Slide 1: Financial Results – Q3 2013
Financial Results – Q3 2013 Jacques Purnode, Chief Finance Officer Steven Vandenbogaerde, Finance Director
Slide 2: Ontex Hygienic Disposables
Ontex Hygienic Disposables
Slide 3: 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 4: Key Highlights
Ontex Hygienic Disposables
Slide 5: Q3 2013 Performance Consistent with Expectations
Q3 2013 Performance Consistent with Expectations Reported Group Sales at €379.4 million in Q3 2013, up 18.5% versus prior year − Excluding currency effects, Q3 2013 sales amounted to €392.1 million, an increase of 22.4% compared to Q3 2012 − Serenity sales contributed to €35.8 million in the quart
Slide 6: Trading Environment Sees Currency Fluctuations & Reallocation of K-C Volumes
Trading Environment Sees Currency Fluctuations & Reallocation of K-C Volumes Macro Market Adverse currency effects continue to Majority of outstanding contracts for K- impact top- and bottom-line, in C’s branded & retailer brand product particular have been re-allocated, as at Q3 2013 − British
Slide 7: 2013 Projects Now Either Completed or Well Underway
2013 Projects Now Either Completed or Well Underway Recklinghausen machinery being successfully redeployed to other sites − Full process expected to be completed by year end Set-up of Pakistan plant being finalised Serenity: Satisfactory trading and synergies realisation − Integration proceedi
Slide 8: Continuing to Roll Out Strategy to Achieve Profitable Growth
Continuing to Roll Out Strategy to Achieve Profitable Growth Emerging Branding Incontinence (retailers’ and Markets local brands) Solid foundations Optimised Enhanced Market Oriented Industrial Footprint Customer Service R&D Capabilities Group wide financial framework On-going approach towards eff
Slide 9: Driving Top Line Expansion Through Volume Growth and Increased Value Proposition
Driving Top Line Expansion Through Volume Growth and Increased Value Proposition ► Presence in dynamic markets such as Incontinence and MEA Capturing (supported by favourable demographics, social and Grow with the market volume economic trends) Capture market share growth ► Consolidation of mark
Slide 10: Leveraging Value of Local Brands
Leveraging Value of Local Brands Focus on developing local brands in new Healthcare: iD brand markets allowing for better pricing Targeted marketing and commercial initiatives, mostly “below the line” And within a prudent financial structure, with a strong focus on assessing the costs and associ
Slide 11: New Organisational Structure Supports Strategic Ambitions
New Organisational Structure Supports Strategic Ambitions 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 Group Marketing Group Sales Group Fina
Slide 12: Financials
Ontex Hygienic Disposables
Slide 13: Trading Continues to be Encouraging over the Quarter; MEA Sales Seasonally Lower
Trading Continues to be Encouraging over the Quarter; MEA Sales Seasonally Lower % at constant % at constant In €m Q3 2013 Q3 2012 % as reported currency excl. currency Serenity Per division Retail 236.7 214.7 10.3% 13.6% 13.5% Healthcare 103.4 67.3 53.6% 55.7% 3.0% MEA 39.3 38.3 2.6% 13.1% 13.1% Pe
Slide 14: Q3 2013 Financial Highlights (1/2)
Q3 2013 Financial Highlights (1/2) In €m Q3 2013 Q3 2012 % Revenues 379.4 320.3 18.5% Revenues at constant currency 392.1 320.3 22.4% Revenues at constant currency excl. Serenity 356.3 320.3 11.2% Cost of sales (277.6) (245.6) 13.0% Gross profit 101.8 74.7 36.3% Opex1 (64.1) (49.1) 30.5% Adjusted EB
Slide 15: Consolidation of Serenity and Change in Distribution Patterns Drive Opex Increase
Consolidation of Serenity and Change in Distribution Patterns Drive Opex Increase In €m 70 64.1 Serenity “stand alone” impact: — Incontinence products 60 — Branded nature of the business 49.1 General and administrative costs mainly impacted by some double costs as a 50 result of management transitio
Slide 16: Q3 2013 Financial Highlights (2/2)
Q3 2013 Financial Highlights (2/2) In €m Q3 2013 Q3 2012 % Adjusted EBITDA1 45.5 33.4 36.2% Non recurring expenses2 (2.0) (5.2) N.M. Reported EBITDA 43.5 28.2 54.3% Depreciation & Amortization (8.2) (7.8) 5.1% Operating profit 35.3 20.4 73.0% 1: For definition and reconciliation of Adjusted EBITDA p
Slide 17: Serenity Integration and Higher Levels of Receivables Limit FCF Generation
Serenity Integration and Higher Levels of Receivables Limit FCF Generation In €m Q3 2013 Q3 2012 Adjusted EBITDA 45.5 33.4 Changes in WC (16.3) (2.4) Cash taxes paid (1.2) (0.3) Capex (6.8) (20.1) Free Cash Flow 21.2 10.6 WC consumption, although declining from H1 2013, remains high in Q3 2013 − A
Slide 18: Available Liquidity & Update on Factoring
Available Liquidity & Update on Factoring As of In €m As of In €m September September 30, 2013 30, 2013 Cash & Cash Equivalents 69.0 Credit Lines of €75.0 Group Factoring Lines 175.0 55.0 (of which drawn: €20.0 million) — Amount drawn down as at 120.4 Available Liquidity 124.0 Sept 30, 2013 Cash a
Slide 19: Net Debt Bridge
Net Debt Bridge 33.5 In €m 33.8 75.3 (35.4) 34.2 872.5 793.8 (62.6) Opening Finance Acquisition Capex Closing Change in Additional Other CF Net Debt as of costs and Working Capital Spend Factoring movements* Net Debt as of Jan 1, 2013 Financing September 30, 2013 *Including cash taxes as well as oth
Slide 20: Progressing into Q4 2013
Ontex Hygienic Disposables
Slide 21: Continuous Assessment of External Dynamics
Continuous Assessment of External Dynamics Visibility on raw materials for Q4 2013 remains good and expectations have slightly improved compared to previous indications − Levels now anticipated to be more or less in line with Q3 2013 Entered into forward currency hedge contracts on September 13,
Slide 22: Focus on Operational Execution Continues
Focus on Operational Execution Continues Maximising volume and margin opportunities Continuing to drive efficiencies Executing on 2013 Projects 22
Slide 23: Ontex
Ontex Hygienic Disposables