Slide 1: Half Year Results
HALF YEAR RESULTS JULY 29TH, 2021
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: H1 2021 Results
H1 2021 RESULTS Esther Berrozpe Chief Executive Officer 2021 Half Year Results - July 29th 2021 3
Slide 4: Strategic Priorities - H1 2021 Momentum
STRATEGIC PRIORITIES - H1 2021 MOMENTUM ORGANIZATION & CULTURE COST COMPETITIVENESS New leadership and streamlined Structural cost and efficiency action plans organization now driving the turnaround already delivering material savings RESTORING GROWTH DEBT REFINANCING Europe stabilizing, growth in E
Slide 5: Q2 2021 Financial Highlights
Q2 2021 FINANCIAL HIGHLIGHTS Revenue up 4.5% vs €479m in Q2 2020, and +6.2% LFL Sequential improvement: +4.4% vs Q1 2021 LFL sales up in all 3 categories REVENUE €501m Baby Care +6.0%, Adult Care +5.7%, Feminine Care +3.6% LFL sales also up in 2 of 3 Divisions AMEAA +14.9%, Europe +2.6%, Healthcare
Slide 6: H1 2021 Financial Highlights
H1 2021 FINANCIAL HIGHLIGHTS Revenue down 6.9% vs €1,053m in H1 2020, and -3.2% LFL REVENUE €981m Adult Care category and AMEAA Division grew in H1, while other categories and Divisions were down versus prior year Adjusted EBITDA declined 19.8% vs €125m in H1 2020 ADJUSTED €101m Adjusted EBITDA marg
Slide 7: H1 2021 Revenue by Category
H1 2021 REVENUE BY CATEGORY Baby Care Adult Care Feminine Care H1: €525m / Q2: €271m (reported) H1: €336m / Q2: €166m (reported) H1: €101m / Q2: €53m (reported) +3.4% -13.4% -6.2% 338 350 590 553 111 96 +6.0% +5.7% +3.6% 261 277 161 171 51 49 (LFL) (LFL) (LFL) H1 2020 H1 2021 Q2 2020 Q2 2021 H1 2020
Slide 8: H1 2021 Revenue by Division
H1 2021 REVENUE BY DIVISION Europe AMEAA Healthcare H1: €387m / Q2: €195m (reported) H1: €379m / Q2: €200m (reported) H1: €215m / Q2: €106m (reported) -11.0% -1.5% +4.5% 442 412 218 215 393 394 +2.6% +14.9% -1.9% 191 197 180 207 107 105 (LFL) (LFL) (LFL) H1 2020 H1 2021 Q2 2020 Q2 2021 H1 2020 H1 20
Slide 9: H1 Financial Results
H1 FINANCIAL RESULTS Peter Vanneste Chief Financial Officer 2021 Half Year Results - July 29th 2021 9
Slide 10: H1 2021 Financial Actions
H1 2021 FINANCIAL ACTIONS Successfully closed Full Refinancing to underwrite turnaround roadmap Accelerating Cost-Out Delivery, Pricing in view of the unprecedented Raw Material increase Short term Capex freeze (2.3% in H1 2021); Cash is King program focus Full focus on delivering turnaround 2021 Ha
Slide 11: Strengthened Debt Profile
STRENGTHENED DEBT PROFILE €470m €1.05B Refinancing Extended maturities €300m Syndicated successfully Diversified funding sources Revolving Credit Facilities* delivered Enhanced liquidity Facility €600m €580m Syndicated Senior Notes Term Loan (3.5% Debt Ratings Moodys B1 / stable outlook coupon) conf
Slide 12: Q2 2021 Revenue
Q2 2021 REVENUE +4.5% reported +5.1% +1.1% +0.6% -2.3% LFL +6.2% Q2 Return to growth: +4.4% sequential growth vs Q1 / +4.5% vs PY (6.2% LFL) ‐ Sequential and YoY growth in AMEAA (+12% vs Q1) and Europe (+2% vs Q1). Healthcare impacted by lower occupancy rates ‐ Positive price/mix: Adult Care +6%, Ba
Slide 13: Raw Material Evolution
1,200 1,600 2,000 1,000 1,400 1,800 400 600 800 1,000 1,200 Q1/16 Q1/16 Q2/16 Q2/16 Q3/16 Q3/16 Q4/16 Q4/16 Q1/17 Q1/17 Q2/17 Q2/17 Q3/17 Q3/17 Q4/17 Q4/17 Q1/18 Q1/18 Q2/18 Q2/18 Q3/18 Q3/18 Q4/18 Q4/18 Q1/19 Q1/19 Propylene (SAP) Q2/19 Q2/19 Q3/19 Q3/19 Polypropylene (Non woven) Q4/19 Q4/19 Q1/20
Slide 14: Q2 2021 EBITDA
Q2 2021 EBITDA (€m) -9 EBITDA MARGIN EBITDA MARGIN 12.5% 10.3% Strong raw materials indexes headwinds started in Q2 Structural operational and SG&A savings; fully offsetting Raw Material inflation in Euro terms However, further emerging market currency headwinds drive the decrease in EBITDA Q2 EBITD
Slide 15: H1 2021 EBITDA
H1 2021 EBITDA (€m) -25 EBITDA MARGIN EBITDA MARGIN 11.5% 10.3% Strong raw material indexes inflation impacting from Q2 Structural operational and SG&A savings more than offset Raw Materials increase Lower Volume Price Mix driven by negative Q1; with growth starting in Q2 Further currency movements
Slide 16: H1 2021 Non-Recurring Income and Expenses
H1 2021 NON-RECURRING INCOME AND EXPENSES €23m non-recurring project expenses, of Income statement impact H1 H1 change which €16m Cash-Out In millions of Euro 2021 2020 €11m Cost-out in operations and SG&A Business restructuring (10.8) (7.4) -3.4 overheads Acquisition and disposal of businesses (2.6
Slide 17: Free Cash Flow and Net Debt
FREE CASH FLOW AND NET DEBT H1 H1 In millions of Euro change 2021 2020 €22m Free cash flow (vs €29m PY) EBITDA 77.9 115.1 -37.2 Impacted by lower EBITDA (raw material Changes in working capital (17.4) (10.4) -7.0 & FX headwinds) and Non-Recurring Cash taxes paid (8.7) (18.8) +10.1 Cost-Out expenses
Slide 18: 2021 Outlook
2021 OUTLOOK Esther Berrozpe Chief Executive Officer 2021 Half Year Results - July 29th 2021 18
Slide 19: 2021 Outlook
2021 OUTLOOK In a context of ongoing raw material price increases, Ontex expects for FY 2021: Stable LFL revenue Adjusted EBITDA Strict cash control with margin of c.10% capital expenditure held below 4% of revenue 2021 Half Year Results - July 29th 2021 19
Slide 20: Priorities Looking Ahead
PRIORITIES LOOKING AHEAD RESTORING GROWTH Start up of new US Local manufacturing of Pricing & Mix manufacturing baby pants in Brazil Innovation plant in Q4 COST COMPETITIVENESS Driving structural Accelerating production €60m savings expected SG&A cost out efficiency: capacity for FY 2021 utilization
Slide 21: Annex
ANNEX 2021 Half Year Results - July 29th 2021 21
Slide 22: H1 2021 Revenue
H1 2021 REVENUE -6.9% reported +0.5% -2.2% -1.0% -4.2% LFL -3.2% H1 LFL sales 3.2% down versus last year: Strong currency headwind: -€44m, with particularly ‐ Lower demand in traditional developed market channels the Brazilian Real, Mexican Peso, Turkish Lira, Russian Ruble and US Dollar weaker vers
Slide 23: Half Year Results
HALF YEAR RESULTS JULY 29TH, 2021