Slide 1: Q2 & H1 2019 results
Q2 & H1 2019 results July 31, 2019
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 H1 2019 Highlights 04 H1 2019 Financial review 07 Outlook 16 Q&A 18 Appendix 19 Confidential 3
Slide 4: H1 2019 Highlights
H1 2019 Highlights Charles Bouaziz, CEO
Slide 5: H1 2019 highlights: Progress on several fronts
H1 2019 highlights Progress on several fronts ✓ Strong LFL revenue growth in AMEAA Division ✓ LFL revenue decrease in Europe, multiple initiatives underway to drive future organic growth ✓ Positive price/mix actions and savings largely offset raw material and FX headwinds ✓ Meaningful improvement in
Slide 6: H1 2019 highlights: Key financials
H1 2019 highlights Key financials H1 2019 Group revenue of €1.1 billion, down 1.3% LFL • Positive price/mix and lower volumes -1.3% • Higher revenue of Ontex local brands LFL • Reported revenue down 1.4% Adjusted EBITDA of €123.9 million at constant currency, down 6.4%* • Adjusted EBITDA margin of 1
Slide 7: H1 2019 Financial review
H1 2019 Financial review Charles Desmartis, CFO
Slide 8: Favorable price/mix across all Divisions and categories, softer volumes
Favorable price/mix across all Divisions and categories, softer volumes Challenging H1 LFL as expected Group revenue review Sales bridge H1 2019 (€m) LFL: -1.3% • LFL revenue at €1.115 million, -1.3% in H1 2019 1,130 +2.7% 1,115 1,114 N.M • Top-line drivers -4.0% • Lower volumes in Europe and Health
Slide 9: Category review
Category review Higher Adult Inco revenue on top of strong prior year base • Babycare LFL revenue -1.6% in H1 2019 LFL sales growth • Q2 LFL revenue stable versus last year, improvement compared to soft start in Q1 H1 2019 Q2 2019 • Baby pants revenue outpaced diapers, with solid % reported group sa
Slide 10: Europe: LFL revenue down versus last year
Europe: LFL revenue down versus last year Lower volumes, improved price/mix Europe (42% of Group revenue) • LFL revenue -8.4% in H1 2019 Revenue (€m) and LFL evolution • All categories posted positive price/mix -8.4% • Volume decrease due to impact of retailer brand contract 515 471 469 losses, comp
Slide 11: Americas, Middle East, Africa and Asia: Strong growth
Americas, Middle East, Africa and Asia: Strong growth Higher revenue in all categories AMEAA (38% of Group revenue) • LFL revenue +8.1% in H1 2019 LFL revenue (€m) and evolution • Americas revenue up on higher volumes and price/mix • All markets grew, Q2 LFL acceleration versus Q1 +8.1% 426 427 394
Slide 12: Healthcare: Revenue down versus strong H1 last year
Healthcare: Revenue down versus strong H1 last year Positive price/mix, lower volumes Healthcare (20% of Group revenue) • LFL revenue -1.6% in H1 2019 LFL revenue (€m) and evolution • Against a strong comparable (+3% in H1 2018) -1.6% • Solid revenue growth of Adult pants 221 218 218 • Continued eff
Slide 13: Adjusted EBITDA margin
Adjusted EBITDA margin Ongoing solid contribution from price/mix and savings • Adjusted EBITDA of €123.9 million at constant currency Adjusted EBITDA margin bridge (% and bps) (€111.0 million reported) • Adjusted EBITDA margin 11.1%* at constant currency +117bps • Negative impact of raw materials ve
Slide 14: Non-recurring income and expenses
Non-recurring income and expenses Mainly related to implementation of T2G project; limited cash impact • Non-recurring expenses amounted to €39.6 million in H1 In millions of Euro H1 2019 H1 2018 change 2019, of which: Group reorganization, acquisition integration and (6.6) (7.6) +1.0 restructuring
Slide 15: Adjusted Free Cash Flow
Adjusted Free Cash Flow Meaningful improvement in Adjusted Free Cash Flow in H1 2019 • Adjusted free cash flow of €81.2 million in H1 2019 more H1 H1 2018 pro H1 2018 In millions of Euro forma for change than doubled versus H1 2018, thanks to improved working 2019 IFRS 16 reported capital Adjusted E
Slide 16: Outlook
Outlook Charles Bouaziz, CEO
Slide 17: Outlook
Outlook Current levels of price indices show a stabilization or slight decrease for most raw materials. Pricing, mix improvement and cost savings actions will produce increasing effects in the second half of the year, leading to revenue and Adjusted EBITDA improvements in H2 versus H1 2019. As a res
Slide 18: Q&A
Ontex~ tex Q&A
Slide 19: Appendix
Appendix
Slide 20: Alternative Performance Measures
Alternative Performance Measures The following alternative performance measures (non-GAAP) have been included in this presentation since management believes that they are widely used by certain investors, securities analysts and other interested parties as supplemental measures of performance and li
Slide 21: Alternative Performance Measures
Alternative Performance Measures The following alternative performance measures (non-GAAP) have been included in this presentation since management believes that they are widely used by certain investors, securities analysts and other interested parties as supplemental measures of performance and li
Slide 22: Thank you
Thank you