Slide 1: Financial Results – Q1 2013
Financial Results – Q1 2013 Chris Parratt, CFO Steven Vandenbogaerde, Finance Director
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: Reclassification
Reclassification A small number of customers have been reclassified to a different division in 2013, in line with the account and sales management. To allow for relevant comparisons, the 2012 sales by division have been restated A bridge reconciliation is provided below: In €m Q1 2012 Q2 2012 Q3 201
Slide 4: Overview
Ontex Hygienic Disposables
Slide 5: Continued Growth in Sales and Investments in Q1 2013
Continued Growth in Sales and Investments in Q1 2013 Total sales at €340.5 million, a 2.1% increase compared to Q1 2012 − Sales up 2.7% at constant currency year-on-year Adjusted EBITDA at €38.0 million, down 6.2% compared to Q1 2012 − Favourable impact from additional volume and cost savings in
Slide 6: Principle Macro Effects
Principle Macro Effects Sales FX and Raw Materials Continued growth in emerging Raw material costs slightly higher countries than Q4 2012 and Q1 2012 as − In particular baby and incontinence anticipated product groups Adverse currency impact primarily Western Europe situation varies by from
Slide 7: Key Projects on Track
Key Projects on Track Closure of Recklinghausen largely completed − Production stopped in March with remaining inventory being sold out − Severance compensation paid largely in April − Redeployment of existing equipment to other group sites in progress Integration of Serenity underway − Deal clo
Slide 8: Market Dynamics Evolving Post K-C Exit
Market Dynamics Evolving Post K-C Exit Kimberly-Clark UK plant closed in March 2013; Spanish plant expected to close in May − K-C stockpiling (primarily of private label products) due to previous delivery commitments expected to unwind from H2 onwards Huggies market share becomes available as th
Slide 9: Financials
Ontex Hygienic Disposables
Slide 10: Q1 2013 Financial Highlights (1/2)
Q1 2013 Financial Highlights (1/2) In €m Q1 2013 Q1 2012 % Revenues 340.5 333.4 2.1% Revenues at constant currency 342.4 333.4 2.7% Cost of sales (253.6) (251.8) 0.7% Gross profit 86.9 81.6 6.5% Opex1 (56.5) (48.6) 16.3% Adjusted EBITDA2 38.0 40.5 (6.2)% Adjusted EBITDA2 at constant currency 41.5 40
Slide 11: Q1 2013 Financial Highlights (2/2)
Q1 2013 Financial Highlights (2/2) In €m Q1 2013 Q1 2012 % Adjusted EBITDA1 38.0 40.5 (6.2)% Non recurring expenses2 (2.1) (2.7) (22.2)% Reported EBITDA 35.9 37.8 (5.0)% Depreciation & Amortization (7.9) (7.7) 2.6% Operating profit 28.0 30.1 (7.0)% 1: For definition and reconciliation of Adjusted EB
Slide 12: Q1 2013 Revenues Details
Q1 2013 Revenues Details % at constant In €m Q1 2013 Q1 20121 % as reported currency Per division Retail 221.7 226.8 (2.2)% (1.8)% Healthcare 67.3 65.6 2.6% 3.2% Turkey Region 51.5 41.0 25.6% 27.1% Per product group Baby 191.2 188.3 1.5% 2.3% Femcare 48.2 48.3 (0.2)% 0.0% Incontinence 97.3 92.1 5.6%
Slide 13: Free Cash Flow Generation Improves as WC Consumption Decreases
Free Cash Flow Generation Improves as WC Consumption Decreases In €m Q1 2013 Q1 2012 Adjusted EBITDA 38.0 40.5 Changes in WC (6.1) (23.2) Cash taxes paid (1.5) 0.6 Capex (16.2) (7.9) Free Cash Flow 14.2 10.0 Working capital management in line with plan − Inventory levels increased as Recklinghause
Slide 14: Temporary Drawdown of RCF Facility Post Q1 2013
Temporary Drawdown of RCF Facility Post Q1 2013 As of In €m March 31, 2013 Cash & Cash Equivalents 43.0 Credit Lines 75.0 (of which drawn: €0.0 million) RCF draw down of €30.0 million in Available Liquidity 118.0 April 2013 pending closing of factoring agreement for Serenity Pro-Forma as of In €m
Slide 15: Net Debt Bridge
Net Debt Bridge In €m 16.2 6.1 13.5 797.8 793.8 (31.8) Opening Closing Finance costs Change in Working Capex Spend Other CF Net Debt as of Net Debt as of Capital movements* Jan 1, 2013 March 31, 2013 * Including cash taxes as well as other cash inflow and outflow related to operating and investing a
Slide 16: Outlook / Progressing into 2013
Outlook / Progressing into 2013 Serenity Update: − Serenity will be consolidated from April 4 into the Healthcare division for the Q2 results − Progress to date on trading, integration and synergies has been encouraging Raw Material outlook for the next two quarters − Raw material environment is
Slide 17: Ontex
Ontex Hygienic Disposables