Slide 1: FY 2017 Results
FY 2017 Results March 6, 2018
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 Transformation of Ontex 04 Ontex Brazil update 06 2017 Group Highlights 09 Financial Review 19 Outlook 24 Q&A 26 Appendix 27 Confidential 3
Slide 4: Transformation of Ontex
Ontex— Transformation of Ontex
Slide 5: The transformation journey is well underway
The transformation journey is well underway… To become a leading consumer goods company 2013 2017 1.5 Revenue (€ billion) 2.4 174 Adjusted EBITDA (€ million) 266 38% Ontex Brands (Group revenue) 48% 32% Revenue outside of Western Europe >50% 5,000 Employees 11,000 15 Production sites 19 4 R&D center
Slide 6: Ontex Brazil update
Ontex— Ontex Brazil update
Slide 7: Ontex Brazil: long-term fundamentals remain intact
Ontex Brazil Long-term fundamentals remain intact ✓ 4th largest personal hygiene market in the world ✓ Strategic fit meeting all our key acquisition criteria ✓ Strengthened presence in the Americas, reinforcing a second platform to complement European platform ✓ Leading position in Adult Incontinenc
Slide 8: Ontex Brazil: first year of ownership review
Ontex Brazil First year of ownership review • Challenging economic and competitive environment Brazil baby diaper market value • Carve-out complexity, new management in place mid-2017 3.5% • Extended Adult Inco leadership in a growing category -3.3% • Baby diaper category value moved from growth in
Slide 9: 2017 Group Highlights
Ontex— 2017 Group Highlights
Slide 10: Further progress in the Ontex journey
FY 2017 Further progress in the Ontex journey Outstanding top-line outperformance with LFL growth across all three categories Solid underlying margin performance and lower margin from Brazil acquisition Significant benefits from refinancing going forward Improved tax rate Upgraded production capabil
Slide 11: Accelerating growth via innovations across the Company
Accelerating growth via innovations across the Company Confirming benefit of investment in new capabilities Healthcare Healthcare Femcare MENA Americas Retail Mature Market Retail Group Highlights Confidential 11
Slide 12: Top-line performance well ahead of our markets
Top-line performance well ahead of our markets Strong consumer demand for Ontex products Group revenue review Sales bridge FY 2017 (€m) 2,355 1,993 • Reported revenue up +18.2% in FY 2017 • Like-for-like revenue 5.5% in FY 2017 driven by significant volume growth FY 2016 Volume Price/Mix FX Acquisit
Slide 13: Category review
Category review Solid LFL revenue growth across all categories • Babycare LFL revenue strongly ahead by 6.3%: LFL sales growth • Ontex brands outperforming category growth in % FY reported 61% 29% 9% Group sales1 majority of our markets 8.0% 6.8% 7.1% • Grew retailer branded products in MMR signific
Slide 14: Mature Market Retail: 38% of FY reported Group sales
Mature Market Retail: 38% of FY reported Group sales Outstanding performance with +5.1% LFL revenue • Significantly ahead of underlying market growth in a highly LFL revenue (€m) and sales growth competitive environment +5.1% 855 898 • Volume-led growth across all three categories driven by new +6.7
Slide 15: Americas Retail: 27% of FY reported Group sales
Americas Retail: 27% of FY reported Group sales Double-digit LFL growth +12.2% • Revenue of Babycare and Adult Inco products in Mexico LFL revenue (€m) and sales growth grew ahead of their respective categories +12.2% 375 334 • Strong consumer demand for our portfolio of local brands +14.3% 100 114
Slide 16: Growth Markets: 8% of FY reported Group sales
Growth Markets: 8% of FY reported Group sales +8.5% LFL revenue outperformance in highly competitive markets • LFL revenue ahead of local markets LFL revenue (€m) and sales growth +8.5% 184 170 • Solid performance of larger business, following three years of double-digit LFL revenue growth +5.9% 49
Slide 17: MENA: 8% of FY reported Group sales
MENA: 8% of FY reported Group sales Solid performance in most markets except Turkey Babycare • Like-for-like revenues +1.4% in FY 2017 LFL revenue (€m) and sales growth +1.4% 206 209 • FY 2017 revenue performance follows double-digit LFL growth in 2016 +2.7% 52 54 • Limited growth in 2017 primarily
Slide 18: Healthcare: 18% of FY reported Group sales
Healthcare: 18% of FY reported Group sales LFL revenue outperformance in institutional channels • Like-for-like revenues +2.0% ahead of estimated market LFL revenue (€m) and sales growth growth 429 +2.0% 437 • Performance driven by higher volumes for our branded products, including Adult pull-ups +4
Slide 19: Financial Review
ntex— Financial Review O,
Slide 20: FY 2017 financial highlights
FY 2017 financial highlights Significant top-line outperformance and resilient underlying margins FY 2017 Strong top-line performance • Reported Group revenues of €2.36 billion for FY 2017, +18.2% on a reported basis LFL revenues • LFL revenue +5.5% +5.5% Resilient Adjusted EBITDA margin ex Brazil •
Slide 21: Adjusted EBITDA margin
Adjusted EBITDA margin Solid underlying margin performance and lower margin from Brazil acquisition Key margin drivers Gross margin contraction of 47 bps to 28.9% for FY 2017 • Driven by higher raw material pricing, negative FX and additional manufacturing expenses • Offset partially by strong LFL g
Slide 22: Adjusted free cash flow
Adjusted free cash flow Decrease due to one-time build of receivables in Brazil and higher capex In millions of Euro FY 2017 FY 2016 % Adjusted EBITDA 266.4 248.7 7.1% Changes in working capital Inventories (8.3) (6.9) 20.9% Trade and other receivables 1 (56.4) (20.2) N.M. Trade and other payables 2
Slide 23: Net debt & leverage
Net debt & leverage Debt refinancing in 2017: annual savings and extended maturity profile • New credit facilities agreement (September 2017) for Debt maturity profile (€m) €900 million for a term of five years : • €600 million term loan • €300 million revolving credit facility 900 • New credit faci
Slide 24: Outlook
Outlook
Slide 25: Outlook
Outlook Strategic progress and priorities We have three priorities for 2018: • Continue investing in initiatives which will support sustainable profitable growth • Strengthen further the underlying Ontex business, continuing to build on our leadership position in retailer brands in Europe and on our
Slide 26: Q&A
Ontex~ tex Q&A
Slide 27: Appendix
Appendix
Slide 28: Performance overview for Q4 & FY 2017
Performance overview for Q4 & FY 2017 % as % as In millions of Euro Q4 2017 Q4 2016 % LFL FY 2017 FY 2016 % LFL reported reported Per Division Mature market retail 228.1 214.0 6.6% 6.7% 901.7 854.6 5.5% 5.1% Americas retail 153.5 99.6 54.2% 14.3% 637.5 333.9 90.9% 12.2% Growth markets 51.0 49.0 4.1%
Slide 29: Condensed income statement
Condensed income statement In millions of Euro FY 2017 FY 2016 % Revenues 2,355.4 1,993.0 18.2% Like-for-like (LFL) revenues1 2,103.1 1,993.0 5.5% Gross margin 681.0 585.5 16.3% Gross margin as % of sales 28.9% 29.4% -47 bps Adjusted EBITDA1 266.4 248.7 7.1% Adjusted EBITDA margin 11.3% 12.5% -117 b
Slide 30: Non-recurring costs
Non-recurring costs Limited impact in 2017 In millions of Euro FY 2017 FY 2016 1 Non recurring income and expenses (4.5) (12.9) Factory Closure (0.1) (0.1) Business restructuring (4.2) (2.5) Acquisition related expenses 2.1 (10.9) Change in fair value of contingent consideration (2.2) 6.6 Income and
Slide 31: Raw Material Price Indices (2013 - 2017)
Raw Material Price Indices (2013 - 2017) Fluff – RISI Index (USD/MT) Low Density Polyethylene – LDPE index (€/ton) 1,200 1,700 1,150 1,600 1,100 1,500 1,050 1,400 1,000 1,300 950 1,200 900 1,100 Polypropylene homo polymer – PP homo index (€/ton) Propylene Homo – Propylene index (€/Mton) 1,600 1,200
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 Ontex—