Ontex Group N.v. · EURONEXT:ONTEX
Ontex — Q2 2013 Earnings Presentation
19 slides from Ontex's earnings presentation, 2013
Slide 1: Financial Results – Q2 2013
Financial Results – Q2 2013 Jacques Purnode, Chief Finance Officer Steven Vandenbogaerde, Finance Director
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: Introduction Jacques Purnode
Introduction Jacques Purnode
Slide 4: Background & Expertise
Enhanced Consumer Goods Industry Background & Expertise Introduction and Background − Transition is well under way − Responsible for Legal and ICT function in addition to Finance Ontex’s consumer goods expertise further strengthened − Commercial and strategic initiatives producing results − Proc
Slide 5: Key Highlights
Ontex Hygienic Disposables
Slide 6: A Solid Q2 2013
A Solid Q2 2013 Group Sales at €387.8 million in Q2 2013, up 20.1% versus prior year − Excluding currency effects, Q2 2013 sales amounted to €393.0 million, an increase of 21.7% compared to Q2 2012 − H1 2013 sales up 12.1% at constant currency − Serenity Sales contributed to €36.5 million in the q
Slide 7: Macro and Market Dynamics Impacted by Adverse Currency Effects
Macro and Market Dynamics Impacted by Adverse Currency Effects General Retail and Raw Materials Currencies Competitive Environment Retailers continue to Slightly lower pricing Adverse currency focus on price levels in Q2 vs. Q1 movements notably for 2013, as anticipated the British Pound, Pr
Slide 8: Good Commercial Momentum Post K-C Exit
Good Commercial Momentum Post K-C Exit Spanish plant closed in May K-C stockpiling starting to unwind in line with expectations Former Huggies volumes: − Market dynamics still vary country by country, primarily dictated by individual retailers’ shelf readjustment decisions between A brands and
Slide 9: Execution of 2013 Projects Progressing to Plan
Execution of 2013 Projects Progressing to Plan Closure of Recklinghausen fully completed − Severance compensation almost entirely paid in Q2 2013 − Existing equipment is now being redeployed to other group sites; process on track and completion expected by year end Serenity integrated into the H
Slide 10: Financials
Ontex Hygienic Disposables
Slide 11: New Retail Contract Wins Becoming Visible in Q2 2013
New Retail Contract Wins Becoming Visible in Q2 2013 % at constant % at constant In €m Q2 2013 Q2 2012 % as reported currency excl. currency Serenity Per division Retail 238.5 214.1 11.4% 12.8% 12.7% Healthcare 102.3 67.2 52.2% 53.4% (0.7)% Turkey Region 47.0 41.7 12.7% 16.1% 16.1% Per product group
Slide 12: Q2 2013 Financial Highlights (1/2)
Q2 2013 Financial Highlights (1/2) In €m Q2 2013 Q2 2012 % Revenues 387.8 323.0 20.1% Revenues at constant currency 393.0 323.0 21.7% Revenues at constant currency excl. Serenity 356.5 323.0 10.4% Cost of sales (284.5) (244.1) 16.6% Gross profit 103.3 78.9 30.9% Opex1 (66.4) (50.6) 31.2% Adjusted EB
Slide 13: Q2 2013 Financial Highlights (2/2)
Q2 2013 Financial Highlights (2/2) In €m Q2 2013 Q2 2012 % Adjusted EBITDA1 45.0 35.9 25.3% Non recurring expenses2 (4.6) (1.5) N.M. Reported EBITDA 40.4 34.4 17.4% Depreciation & Amortization (8.5) (7.7) 10.4% Operating profit 31.9 26.7 19.5% 1: For definition and reconciliation of Adjusted EBITDA
Slide 14: Free Cash Flow
Free Cash Flow In €m Q2 2013 Q2 2012 Adjusted EBITDA 45.0 35.9 Changes in WC (11.4) 2.7 Cash taxes paid (6.5) (1.8) Capex (10.5) (12.4) Free Cash Flow 16.6 24.4 WC consumption, although declining, remains high in Q2 2013 − Inventory levels continue to decrease gradually, particularly volumes of fi
Slide 15: Available Liquidity
Available Liquidity In €m As of June 30, 2013 Cash & Cash Equivalents 51.1 Credit Lines of €75.0 45.0 (of which drawn: €30.0 million) Available Liquidity 96.1 Cash and Cash Equivalents at €51.1 million at the end of June 30, 2013, compared to €53.6 million at the end of June 30, 2012 €30m drawn
Slide 16: Net Debt Bridge
Net Debt Bridge 26.7 In €m 17.5 75.3 886.7 (56.7) 30.1 793.8 Opening Finance Acquisition and Capex Closing Change in Other CF Net Debt as of costs Financing Spend Net Debt as of Working Capital movements* Jan 1, 2013 June 30, 2013 * Including cash taxes as well as other cash inflow and outflow relat
Slide 17: Progressing into H2 2013
Ontex Hygienic Disposables
Slide 18: Macro Outlook / Progressing into H2 2013
Macro Outlook / Progressing into H2 2012 Raw Material outlook for the next two quarters − Q3 2013 raw material prices to be similar to Q2 2013 levels − Initial indications point towards a slight increase in prices for Q4 2013 Continuing to monitor currency movements closely and their impact on t
Slide 19: Ontex
Ontex Hygienic Disposables