Slide 1: Q2 & H1 2017 Financial results
Q2 & H1 2017 Financial results July 27, 2017
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 Financial Review 15 Outlook 20 Q&A 22 Appendix 23 Confidential 3
Slide 4: Ontex Highlights
Ontex Highlights
Slide 5: H1 2017 highlights
H1 2017 highlights Very strong, broad-based revenue growth H1 2017 Robust LFL revenue performance • Reported Group revenue of €1.17 billion for H1 2017, up 22.0% on a reported basis (Q2: +20.9%) • H1 like-for-like (LFL) revenue up 5.2% (Q2: +6.6%) LFL revenue • H1 pro-forma revenue at constant curre
Slide 6: H1 2017: Successful progress with our brands
H1 2017: Successful progress with our brands MMR Innovations underpin brand portfolio Dada Healthcare iD Advanced light Americas Retail Bb tips Growth Markets Canbebe MENA Canped Ontex Highlights Confidential 6
Slide 7: Market and Ontex Brazil Update
Market and Ontex Brazil Update Market Environment Progress on Ontex Brazil Integration • Slower market growth across all Divisions • Well on track according to integration plan • Pricing impacted by promotional activities and • Management team complete with experienced currency volatility business l
Slide 8: Positive LFL revenue trend continues into H1 2017
Positive LFL revenue trend continues into H1 2017 Volume-driven growth across all five Divisions Group revenue review Sales bridge H1 2017 (€m) 1.174 • Reported revenue up +22.0% in H1 2017, including Ontex 963 Brazil as of March 1, 2017 (+20.9% in Q2) • Like-for-like revenue +5.2% in H1 2017 (+6.6%
Slide 9: Mature Market Retail: 38% of H1 reported group sales
Mature Market Retail: 38% of H1 reported group sales Strong momentum in LFL performance • Strong LFL growth, up +3.9% in H1 (+5.7% in Q2) LFL Revenue (€m) and sales growth • Growth achieved through new business gained in all three +3.9% 443 categories, as well as gained with existing customers 426 •
Slide 10: Americas Retail: 27% of H1 reported group sales
Americas Retail: 27% of H1 reported group sales Double-digit LFL growth & four months contribution from Ontex Brazil • LFL revenue strongly ahead: +14.6% in H1 (+14.0% in Q2) LFL Revenue (€m) and sales growth • Market share gains in Babycare and Adult Inco in Mexico and +14.6% increased sales in the
Slide 11: Growth Markets: 8% of H1 reported group sales
Growth Markets: 8% of H1 reported group sales Continued volume growth underpinning double-digit LFL • LFL revenue up 13.4% in H1 2017 (+12.6% in Q2) LFL Revenue (€m) and sales growth • Benefited from retailer brands continuing their positive +13.4% 87 evolution in the highly competitive Russian mark
Slide 12: MENA: 9% of H1 reported group sales
MENA: 9% of H1 reported group sales Navigating through challenging market conditions • Like-for-like revenue +1.7% in H1 2017 (+0.9% in Q2) LFL Revenue (€m) and sales growth • Market conditions weaker than expected: +1.7% • Cautious consumer confidence and strong growth of 108 110 lower-priced produ
Slide 13: Healthcare: 18% of H1 reported group sales
Healthcare: 18% of H1 reported group sales Higher volumes support LFL growth • Like-for-like revenue up 0.9% in H1 2017 (+1.2% in Q2) LFL Revenue (€m) and sales growth • Growth driven by increased volumes, while market pricing +0.9% remained under pressure 217 219 • Revenue growth in a stable to sli
Slide 14: Category review
Category review Solid LFL growth across all categories led by Babycare • Babycare LFL revenue up 6.9% H1 2017 (+9.4% in Q2), LFL sales growth driven by growth in the majority of our markets % H1 reported group sales1 61% 29% 9% • H1 2017 reported revenue up 30.0% including contributions from Grupo M
Slide 15: Financial Review
tex~ n Financial Review O;
Slide 16: Adjusted EBITDA margin
Adjusted EBITDA margin Margins impacted by changing business mix and raw material headwinds Key margin drivers Adjusted EBITDA up 17.4% to €144.7 million, margin down 48 bps to 12.3% in H1 2017 • Strong H1 2017 volume growth resulted in increased distribution expenses • Investments in our commercial
Slide 17: Non-recurring costs
Non-recurring costs H1 2017 mainly impacted by expenses related to Ontex Brazil transaction In millions of Euro H1 2017 H1 2016 1 Non recurring income and expenses (12.7) (8.7) Factory closure (0.0) (0.1) Business restructuring (0.6) (0.7) Acquisition related expenses (10.6) (3.7) Spanish anti trust
Slide 18: Adjusted free cash flow
Adjusted free cash flow Higher working capital requirements, cash taxes and Capex In millions of Euro H1 2017 H1 2016 % Adjusted EBITDA 144.7 123.3 17.4% Changes in working capital (20.9) 15.1 N.M. Inventories (7.7) (23.2) (66.8%) Trade and other receivables (37.5) 9.3 N.M. Trade and other payables
Slide 19: Net debt
Net debt Net debt and leverage under control Reported debt position and liquidity as of June 30, 2017 Net Debt (€m) and leverage (x) 900 849,2 6,00 Net Debt Calculation (€m) 800 743,9 5,00 Gross debt 935.6 700 660,2 664,9 4.90x 565,9 585,1 4,00 Cash & cash equivalents (191.8) 600 504,7 500 3,00 Net
Slide 20: Outlook
Outlook
Slide 21: Outlook
Outlook Strategic progress and priorities • Expect to grow revenue ahead of our markets for full year 2017 • Recent acquisition of Ontex Brazil is anticipated to perform in line with our expectations for 2017 • Foreign exchange rates are expected to remain volatile in the second half of the year • B
Slide 22: Q&A
Ontex™ fex Q&A
Slide 23: Appendix
Appendix
Slide 24: Performance overview for Q2 & H1 2017
Performance overview for Q2 & H1 2017 % as % as In millions of Euro H1 2017 H1 2016 % LFL Q2 2017 Q2 2016 % LFL reported reported Per Division Mature markets retail 445.8 426.0 4.6% 3.9% 224.8 212.3 5.9% 5.7% Americas Retail 313.1 135.1 131.8% 14.6% 187.4 99.6 88.1% 14.9% Growth markets 96.6 76.8 25
Slide 25: Delivering sustainable profitable growth
Delivering sustainable profitable growth In millions of Euro H1 2017 H1 2016 % Revenues 1,173.9 962.6 22.0% Like-for-like (LFL) revenues 1,012.9 962.6 5.2% Gross margin 342.3 283.6 20.7% Gross margin as % of sales 29.2% 29.5% (30 bps) Adjusted EBITDA 144.7 123.3 17.4% Adjusted EBITDA margin 12.3% 12
Slide 26: Alternative Performance Measures
Alternative Performance Measures The following alternative performance measures (non-GAAP) have been included in this press release since management believes that they are widely used by certain investors, securities analysts and other interested parties as supplemental measures of performance and l
Slide 27: Thank you
Thank you