Ontex Group N.v. · EURONEXT:ONTEX

Ontex — Ontex Group Nv Ord — Q1 2023 Earnings Presentation

13 slides from Ontex's earnings presentation, May 4, 2023

  1. Slide 1: Q1 2023 Results Webcast

    Q1 2023 RESULTS WEBCAST May 4, 2023 1

  2. Slide 2: Disclaimer

    DISCLAIMER 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, financ

  3. Slide 3: Milestone in Portfolio Transformation

    Discontinued operations MILESTONE IN PORTFOLIO TRANSFORMATION Divestment of Mexican business finalized Core Markets Focused on partner brands & healthcare  Divested to Softys, subsidiary of Empresas CMPC Europe North  Net proceeds of ~€265M [1] America  ~€225M [1] received at closing, after costs

  4. Slide 4: Consistent Recovery Demonstrated

    CONSISTENT RECOVERY DEMONSTRATED Despite continued cost inflation Revenue Adj. Adj. EBITDA EBITDA Leverage margin +16% +4.1pp +126% YOY LFL YOY YOY vs 6.4x GROUP €652M €8.5 56M% 5.3X in Dec 2022 -4% +1.0pp +9% QOQ QOQ QOQ +15% +95% +3.7pp YOY LFL YOY YOY CORE €446M 41M €9.1% -3% +1% +0.4pp QOQ QOQ Q

  5. Slide 5: Core Revenue Growth with Continued Pricing

    Continued operations CORE REVENUE GROWTH WITH CONTINUED PRICING Continued strong growth in baby pants and adult care Q1 revenue (in €M) 500 442 446 +15% +15% +1% +16% Forex Feminine care Baby care 385 -0% +16% LFL 400 +10% LFL Volume Price  Price-driven growth across /mix categories of 15% overall

  6. Slide 6: Adj. EBITDA Doubling on Savings and Mix

    Continued operations ADJ. EBITDA DOUBLING ON SAVINGS AND MIX Pricing mitigates cost inflation impact Q1 Adj. EBITDA +58 -56 (in €M) 100 90 80 Raw materials  Continued operating cost reduction delivery 70  ~5% reduction of operating costs  Based on procurement and operating efficiencies 60 Operati

  7. Slide 7: Adj. EBITDA Margin Recovery Continues

    ADJ. EBITDA MARGIN RECOVERY CONTINUES Both for Core and Emerging Markets Adj. EBITDA & margin (in €M) 60 12% 50 10%  Core Markets adjusted EBITDA up 95% YoY, 40 8%  Margin grows vs. Q4 2022  Pricing and savings offsetting additional cost inflation 30 6% 20 4%  Total Group adjusted EBITDA up 126%

  8. Slide 8: Leverage Decrease Continued

    LEVERAGE DECREASE CONTINUED Driven by increased profitability Net financial debt & leverage ratio (in €M) 1,000 10x 900 9x 800 8x  Leverage at 5.3x, pursuing decrease from peak in Sept 22 700 7x  Driven by adj. EBITDA recovery 600 6x  On track to meet covenant tests in June (4.75x) 500 5x 400 4x

  9. Slide 9: Gross Debt for ~75% Fixed Rate Bond

    GROSS DEBT FOR ~75% FIXED RATE BOND [1] After reimbursement of €220M term loan Financial debt (in €bn) (1.2) (1.2) (1.1) +0.2 (0.1)  €220M term loan to be repaid (1.0) Leases (1.0) Cash (0.9) with Mexican divestment proceeds (0.2) Other (0.1) (0.8) (0.8) +0.2 Cash Leases  €250M RCF offers flexibil

  10. Slide 10: 2023 Outlook

    2023 OUTLOOK Confirmed Core Markets (cont. ops.) Total Group (incl. disc. ops.)  Revenue  Positive contribution to grow high single-digit LFL to EBITDA and FCF of discontinued Emerging Markets  Adj. EBITDA margin  Leverage to decrease to <4x in range of 8% to 10% Q1 2023 Results - May 4, 2023 10

  11. Slide 11: Key Takeaways

    KEY TAKEAWAYS  Q1 2023 confirms the recovery momentum  Portfolio refocus passes a major milestone  Acceleration of the strategy underway Q1 2023 Results - May 4, 2023

  12. Slide 12: Q&A

    Q&A Q1 2023 RESULTS May 4, 2023 12

  13. Slide 13: Thank You

    THANK YOU Q1 2023 RESULTS May 4, 2023 13

Ontex Group Nv Ord — Q1 2023 Earnings Presentation on 6ix