Slide 1: FY 2018 Results
Ontex— FY 2018 Results March 8, 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 2018 Highlights 04 2018 Financial Review 09 Outlook 20 Q&A 23 Appendix 24 Confidential 3
Slide 4: 2018 Highlights
2018 Highlights Charles Bouaziz, CEO
Slide 5: FY 2018 highlights
FY 2018 highlights Resilient performance in a challenging environment FY 2018 FY 2018 Group ex Brazil Group revenue of €2.29 billion (€2.39 billion at constant currency) • Like-for-like (LFL) revenue growth of +1.7%, thanks to enhanced geographic and product portfolio +1.7% +2.4% • Improved pricing
Slide 6: Significant progress on 2018 priorities
Significant progress on 2018 priorities 2018 Sustainable Focus on profitability of More competitive improvements at Priorities core business growth portfolio Ontex Brazil • Pricing actions to mitigate raw • Performance benefited from • Sequential revenue and EBITDA material headwinds increased capac
Slide 7: Innovations driven by changing consumer needs and trends
Innovations driven by changing consumer needs and trends Baby Care Adult Inco Feminine Care Ontex Highlights Confidential 7
Slide 8: Transform to Grow program initiated
Transform to Grow program initiated New organization and reporting structure implemented Transform to Grow and appointment of Thierry Navarre as Chief Transformation Officer In Q4 2018, we initiated Transform to Grow (“T2G”), our comprehensive transformation program to enhance Ontex’s competitivenes
Slide 9: 2018 Financial Review
2018 Financial Review Charles Desmartis, CFO
Slide 10: Enhanced geographic and product portfolio drove solid LFL revenue growth
Enhanced geographic and product portfolio drove solid LFL revenue growth +1.7% LFL in 2018 in a difficult market environment Group revenue review Sales bridge FY 2018 (€m) +2.9% +0.9% • LFL revenue +1.7% in FY 2018 2,335 2,292 • LFL revenue +2.4% excluding Brazil -1.2% -4.4% • Top-line drivers • Pos
Slide 11: Category review
Category review LFL growth in 2 of 3 categories; robust performance in Adult Inco • Continued strong growth of baby pants and local baby diaper LFL sales growth brand sales FY 2018 Q4 2018 % reported • Growth supported by additional production capacity group sales1 59% 30% 10% 60% 29% 9% • Babycare
Slide 12: Mature Market Retail: Growth in strategic categories, decrease in diaper volumes
Mature Market Retail: Growth in strategic categories, decrease in diaper volumes • LFL revenue down -1.8% in FY 2018 on a very high MMR (38% of 2018 Group sales) LFL revenue (€m) and sales growth comparable base (+5.1% in 2017) 901 -1.8% 885 • Solid growth in Baby and Adult pants only partly offset
Slide 13: Americas Retail: Strong market outperformance
Americas Retail: Strong market outperformance • LFL revenue up +4.5% in FY 2018 Americas Retail (27% of 2018 Group Sales) LFL revenue (€m) and sales growth • Driven by volume increases in most markets and +4.5% 652 624 positive price/mix +21.8% • Another year of solid market share performance in bot
Slide 14: Healthcare: Continued LFL growth ahead of markets
Healthcare: Continued LFL growth ahead of markets • LFL revenue +0.8%, in a market estimated to be declining Healthcare (19% of 2018 Group sales) LFL revenue (€m) and sales growth 433 +0.8% 437 • Consistent focus on leveraging our brands (Serenity and iD) and developing sales in self-pay channels -2
Slide 15: Growth Markets: Another year of strong LFL revenue momentum
Growth Markets: Another year of strong LFL revenue momentum • LFL revenue up +9.5%, on the back of higher volumes and Growth Markets (9% of 2018 Group sales) LFL revenue (€m) and sales growth better product mix 211 192 +9.5% • Strong growth in Adult and Baby pants +6.1% • Strengthened baby diaper ma
Slide 16: MENA: Solid LFL growth driven by H2 improvement
MENA: Solid LFL growth driven by H2 improvement • LFL revenue +2.6% in FY 2018 MENA (7% of 2018 Group sales) LFL revenue (€m) and sales growth • Double-digit LFL revenue growth in the second half +2.6% of the year 184 189 +14.9% • Adapted well in volatile environment with significantly weaker 45 52
Slide 17: Adjusted EBITDA margin
Adjusted EBITDA margin Resilient Adj. EBITDA margin at constant currency through improved price/mix and savings Gross margin contraction of 99 bps to 27.3% in FY 2018 Adjusted EBITDA margin bridge FY 2018 (% and bps) • Higher raw material pricing and negative FX • Offset partially by improved pricin
Slide 18: Adjusted Free Cash Flow
Adjusted Free Cash Flow Solid growth in Adjusted Free Cash Flow in 2018 • Adjusted free cash flow of €80.0 million in 2018, up 12.8%, In millions of Euro FY 2018 FY 2017 % driven by improved working capital and lower capex Adjusted EBITDA 234.0 266.4 -12.2% • Working capital at 11.2% of revenue, wel
Slide 19: Implementation of IFRS 16 Leases: Estimated impacts on 2018 financial results
Implementation of IFRS 16 Leases: Estimated impacts on 2018 financial results Income FY 2018 reported FY 2018 pro-forma FY 2018 pro-forma Statement impacts1 Adj. EBITDA €234 million €28-€30 million €262-€264 million Balance Sheet December 31, 2018 IFRS 16 Impact1 January 1, 2019 Total assets €2.790
Slide 20: Outlook
Outlook Charles Bouaziz, CEO
Slide 21: Outlook
Outlook • For 2019, we anticipate further top-line growth in developing markets, and lower revenue in developed markets. • We expect to improve adjusted EBITDA at constant currency1, despite a slow start to the year in Q1 2019 due to continued, but stabilizing, raw material and FX headwinds. Our pri
Slide 22: Investor Update event - May 8, 2019
Investor Update event - May 8, 2019 • We will host an Investor Update event on Wednesday, May 8, 2019, the day of our Q1 2019 Trading Update. The Trading Update conference call for investors and analysts will take place at 9.00am CET/8.00am UK, with a meeting for investors and analysts in London fol
Slide 23: Q&A
Ontex~ tex Q&A
Slide 24: Appendix
Appendix
Slide 25: Revenue overview for Q4 & FY 2018
Revenue overview for Q4 & FY 2018 % as % as In millions of Euro Q4 2018 Q4 2017 % LFL FY 2018 FY 2017 % LFL reported reported Per Division Mature market retail 217.2 227.5 (4.5%) (4.2%) 880.2 900.7 (2.3%) (1.8%) Americas retail 176.0 150.5 17.0% 21.8% 618.0 624.1 (1.0%) 4.5% Growth markets 50.8 50.4
Slide 26: 2018 revenue re-stated according to 2019 Division structure
2018 revenue re-stated according to 2019 Division structure In millions of Euro Q1 2018 Q1 2018 Q1 2018 Q1 2018 FY 2018 Per Division Europe 253.0 261.5 252.0 254.2 1,020.7 Americas, Middle East & Africa, Asia (AMEEA) 191.9 202.0 207.1 234.8 835.8 Healthcare 113.2 108.0 107.5 106.9 435.6 Ontex Group
Slide 27: Condensed income statement
Condensed income statement In millions of Euro FY 2018 FY 2017 % Revenues 2,292.2 2,335.0 -1.8% Like-for-like (LFL) revenues1 2,374.0 2,335.0 1.7% Gross margin 625.7 660.6 -5.3% Gross margin as % of sales 27.3% 28.3% -99 bps Adjusted EBITDA1 234.0 266.4 -12.2% Adjusted EBITDA margin 10.2% 11.4% -120
Slide 28: Non-recurring income and expenses
Non-recurring income and expenses • FY 2018 mainly impacted by business restructuring In millions of Euro FY 2018 FY 2017 expenses; factory closure expenses and impairment of Non recurring income and expenses1 (24.3) (4.4) assets Factory Closure (5.9) (0.1) Business restructuring (11.1) (4.2) • FY 2
Slide 29: Net debt and leverage
Net debt and leverage Reported debt position and liquidity as of December 31, 2018 Net Debt (€m) and leverage (x) 900 849.2 6.00 Net Debt Calculation (€m) 778.3 800 743.9 744.2 760.0 5.00 Gross debt 890.6 700 664.9 4.90x 585.1 4.00 Cash & cash equivalents (130.6) 600 500 3.25x 3.00 Net debt 760.0 3.
Slide 30: Raw Material Price Indices (2013 - 2018)
Raw Material Price Indices (2013 - 2018) Fluff – RISI Index (USD/MT) Low Density Polyethylene – LDPE index (€/ton) 1400 1300 1580 1200 1480 1100 1380 1000 1280 900 1180 Polypropylene homo polymer – PP homo index (€/ton) Propylene Homo – Propylene index (€/Mton) 1200 1500 1100 1400 1000 900 1300 800
Slide 31: 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 32: 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 33: Thank you
Thank you