Slide 1: 2014: A Game Changing Year
2014: A GAME CHANGING YEAR March 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 1 Ontex Highlights 2 Financial Review 3 Outlook 4 Q&A Appendix 3
Slide 4: 2014: A Game Changing Year
2014: A Game Changing Year Delivering top performance despite FX headwinds… Very solid revenue growth on the back of a strong 2013 - Reported FY revenue growth of 8.3% year-on-year - Like-for-like (LFL)1 revenues up 7.0% for FY 2014, up 5.7% in H2 2014 Outperformance across all Divisions and cat
Slide 5: 2014: A Game Changing Year
2014: A Game Changing Year …While transforming the company Capitalizing on our inherent strengths − Engineering, Manufacturing, R&D and further efficiency gains − Enhanced Finance and Procurement functions Continued the journey to become a consumer and customer focused organization - First full
Slide 6: Challenging Market Conditions Prevailed in 2014
Challenging Market Conditions Prevailed in 2014 Market backdrop Macro environment Political uncertainty in several of our markets weighed on demand Continued pressure on government spending impacted Healthcare revenue Raw material prices increased for the major commodity groups in 2014 − Stron
Slide 7: Delivering Top Line Growth
Delivering Top Line Growth Strong 2014 revenue performance Increasing ahead of market growth Sales bridge FY 2014 (€m) 2,000 Like-for-like revenues +6.5% in Q4; +7.0% in FY 2014 1,616 on top of 8.1% in FY 2013 1,600 1,492 1,200 Volume-led revenue increase, with positive volume contribution from
Slide 8: Mature Market Retail: 56% of FY Reported Group Sales
Mature Market Retail: 56% of FY Reported Group Sales Growing retailer brand presence Divisional Review LFL Revenue (€m) and sales growth Taking increasing share of retailer brands and +6.2% retailers launching own brand premium ranges 846 898 +3.7% Strong capture of KC opportunity in H1 confirme
Slide 9: Growth Markets: 6% of FY Reported Group Sales
Growth Markets: 6% of FY Reported Group Sales Capturing opportunities with own and retailer brands Divisional Review LFL Revenue (€m) and sales growth Joint partnerships with leading retailers to develop a +25.8% stronger retailer brand proposition 111 More focus led to growing value in key mark
Slide 10: MEA: 12% of FY Reported Group Sales
MEA: 12% of FY Reported Group Sales Double digit LFL increase with Ontex brands Divisional Review LFL Revenue (€m) and sales growth Further strengthening of Canbebe in Turkey, Morocco +12.8% and Pakistan 201 +20.6% 178 Ontex brands growing ahead of market growth in key 41 49 MEA markets Q4 13 Q4
Slide 11: Healthcare: 26% of FY Reported Group Sales
Healthcare: 26% of FY Reported Group Sales Serving institutional channels Divisional Review LFL Revenue (€m) and sales growth Slightly ahead of estimated market growth and +1.8% trading in line with expectations 380 387 Rolled-out the launch of our new iD brand +0.3% 107 107 Completed the inte
Slide 12: Category Review
Category Review Progress in all categories Resilient, Growing Categories LFL sales growth % FY Babycare sales showed strong growth for the quarter reported group 52% 34% 13% and FY sales1 9.8% 9.5% − Increased collaboration with retailers to promote their own brands 3.9% 4.2% 3.2% − Own brands per
Slide 13: Table of Contents
Table of Contents 1 Ontex Highlights 2 Financial Review 3 Outlook 4 Q&A Appendix 13
Slide 14: Performance Objectives Achieved
Performance Objectives Achieved Significant progress in all areas FY 2014 Revenues well ahead Reported Group revenues of €1.6 billion for FY 2014 (Q4: €407.6 million) LFL revenues1 FY Reported revenue +8.3% for FY, +6.1% in Q4 +7.0 % FY like-for-like (LFL) revenues1 +7.0%; +6.5% in Q4 Cont
Slide 15: Adjusted EBITDA margin
Adjusted EBITDA margin Expansion achieved ahead of guidance Key margin drivers Adjusted EBITDA margin +50bps in FY to 12.1%; -7bps Q4 to 11.9% FY Adjusted EBITDA margin expansion ahead of company goal of ~30 basis points, driven by strong top-line growth while investing in and strengthening the
Slide 16: Adjusted Free Cash Flow
Adjusted Free Cash Flow Higher working capital and capital expenditures In millions of Euro Q4 2014 Q4 2013 % FY 2014 FY 2013 % Adjusted EBITDA 48.5 46.0 5.4% 196.1 173.6 13.0% Changes in working capital (15.6) 21.6 N.M. (29.9) 23.9 N.M. Inventories 2.4 (2.8) N.M. (20.6) 7.8 N.M. Trade and other rec
Slide 17: Transformed Group Balance Sheet
Transformed Group Balance Sheet Optimised financing profile provides platform for growth Second Quarter 2014 IPO €596 million proceeds from the issue, €325 million net proceeds to the Company Immediate repayment of €280 million floating rate notes, reducing leverage Fourth Quarter 2014 Successfu
Slide 18: Capital Structure and Liquidity
Capital Structure and Liquidity Sound financial profile with improved ratings Reported Debt position and liquidity as of December 31, 2014 Leverage and liquidity Net Debt calculation (€m) Gross debt 620.6 Company leverage (Net financial debt/LTM adjusted EBITDA) at 2.98x as of December 31, 2014 Ca
Slide 19: Non-recurring costs
Non-recurring costs Q4 2014 impacted by refinancing costs; FY 2014 also impacted by IPO related costs In millions of Euro Q4 2014 Q4 2013 FY 2014 FY 2013 Non-recurring expenses 34.0 9.8 56.3 19.6 Factory closure 0.2 4.2 0.4 4.2 Business restructuring 1.0 (0.1) 1.5 1.0 Acquisition related expenses 0.
Slide 20: Table of Contents
Table of Contents 1 Ontex Highlights 2 Financial Review 3 Outlook 4 Q&A Appendix 20
Slide 21: Outlook
Outlook Strategic progress and priorities We enter 2015 with good momentum in our business and confidence in our medium-term growth model for outperformance in attractive markets. With the competitive environment in Retail and Health Systems impacting prices in some markets in the second half of 201
Slide 22: Table of Contents
Table of Contents 1 Ontex Highlights 2 Financial Review 3 Outlook 4 Q&A Appendix 22
Slide 23: Table of Contents
Table of Contents 1 Ontex Highlights 2 Financial Review 3 Outlook 4 Q&A Appendix 23
Slide 24: Performance overview for Q4 and FY 2014
Performance overview for Q4 and FY 2014 % as % as In millions of Euro Q4 2014 Q4 2013 % LFL FY 2014 FY 2013 % LFL reported reported Per Division Mature markets retail 223.1 212.3 5.1% 3.7% 904.2 845.7 6.9% 6.2% Growth markets 27.3 24.5 11.4% 34.3% 98.8 88.1 12.2% 25.8% Healthcare 107.8 106.7 1.0% 0.
Slide 25: Delivering Sustainable Profitable Growth
Delivering Sustainable Profitable Growth Q4 financial performance drove strong end to 2014 In millions of Euro Q4 2014 Q4 2013 % FY 2014 FY 2013 % Revenues 407.6 384.2 6.1% 1,615.9 1,491.9 8.3% Revenues at constant currency 409.2 384.2 6.5% 1,634.7 1,491.9 9.6% Like-for-like (LFL) revenues1 409.2 38
Slide 26: Information on 2014 and 2015 Divisional Structure
Information on 2014 and 2015 Divisional Structure Following a review of the Group’s customers and countries, a slight modification to the 4 Divisions has been made for which revenue is reported, effective January 1 2015. A limited amount of activities which represent in aggregate less than 2% of G
Slide 27: Revenue – 2014 Structure
Revenue – 2014 Structure In millions of Euro Q1 2014 Q2 2014 Q3 2014 Q4 2014 FY 2014 Q1 2013 Q2 2013 Q3 2013 Q4 2013 FY 2013 Reported Revenue Mature markets 220.4 232.8 227.9 223.1 904.3 202.1 216.7 214.6 212.3 845.7 retail Growth markets 21.8 25.2 24.4 27.3 98.8 19.6 21.8 22.1 24.5 88 MEA 51.6 45.8
Slide 28: Revenue – 2015 Structure
Revenue – 2015 Structure In millions of Euro Q1 2014 Q2 2014 Q3 2014 Q4 2014 FY 2014 Q1 2013 Q2 2013 Q3 2013 Q4 2013 FY 2013 Reported Revenue Mature markets 216.9 229.0 224.4 219.8 890.1 199.3 213.4 212.0 209.4 834.1 retail Growth markets 28.0 31.5 30.7 33.7 123.8 25.5 27.1 27.2 29.8 109.6 MEA 49.8