Slide 1: Q3 2014 Financial Results
Q3 2014 FINANCIAL RESULTS 26 November 2014
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: Corporate Structure
Corporate Structure Ontex Group N.V. was incorporated on April 24, 2014 for the purpose of acquiring Ontex I S.à.r.l and its subsidiaries. The financial information included in this document for the comparative 3 and 9 month periods ended September 30, 2013 was prepared at the level of Ontex I S.à.r
Slide 4: Table of Contents
Table of Contents 1 Ontex Highlights 2 Financial Review 3 Refinancing Update 4 Outlook 5 Q&A Appendix 4
Slide 5: Q3 2014 Highlights
Q3 2014 Highlights Significant progress achieved across the group Continued operational progress − Solid revenue growth in line with organic model against a strong comparable in the third quarter last year − Adjusted EBITDA margin expansion continued Improvement of financial position, optimising
Slide 6: Q3 2014 trading in line with our growth model
Q3 2014 trading in line with our growth model Improved Q3 revenue and Adjusted EBITDA margin Q3 2014 Increase in Revenues Reported Group revenues of €398.4m +5.0% in Q3; +9.1% in 9M LFL Q3 like-for-like (LFL) revenues1 +4.9%; +7.2% in 9M revenues1 Broad based growth from all divisions and ca
Slide 7: Table of Contents
Table of Contents 1 Ontex Highlights 2 Financial Review 3 Refinancing Update 4 Outlook 5 Q&A Appendix 7
Slide 8: Delivering Sustainable Profitable Growth
Delivering Sustainable Profitable Growth Q3 2014 Financial Performance in line with expectations In millions of Euro Q3 2014 Q3 2013 % 9M 2014 9M 2013 % Revenues 398.4 379.4 5.0% 1,208.3 1,107.7 9.1% Revenues at constant currency 398.0 379.4 4.9% 1,225.5 1,107.7 10.6% Like-for-like (LFL) revenues1 3
Slide 9: Delivering Growth
Delivering Growth Continued momentum Solid top line performance Sales bridge 9M 2014 (€m) 1,400 Like-for-like revenues +4.9% in Q3; +7.2% in 9M 1,208 1,200 1,108 Further revenue gains in Q3 against a strong 1,000 comparable quarter in the prior year 800 600 Revenue growth is volume driven, con
Slide 10: Ontex Divisional Review
Ontex Divisional Review Growth across all divisions Mature Market Retail Growth Markets LFL revenues: Q3 +4.7%; 9M +7.0% LFL revenues: Q3 +19.0%; 9M +22.7% Robust performance against very strong comparable Strong double digit growth led by Russia despite performance in Q3 2013 regional macro
Slide 11: Category Review
Category Review Continuing to advance in attractive categories Resilient Categories LFL sales growth % 9M reported 52% 33% 13% Babycare sales showed further growth, following a group sales1 double digit increase in Q3 2013, confirming strength 9.5% of partnerships with retailers Supercore II con
Slide 12: Adjusted EBITDA margin
Adjusted EBITDA margin Further margin expansion over the quarter Key margin drivers Adjusted EBITDA margin +41bps Q3 to 12.3%; +70bps in 9M to 12.2% Adjusted EBITDA margin expansion ahead of company goal of ~30 basis points driven by strong top line growth Gross margin expansion of 111 bps in
Slide 13: Cash Flow
Cash Flow Higher Adjusted EBITDA and lower working capital In millions of Euro Q3 2014 Q3 2013 % 9M 2014 9M 2013 % Adjusted EBITDA 49.0 45.1 8.6% 147.6 127.6 15.7% Changes in working capital 15.3 (1.4) N.M. (14.3) 2.3 N.M. Inventories (5.6) 6.9 N.M. (23.0) 10.6 N.M. Trade and other receivables1 9.0
Slide 14: Table of Contents
Table of Contents 1 Ontex Highlights 2 Financial Review 3 Refinancing Update 4 Outlook 5 Q&A Appendix 14
Slide 15: Comprehensive Refinancing Package Agreed in November 2014
Comprehensive Refinancing Package Agreed in November 2014 Lower interest costs going forward Strengthened Financial Profile Senior Secured Notes Totalling €250.0 million Leveraged current favourable market conditions to secure increased financial flexibility 7 year tenor, maturing November 15,
Slide 16: Comprehensive Refinancing Package: Sources and Uses
Comprehensive Refinancing Package Agreed in November 2014 Sources and Uses Sources of Funds €m Uses of Funds €m Term Loan A 380.0 Refinancing of Existing Debt 630.0 Senior Secured Notes 250.0 Estimated Prepayment Premiums 32.8 Cash from the Balance Sheet 45.3 Transaction Costs 12.5 Total Sources 675
Slide 17: Capital Structure and Liquidity
Capital Structure and Liquidity Sound financial profile with improved ratings Reported Debt structure and liquidity as of September 30, 2014 Leverage and liquidity Net Debt calculation1 (€m) Gross debt 646.0 Net financial debt/LTM adjusted EBITDA at 2.8x as of September 30, 2014 Cash & cash equiva
Slide 18: Non-recurring costs
Non-recurring costs Negligible in Q3 2014; 9M Impacted by IPO related costs In millions of Euro Q3 2014 Q3 2013 9M 2014 9M 2013 Non-recurring expenses 0.3 2.4 22.3 9.8 Factory closure (0.8) - 0.1 - Business restructuring 0.1 0.5 0.5 1.1 Acquisition related expenses 0.1 1.4 0.6 7.0 Asset impairment 0
Slide 19: Table of Contents
Table of Contents 1 Ontex Highlights 2 Financial Review 3 Refinancing Update 4 Outlook 5 Q&A Appendix 19
Slide 20: Outlook
Outlook Strategic Progress and Priorities Completed a comprehensive refinancing package for the two outstanding Notes at significantly better terms Confirm Ontex’s growth model of increasing the top-line organically by 4% to 6% per year, through strong partnerships with retailers as well as furt
Slide 21: Table of Contents
Table of Contents 1 Ontex Highlights 2 Financial Review 3 Refinancing Update 4 Outlook 5 Q&A Appendix 21
Slide 22: Performance overview for Q3 and 9M 2014
Performance overview for Q3 and 9M 2014 % as % as In millions of Euro Q3 2014 Q3 2013 % LFL 9M 2014 9M 2013 % LFL reported reported Per division Mature markets retail 227.9 214.6 6.2% 4.7% 681.1 633.4 7.5% 7.0% Growth markets 24.4 22.1 10.4% 19.0% 71.4 63.5 12.4% 22.7% Healthcare 106.1 103.4 2.6% 1.
Slide 23: Reconciliation for Ontex Group NV to Ontex IV SA
Reconciliation for Ontex Group NV to Ontex IV SA Ontex Group NV Adjustments Ontex IV SA In millions of Euro Q3 2014 Q3 2013 Q3 2014 Q3 2013 Q3 2014 Q3 2013 Sales 398.4 379.4 0.0 0.0 398.4 379.4 Gross margin 111.3 101.8 0.0 0.0 111.3 101.8 Adjusted EBITDA1 49.0 45.1 0.7 0.4 49.7 45.5 Net profit2 15.0