Slide 1: FY 2019 results
Ontex— FY 2019 results March 4, 2020
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 FY 2019 Highlights 04 Transform 2 Grow update 07 FY 2019 Financial review 09 Outlook 19 Appendix 22 Confidential 3
Slide 4: FY 2019 Highlights
FY 2019 Highlights Charles Bouaziz, CEO
Slide 5: FY 2019 highlights
FY 2019 highlights Outlook delivered; Q4 profitability improvement marks inflection point, supported by Transform to Grow ✓ 2019: A pivotal year, with the launch in Q2 of Transform to Grow (T2G) program, which is already delivering first benefits ✓ Revenue and operating profitability broadly in line
Slide 6: 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 6
Slide 7: Transform 2 Grow update
Transform 2 Grow update Thierry Navarre, CTO
Slide 8: Transform to Grow on track to significantly step up competitiveness and profitability
Transform 2 Grow on track to significantly step up competitiveness and profitability Status since Q2 2019 launch • More than 55% of initiatives implemented…ramping up with a long runway ahead in 2020-2021 • Initial tangible results already visible and contributing to step-up in Adjusted EBITDA in H2
Slide 9: FY 2019 Financial review
FY 2019 Financial review Charles Desmartis, CFO
Slide 10: FY 2019 highlights
FY 2019 highlights Key financials FY 2019 Group revenue: €2,281 million, down 1.0% LFL • Solid revenue growth of Ontex local brands in AMEAA Revenue • Positive price/mix in all categories and Divisions largely offset lower volumes €2,281 million • Reported revenue down 0.5% Adjusted EBITDA: €245 mil
Slide 11: LFL revenue down 1%: Improved price/mix did not fully offset lower volumes
LFL revenue down 1%: Improved price/mix did not fully offset lower volumes Group revenue review FY 2019 Sales bridge (€m) -0.5% reported • FY 2019 LFL revenue: €2,270 million, -1.0% -1.0% LFL • Improving LFL trends in H2 despite a challenging comparable for AMEAA from Q4 2018 2,292.2 +2.2% 2,270.2 +
Slide 12: Category review
Category review • FY 2019 Babycare revenue: €1,346 million, -0.9% LFL LFL sales growth • Higher sales of Ontex brands in AMEAA • Retailer brand revenue in Europe down, but clear FY 2019 Q4 2019 improvement in H2 versus H1 on the back of higher Baby % reported pants revenue group sales1 59% 30% 9% 60
Slide 13: Europe: Improving LFL revenue trend confirmed on-going recovery
Europe: Improving LFL revenue trend confirmed on-going recovery Volumes down, slight price/mix improvement Europe (42% of Group revenue) • FY 2019 LFL revenue: €955 million, -6.4% Revenue (€m) and LFL evolution -6.3% reported • LFL trend improved • H1: -8.4%, H2: -4.4% (Q4: -2.8%) as contract loss e
Slide 14: Americas, Middle East, Africa and Asia: Consistent growth
Americas, Middle East, Africa and Asia: Consistent growth Revenue higher in all categories AMEAA (39% of Group revenue) • FY 2019 LFL revenue: €883 million, +5.6% LFL revenue (€m) and evolution • Q4 2019 LFL revenue +0.5% versus strong comparable in all geographies; healthy growth expected to resume
Slide 15: Healthcare: Revenue slightly decreased
Healthcare: Revenue slightly decreased Lower volumes with price/mix improving Healthcare (19% of Group revenue) • FY 2019 LFL revenue: €432 million, -0.8% LFL revenue (€m) and evolution -0.7% reported • Lower contract business in highly competitive institutional channels -0.8% LFL • Impacted by a te
Slide 16: Adjusted EBITDA margin: Steady improvement across the year, accelerating in Q4
Adjusted EBITDA margin: Steady improvement across the year, accelerating in Q4 Q4 2019 : €71 million at constant currencies, margin at 12.1% of LFL sales, a meaningful improvement vs. Q4 18, reflecting initial benefits of Transform to Grow program and raw material indices starting to ease FY 2019 :
Slide 17: Non-recurring income and expenses
Non-recurring income and expenses Mainly related to implementation of T2G project; limited cash impact FY 2019 Income statement impact FY 2019 FY 2018 change In millions of Euro • Non-recurring expenses in the income statement amounted to Group reorganization, acquisition integration and €70.3 milli
Slide 18: Free Cash Flow
Free Cash Flow Strong Free Cash Flow generation in FY 2019 • Free cash flow of €109.7 million in FY 2019, net of €30 million in FY 2018 pro FY FY 2018 T2G-specific cash outflows (€21 million for one-off expenses In millions of Euro 2019 forma for change reported and €9 million for capital expenditur
Slide 19: Outlook
Outlook Charles Bouaziz, CEO
Slide 20: Outlook
Outlook We expect to deliver higher revenue, operating profitability and net profit in 2020. • Revenue: We forecast low single digit LFL revenue growth, driven by another year of solid top line growth in AMEAA; sales in Europe and Healthcare should be broadly stable versus 2019 with a slow start in
Slide 21: Q&A
Ontex~ tex Q&A
Slide 22: Appendix
Appendix
Slide 23: 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 24: 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 25: Thank you
Thank you