Slide 1: Ontex Q2 & H1 2023 Results Webcast
ONTEX Q2 & H1 2023 RESULTS WEBCAST July 28, 2023 1
Slide 2: Disclaimer
DISCLAIMER Forward-looking statements Accounting changes This presentation may include forward-looking statements. Forward-looking Continuing operations encompass the statements are statements regarding or based upon our management’s Group’s Core Markets. As from 2022, current intentions, beliefs or
Slide 3: Business Review
BUSINESS REVIEW Gustavo Calvo Paz CEO 3
Slide 4: Consistent Recovery Demonstrated in H1
CONSISTENT RECOVERY DEMONSTRATED IN H1 Despite persistent YOY cost inflation H1 Revenue Adj. EBITDA Leverage 2023 margin +95% Total YOY €1,229M +15% €41% 8.7 M +4.4pp 4.5X vs 6.4x Group YOY LFL YOY +1% in Dec 2022 QOQ +95% Core YOY €892M +15% €41% 9.4 M +4.3pp Markets YOY LFL YOY +1% QOQ Total Group
Slide 5: 15% YOY LFL Revenue Growth in H1
Core Markets 15% YOY LFL REVENUE GROWTH IN H1 Driven by pricing and mix Revenue & growth, Core Markets 500 (in €M) 450 400 Positive mix driven by priority categories 350 300 250 +15% Volume stable in softening market LFL 200 150 14% YOY pricing, incl. incremental in 2023 100 50 0 Q1 Q2 Q3 Q4 Q
Slide 6: Operating Cost Savings Accelerating
Core Markets OPERATING COST SAVINGS ACCELERATING Reaching 5.6% in Q2 Operating savings, Core Markets 25 +5.7% 6% (in €M) +5.4% +5.4% 5.6% +4.9% +4.7% 5% 20 +4.0% 4% Operating cost savings pace maintained 15 of ~5% of operating costs in H1 3% 10 Operating cost savings delivery of €35M in H1, €10M
Slide 7: Adj. EBITDA Margin Recovery Continues
Core Markets ADJ. EBITDA MARGIN RECOVERY CONTINUES Driven by cost savings & mix Adj. EBITDA & margin, Core Markets 9.7% 50 (in €M) 9.1% 9.7% 10% 8.8% 45 9% 40 8% 4 consecutive quarters of EBITDA margin improvement 35 7% 30 5.4% 5.6% 6% 25 4.8% 5% H1 margin of 9.4%, +4.3pp YOY 20 4% 15 3% Adj.
Slide 8: Leverage Improves by 3 Pts Since Peak
LEVERAGE IMPROVES BY 3 PTS SINCE PEAK Net financial debt reduced by 24% over H1 Net financial debt & leverage ratio 1,600 8x (in €M) 7.7x 1,400 7x 6.8x 1,200 6.4x 6x Leverage [1] at 4.5x by June, 1,000 5.7x 5.3x 5x thanks to strong EBITDA recovery 4.5x 800 4.5x 4x Net financial debt reduced to €
Slide 9: Financial Review
FINANCIAL REVIEW Peter Vanneste CFO 9
Slide 10: Core Revenue Growth Maintained on Pricing
Core Markets CORE REVENUE GROWTH MAINTAINED ON PRICING Outperforming a softer demand Q2 revenue Core Markets 600 (in €M) 454 446 Baby care 500 +13% +15% -2% +13% +15% LFL 396 +2% 15% LFL growth driven by 400 double-digit pricing across 300 categories Q2 200 Feminine care 2023 Adult care +16% LFL 1
Slide 11: Cost Savings & Mix More Than Double Adj. EBITDA
Core Markets COST SAVINGS & MIX MORE THAN DOUBLE ADJ. EBITDA Pricing offsets cost inflation & forex headwinds Q2 Adj. EBITDA Core Markets 120 (in €M) Positive volume and mix effect 100 +22 +51 -38 +2 Raw 80 materials Continuous strong cost reduction delivery 60 (31) -1 -11 43 Other (7) +20 +129%
Slide 12: Profit of Cont. Ops. Turning Positive
PROFIT OF CONT. OPS. TURNING POSITIVE Driven by doubled adj. EBITDA Condensed P&L (in €M) 2022 H1 2023 H1 Profit from continuing operations turned positive Revenue 780.6 891.8 from €(100)M to €2M Adj. EBITDA 39.7 83.8 Depreciation up with investments in growth D&A (34.5) (35.7) EBITDA adjustme
Slide 13: Positive FCF, Strong Improvement YOY
POSITIVE FCF, STRONG IMPROVEMENT YOY YOY EBITDA increase allows for investment ramp-up H1 adj. EBITDA to FCF bridge 120 (in €M) 107 -21 €23M adj. EBITDA from discontinued Emerging Markets 100 Discont. ops. 23 -12 80 +1 -56 €(21)M working capital [2] needs WC changes Leases Tax Other (12) CF [1]
Slide 14: Net Financial Debt Reduced by 24%
NET FINANCIAL DEBT REDUCED BY 24% Financing secured until end 2025 Net financial debt (in €M) (1,000) -33 +237 €220M term loan repaid with (867) +4 (900) Mexican divestment proceeds Local debt FCF Net 2% Lease liabilities (800) financial 15% (700) CF -6 (658) €580M fixed rate bond RCF [1] Fixe
Slide 15: Outlook
2023 OUTLOOK Gustavo Calvo Paz CEO 15
Slide 16: 2023 Outlook Raised to High-End of Guidance
2023 OUTLOOK RAISED TO HIGH-END OF GUIDANCE Core Markets (cont. ops.) Total Group (incl. disc. ops.) Revenue Emerging Markets to grow high single-digit LFL [1] to continue contributing positively to EBITDA and FCF Adj. EBITDA margin Leverage ratio in high end of initial range of 8-10% to dec
Slide 17: Key Takeaways
KEY TAKEAWAYS Recovery momentum confirmed Financing secured Portfolio refocus continues Acceleration of the strategy underway Q2 & H1 2023 results – 28/07/2023 17
Slide 18: Q&A
Q&A Gustavo Calvo Paz Peter Vanneste CEO CFO 18
Slide 19: Thank You
THANK YOU 19