclical businesses

Profitability ratios have been higherthan those of the relevant industries

ZIGNAGO

ZIGNAGO

A company with three lines of business

Glass Wines Linen yarns

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ZIGNAGO

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Glass ContainersGlass Containers

ZIGNAGO Glass ContainersGlass Containers

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Products forthe food and

beverage, cosmeticsand pharmaceutical

sectors

Production of 1.5 billion containers

One of world’s top 5 producers of cosmetics flacons,largest in the food containers sector in Italy

Sales breakdown: Food 40%, Beverage 30%, Cosmeticsand Pharmaceuticals 30%

Exports account for 21% of sales: USA – France – UK – Greece – Spain

Three production facilities in Italy


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Euro ml. Euro ml. Euro ml.

Sales 99.9 100% 94.8 100% 126 100%

EBITDA 28.6 28% 23.5 25% 31 25%

EBIT 13.4 13% 13.5 14% 19 15%

Net Profit 8.7 8% 8.3 9% 19 15%

Net Debt (Cash) (17.5) (17%) (51.3) (98) (48) (59)

Equity 123.2 117% 103.4 198% 132 159%

Invested Capital 105.7 100% 52.1 100% 83 100%

Cash Flow 23.7 18.1 30.8% of Value of Prod. 23.7% 19.8% 25.1%

30/09/01 30/09/00 31/12/00

Results at 30 September 2001 Results at 30 September 2001

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102

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Sales EBIT

Euro ml.


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Expectations 2001 - 2003

• Market OutlookGrowing demand for “environmentally friendly” containers (EU guidelines)

Food industry focusing on Mediterranean products requiring glass containers

World-wide increase in consumption of “personal hygiene” products with a higher demand for high value-added glass cosmetic containers

Steady demand for pharmaceutical containers

• Performance

Above average performance should continue


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Strategic Goals

2001 - 2003

ObjectivesInternationalise food segment

Increase growth in cosmetics and flacons

Further strengthen technological and production leadership

Look for acquisitions, JVs or alliances

Increase Group value

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Fine WinesFine Wines

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Ranks among the top Italian producers of

premium, fine and sparkling

wines

• Sales of 14 million bottles in 2000

• Over the past 10 years, Santa Margherita’s Pinot Grigio has been the best selling European wine in US restaurants

• Unique multi-regional brands. Wide product range from top wine areas in Italy:

Santa Margherita Veneto and Trentino Alto AdigeTorresella VenetoKettmeir Trentino Alto AdigeCà del Bosco FranciacortaLamole and Vistarenni Chianti - Tuscany

• Well balanced distribution channel in Italy

• Exports 54% of total sales

• Ca’ del Bosco leader in top segment

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Sales 42.3 100% 36.9 100% 52.9 100%

EBITDA 10.1 25% 8.3 22% 12.8 24%

EBIT 8.3 20% 6.8 18% 10.1 19%

Net Profit 5.1 13% 3.9 11% 5.8 11%

Net Debt (Cash) 8.5 20% 8.8 24% 8.4 22%

Minorities 4.0 10% 3.6 10% 4.0 10%

Equity 29.6 70% 24.1 66% 26.0 68%

Invested Capital 42.0 100% 36.6 100% 38.3 100%


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• Market OutlookFurther increase in world-wide consumption of high-quality wines

Consumption of red wines continues to grow

Faster export-driven growth

• Performance

Higher profits

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Strategic Goals

2001 - 2003

ObjectivesInternal growth through development and reinforcement of current company portfolio (Increase red and high-quality wines)

External growth through acquisitions and development of estates that produce high-quality wines with a high brand potential

Increase Santa Margherita brand awareness

Increase Group value

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Linen YarnsLinen Yarns

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Wet and dry spun linen yarns

in both long staple and tow,

dyed and unbleached

• Production capacity of 4,300 tons in 2000

• Second largest manufacturer in Europe

• Number one in the world by product range

• Unrivalled value-added production with unique integrated dyeing process

• Sales breakdown: clothing 70%, furnishings 30%

• Direct export: 34% of sales

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Sales 31.8 100% 37.0 100% 52.5 100%

EBITDA 6.1 18% 9.3 25% 13.1 25%

EBIT 3.3 9% 7.8 20% 10.8 21%

Net Profit 2.0 6% 4.2 11% 7.1 13%

Net Debt (Cash) (1.9) (7%) (4.8) (36%) (2.5) (9%)

Equity 29.7 107% 18.0 136% 30.6 109%

Invested Capital 27.8 100% 13.2 100% 28.1 100%


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• Market OutlookFashion is still driving demand for high quality linen and dyed yarns

Increased awareness of natural fibres by consumers

Market fluctuations are becoming less cyclical

• Performance

Above average performance should continue

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Strategic Goals

2001 - 2003

ObjectivesContinue to grow in the fashion segment

Reduce costs, implement services

Take advantage of new technologies developed at company level

Look for acquisitions

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Zignago ShareZignago Share

Performance of Zignago vs. MIBTEL last five years.

Zignago

Mibtel

Zignago - Mibtel

Source: HOOVER’S

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Performance per SharePerformance per Share

Earnings Per Share Compared

0.600.61

0.73

0.63

1.27

1.07

0.80

0,00

0,20

0,40

0,60

0,80

1,00

1,20

1,40

1998 1999 2000 2001

Euro

third quarter full year

Book Value per Share Compared

8.46

5.38

5.97

6.58

5.57

6.31

8.28

2,00

2,50

3,00

3,50

4,00

4,50

5,00

5,50

6,00

6,50

7,00

7,50

8,00

8,50

9,00

1998 1999 2000 2001

Euro

third quarter full year

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Share Value CreationShare Value Creation

Focused on Shareholders’ Value

since flotation never raised money disposed of dairy activities dedicated rights issue for employees consistency of results information disclosure increased size of three core businesses constantly increasing dividends

Zignago

Technology

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