Slide 1: Q4 & FY 2022 Results Webcast
Q4 & FY 2022 RESULTS WEBCAST March 1, 2023
Slide 2: Disclaimer
DISCLAIMER Forward-looking statements Accounting changes This presentation may include forward-looking statements. Forward-looking As from 2022, the Emerging Markets, statements are statements regarding or based upon our management’s which represented 30% of revenue in current intentions, beliefs or
Slide 3: FY 2022 Highlights
FY 2022 HIGHLIGHTS Gustavo Calvo Paz CEO Q4 & FY 2022 Results - March 1, 2023 3
Slide 4: Recovery started in H2 2022
RECOVERY STARTED IN H2 2022 In a challenging external environment Revenue Adj. EBITDA Leverage FY 2,464 +17% 136 -21% 4.2x 6.4x €M LFL YoY €M YoY vs Dec 21 Q4 675 +20% 51 +64% 7.7x 6.4x €M LFL YoY €M YoY vs Sept 22 Total Group figures, including continuing Core Markets and discontinued Emerging
Slide 5: Revenue growth momentum persisting
REVENUE GROWTH MOMENTUM PERSISTING Based on all levers: volume, mix and increasingly price Revenue (in €M) 1,000 900 -1% YoY LFL +17% 800 700 Total Group up 17% YoY, with consistent QoQ increase over 7 quarters of 5% CAGR 600 500 400 300 Core Markets up 15% YoY, with consistent QoQ increase over
Slide 6: Adj. EBITDA strongly up in Q4, driven by Core
ADJ. EBITDA STRONGLY UP IN Q4, DRIVEN BY CORE Confirming recovery in H2 Adj. EBITDA (in €M) 80 16% 70 -27% YoY -21% 14% Total Group up 47% in Q4 vs Q3, 60 12% 50 10% showing recovery after having reached bottom in H1 40 8% 30 6% Core Markets up 68% in Q4 vs Q3, 20 4% recovering in year which is
Slide 7: Leverage decrease started over Q4
LEVERAGE DECREASE STARTED OVER Q4 Debt reduced vs Sept Net debt (in €M) 1,400 14x 4.2x Leverage 6.4x 1,200 12x 1,000 10x Leverage at 6.4x, up from 4.2x in 2022, but down from 7.7x in Sept 800 8x 600 6x Net debt reduction over Q4 by €28M, 400 4x based on EBITDA growth and WC management 200 2x 0 0
Slide 8: Making progress on sustainability
MAKING PROGRESS ON SUSTAINABILITY Further progress on climate change, consolidation on supply Climate change Sustainable supply chain Further good progress toward 2030 Bio-based raw materials largely certified objectives >90% of waste recycled Scope 1-2 emissions reduced by 47% [1] ~50% of
Slide 9: Innovation driving growth
INNOVATION DRIVING GROWTH With milestone project pipeline Baby Adult care care New baby pants platform Smart continence management service for elderly homes 2020: Development and hospitals 2021: Market 2015: Start of introduction development 2022: YoY Sales 2022: Successful Growth >30%
Slide 10: Q4 & FY 2022 Review
Q4 & FY 2022 REVIEW Peter Vanneste CFO Q4 & FY 2022 Results - March 1, 2023 10
Slide 11: Sustained mid-single-digit volume/mix growth
SUSTAINED MID-SINGLE-DIGIT VOLUME/MIX GROWTH Driven primarily by baby pants YoY volume/mix impact on revenue +20% -1% Total group +6% +15% Core Markets -3% +7% +10% Ontex robust throughout year, outperforming the market +6% +5% Net contract wins +5% Retailer brands outperforming total market i
Slide 12: YoY pricing momentum exceeding +10%
YOY PRICING MOMENTUM EXCEEDING +10% Reaching +16% in Q4 YoY price impact on revenue +25% -0% Total group +11% +20% -1% Core Markets +8% +16% Total Group pricing up +11% YoY +15% +14% Going from +7% in Q1 to +16% in Q4 +10% Strong delivery in discontinued Emerging Markets with double digits in
Slide 13: Core revenue growth continued
Cont. Ops. CORE REVENUE GROWTH CONTINUED Based on accelerating price and sustained volume/mix growth Revenue for Core Markets (in €M) 2,400 1,623 1,672 2,000 +8% +15% +4% +19% +7% 1,409 1,600 Baby care Adult care +17% LFL +12% LFL Growth across categories FY 1,200 FY Baby and feminine care volum
Slide 14: Cost reduction levels maintained
COST REDUCTION LEVELS MAINTAINED SG&A reduced to 10% of revenue YoY cost savings impact [1] and SG&A evolution [2] 18% SG&A/sales 16% 12% Total group 10% 12% Core Markets 9% 14% 12% SG&A reduced to 10% of revenue for Total and 9% for Core, despite wage inflation 10% 10% 8% Gross operating saving
Slide 15: Cost inflation remaining at high levels
COST INFLATION REMAINING AT HIGH LEVELS Stabilizing for some components, increasing for others Inflation impact vs 2020 40% vs 2020 35% +7% Total group +26% Total group 30% +30% 25% Total cost [1] up ~+20% YoY and ~+30% vs 2020 20% Raw material prices up ~+25% YoY on indices, with record high fo
Slide 16: Adj. EBITDA back to growth YoY in Q4
Cont. Ops. ADJ. EBITDA BACK TO GROWTH YOY IN Q4 Solid revenue growth & savings offsetting inflation Adj. EBITDA for Core Markets (in €M) 400 +114 -209 300 FY: Revenue growth and savings not sufficient yet +51 to offset inflation FY 156 200 Core Adj. EBITDA: -33% YoY 104 -71 +8 -33% +56 -1 100
Slide 17: Adj. EPS reflecting EBITDA decrease
ADJ. EPS REFLECTING EBITDA DECREASE EPS further down, mainly by non-cash impairments EPS evolution (in €M) 1.0 €(51)M net financial costs up with refinancing 0.5 0.30 -0.65 and interest rates (0.62) (3.34) 0.0 Adj. EPS -0.12 -0.10 €(28)M adj. tax impact mostly due to deferred tax -0.06 (0.5) con
Slide 18: FCF down YoY, but positive in H2
FCF DOWN YOY, BUT POSITIVE IN H2 Including investments in current and future growth Adj. EBITDA to FCF bridge (in €M) 175 150 136 -36 125 -83 100 75 Non Capex slightly up at €62M vs €57M in 2021 recurring 50 CF -46 Discipline maintained with capex/revenue at 2.5% 25 (54) Net 2/3rd EBITDA gener
Slide 19: Net debt up over year, improving in Q4
NET DEBT UP OVER YEAR, IMPROVING IN Q4 Gross debt largely secured Financial debt (in €M) (1,500) 4.2x Leverage 6.4x Net financial debt increase to €867M (1,250) 209 (1,076) Lower FCF (1,000) (147) Other debt -61 -26 (867) Net financial cash-out up, reflecting higher -54 interest rates (725)
Slide 20: Going Forward
GOING FORWARD Gustavo Calvo Paz CEO Q4 & FY 2022 Results - March 1, 2023 20
Slide 21: Boosting performance by reducing complexity
BOOSTING PERFORMANCE BY REDUCING COMPLEXITY Accelerating the Execution Strengthen Secure financing Drive customer-facing Stabilize sources growth Competitive financing Secure long-term innovation FCF generation Cost-efficient Pursue Emerging Restore operations Refocus markets divestment
Slide 22: 2023 Outlook
2023 OUTLOOK Continuing the recovery Core Markets (cont. ops.) Total Group (incl. disc. ops.) Positive contribution of disc. Revenue Emerging Markets to grow high single-digit LFL to EBITDA and FCF Mexican divestment Adj. EBITDA margin to reduce debt by €225M [1] in range of 8% to 10% Leve
Slide 23: Q&A
Q&A Gustavo Calvo Paz Peter Vanneste CEO CFO Q4 & FY 2022 Results - March 1, 2023 23
Slide 24: Thank you
THANK YOU