Transcript ZIGNAGO

ZIGNAGO
ZIGNAGO GROUP
www.zignago.com
November 2001
ZIGNAGO
ZIGNAGO
CONSOLIDATED RESULTS
___________________________________________________________________________
THIRD QUARTER 2001
AND
YEAR 2000
___________________________________________________________________________
2
ZIGNAGO
SALES AT 30.09.01
Euro 171 Million (+ 2.9% from 2000)
EXPORT Euro 54 Million (+5,9% from 2000)
BY GEOGRAPHIC AREA
BY SECTOR
3
3
2
1
5
4
2
At 30.09.01
1 Glass
58%
2 Wine
24%
3 Linen
18%
3
At 30.09.00
Glass 57%
Wine 21%
Linen 22%
At 30.09.01
1 Italy
68%
2 E.U. countries 13%
3 North America 15%
4 Asia
1%
5 Other countries 3%
1
At 30.09.00
Italy
E.U. countries
North America
Asia
Other countries
70%
14%
12%
1%
3%
ZIGNAGO
SALES AT 31.12.00
Euro 227.6 million (+ 9.7% from 1999)
BY GEOGRAPHIC AREA
BY SECTOR
3
3
4
1
2
At 31.12.00
1 Glass 54%
2 Wine 23%
3 Linen 23%
4
5
At 31.12.99
Glass 57%
Wine 22%
Linen 21%
2
At 31.12.00
1 Italy
2 E.U. countries
3 North America
4 Other European c.
5 Other countries
1
69%
15%
13%
1%
2%
At 31.12.99
Italy
E.U. countries
North America
Other European c.
Other countries
71%
14%
12%
1%
2%
ZIGNAGO
Group Profit & Loss
Euro ml.
30.09.01
30.09.00
31.12.00
171.0
166.2
227.6
EBITDA
% of Net Sales
44.5
25.1%
41.0
24.7%
57.0
25.1%
EBIT
% of Net Sales
24.3
13.7%
27.8
16.7%
39.3
17,3%
(0.7)
-
1.3
14.9
8.4%
15.8
9.5%
31.7
14.0%
34.6
19.6%
28.7
17.3%
48.4
21.3%
Net Sales
Extraordinary Income
Net Income
% Of Net Sales
Cash Flow
% of Value of Production
5
ZIGNAGO
Group Financial Highlights
Euro ml.
Net debt (cash)
30.09.00
31.12.00
(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
32.6
19.3
38.0
1.483
1.437
1.347
Capital Expenditures
Employees
6
30.09.01
ZIGNAGO
Group Performance ‘93 - ‘00
Trend of Net Sales and EBIT
250 Euro ml.
45
40
200
35
30
SALES
25
20
100
15
10
50
5
0
31
/
0
93
31
/
/
12
94
31
/
/
12
95
31
/
/
12
96
31
/
/
12
97
Sales
7
31
/
/
12
98
31
/
/
12
99
31
/
/
12
EBIT
150
/
12
In the period the increase of the
consolidated net sales has been
satisfactory (+ 14% average per year)
Our companies' growth rates have been
faster than the average for their
industries.
The increase of EBITDA was double
that of net sales
The increase of EBIT was triple
that of net sales
00
EBIT
SALES
EBITDA
EBIT
+ 98%
+ 170%
+ 268%
ZIGNAGO
Group Performance ‘93 - ‘00
EBITDA and EBIT as a % of Sales
30,0%
25,0%
25,0%
EBITDA and EBIT growth has been
constant due to our ability to manage
cyclical businesses
20,0%
15,0%
15,0%
10,0%
EBIT (%)
EBITDA (%)
20,0%
Profitability ratios have been higher
than those of the relevant industries
10,0%
5,0%
5,0%
0,0%
0,0%
93 94 95 96 97 98 99 00
2/ 12/ 12/ 12/ 12/ 12/ 12/ 12/
1
/
/
/
/
/
/
/
/
31 31 31 31 31 31 31 31
EBITDA
EBITDA
2000
18.3%
25.0%
9.3%
17.3%
EBIT
EBIT
8
1993
ZIGNAGO
ZIGNAGO
A company with three lines of business
Glass
9
Wines
Linen yarns
ZIGNAGO
Glass Containers
10
ZIGNAGO
Glass Containers
 Production of 1.5 billion containers
Products for
the food and
beverage,
cosmetics
and
pharmaceutical
sectors
 One of world’s top 5 producers of cosmetics flacons,
largest in the food containers sector in Italy
 Sales breakdown: Food 40%, Beverage 30%, Cosmetics
and Pharmaceuticals 30%
 Exports account for 21% of sales: USA – France – UK
– Greece – Spain
 Three production facilities in Italy
11
Glass Containers
ZIGNAGO
Results at 30 September 2001
102
Euro ml.
30/09/01
18
100
Euro ml.
16
98
14
96
12
10
8
90
EBIT
Sales
94
92
30/09/00
Sales
EBITDA
EBIT
Net Profit
Euro ml.
99.9
28.6
13.4
8.7
100%
Net Debt (Cash)
Equity
Invested Capital
(17.5)
123.2
105.7
(17%)
Cash Flow
% of Value of Prod.
23.7
23.7%
28%
13%
8%
94.8
23.5
13.5
8.3
31/12/00
Euro ml.
100%
25%
14%
9%
126
31
19
19
100%
25%
15%
15%
6
88
4
86
84
2
82
0
30/09/98
30/09/99
Sales
12
30/09/00
117%
100%
(51.3)
103.4
52.1
(98)
198%
100%
(48)
132
83
30/09/01
EBIT
18.1
19.8%
30.8
25.1%
(59)
159%
100%
ZIGNAGO
Glass Containers
• Market Outlook
Growing demand for “environmentally friendly”
containers (EU guidelines)
Expectations
2001 - 2003
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
13
ZIGNAGO
Glass Containers
Objectives
Internationalise food segment
Strategic
Goals
2001 - 2003
Increase growth in cosmetics and
flacons
Further strengthen technological and
production leadership
Look for acquisitions, JVs or alliances
Increase Group value
14
ZIGNAGO
Fine Wines
15
ZIGNAGO
Fine 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
Ranks among • Unique multi-regional brands. Wide product range from top
wine areas in Italy:
the top Italian
Santa Margherita
Veneto and Trentino Alto Adige
producers of
Torresella
Veneto
premium, fine
Kettmeir
Trentino Alto Adige
and sparkling
Cà del Bosco
Franciacorta
Lamole and Vistarenni Chianti - Tuscany
wines
• Well balanced distribution channel in Italy
• Exports 54% of total sales
• Ca’ del Bosco leader in top segment
16
Fine Wines
ZIGNAGO
Results at 30 September 2001
Euro ml.
40
8
35
7
6
25
5
20
4
Sales
30
15
3
10
2
5
1
0
30/09/98
30/09/99
Sales
17
30/09/01
9
30/09/00
Euro ml.
EBIT
45
0
30/09/01
EBIT
Euro ml.
Sales
EBITDA
EBIT
Net Profit
42.3
10.1
8.3
5.1
100%
Net Debt (Cash)
Minorities
Equity
Invested Capital
8.5
4.0
29.6
42.0
20%
Cash Flow
6.8
% of Value of Prod. 15.2%
30/09/00
25%
20%
13%
10%
70%
100%
Euro ml.
36.9
8.3
6.8
3.9
100%
8.8
3.6
24.1
36.6
24%
5.4
13.7%
31/12/00
22%
18%
11%
10%
66%
100%
52.9
12.8
10.1
5.8
100%
8.4
4.0
26.0
38.3
22%
7.8
14.4%
24%
19%
11%
10%
68%
100%
ZIGNAGO
Fine Wines
• Market Outlook
Further increase in world-wide consumption of high-quality
wines
Expectations
2001 - 2003
Consumption of red wines continues to grow
Faster export-driven growth
• Performance
Higher profits
18
ZIGNAGO
Fine Wines
Objectives
Internal growth through development and reinforcement of
current company portfolio (Increase red and high-quality
wines)
Strategic
Goals
2001 - 2003
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
19
ZIGNAGO
Linen Yarns
20
ZIGNAGO
Linen Yarns
• Production capacity of 4,300 tons in 2000
• Second largest manufacturer in Europe
Wet and dry
spun linen yarns
• Number one in the world by product range
in both long
staple and tow, • Unrivalled value-added production with unique
integrated dyeing process
dyed and
unbleached
• Sales breakdown: clothing 70%, furnishings 30%
• Direct export: 34% of sales
21
Linen Yarns
ZIGNAGO
Results at 30 September 2001
Euro ml.
41
30/09/01
9
Euro ml.
8
36
7
31
26
Sales
5
4
21
3
16
2
11
EBIT
6
30/09/00
Euro ml.
Sales
EBITDA
EBIT
Net Profit
31.8
6.1
3.3
2.0
100%
Net Debt (Cash)
Equity
Invested Capital
(1.9)
29.7
27.8
(7%)
18%
9%
6%
107%
100%
31/12/00
Euro ml.
37.0
9.3
7.8
4.2
100%
(4.8)
18.0
13.2
(36%)
25%
20%
11%
136%
100%
52.5
13.1
10.8
7.1
100%
(2.5)
30.6
28.1
(9%)
1
6
0
30/09/98
30/09/99
Sales
22
30/09/00
EBIT
30/09/01
Cash Flow
4.8
% of Value of Prod. 13.9%
5.7
15.0%
9.3
17.4%
25%
21%
13%
109%
100%
Linen Yarns
ZIGNAGO
• Market Outlook
Fashion is still driving demand for high quality linen
and dyed yarns
Increased awareness of natural fibres by consumers
Expectations
2001 - 2003
Market fluctuations are becoming less cyclical
• Performance
Above average performance should continue
23
Linen Yarns
ZIGNAGO
Objectives
Continue to grow in the fashion segment
Strategic
Goals
2001 - 2003
Reduce costs, implement services
Take advantage of new technologies
developed at company level
Look for acquisitions
24
ZIGNAGO
Zignago Share
Performance of Zignago vs. MIBTEL last five years.
Zignago - Mibtel
Source: HOOVER’S
Zignago
Mibtel
25
ZIGNAGO
Performance per Share
Book Value per Share Compared
Earnings Per Share Compared
9,00
1,40
8,50
8,00
1.27
1,20
8.28
8.46
7,50
7,00
1.07
1,00
6,50
6.58
6,00
0,80
6.31
0.80
Euro
5.57
0,60
0.63
0.61
5.97
Euro 5,50
0.73
5,00
0.60
0,40
5.38
4,50
4,00
3,50
0,20
3,00
2,50
0,00
2,00
1998
1999
third quarter
26
2000
full year
2001
1998
1999
third quarter
2000
full year
2001
ZIGNAGO
Share Value Creation
Focused on Shareholders’ Value
t
t
t
t
t
t
27
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