A comparative study between two Italian companies

1. Comparative Study
Stefanel Vs. Zucchi
International Accounting & Governance
Emad Aghasi Kermani
Giulia D’Andrea
December 5th, 2014

2. 2
Agenda
1
2
3
4
Introduction
Corporate Governance
Financial Statements’ Analysis
• Stefanel S.p.A.
• Zucchi S.p.A.
Corporate Social Responsibility

3. 1 Introduction

4. 4
Trade, Immigration and Wealth
SMtaexfiamnizealt ioSn.p.A.
 Founder: Carlo Stefanel
 Foundation: 1959
 Core Business: Clothing
 Stock Exchange Entry: 1980
 Main Business Units: Stefanel - Interfashion

5. 5
Trade, Immigration and Wealth
MaximSiztaetfioannel Business Units’ Geographical Division
Interfashion Business Unit
Italy
Rest of Europe
6.47%
25.3%
68.23 Rest of the world
Stefanel Business Unit
Italy
Rest of Europe
3.72%
42.82%
53.46% Rest of the world

6. 6
Trade, Immigration and Wealth
ZMuaxcicmhizia Stio.pn.A.
 Founder: Vincenzo Zucchi
 Foundation: 1920
 Core Business: Household Linen
 Stock Exchange Entry: 1982
 Other Business Unit: Zucchi - Bassetti

7. 7
Trade, Immigration and Wealth
MaximiZzauticocnhi Business Units’ Geographical Division
Share of Revenue
Italy
France
Other EU countries
Rest of the world
61%
3.4%
26.7%
8.9%

8. 2 Corporate Governance

9. 9
Corporate Governance
Zucchi S.p.A
Corporate Governance
System
Stefanel S.p.A
Board of Directors
Members
Communication Tools
Latin Scheme
General
Meeting
Board Of
Directors
Board Of
Auditors
2 executive
5 non-executive
4 executive
4 non-executive
Investors’ Relation Department
Company’s Website
Shareholders’ Specific e-mail Address

10. Financial Statements’
Analysis 3

11. 11
Trade, Immigration and Wealth
Maximization Key Financial Performance Indicators
Indicator Stefanel S.p.A Zucchi S.p.A
Revenues 9.6% 5%
Industry Margin 9.2% 11%
EBIT 25% 56%
Profit (Loss) 18.7% 49%
Cash flow Balance 11.2% 322.8%
Equity Changes 57.3% 18.5%

12. 12
Other Important Facts
 Related Party Transactions Shares
 Revenues: 0.04%
 Sales Costs: 3.8%
 Depreciation, Amortization and Impairment Test: 3Levels of evaluation
 Separated Income Statement + Other components (Two-Part Scheme)
 Liabilities: Debt restructure Plan New Agreement
 Short-Term: 33%
 Log-Term: 80%

13. 13
Other Important Facts
 Related Party Transactions Shares
 Revenues: 12.6%
 Sales Costs: 16%
 Statement of Comprehensive Income
 Floating Interest Rate
 Liabilities
 Current: 25% Debt Restructuring Plan
 Non-Current: 96% Employees’ Benefits

14. 14
Trade, Immigration and Wealth
Maximization Ratio Analysis
• Stefanel: Operating Profit
• Zucchi: Net Profit
Profit
• Stefanel: Asset Ratios
• Zucchi: ROE
Profitability
• Current Ratio
• Acid Test
Liquidity
• Stefanel: (4.74)
• Zucchi: (8.5)
Interest Rate Coverage
• EPS
• ROI
Investment Ratios

15. 15
Trade, Immigration and Wealth
Maximization Audit Report
External Audit
Company
Stefanel S.p.A
Reconta Ernst &
Young S.p.A
• Confirmation of
Financial
Statements
• No guarantee of
business
continuity
Zucchi S.p.A
KPMG
• No confirmation
• Inadequacy of
Evidence for
Reliability
• Place for
Improvement
Auditors Final
Opinion

16. Corporate Social
4 Responsibility

17. 17
Trade, Immigration and Wealth
Maximization Corporate Social Responsibility
 Code of Ethics as the only provided document
 Analysis Criteria
 Scope
 Depth
 Content
Stefanel Zucchi

18. 18
Trade, Immigration and Wealth
Maximization
So, Where To Invest ?!?!?!?

19. 19
Stefanel S.p.A
Corporate
Governance
Financial
Performance
Corporate Social
Responsibility
Zucchi S.p.A

20. Thank you
for your attention!
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n!
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