Slide 1: Q3 2022 Results Webcast
Q3 2022 RESULTS WEBCAST November 10, 2022 Q3 2022 Results - November 10, 2022 1
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: Q3, Start of Performance Recovery
Q3, START OF PERFORMANCE RECOVERY In a continuously challenging external environment Revenue +17% Adj. EBITDA -12% Leverage Total LFL YoY YoY vs 6.8x Group Q3 €638M +7% QoQ € 35M +41% QoQ 7.7X in June Drive Restore Stabilize Refocus growth profitability financing portfolio Record revenue Pricing
Slide 4: Turnaround Building Momentum
TURNAROUND BUILDING MOMENTUM Back to strong revenue growth, based on volume, mix and price Revenue (in €M) 800 Q3 and YtD revenue at record level 700 Group Built on 6 quarters of sequential growth +5% QoQ 600 compounded 17% increase LFL 500 Volume/mix consistently contributing mid-single dig
Slide 5: Mid Single Digit Volume/Mix Growth
MID SINGLE DIGIT VOLUME/MIX GROWTH Fully driven by strategic priorities [1] YoY volume/mix impact on revenue Baby Volume/mix up solid double digit +14% Overall market LTM average pants Success from innovation contraction, but +12% pipeline retailer brands +10% Expanding capacity in Europe &
Slide 6: Operational Cost Reduction Levels Maintained
OPERATIONAL COST REDUCTION LEVELS MAINTAINED While keeping SG&A at 10% of sales Gross savings and SG&A 16% Gross operating savings 14% of €60M YtD SG&A / sales €41M savings in Core Markets YtD 12% 10% YtD Ethiopia, Mayen and Reidsville production Core Markets at 9% 10% plant closed in 2022 8%
Slide 7: Cost Inflation Remaining at High Levels
COST INFLATION REMAINING AT HIGH LEVELS Stabilizing for some components, increasing for others Main raw material indices +250% Overall cost base up ~20% YtD +40% - +80% ~25% in Q3 +200% Raw material prices up ~30% YtD +150% Record high for RISI and caustic soda indices, impacting fluff and S
Slide 8: Pricing Momentum Continues
PRICING MOMENTUM CONTINUES Core Markets accelerating YoY price increase +14% +13% Total Group pricing going +12% from +7% in Q1 to +13% in Q3 +11% +10% +10% 10% higher prices in total Group YTD +8% Strong delivery in discontinued Emerging Markets with double digits in own brands +6% +7% +5% +4
Slide 9: Starting Performance Recovery
STARTING PERFORMANCE RECOVERY Growth and efficiencies closing the gap with net cost inflation Pricing for inflation Net EBITDA impact Growth & efficiencies 80 80 80 YoY impact (in €M) YoY impact (in €M) YoY impact (in €M) 60 60 60 40 40 40 20 20 20 0 0 0 -20 -20 -20 -40 -40 -40 -60 -60 -60 Pricing N
Slide 10: Revenue Growth Continued
Cont. Ops. REVENUE GROWTH CONTINUED Based on volume, mix and price Q3 Revenue for Core Markets (in €M) 500 432 (in €M) 411 +23% 6% volume and mix growth +6% +11% +17% across categories 400 351 +6% Forex Result of contract gains Price Retail brands gaining share Volume 300 /mix Baby care Adult
Slide 11: Solid Growth & Savings Offset by Inflation YoY
Cont. Ops. SOLID GROWTH & SAVINGS OFFSET BY INFLATION YOY But adj. EBITDA sequentially improving Q3 Adj. EBITDA for Core Markets (in €M) 100 +38 -59 Adj. EBITDA down YoY, but growing 90 sequentially by +28% 80 70 Strong €’48M YoY profit from revenue 60 LFL growth +10 50 41 Price Consistent ope
Slide 12: Net Debt Up with WC Needs
NET DEBT UP WITH WC NEEDS Leverage peaked due to trailing EBITDA Net debt evolution (in €M) (in €M) 1,200 Lease liabilities Net financial debt Net debt increased to €895M 1,000 895 WC outflow linked to higher sales 800 DSO improving, but prudence remains in light of supply chain 600 uncertaint
Slide 13: 2022 Outlook Confirmed
2022 OUTLOOK CONFIRMED Q4 EBITDA expected significantly up, QoQ and YoY Core Markets Total Group (incl. disc. ops.) Strong revenue growth of ~15% LFL [1] Strong revenue growth of ~15% LFL maintaining YTD growth momentum with continued price increases Adj. EBITDA at high end of prior given
Slide 14: Key Priorities
KEY PRIORITIES Drive Stabilize growth financing Restore Refocus profitability portfolio Q3 2022 Results - November 10, 2022 14
Slide 15: Q&A
Q3 2022 RESULTS Q&A Q3 2022 Results - November 10, 2022 15
Slide 16: Thank You
Q3 2022 RESULTS THANK YOU Q3 2022 Results - November 10, 2022 16