Slide 1: Q2 & H1 Financial Results
Q2 & H1 FINANCIAL RESULTS July 29 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 1 Ontex Highlights 2 Financial Review 3 Outlook 4 Q&A Appendix 3
Slide 4: Robust first half performance
Robust first half performance Further top and bottom line progression during H1 2015 H1 2015 Profitable revenue growth Reported Group revenues of €852.8 million for H1 2015 (Q2: €427.7 million) LFL revenues1 H1 Reported revenue +5.3% (+4.4% in Q2) +4.4% H1 like-for-like (LFL) revenues1 +4.4%
Slide 5: Operating against a challenging market backdrop in H1 2015
Operating against a challenging market backdrop in H1 2015 Heightened competitive pressures & more volatile macro environment Our markets have continued to grow: Western European markets have grown at a slower rate in the first half of 2015 Developing markets continued to grow as the result of:
Slide 6: Balanced portfolio composition & prudent operational framework
Balanced portfolio composition & prudent operational framework Further progress despite competitive challenges in Western Europe Benefiting from a balanced portfolio of activities Sales bridge H1 2015 (€m) Like-for-like revenues +4.4% in H1 2015 (+3.6% in Q2) 900 853 Reported revenue up 5.3% (+4
Slide 7: Mature Market Retail: 54% of H1 Reported Group Sales
Mature Market Retail: 54% of H1 Reported Group Sales Disciplined commercial approach amid stronger competitive pressures Divisional Review LFL Revenue (€m) and sales growth +1.0% LFL growth in H1 2015 in challenging market conditions, and against a strong comparable result in the same period last
Slide 8: Growth Markets: 9% of H1 Reported Group Sales
Growth Markets: 9% of H1 Reported Group Sales Strong volume growth complemented by specific pricing actions Divisional Review LFL Revenue (€m) and sales growth Growth Markets are an essential part of our balanced portfolio, providing access to favourable +42.8% demographics, rising adoption rates
Slide 9: MENA: 12% of H1 Reported Group Sales
MENA: 12% of H1 Reported Group Sales Continued growth of Ontex brands Divisional Review LFL Revenue (€m) and sales growth Growth of our branded sales in Turkey, in particular in adult incontinence +4.2% 98 Branded sales driven by Pakistan as well, where we 94 continue to build our position Wor
Slide 10: Healthcare: 25% of H1 Reported Group Sales
Healthcare: 25% of H1 Reported Group Sales Ontex brand growth supported by home delivery Divisional Review LFL Revenue (€m) and sales growth Good performance in Italy on the back of continued growth in home delivery +0.7% 212 211 Home delivery also developed favourably in the UK France and Ben
Slide 11: Our Categories
Our Categories Progress in all three categories in H1 2015 Category Review LFL sales growth Babycare sales showed continued LFL growth in H1 against an exceptionally high comparable period last % H1 year, which was due to the exit of a competitor reported 54% 33% 12% group sales1 − Growth achieved
Slide 12: Table of Contents
Table of Contents 1 Ontex Highlights 2 Financial Review 3 Outlook 4 Q&A Appendix 12
Slide 13: Income Statement Review
Income Statement Review Strong profit growth driven by operating performance, IPO & refinancing In millions of Euro H1 2015 H1 2014 % Revenues 852.8 809.9 5.3% Like-for-like (LFL) revenues1 845.2 809.9 4.4% Gross margin 240.0 222.3 8.0% Gross margin as % of sales 28.1% 27.4% 69 bps Adjusted EBITDA2
Slide 14: Adjusted EBITDA Margin
Adjusted EBITDA Margin Further margin expansion in H1 2015, mainly delivered by efficiencies Key margin drivers Adjusted EBITDA margin +72 bps in H1 to 12.9%; +148 bps in Q2 to 13.5% − Driven by higher gross margin − Continued investment in sales & marketing, as well as in support functions Gros
Slide 15: Adjusted Free Cash Flow
Adjusted Free Cash Flow Material increase driven by strong operating performance and WC management In millions of Euro H1 2015 H1 2014 % Adjusted EBITDA 109.9 98.6 11.5% Changes in working capital 19.0 (29.6) N.M. Inventories (3.0) (17.4) (82.8%) Trade and other receivables1 3.9 (38.1) N.M. Trade an
Slide 16: Net debt and Liquidity
Net debt and Liquidity Further deleveraging and sufficient liquidity Reported Debt position and liquidity as of June 30, 2015 Net Debt and Leverage Net Debt calculation (€m) 900 6.00 849.2 Gross debt 621.1 Cash & cash equivalents (116.4) 800 5.00 Net Debt 504.7 700 4.90x 585.1 4.00 600 565.9 Leverag
Slide 17: Table of Contents
Table of Contents 1 Ontex Highlights 2 Financial Review 3 Outlook 4 Q&A Appendix 17
Slide 18: Outlook
Outlook Strategic progress and priorities We remain committed to delivering sustainable, profitable growth. While the growth in our key developed markets is slower than last year and overall at the low end of the range of 3% to 4%, we continue to aim to outperform by helping retailers grow their
Slide 19: Table of Contents
Table of Contents 1 Ontex Highlights 2 Financial Review 3 Outlook 4 Q&A Appendix 19
Slide 20: Table of Contents
Table of Contents 1 Ontex Highlights 2 Financial Review 3 Outlook 4 Q&A Appendix 20
Slide 21: Performance overview for Q2 and H1 2015
Performance overview for Q2 and H1 2015 % as % as In millions of Euro Q2 2015 Q2 2014 % LFL H1 2015 H1 2014 % LFL reported reported Per Division Mature markets retail 232.4 229.0 1.5% (1.0%) 460.8 445.9 3.4% 1.0% Growth markets 42.4 31.5 34.6% 49.2% 73.7 59.5 23.8% 42.8% Healthcare 106.9 105.0 1.8%
Slide 22: Non-recurring Costs
Non-recurring Costs Limited impact in H1 2015 as anticipated In millions of Euro H1 2015 H1 2014 Non-recurring expenses (2.3) (22.0) Factory closure (0.1) (0.9) Business restructuring (0.7) (0.4) Acquisition related expenses (0.4) (0.5) Asset impairment - (0.1) IPO costs - (21.1) Refinancing costs (