Slide 1: Financial Results – FY 2013
Financial Results – FY 2013 Charles Bouaziz, Chief Executive Officer Jacques Purnode, Chief Finance Officer
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: Agenda
Agenda 1. Key Achievements & Strategy Update 2. Financial Review 3. Outlook & Closing Remarks 3
Slide 4: Key Achievements & Strategy Update
Key Achievements & Strategy Update 4
Slide 5: Solid Financial Performance Delivered in 2013
Solid Financial Performance Delivered in 2013 14.0% increase in Sales Reported Group sales at €1,491.9 million in FY 2013 +8.1% at constant currency and excluding Serenity (€1,414.5 million) Fourth quarter sales rise 15.6% year-on-year Strong year for Babycare products with sales up 11.4% at
Slide 6: Market, Currency Fluctuations Impact Trading Environment
Macro Drivers: K-C European Volumes Redistributed In Market, Currency Fluctuations Impact Trading Environment Raw Materials/ Currencies Retailers/Client base Competitors Sourcing Adverse currency Kimberly Clark (K-C) movements in Retailers remained volumes mostly particular from the Pricing
Slide 7: Successful Execution on 2013 Key Priorities
Successful Execution on 2013 Key Priorities Volume opportunity offered by K-C withdrawal captured, in line with Management expectations Strengthened position in Western & Eastern Europe Strong volumes gained from K-C’s former Huggies contracts Market share growth, in particular in Poland and t
Slide 8: Greater Revenue Diversification Across the Entire Business Support Growth Profile
Greater Revenue Diversification Across the Entire Business Support Growth Profile Sales split by product category FY 2011 FY 2012 FY 2013 Other Other Other 1% 2% 1% Adult Adult Adult Increase in contribution Inco Inco Inco from Adult Incontinence 24% 29% 33% on the back of Serenity Babycare Babycare
Slide 9: Retail: Increasing Volumes and Value Proposition
Retail: Increasing Volumes and Value Proposition € million FY 2013 FY 2012 % Revenues 933.8 878.5 6.3% Revenues at constant currency 950.9 878.5 8.2% Markets and Key Events Retail markets remain competitive with A-brand promotional activity returning to normal levels Strong momentum post K-C wit
Slide 10: Supercore II Diaper: Supporting Commercial Strategy Through Innovation
Supercore II Diaper: Supporting Commercial Strategy Through Innovation and Technological Product Expertise Technical composition Benefits New type of 20% thinner core SAP Weight stability Soft core Unique New core Excellent absorption levels core forming shape Excellent rewet levels No irr
Slide 11: Healthcare: Driving Portfolio Optimisation
Healthcare: Driving Portfolio Optimisation € million FY 2013 FY 2012 % Revenues 379.7 269.9 40.7% Revenues at constant currency 383.1 269.9 41.9% Revenues at constant currency 275.5 269.9 2.1% excluding Serenity Markets and Key Events Increase in Home Delivery segment continues Serenity now full
Slide 12: Healthcare Rebranding Case Study
Healthcare Rebranding Case Study Euron and iD brands previously Creation of umbrella brand with two addressed similar target groups personalities No difference in brand perception, Medical Shop recognition, communication and Institutional Mutuals promotional activity E-commerce 12
Slide 13: MEA: Becoming the Champion of Local Brands
MEA: Becoming the Champion of Local Brands € million FY 2013 FY 2012 % Revenues 178.4 160.6 11.1% Revenues at constant currency 189.1 160.6 17.7% Markets and Key Events Babycare market remains very competitive Successful re-launch of Canbebe brand in Turkey Algeria continues to show promising
Slide 14: MEA 2010 – 2015: Aiming for Sales Growth Acceleration
MEA 2010 – 2015: Aiming for Sales Growth Acceleration Deployment of MEA activities 3. Local follow a rigorous “Three Step 1. Export 2. Local Sales Approach” Production 12.2% sales CAGR Turkey originated 2010 -2013 49% of total MEA Further shift in sales sales in FY 2013 expected from Turkey to
Slide 15: Focused on Delivering on the Profitable & Sustainable Growth Agenda
Focused on Delivering on the Profitable & Sustainable Growth Agenda PROFITABLE & SUSTAINABLE GROWTH STRATEGIC PRIORITIES BRANDING INCONTINENCE EMERGING MARKETS (retailers’ & own brands) OPERATIONAL OBJECTIVES CONTINUE TO FOSTER DEVELOP TALENTS IMPROVE BUSINESS INNOVATION AND AND INDUSTRY PROCESSES C
Slide 16: Financial Review
4 A, Financial Review
Slide 17: FY 2013 Revenues by Division
FY 2013 Revenues by Division % at constant % at constant In €m FY 2013 FY 2012 % as reported currency excl. currency Serenity Per division Retail 933.8 878.5 6.3% 8.2% 8.1% Healthcare 379.7 269.9 40.7% 41.9% 2.1% MEA 178.4 160.6 11.1% 17.7% 17.7% Per product group Babycare 783.2 722.8 8.4% 11.4% 11.
Slide 18: FY 2013 Financial Highlights (1/2)
FY 2013 Financial Highlights (1/2) In €m FY 2013 FY 2012 % Revenues 1,491.9 1,309.0 14.0% Revenues at constant currency 1,523.1 1,309.0 16.4% Revenues at constant currency and excluding 1,414.5 1,309.0 8.1% Serenity Cost of sales (1,094.8) (988.3) 10.8% Gross profit 397.1 320.7 23.8% Opex (253.6) (2
Slide 19: FY 2013 Financial Highlights (2/2)
FY 2013 Financial Highlights (2/2) In €m FY 2013 FY 2012 % Adjusted EBITDA 175.0 150.1 16.6% Non recurring expenses (17.3) (50.1) (65.5%) Reported EBITDA 157.7 100.0 57.7% Depreciation & Amortization (33.8) (31.1) 8.7% Operating profit 123.9 68.9 79.8% Non recurring expenses (€m) FY 2013 FY 2012 Fac
Slide 20: Consolidation of Serenity and Change in Distribution Patterns Drive Opex Increase
Consolidation of Serenity and Change in Distribution Patterns Drive Opex Increase In €m 290 253.6 Serenity “stand-alone” impact: Incontinence products 240 25.6 Branded nature of the business 201.4 G&A costs mainly impacted by dual costs as a result of management 37.4 transition, further strength
Slide 21: Improved FCF Reflects Cash Generation Potential
Improved FCF Reflects Cash Generation Potential FY FY In €m % Comments 2013 2012 Growth of business combined with Adjusted greater efficiencies and acquisition 175.0 150.1 16.6% EBITDA lead to improved profitability, despite adverse FX impact Changes Working capital requirements limited in through i
Slide 22: Net Debt Bridge
Net Debt Bridge 42.8 In €m 13.7 75.3 (36.3) 63.8 849.3 (103.9) 793.8 Opening Finance Acquisition Capex Additional Non- Other CF Closing Change in Net Debt as of costs and Working Capital Spend recourse movements* Net Debt as of Jan 1, 2013 Financing December 31, Factoring 2013 * Including positive E
Slide 23: RCF fully Repaid by Year End
Available Liquidity & Update on Factoring: RCF fully Repaid by Year End As of As of In €m In €m December 31, 2013 December 31, 2013 Cash & Cash Equivalents 61.3 Group Factoring Lines 171.5 Credit Lines of €75.0 — Amount drawn down as 75.0 121.2 (of which drawn: €0.0 million) at Dec 31, 2013 Availabl
Slide 24: Outlook & Closing Remarks
4 A, Outlook & Closing Remarks
Slide 25: Capex Funding Needs for 2014 Should Remain Broadly in Line with 2013 Levels
Capex Funding Needs for 2014 Should Remain Broadly in Line with 2013 Levels Well-invested asset base 2014 Capex requirements to be geared towards: Supporting growth of the business and increasing product innovation Maintaining existing machinery, including newly acquired lines through the Se
Slide 26: Initial Assessment on Raw Material Prices and Currencies Developments in Early 2014
Initial Assessment on Raw Material Prices and Currencies Developments in Early 2014 Raw Material Prices Fluff Q1 2014 base expected to be slightly higher than Q4 2013 level Monitoring various strategies to mitigate price volatility, including hedging LDPE, Polypropylene & Propylene Raw materia
Slide 27: Our 2014 Priorities
Our 2014 Priorities Customers / Environment Operations Cost & cash management Continue to pursue top Consolidate existing Further drive cost savings line growth across assets and leverage and efficiencies within geographies and divisions presence in MEA the entire Group Roll out latest produ
Slide 28: New Organisational Structure Drives Top-Line Focus
New Organisational Structure Drives Top- Line Focus… CEO COO CFO Group Chief Procurement Group R&D / Group HR Group Control Group Legal Manufacturing & Supply Chain Quality Director Director Director Counsel Director Officer General Manager General Manager Corporate Finance Group ICT & Middle East G
Slide 29: Disclosure Going Forward
… Which will be Reflected in External Disclosure Going Forward Reported Sales FY 2013 FY 2012 FY 2011 In €m Retail 933.8 878.5 886.9 Healthcare 379.7 269.9 199.0 MEA 178.4 160.6 131.7 Reported Sales FY 2013 FY 2012 FY 2011 In €m Retail Mature 845.7 804.5 832.2 Growth Markets 88.1 74.0 54.8 Healthcar
Slide 30: Building Blocks in Place to Continue Delivering in 2014
Building Blocks in Place to Continue Delivering in 2014 Despite a challenging macro environment, delivered strong results in 2013, creating momentum for 2014 Adopted flexible strategic approach across all regions Built up executive team with the relevant business experience Reiterating focus o
Slide 31: Q&A – FY 2013
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