Slide 1: Q2 & H1 2016 Financial results
Q2 & H1 2016 Financial results July 28, 2016
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 Ontex Highlights 04 Financial Review 14 Outlook 19 Q&A 21 Appendix 22 Confidential 3
Slide 4: Ontex Highlights
Ontex Highlights
Slide 5: H1 2016 highlights
H1 2016 highlights Maintaining LFL revenue and margins in challenging macro environment H1 2016 LFL revenue evolution • Reported Group revenues of €962.6 million for H1 2016, +12.9% on a reported basis LFL revenues1 • H1 like-for-like (LFL) revenues1 -0.1% (Q2: -1.2%) -0.1% • H1 pro-forma revenue2 +
Slide 6: Update on key topics
Update on key topics Market Environment Progress on Grupo Mabe Integration • Decelerating market growth across all Divisions • Synergy capture underway and in line with initial expectations • Pricing dynamics impacted by promotional activities and currency movements • Exploring commercial and operat
Slide 7: Higher reported revenue and stable LFL
Higher reported revenue and stable LFL Developing markets and Mabe underpin revenue growth Group revenue review Sales bridge H1 2016 (€m) 963 • Reported revenue up +12.9% in H1 2016, including Grupo 853 Mabe as of March 1, 2016 (+19.3% in Q2) • Like-for-like revenue -0.1% in H1 2016 (-1.2% in Q2) •
Slide 8: Mature Market Retail: 44% of H1 reported group sales
Mature Market Retail: 44% of H1 reported group sales Navigating challenging markets with disciplined approach • Like-for-like revenue decline, in line with expectations, due to LFL Revenue (€m) and sales growth previously mentioned cycling of contract losses in Western -7.7% Europe 461 425 • Overall
Slide 9: Americas Retail: 14% of H1 reported group sales
Americas Retail: 14% of H1 reported group sales Consolidation since March 1 2016; solid growth at constant currency • Post completion of Grupo Mabe acquisition, activities Revenue (€m) consolidated from March 1 under a new fifth division called “Americas Retail”. 132 • Business has performed in line
Slide 10: Growth Markets: 8% of H1 reported group sales
Growth Markets: 8% of H1 reported group sales Outpacing market growth with higher volumes • Like-for-like revenues +20.2% in H1 2016 (+15.1% in Q2) LFL Revenue (€m) and sales growth +20.2% • H1 2016 revenue growth outpacing market, driven by higher 89 volumes in Russia and Central Eastern Europe 74
Slide 11: MENA: 11% of H1 reported group sales
MENA: 11% of H1 reported group sales Further growth of Ontex brands • Like-for-like revenues +15.4% in H1 2016 (+14.1% in Q2) LFL Revenue (€m) and sales growth +15.4% • Volume-led growth across a majority of our markets 119 103 • Investing in our brands based on consumer-driven innovation, such as C
Slide 12: Healthcare: 23% of H1 reported group sales
Healthcare: 23% of H1 reported group sales Solid performance led by volume growth • Like-for-like revenues +1.7% in H1 2016 (+2.7% in Q2) LFL Revenue (€m) and sales growth +1.7% • Growth led by Spain, Italy and the UK, offset by lower sales 219 215 in France and Germany • Leveraging home delivery ex
Slide 13: Category review
Category review Mixed performance across the three categories • Babycare LFL revenue down 2.7% in H1 2016 (-6.1% in Q2), LFL sales growth due to contract losses in developed markets % H1 reported group sales1 57% 31% 11% • H1 2016 reported revenue up 20.1% including Mabe and negative FX impact (+29.
Slide 14: Financial Review
ntex— Financial Review O,
Slide 15: Adjusted EBITDA margin
Adjusted EBITDA margin Solid result based on higher gross margin and organizational investments Key margin drivers Adjusted EBITDA margin down slightly by 7 bps to 12.8% in H1 2016, in line with expectations; -56 bps for Q2 2016 to 13.0% compared to highest quarterly margin of 2015 • Currency volati
Slide 16: Non-recurring costs
Non-recurring costs H1 2016 mainly impacted by provision for anti trust claim In millions of Euro H1 2016 H1 2015 1 Non recurring income and expenses (8.7) (2.3) Factory closure (0.1) (0.1) Business restructuring (0.7) (0.7) Acquisition related expenses (3.7) (0.4) Spanish anti trust claim (5.2) - R
Slide 17: Adjusted free cash flow
Adjusted free cash flow Increase in inventory and taxes not fully offset by higher EBITDA In millions of Euro H1 2016 H1 2015 % Adjusted EBITDA 123.3 109.9 12.2% Changes in working capital 15.1 19.0 (20.5%) Inventories (23.2) (3.0) N.M Trade and other receivables 1 9.3 3.9 N.M Trade and other payabl
Slide 18: Net debt and liquidity
Net debt and liquidity Net leverage under control Reported debt position and liquidity as of June 30, 2016 Net Debt (€m) and leverage (x) Net Debt Calculation (€m) 900 849.2 6.00 Gross debt 804.3 800 5.00 Cash & cash equivalents (144.1) 700 660.2 Net debt 660.2 4.90x 565.9 585.1 4.00 600 504.7 Lever
Slide 19: Outlook
Outlook
Slide 20: Outlook
Outlook Strategic progress and priorities • Based on current FX rates, outlook on commodity pricing and competitive environment: • We expect that second half 2016 revenue growth will be in our mid-term range of 4% to 6% like-for-like, based upon a better performance in Mature Market Retail and conti
Slide 21: Q&A
Ontex~ tex Q&A
Slide 22: Appendix
Appendix
Slide 23: Performance overview for Q2 & H1 2016
Performance overview for Q2 & H1 2016 % as % as In millions of Euro Q2 2016 Q2 2015 % LFL H1 2016 H1 2015 % LFL reported reported Per Division Mature markets retail 212.2 232.4 (8.7%) (9.2%) 425.7 460.8 (7.6%) (7.7%) Americas Retail 98.4 0.0 n.a n.a 132.2 0.0 n.a n.a Growth markets 42.9 42.4 1.2% 15
Slide 24: Delivering sustainable profitable growth
Delivering sustainable profitable growth In millions of Euro H1 2016 H1 2015 % Revenues 962.6 852.8 12.9% Like-for-like (LFL) revenues1 851.9 852.8 (0.1%) Gross margin 283.6 240.0 18.2% Gross margin as % of sales 29.5% 28.1% 132 bps Adjusted EBITDA2 123.3 109.9 12.2% Adjusted EBITDA margin 12.8% 12.
Slide 25: A Strong and Diversified Business…
A Strong and Diversified Business… Ontex and Grupo Mabe Consolidated Focused on 3 attractive categories… … in diverse markets… Rest of the World 14% Adult Inco 28% Babycare Americas Western Europe 61% 20% 53% Femcare 10% Eastern Europe 13% … offering quality Retailer and Ontex brands… …for a blue ch
Slide 26: Thank you
Thank you Ontex~