Slide 1: Q3 2020 Trading Update
Q3 2020 Trading Update November 4, 2020
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 Q3 2020 Highlights 04 Q3 2020 Financial review 08 Outlook 15 Q&A 17 Appendix 18 Confidential 3
Slide 4: Q3 2020 Highlights
Q3 2020 Highlights Thierry Navarre, CEO
Slide 5: Navigating amidst an unprecedented environment
Navigating amidst an unprecedented environment • Market environment continues to be impacted by COVID-19 pandemic • Mobility restrictions: Lower usage rates as people tend to be more at home • Reduced shop visits: Towards one-stop shopping • Cautious shopping behavior: Less time spent in shop • Incr
Slide 6: Q3 2020 financial highlights
Q3 2020 financial highlights Revenue down, improvement in Adjusted EBITDA margin 9M 2020 Q3 2020 Group revenue: €508 million, down 4.6% LFL • +€29 million improvement vs. Q2 2020 reported revenue, with demand slowly recovering LFL revenue LFL revenue • Stable price/mix -2.9% -4.6% • Reported revenue
Slide 7: Decisive actions underway to step up performance
Decisive actions underway to step up performance Launch of in-depth strategic review and creation of Strategy Committee • Changes in Board of Directors • Strategic review launched in late August, covering following aspects: • Accelerating delivery of operational efficiencies through intensified T2G
Slide 8: Q3 2020 Financial review
Q3 2020 Financial review Charles Desmartis, CFO
Slide 9: Q3 LFL revenue down 4.6% on lower market demand, increased competition across most markets
Q3 LFL revenue down 4.6% on lower market demand, increased competition across most markets Group revenue review • Q3 2020 LFL revenue: €548 million, -4.6% Q3 2020 Sales bridge (€m) -11.6% reported • Top-line drivers -4.6% LFL • Volume decrease due to: • Lower demand reflecting lower consumption and
Slide 10: Category review
Category review Europe and US: Lower demand due to lower usage and shift from traditional channels to e-commerce; lower demand in emerging markets • Q3 2020 Babycare revenue: €282 million, -8.5% LFL LFL sales growth • Sequential improvement (Q2 2020: €261 million, -16.5% LFL): market demand slowly i
Slide 11: Europe: Revenue decrease amidst softer market demand in traditional channels
Europe: Revenue decrease amidst softer market demand in traditional channels and resulting increased competition Lower volumes, price/mix slightly below prior year Europe (42% of Group revenue) • Q3 2020 LFL revenue: €215 million, -9.8% Revenue (€m) and evolution (LFL and reported) -7.9% reported •
Slide 12: Americas, Middle East, Africa and Asia: Broadly stable sales
Americas, Middle East, Africa and Asia: Broadly stable sales Positive price/mix nearly offset lower volumes AMEAA (37% of Group revenue) • Q3 2020 LFL revenue: €224 million, -0.4% Revenue (€m) and evolution (LFL and reported) -10.1% reported • Americas revenue had a limited decrease • Lower sales in
Slide 13: Healthcare: Institutional sales impacted by pandemic, gains in other channels
Healthcare: Institutional sales impacted by pandemic, gains in other channels Volume decrease, price/mix broadly stable Healthcare (21% of Group revenue) • Q3 2020 LFL revenue: €110 million, -1.6% Revenue (€m) and evolution (LFL and reported) -2.0% reported • Positive sales trends in e-commerce and
Slide 14: 9M Adjusted EBITDA: strong LFL gain thanks to T2G and lower raw material indices
9M Adjusted EBITDA: strong LFL gain thanks to T2G and lower raw material indices; high unfavorable currency impact YTD September 2020 Adjusted EBITDA bridge (€ million) 14.1% T2G impact: €57m -18 margin 39 -6 -6 -11 0 11.7% 10.2% -49 64 margin margin -14 22 232 172 -9 183 Procurement Gains Other Ope
Slide 15: Outlook
Outlook Thierry Navarre, CEO
Slide 16: Outlook
Outlook • Ontex continues to operate in a highly uncertain environment across its markets due to the evolution of the pandemic, which has been undermining currencies of emerging countries, disrupting consumer demand and purchasing behavior and resulting in increased competition as industry players f
Slide 17: Q&A
Ontex~ tex Q&A
Slide 18: Appendix
Appendix
Slide 19: Alternative Performance Measures
Alternative Performance Measures The following alternative performance measures (non-GAAP) have been included in this presentation since management believes that they are widely used by certain investors, securities analysts and other interested parties as supplemental measures of performance and li
Slide 20: Thank you
Thank you