Ermenegildo Zegna Group Unveils Medium-term Financial Ambitions and Sustainability Strategy

Ermenegildo Zegna N.V. (NYSE:ZGN) (“Zegna Group,” “the Group,” or “the Company”), today will host a Capital Markets Day during which the Company will share its medium-term financial ambitions as well as its newly unveiled ESG strategy and targets.

With regards to medium-term financial goals, the Group is aiming for revenues to exceed €2 billion and for Adjusted EBIT¹ as a % of revenues to reach at least 15%. The Group expects an increase in store productivity and continuing positive development of the price/mix to be key drivers of the top line, reflecting positively on profitability together with favourable operational leverage. These improvements should more than offset the strengthening of its marketing investments which, together with Capital Expenditure² today at about 5% of Group revenues, are planned to support the Zegna rebranding and the overall growth strategy.

Keeping with its historical focus on sustainability and care for the world, the Company will also lay out a new ESG strategy, with further commitments on materials traceability, on climate change, and equal employment opportunities, among other topics. Zegna Group’s ESG commitments will be overseen by the Board of Directors, and, starting this year, long-term equity incentive plans granted to eligible executives will be linked to achieving these targets.

Ermenegildo “Gildo” Zegna, Chairman and CEO of the Zegna Group, said: “I am very much looking forward to welcoming our investors and financial analysts to Oasi Zegna today. This special place embodies our roots, values, and culture and is an integral part of our past and future. It is also the cradle of our century-long commitment to caring for the natural world around us, our people, and our communities. The ESG targets announced today reaffirm our commitment to a path of responsible growth and take us boldly to the future. We have rooted our financial goals in our values, which makes me confident in our ability to deliver against the ambitions set out in our business strategy.”

Some of the ESG-focused commitments being presented today include the following:

- By early 2023, the Group will appoint a DE&I Officer & Governance to manage the deployment of its DE&I Strategy.

- In 2022, the Group will complete the submission of GHG emissions reduction targets in line with the Science-Based Targets initiative (SBTi).

- By 2024, the Group will be using an innovative and open digital platform to allow suppliers to share their energy sources, water, chemical, emissions data as well as product certifications, covering at least 30% of its supply volume.