Slide 1: 2021 Results
2021 RESULTS 23 February 2022 21FY Results - 23 February 2022 1
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: 2021 in a Nutshell
2021 IN A NUTSHELL Esther Berrozpe Chief Executive Officer 21FY Results - 23 February 2022 3
Slide 4: Ontex Strategy Underway, While Managing a Challenging External Environment
ONTEX STRATEGY UNDERWAY, WHILE MANAGING A CHALLENGING EXTERNAL ENVIRONMENT NEW SHORT-TERM ONTEX CHALLENGES STRATEGY DRIVEN BY UNDER EXTERNAL EXECUTION HEADWINDS 21FY Results - 23 February 2022 4
Slide 5: We Made Progress on All Strategic Pillars
WE MADE PROGRESS ON ALL STRATEGIC PILLARS PORTFOLIO CUSTOMER PRODUCT OPERATIONAL FOCUS CENTRICITY INNOVATION EXCELLENCE Simplify Strengthen customer Accelerate Sustain best-in-class the business & relations & restore cadence cost, quality product portfolio growth of innovation & service levels ENVIR
Slide 6: New Leadership Team in Place
NEW LEADERSHIP TEAM IN PLACE Esther Stephanie Peter Vincent Berrozpe McDonald Vanneste Crepy Chief Executive Human Resources Finance and Supply Chain Officer IT Major change in Group’s Jonas Laurent Annick executive and operational management De Poorter Deroo Nielly R&D and Legal and Europe Sustai
Slide 7: Clear Portfolio Strategy
CLEAR PORTFOLIO STRATEGY Strategic choices made to focus on partner & healthcare brands Channels ▪ Focus on Core Markets: Europe and North America ▪ Divestment process for Emerging Markets underway PARTNER & HEALTHCARE Europe turnaround on-going BRANDS ▪ Sales up sequentially in H2 ▪ Net tender
Slide 8: Progressing on Strategic Growth Drivers
PROGRESSING ON STRATEGIC GROWTH DRIVERS Baby Adult Sustainable & pants care natural solutions Back to positive sales momentum Sales up +3.6% LFL, mainly in Strengthening foundation: Capacity added, allowing to self-pay channels, with adult pants Eco/health labelled products now support furth
Slide 9: Committed to Sustainability
COMMITTED TO SUSTAINABILITY Climate Circular Sustainable change solutions supply chain 90% renewable electricity in 95% of production waste Updated Code of Conduct plants (100% in Europe) recycled or valorized deployed New solar rooftops More packaging with recycled REDcert2 certificatio
Slide 10: Operational Excellence Delivered €75M Savings or 4% Cost Reduction
OPERATIONAL EXCELLENCE DELIVERED €75M SAVINGS OR 4% COST REDUCTION Operating €58M SG&A €17M (500) costs 12.7% 11.4% 11.6% (400) 10.5% Manufacturing footprint Simplified organization <10% (300) Manufacturing efficiencies Removing layers Supply chain optimization Increasing span of control
Slide 11: Inflationary Environment Persists, Full Cost Impact as of Q1 2022
INFLATIONARY ENVIRONMENT PERSISTS FULL COST IMPACT AS OF Q1 2022 Indices 2,500 Main indices impacting raw materials up +40%-80% 2,000 ▪ Wood-based: fluff, packaging ▪ Oil-based: backsheets, SAP, topsheets, bags, elastics 1,500 Inflation on operating costs ▪ Manufacturing: energy, wages 1,000 ▪ T
Slide 12: 2021 Results Highlights: Inflation Offsets Savings and Cash Discipline
2021 RESULTS HIGHLIGHTS INFLATION OFFSETS SAVINGS AND CASH DISCIPLINE €2,026M €53M Revenue Free cash flow -1.5% LFL -€6.6M Lower volumes, with stable pricing Capex and working capital discipline Increasing sequentially over the quarters Adj. EBITDA margin 8.5% Leverage 4.2x -2.8pp vs 3.6x Ne
Slide 13: 2021 Financial Results
2021 FINANCIAL RESULTS Peter Vanneste, Chief Financial Officer 21FY Results - 23 February 2022 13
Slide 14: Q4 Revenue Up YoY, EBITDA Impacted by Intensified Cost Inflation
Q4 REVENUE UP YOY EBITDA IMPACTED BY INTENSIFIED COST INFLATION Revenue 534 (in €M) Adjusted EBITDA (in €M) 501 512 +0.7% 600 480 0.0% 70 +6.2% yoy LFL -11.1% yoy LFL yoy LFL +5 -50 yoy LFL 60 500 53 208 50 400 204 205 Revenue 182 AMEAA 40 31 300 +22 +1 -40.6% Europe 30 200 Forex 325 20 298 297 308
Slide 15: FY Revenue Slightly Down, AMEAA Growth Mitigates Europe Contraction
FY REVENUE SLIGHTLY DOWN AMEAA GROWTH MITIGATES EUROPE CONTRACTION Revenue (in €M) 2,500 2,056 2,026 Europe -5.7% LFL, but trend improving in H2 2,087 -30 -1.5% -1 -36 +6 -2.9% ▪ Lower volumes in baby and feminine care, mainly related to 2,000 Volume Price tender losses in prior years Forex Scope
Slide 16: Unprecedented Inflation Impact on FY EBITDA Partly Offset by Strong Structural Savings
UNPRECEDENTED INFLATION IMPACT ON FY EBITDA PARTLY OFFSET BY STRONG STRUCTURAL SAVINGS Adjusted EBITDA (in €M) 250 236 -22 -106 inflation +75 savings Unprecedented inflation raises cost base [1] by -86 6% or €(106)M 200 Volume/ +17 -10 172 ▪ Main raw material indices up +40-80% mix/price -26.9% +5
Slide 17: FY EPS Reflecting Lower Operating Result and Non-Recurring Cost
FY EPS REFLECTING LOWER OPERATING RESULT AND NON-RECURRING COST EPS (in €M) 1.30 1.01 -0.80 Net financial costs €(43)M, 0.80 up €(7)M after refinancing in June Adjusted taxes of €(37)M, up €(5)M 0.30 -0.09 -0.06 Adjusted 0.07 -0.83 (0.76) Non-recurring cost totals €(85)M Net EBIT financial Adj
Slide 18: FY Free Cash Flow Only Slightly Lower YoY Despite Lower Earnings
FY FREE CASH FLOW ONLY SLIGHTLY LOWER YOY DESPITE LOWER EARNINGS Free cash flow (in €M) 200 172 Capex discipline in current inflationary environment, -27% yoy -35 lowers capex to €(57)M 150 ▪ Capex/depreciation [5] at 90% -77 ▪ Capex/revenue at 2.8% Non- recurring ▪ Optimizing spend efficiency; ye
Slide 19: Net Debt Further Reduced
NET DEBT FURTHER REDUCED Net debt (in €M) (1,000) Net debt reduction (861) (848) +53 -24 +18 +80 ▪ Positive FCF (800) (145) (133) Free Net Other -4 (726) ▪ €80M inflow from settlement on 2017 acquisition in cash interest financing Brazil Litigation Non-cash (114) flow payments income (600) settlem
Slide 20: 2022 Outlook
2022 OUTLOOK Esther Berrozpe Chief Executive Officer 21FY Results - 23 February 2022 20
Slide 21: 2022 Outlook
2022 OUTLOOK [1] Inflation impact €(160)-€(170)M Revenue to return to growth full impact from Q1 on pricing and growth drivers Core Pricing for cost inflation Adjusted EBITDA margin Markets Impact spread over 2022-2023 to drop sequentially [2] in Q1, and P&L €60M savings gradually improve
Slide 22: Strategic Actions in 2022 to Bring Ontex to 2023 Targets
STRATEGIC ACTIONS TO BRING ONTEX TO IN 2022 2023 TARGETS Progress on Revenue LFL[1] CAGR portfolio strategy +2-3% Continuous delivery on Adj. EBITDA margin savings 12.5-13.5% Pricing Leverage ratio pass-through < 3x [1] excluding forex and scope effects, and exceptional pricing 21FY Results - 23 Feb
Slide 23: Q&A
Q&A 21FY Results - 23 February 2022 23
Slide 24: Annexes
ANNEXES 21FY Results - 23 February 2022 24
Slide 25: Reporting Structure Going Forward
REPORTING STRUCTURE GOING FORWARD In 2022 the reporting will be changed to align with the reviewed strategy, splitting Core Markets and Emerging Markets Emerging markets is foreseen to be divested and will be reported as assets held for sale and discontinued operations The carve-out is well ad