Slide 1: Q3 2016 Trading Update
Q3 2016 Trading Update November 9, 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 Trading Review 06 Outlook 16 Q&A 18 Appendix 19 Confidential 3
Slide 4: Ontex Highlights
Ontex Highlights
Slide 5: Q3 2016 highlights
Q3 2016 highlights Improving LFL revenue performance and maintaining margins amidst slower market growth Q3 2016 Stable LFL revenue LFL revenues1 • Reported Group revenues of €510.2 million for Q3 2016, +22.7% on a reported basis (9M: +16.1%) +0.1% • Q3 like-for-like (LFL) revenues1 +0.1% (9M: 0.0%)
Slide 6: Trading Review
a te Trading Review O;
Slide 7: Navigating well in a challenging environment
Navigating well in a challenging environment Volume growth offset by lower pricing Group revenue review Sales bridge 9M 2016 (€m) 1,473 • Reported revenue up +22.7% in Q3 2016 including Grupo 1,269 Mabe (+16.1% in 9M) • Like-for-like revenue +0.1% in Q3 2016 (0.0% in 9M) • Pro-forma revenue +1.2% yo
Slide 8: Mature Market Retail: 42% of Q3 reported group sales
Mature Market Retail: 42% of Q3 reported group sales Sequential improvement despite soft market dynamics • Like-for-like revenue declined y-o-y as expected LFL Revenue (€m) and sales growth • Pricing pressures and lower volumes in Babycare at -6.6% market level 684 • Impact of 2015 contract losses 6
Slide 9: Americas Retail: 19% of Q3 reported group sales
Americas Retail: 19% of Q3 reported group sales Solid volume-led 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”. 230 • Broad-based category growth and market share gains wi
Slide 10: Growth Markets: 9% of Q3 reported group sales
Growth Markets: 9% of Q3 reported group sales Outpacing market growth with higher volumes • Like-for-like revenues +12.4% in Q3 2016 against very high LFL Revenue (€m) and sales growth comparable (+17.5% in 9M) +17.5% • Q3 2016 revenue growth outpacing market, driven by 135 continued higher volumes
Slide 11: MENA: 9% of Q3 reported group sales
MENA: 9% of Q3 reported group sales Good growth of Ontex brands • Like-for-like revenues +10.8% in Q3 2016 (+14.1% in 9M), LFL Revenue (€m) and sales growth seasonally the lowest quarter of the year +14.1% 166 • Competitive pricing pressures and challenging political and economic developments in Tur
Slide 12: Healthcare: 21% of Q3 reported group sales
Healthcare: 21% of Q3 reported group sales Continued volume growth • Like-for-like revenue +0.6% in Q3 2016 (+1.3% in 9M) LFL Revenue (€m) and sales growth +1.3% • Increased revenue in Germany, Spain and the UK driven by 324 328 higher volumes, partially offset by declines in France and Italy • Regr
Slide 13: Category review
Category review Challenging quarter in developed markets • Babycare LFL revenue down 1.0% in Q3 2016 (-2.2% in 9M), LFL sales growth due to lower revenue in developed markets, partially offset by % Q3 reported group sales1 58% 29% 10% developing markets • Reported revenue up 38.3% in Q3 2016 includi
Slide 14: Adjusted EBITDA margin
Adjusted EBITDA margin Growth underpinned by continued effort to capture efficiencies Key margin drivers Adjusted EBITDA margin up slightly by 10 bps to 12.4% in Q3 2016; -3 bps for 9M 2016 to 12.7% • Growth in Q3 2016 was mainly driven by: • Sustained company-wide focus on efficiencies and savings
Slide 15: Net debt and liquidity
Net debt and liquidity Net leverage well within our targeted range Reported debt position and liquidity as of September 30, 2016 Net Debt (€m) and leverage (x) Net Debt Calculation (€m) 900 849.2 6.00 Gross debt 800.1 800 5.00 Cash & cash equivalents (108.8) 691.3 700 660.2 Net debt 691.3 4.90x 4.00
Slide 16: Outlook
Outlook
Slide 17: Outlook
Outlook Strategic progress and priorities • On course for revenue outperformance in developing markets, as well as Healthcare • Good progress in positioning Mature Market Retail for future growth • Continue to work towards generating an Adjusted EBITDA margin in 2016 at least in line with the 12.4%
Slide 18: Q&A
Ontex~ fex Q&A
Slide 19: Appendix
Appendix
Slide 20: Performance overview for Q3 & 9M 2016
Performance overview for Q3 & 9M 2016 % as % as In millions of Euro Q3 2016 Q3 2015 % LFL 9M 2016 9M 2015 % LFL reported reported Per Division Mature markets retail 214.6 223.4 (3.9%) (4.4%) 640.3 684.3 (6.4%) (6.6%) Americas Retail 97.8 n.a n.a n.a 230.0 n.a n.a n.a Growth markets 45.2 41.1 10.0% 1
Slide 21: Thank you
Thank you Ontex~