Slide 1: Q3 2019 Trading Update
Q3 2019 Trading Update November 6, 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 Q3 2019 Highlights 04 Q3 2019 Trading review 07 Outlook 14 Q&A 16 Appendix 17 Confidential 3
Slide 4: Q3 2019 Highlights
a Ontex Q3 2019 Highlights
Slide 5: Q3 2019 highlights: Progress update
Q3 2019 highlights Progress update ✓ Q3 performance shows we are turning a corner and gradually gathering momentum ✓ First quarter in 2019 in which both Group LFL revenue and Adjusted EBITDA at constant currencies grew compared with the same period in 2018 ✓ Strict management of working capital drov
Slide 6: Q3 2019 highlights: Key financials
Q3 2019 highlights Key financials Q3 2019 Group revenue: €574.4 million, up 0.2% LFL • Positive price/mix and lower volumes +0.2% • Higher revenue of Ontex local brands LFL • Reported revenue increased 1.4% Adjusted EBITDA: €65.8 million at constant currencies, up 0.5%* • Adjusted EBITDA margin of 1
Slide 7: Q3 2019 Trading review
a Ontex Q3 2019 Trading review
Slide 8: First quarter of LFL revenue growth in 2019
First quarter of LFL revenue growth in 2019 Group revenue review Q3 2019 Sales bridge (€m) +1.4% reported • Q3 2019 LFL revenue: €567.6 million, +0.2% +0.2% LFL • Further sequential LFL improvement trend (Q1 LFL: -1.5%, Q2 LFL: -1.1%) 566.6 +2.0% 567.7 +1.2% 574.4 -1.8 % • Top-line drivers • Volumes
Slide 9: Category review
Category review Higher revenue in Babycare drove Group LFL growth • Q3 2019 Babycare revenue: €340.9 million, +1.5% LFL LFL sales growth • Solid revenue performance of Ontex brands in AMEAA 9M 2019 Q3 2019 • Lower sales of retailer brands in Europe, but clear % reported group sales1 59% 31% 9% 59% 3
Slide 10: Europe: Q3 LFL revenue evolution trend improving as expected
Europe: Q3 LFL revenue evolution trend improving as expected Lower volumes, stable price/mix Europe (42% of Group revenue) • Q3 2019 LFL revenue: €237.0 million Revenue (€m) and LFL evolution • More favorable LFL trend than in previous 2 quarters: -7.8% reported (Q1: -6.7%, Q2: -10.0%, Q3 -6.0%) • T
Slide 11: Americas, Middle East, Africa and Asia: Solidly ahead
Americas, Middle East, Africa and Asia: Solidly ahead Sales up in all categories AMEAA (39% of Group revenue) • Q3 2019 LFL revenue: €220.9 million, +6.6% LFL revenue (€m) and evolution +8.8% reported • Americas sales increased: Volumes, price and mix higher • Led by Brazil and Mexico +7.6% LFL • US
Slide 12: Healthcare: Revenue increase in competitive markets
Healthcare: Revenue increase in competitive markets Volumes up with stable price/mix Healthcare (19% of Group revenue) • Q3 2019 LFL revenue: €109.8 million, +2.1% LFL revenue (€m) and evolution • YTD evolution in line with market dynamics -0.4% reported • Increasing demand for Adult pants confirmed
Slide 13: 9M 2019 Adjusted EBITDA margin
9M 2019 Adjusted EBITDA margin Higher price/mix and savings nearly offset increased raw material costs • Q3 2019 Adjusted EBITDA: €65.8 million at constant currencies, 9M2019 Adjusted EBITDA margin bridge (% and bps) and margin at 11.6% of LFL sales • 9M 2019 Adjusted EBITDA: €189.7 million at const
Slide 14: Outlook
Outlook
Slide 15: Outlook
Outlook Current levels of price indices show a decreasing trend for most raw materials. Pricing, mix improvement and cost savings actions are producing increasing effects in the second half of the year, leading to revenue and Adjusted EBITDA improvements in H2 versus H1 2019. As a result, Ontex conf
Slide 16: Q&A
Ontex~ tex Q&A
Slide 17: Appendix
Appendix
Slide 18: 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 19: Thank you
Thank you