Slide 1: 2015: Significant Progress on our Journey
2015: Significant Progress on our Journey March 8, 2016
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 14 Outlook 20 Q&A 22 Appendix 23 Confidential 3
Slide 4: Ontex Highlights
Ontex Highlights
Slide 5: 2015: Significant progress on our journey
2015: Significant progress on our journey Solid organic results and important acquisition made Continued to demonstrate sustainable profitable growth due to • Disciplined approach and focused execution across our different markets FY2015 LFL revenues1 • Enhanced organization structure and leadership
Slide 6: Transformation well underway…
Transformation well underway… To become a leading consumer goods company Setting the course in 2013 Ontex’s profitable growth model • To move from a strong manufacturing company to a 13% 1,700 consumer goods company 1,689 1,500 1,616 Evolving to put consumers and customers at the heart of 1,492 1,30
Slide 7: …and further implementing a clear strategy
…and further implementing a clear strategy Our Vision 2020: Becoming the preferred company for our consumers, customers, employees and investors and a socially responsible company OUR AMBITIONS ✔ ✔ ✔ ✔ To be in the Top-5 hygiene To provide consumer-winning To have long lasting To become a magnet for
Slide 8: Another year of top-line growth
Another year of top-line growth Playing to the strengths of our portfolio Group revenue review Sales bridge FY 2015 (€m) 1,689 • Like-for-like revenues up +4.8% in FY (+4.4% in Q4) 1,700 • Reported revenue up +4.5% in FY (+3.2% in Q4) 1,650 1,616 1,600 • Challenging markets demonstrated the value of
Slide 9: Mature market retail: 54% of FY group sales
Mature market retail: 54% of FY group sales Maintaining retailer brand leadership and pricing discipline Divisional review LFL Revenue (€m) and sales growth +0.0% • Compared to strong comparable bases in 2014, FY LFL 890 890 revenue was stable, while Q4 LFL revenue was a limited decrease (0.7%) 220
Slide 10: Growth markets: 9% of FY group sales
Growth markets: 9% of FY group sales Revenue growth led by solid volume increases Divisional review LFL Revenue (€m) and sales growth +48.2% 183 • Strong FY LFL revenue driven by increased volumes throughout the year, especially in Russia and Central Eastern 124 Europe +44.5% 49 • Modern retail cont
Slide 11: MENA: 11% of FY group sales
MENA: 11% of FY group sales Solid growth supported by investments in Ontex brands Divisional review LFL Revenue (€m) and sales growth +8.2% • High single-digit growth on a LFL basis in both FY and Q4 179 194 2015, year on year +8.7% • Ongoing investment behind our brands such as Canbebe 51 47 and Ca
Slide 12: Healthcare: 26% of FY group sales
Healthcare: 26% of FY group sales Market outperformance driven by home delivery Divisional review LFL Revenue (€m) and sales growth 423 +0.9% 427 • Division up 0.9% on a LFL basis, outpacing estimated market growth +0.2% • Increased revenue in Italy linked to strong performance in 107 107 home deliv
Slide 13: Our categories
Our categories Growth achieved in each category Category review LFL sales growth % FY reported 53% 34% 12% group sales1 • FY Babycare sales grew by 5.9% LFL, driven mainly by solid 5.9% performance of Ontex brands and retailer brands in 5.1% 4.8% 3.5% 3.4% developing markets 0.9% • Adult Inco FY rev
Slide 14: Financial Review
ntex— Financial Review O,
Slide 15: 2015 highlights
2015 highlights In a highly volatile environment, another year of growth & efficiency FY 2015 LFL revenue growth • Reported Group revenues of €1.69 billion for FY 2015 (€420.6 million for Q4) • FY reported revenue +4.5% (+3.2% in Q4) LFL revenues1 • FY like-for-like (LFL) revenues1 +4.8% (+4.4 % in
Slide 16: Adjusted EBITDA margin
Adjusted EBITDA margin Expansion achieved despite significant currency headwinds Key margin drivers Adjusted EBITDA margin up by 24 bps to 12.4% in FY 2015, in line with FY target; -46 bps in Q4 2015 to 11.4% • Heightened currency volatility throughout the year, with especially strong headwinds in H
Slide 17: Adjusted free cash flow
Adjusted free cash flow Robust growth thanks to EBITDA and improved working capital In millions of Euro FY 2015 FY 2014 % Adjusted EBITDA 209.1 196.1 6.6% Changes in working capital (5.6) (29.9) (81.2%) Inventories (0.7) (20.6) (96.5%) Trade and other receivables 1 (7.6) (23.0) (66.9%) Trade and oth
Slide 18: Net debt and liquidity
Net debt and liquidity Net leverage well under control Reported debt position and liquidity as of December 31, 2015 Net Debt (€m) and leverage (x) Net Debt Calculation (€m) 900 849.2 6.00 Gross debt 642.3 800 Cash & cash equivalents (236.8) 5.00 Net debt 405.5 700 4.90x 585.1 4.00 600 565.9 504.7 Le
Slide 19: Non-recurring costs
Non-recurring costs 2015 much lower than prior year as expected In millions of Euro FY 2015 FY 2014 1 Non recurring expenses 6.8 56.0 Factory closure 0.1 0.4 Business restructuring 1.3 1.5 Acquisition related expenses 4.0 0.8 IPO costs 0.3 21.1 Refinancing costs 0.1 32.7 Other 1.0 (0.5) • Main 2015
Slide 20: Outlook
Outlook
Slide 21: Outlook
Outlook Strategic progress and priorities • The macro environment remains very challenging, with strong pressures due to political and economic uncertainties, and continuing fierce price competition in European retail. 2016 market growth rates are expected to be slightly lower than 2015 including so
Slide 22: Q&A
Ontex~ tex Q&A
Slide 23: Appendix
Appendix
Slide 24: Performance overview for Q4 and FY 2015
Performance overview for Q4 and FY 2015 % as % as In millions of Euro Q4 2015 Q4 2014 % LFL FY 2015 FY 2014 % LFL reported reported Per Division Mature markets retail 219.6 219.8 (0.1%) (0.7%) 903.9 890.1 1.6% 0.0% Growth markets 44.3 33.7 31.5% 44.5% 159.0 123.8 28.4% 48.2% Healthcare 108.5 107.0 1
Slide 25: Delivering sustainable profitable growth
Delivering sustainable profitable growth In-line with Ontex medium term model In millions of Euro FY 2015 FY 2014 % Revenues 1,689.3 1,615.9 4.5% Like-for-like (LFL) revenues1 1,693.9 1,615.9 4.8% Gross margin 475.6 446.7 6.5% Gross margin as % of sales 28.2% 27.6% 51 bps Adjusted EBITDA2 209.1 196.
Slide 26: Thank you
Thank you Ontex—