Slide 1: Q3 Trading Update
Q3 Trading Update November 5 2015
Slide 2: Forward Looking Statements
Forward Looking Statements This Presentation may include forward-looking statements. Forward-looking statements are statements regarding or based upon our management’s current intentions, beliefs or expectations relating to, among other things, Ontex’s future results of operations, financial conditi
Slide 3: Table of Contents
Table of Contents Ontex Highlights 04 Trading Review 06 Outlook 15 Q&A 17 Appendix 18 3
Slide 4: Ontex Highlights
Ontex Highlights
Slide 5: Trading in line with our expectations
Trading in line with our expectations Further progress in executing our growth strategy, FY outlook reiterated Q3 2015 Solid LFL revenue growth • Reported Group revenues of €415.9 million for Q3 2015 (€1,268.7 million for 9M) • Q3 Reported revenue +4.4% (+5.0% in 9M) LFL revenues1 • Q3 like-for-like
Slide 6: Trading Review
Trading Review
Slide 7: Ontex growth model on track
Ontex growth model on track Leveraging the strengths of our balanced portfolio Group revenue review Sales bridge 9M 2015 (€m) 1,300 1,269 • Like-for-like revenues up +6.3% in Q3 (+5.0% in 9M) 1,250 • Reported revenue up +4.4% in Q3 (+5.0% in 9M) 1,208 1,200 • Top line performance confirms strength o
Slide 8: Mature Market Retail: 54% of Q3 Group Sales
Mature Market Retail: 54% of Q3 Group Sales Maintaining pricing discipline in challenging conditions Divisional review LFL Revenue (€m) and sales growth • Decrease in LFL growth in Q3 2015 in the context of slower market growth and more intense competition +0.2% • Q3 2015 revenue higher year on year
Slide 9: Growth Markets: 10% of Q3 Group Sales
Growth Markets: 10% of Q3 Group Sales Unique ability to adapt where we play Divisional review LFL Revenue (€m) and sales growth • Q3 2015 driven by increasing volumes in most markets, especially in Russia and Central Eastern Europe +49.5% • In Russia, industry-wide price adjustments, implemented 134
Slide 10: MENA: 10% of Q3 Group Sales
MENA: 10% of Q3 Group Sales Broad-based growth despite FX headwinds Divisional review LFL Revenue (€m) and sales growth • MENA sales in Q3 are seasonally lower than the other quarters +8.1% • Q3 2014 had lower revenue in some markets, making for a 142.8 softer comparable basis 132.1 • LFL growth was
Slide 11: Healthcare: 26% of Q3 Group Sales
Healthcare: 26% of Q3 Group Sales Home delivery driving solid top line performance Divisional review LFL Revenue (€m) and sales growth • Higher revenue in Italy driven by successful ongoing developments in home delivery +1.2% • Australia and Benelux also had higher revenue this quarter 315.7 319.5 •
Slide 12: Our categories
Our categories Strong performance from Babycare and Adult inco Category review LFL sales growth • Q3 2015 Babycare sales grew by 8.4% LFL, driven mainly by solid growth of Ontex brands and retailer brands in % Q3 developing markets reported group 52% 34% 13% sales1 • Adult Inco revenue +6.9% LFL tha
Slide 13: Adjusted EBITDA Margin
Adjusted EBITDA Margin Q3 2015 margin maintained through gains in efficiency Key margin drivers Adjusted EBITDA margin stable in Q3 2015 at 12.3%; +47 bps in 9M 2015 to 12.7% • FX headwinds intensified in Q3 2015 • As previously disclosed, strong positive impact of raw material prices seen in Q2 did
Slide 14: Net debt and Liquidity
Net debt and Liquidity Net leverage maintained below 2.5x Reported debt position and liquidity as of September 30, 2015 LFL Revenue (€m) and sales growth Net Debt Calculation (€m) 900 849.2 6.00 Gross debt 644.5 800 Cash & cash equivalents (135.7) 5.00 Net debt 508.8 700 4.90x 585.1 4.00 600 565.9 5
Slide 15: Outlook
Outlook
Slide 16: Outlook
Outlook Strategic progress and priorities • We continue to focus on delivery of the Ontex model, with growth of both the top and bottom line as measured by revenue and Adjusted EBITDA margin. • Our ability to generate revenue increases above an underlying market and category growth of 3% to 4% conti
Slide 17: Q&A
Q&A
Slide 18: Appendix
Appendix
Slide 19: Performance overview for Q3 and 9M 2015
Performance overview for Q3 and 9M 2015 % as % as In millions of Euro Q3 2015 Q3 2014 % LFL 9M 2015 9M 2014 % LFL reported reported Per Division Mature markets retail 223.4 224.4 (0.4%) (1.5%) 684.3 670.3 2.1% 0.2% Growth markets 41.1 30.7 33.9% 62.2% 114.7 90.1 27.2% 49.5% Healthcare 108.8 105.2 3.
Slide 20: Thank you
Thank you