Slide 1: Financial Results – Q1 2014
Financial Results – Q1 2014 Jacques Purnode, Chief Finance Officer
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: Change in Reporting Structure
Change in Reporting Structure A new reporting structure was effective as of January 1, 2014, separating the previous Retail division into Mature Market Retail and Growth Markets to better match the different market dynamics. Ontex’s four divisions are now: Mature Market Retail Growth Markets H
Slide 4: Agenda
Agenda 1. Recent Developments 2. Financial Review 3. Closing Remarks 4
Slide 5: Recent Developments
Recent Developments 5
Slide 6: Further Top Line and Profitability Improvements in Q1 2014
Further Top Line and Profitability Improvements in Q1 2014 17.5% increase in Revenues Reported Group revenues of €400.2 million in Q1 2014 +9.6% at constant currency and excluding Serenity (€373.1 million) Residual impact of K-C withdrawal supports continued momentum in Mature Market Retail di
Slide 7: Market Update
Market Update Retailers/Client base Raw Materials Competitors Currencies Normalised levels of Slight rise in raw Continued momentum in Significant deterioration promotional activities material prices as retailer brands post of the TRY, RUB and AUD expected over the Kimberly Clark (K-C) exit
Slide 8: Good Start to 2014
Good Start to 2014 Western Europe: - Additional retailer brand volumes in the UK market captured in Q1 2014 - Full year effect of retailer brand contracts won in 2013 in the Nordics and Pursuing top line growth across Benelux geographies and divisions Eastern Europe and Rest of the World: - Cont
Slide 9: Financial Review
Financial Review 9
Slide 10: Broad Based Revenue Growth in Q1 2014
Broad Based Revenue Growth in Q1 2014 % at constant % at constant In €m Q1 2014 Q1 2013 % as reported currency excl. currency Serenity Per division Mature retail 220.4 202.0 9.1% 9.8% 9.5% Growth markets 21.8 19.6 11.2% 22.4% 22.4% Healthcare 106.4 67.3 58.1% 58.1% 2.1% MEA 51.6 51.6 - 14.7% 14.7% P
Slide 11: Q1 2014 Financial Highlights (1/2)
Q1 2014 Financial Highlights (1/2) In €m Q1 2014 Q1 2013 % Revenues 400.2 340.5 17.5% Revenues at constant currency 411.3 340.5 20.8% Revenues at constant currency and excluding 373.1 340.5 9.6% Serenity Cost of sales (291.3) (253.6) 14.9% Gross profit 108.9 86.9 25.3% Opex (67.5) (56.5) 19.5% Adjus
Slide 12: Q1 2014 Financial Highlights (2/2)
Q1 2014 Financial Highlights (2/2) In €m Q1 2014 Q1 2013 % Adjusted EBITDA 49.4 38.0 30.0% Non recurring expenses (*) (2.3) (2.1) 9.5% Reported EBITDA 47.1 35.9 31.2% Depreciation & Amortization (8.0) (7.9) 1.3% Operating profit 39.1 28.0 39.6% (*) Non-recurring expenses, excluding depreciation and
Slide 13: FCF Impacted by Higher Working Capital Consumption
FCF Impacted by Higher Working Capital Consumption In €m Q1 2014 Q1 2013 % Comments Driven by growth of business and Serenity Adjusted EBITDA 49.4 38.0 30.0% acquisition Linked to Serenity, rebuilding inventories and Changes in working capital (34.3) (6.2) N.M. slightly higher DSO Cash taxes paid (1
Slide 14: Working Capital Drivers Impacting Q1 2014
Working Capital Drivers Impacting Q1 2014 Growth of the business Serenity Rebuild of diaper inventories to optimal levels Slightly higher DSO due to higher portion of revenues generated from customers with longer payment terms 14
Slide 15: Net Debt Bridge
Net Debt Bridge 8.0 In €m 34.3 5.3 13.6 862.2 (48.3) 849.3 Opening Finance Capex Closing Change in Financing CF Other CF Net Debt as of costs Spend Net Debt as of Working Capital * movements Jan 1, 2014 March 31, 2014 ** * Mainly interest paid ** Mostly including positive EBITDA contribution in the
Slide 16: Available Liquidity
Available Liquidity As of As of In €m In €m March 31, 2014 March 31, 2014 Cash & Cash Equivalents 61.5 Group Factoring Lines 171.5 Credit Lines of €75.0 — Amount drawn down as at 75.0 122.7 (of which drawn: €0.0 million) March 31, 2014 Available Liquidity 136.5 Cash and Cash Equivalents up by 43.0
Slide 17: Closing Remarks
Closing Remarks 17
Slide 18: Anticipated Macro Dynamics
Anticipated Macro Dynamics Fluff Low Density Polyethylene 1,050 1,600 1,030 1,550 1,010 1,500 990 970 1,450 950 1,400 930 1,350 910 1,300 890 870 1,250 850 1,200 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 April Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 April May 2011 2011 2011 2011 2012 2012 2012 2012 2013
Slide 19: 2014 Priorities
2014 Priorities Customers / Environment Operations Cost and cash management Continue to pursue top line Consolidate existing assets Further drive cost savings and growth across geographies and leverage presence in MEA efficiencies within the entire and divisions Group Execute on planned capa
Slide 20: Q&A —- Q1 2014
Q&A —- Q1 2014 20
Slide 21: Appendix
Appendix 21
Slide 22: Q1-Q4 2013 Sales under New Reporting Structure
Q1-Q4 2013 Sales under New Reporting Structure Reported Q1 2013 Q2 2013 Q3 2013 Q4 2013 Revenues in €m Retail 221.7 238.5 236.7 236.8 Healthcare 67.3 102.3 103.4 106.7 MEA 51.5 47.0 39.3 40.7 Reported Q1 2013 Q2 2013 Q3 2013 Q4 2013 Revenues in €m Retail Mature 202.1 216.7 214.5 212.3 Growth Markets