Slide 1: Q2 & H1 2018 Financial results
Q2 & H1 2018 Financial results July 26, 2018
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 Financial Review 15 Outlook 19 Q&A 21 Appendix 22 Confidential 3
Slide 4: Ontex Highlights
Ontex Highlights
Slide 5: Solid progress against 2018 priorities
Solid progress against 2018 priorities Continue investing 2018 Achieve sustainable Strengthen further to support improvements in the underlying Ontex Priorities sustainable Brazil business profitable growth • Q2 sales +52% vs Q1(1) • +2.2% LFL ex Brazil in H1 2018 • Accelerating innovation pipeline
Slide 6: Accelerating innovation pipeline across categories and markets
Accelerating innovation pipeline across categories and markets MMR Healthcare MMR Dada Channel- core diaper Americas Retail Cremer & Moviment MMR and Growth Markets MENA Superior softness Canped Ontex Highlights Confidential 6
Slide 7: H1 2018 highlights
H1 2018 highlights Resilient set of results H1 2018 H1 2018 Group ex Brazil Growing share in core markets with our robust portfolio • Like-for-like (LFL) revenue up 2.2% excluding Brazil, driven by positive price/mix and volumes • Reported Group revenue of €1.13 billion for H1 2018, impacted by €59
Slide 8: Growing share in core markets in H1 2018
Growing share in core markets in H1 2018 LFL up 2.2% ex Brazil, with positive volumes and price/mix Group revenue review Sales bridge H1 2018 (€m) +1.0% • Reported revenue down -3.0% 1,164 • LFL revenue +0.4% vs high comparable -0.6% • LFL +2.2% excluding Brazil +1.7% 1,130 • H1 2018 top line driver
Slide 9: Category review
Category review Solid first half in Adult Inco and Femcare • Babycare LFL revenue down 2.8% in H1 2018, on lower LFL sales growth diaper volumes in Brazil • Continued strong growth in Baby pants, especially in H1 2018 Q2 2018 Europe with new production capacity % reported 58% 31% 10% 58% 30% 10% • C
Slide 10: Mature Market Retail: 39% of H1 reported group sales
Mature Market Retail: 39% of H1 reported group sales LFL growth on strong comparable base • LFL up 0.6% in H1 on strong YoY comparable, Q2 LFL Revenue (€m) and sales growth improvement across key categories and customers led to +1.7% +0.6% 446 448 • Volume growth driven by Adult Inco and Baby pants,
Slide 11: Americas Retail: 25% of H1 reported group sales
Americas Retail: 25% of H1 reported group sales Solid growth outside Brazil; Brazil turnaround plan execution on track • LFL down 2.5% in H1 versus strong H1 2017 LFL Revenue (€m) and sales growth • LFL revenue up 5.6% excluding Brazil -2.5% • Success of local brands in Babycare and Adult Inco in 30
Slide 12: Growth Markets: 9% of H1 reported group sales
Growth Markets: 9% of H1 reported group sales LFL growth materially ahead of underlying market • Robust LFL growth of 11.6% in H1 2018, on top of a solid LFL Revenue (€m) and sales growth comparable last year, and materially ahead of underlying market growth +11.6% 108 • Broad-based growth across ge
Slide 13: MENA: 7% of H1 reported group sales
MENA: 7% of H1 reported group sales Clear improvement in Q2 after a soft start to 2018 • LFL revenue 8.3% lower in H1 2018 LFL Revenue (€m) and sales growth • Clear improvement in Q2 (+0.5%) -8.3% • Tough competitive environment in Turkey Babycare 100 92 • Market volumes lower, pricing positive • In
Slide 14: Healthcare: 20% of H1 reported group sales
Healthcare: 20% of H1 reported group sales LFL growth well ahead of market • LFL revenue up 2.9% in H1 2018 LFL Revenue (€m) and sales growth • New business wins contributing to higher volumes in most +2.9% geographies 216 222 • Continued growth in sales of Adult pants and Light Inco • Consistent fo
Slide 15: Financial Review
ntex— Financial Review O,
Slide 16: Adjusted EBITDA margin
Adjusted EBITDA margin Solid performance of Ontex ex Brazil • Gross profit down 4.7% to €316.8 million (28.0% of sales) Adjusted EBITDA margin bridge H1 2018 (% and bps) • Lower gross margin in Brazil • Ontex ex Brazil demonstrating resilience against higher raw 12.4% +219 bps materials and FX, than
Slide 17: Non-recurring items
Non-recurring items H1 2018 mainly impacted by the consolidation of production in Brazil In millions of Euro H1 2018 H1 2017 Non recurring income and expenses1 (10.0) (12.7) Factory closure (3.4) - Business restructuring (0.5) (1.7) Acquisition related expenses (3.7) (6.0) Change in fair value of co
Slide 18: Adjusted free cash flow
Adjusted free cash flow Impacted by lower operating performance and higher capex In millions of Euro H1 2018 H1 2017 % Adjusted EBITDA 117.7 144.7 (18.7%) Changes in working capital (20.9) (20.9) - Inventories (13.7) (7.7) 77.4% Trade and other receivables (0.8) (37.5) N.M. Trade and other payables
Slide 19: Outlook
Outlook
Slide 20: Outlook
Outlook Strategic progress and priorities • We aim to outperform our markets by delivering a low single-digit LFL revenue growth for 2018 in broadly flat hygiene markets. • For the balance of 2018, we expect that the hygiene industry will continue to face raw material headwinds, and at current rates
Slide 21: Q&A
Ontex~ tex Q&A
Slide 22: Appendix
Appendix
Slide 23: Performance overview for Q2 & H1 2018
Performance overview for Q2 & H1 2018 % as % as In millions of Euro H1 2018 H1 2017 % LFL Q2 2018 Q2 2017 % LFL reported reported Per Division Mature markets retail 445.6 445.6 0.0% 0.6% 226.4 224.7 0.8% 1.7% Americas Retail 285.3 306.3 (6.8%) (2.5%) 149.6 183.6 (18.5%) (6.8%) Growth markets 99.8 96
Slide 24: Summary income statement
Summary income statement In millions of Euro H1 2018 H1 2017 % Revenues 1,129.6 1,164.1 (3.0%) Like-for-like (LFL) revenues 1,168.3 1,164.1 0.4% Gross margin 316.8 332.5 (4.7%) Gross margin as % of sales 28.0% 28.6% (52 bps) Adjusted EBITDA 117.7 144.7 (18.7%) Adjusted EBITDA margin 10.4% 12.4% (201
Slide 25: Net debt and leverage
Net debt and leverage Reported debt position and liquidity as of June 30, 2018 Net Debt (€m) and leverage (x) 900 849.2 6.00 Net Debt Calculation (€m) 778.3 800 743.9 744.2 5.00 Gross debt 896.6 700 664.9 4.90x 585.1 4.00 Cash & cash equivalents (118.3) 600 500 3.00 Net debt 778.3 3.25x 2.98x 410.4
Slide 26: Alternative Performance Measures
Alternative Performance Measures The following alternative performance measures (non-GAAP) have been included in this press release since management believes that they are widely used by certain investors, securities analysts and other interested parties as supplemental measures of performance and l
Slide 27: Thank you
Thank you