Slide 1: Q3 2018 Trading Update
Q3 2018 Trading Update November 7, 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 Trading Review 07 Outlook 16 Q&A 18 Appendix 19 Confidential 3
Slide 4: Ontex Highlights
Ontex Highlights
Slide 5: Further progress of 2018 priorities in challenging environment
Further progress of 2018 priorities in challenging environment Continue investing 2018 Achieve sustainable Strengthen further to support improvements in the underlying Ontex Priorities sustainable Brazil business profitable growth • Further sequential revenue growth¹ • Q3 LFL ahead of hygiene market
Slide 6: Q3 2018 highlights
Q3 2018 highlights Further progress in challenging markets Q3 2018 Q3 2018 Group ex Brazil Solid top-line growth outperforming flat hygiene markets • Like-for-like (LFL) revenue up 3.0% excluding Brazil, positive price/mix accelerated +0.8% +3.0% • Brazil revenue up 5% in Q3 2018 vs Q2 2018, excludi
Slide 7: Trading Review
a Trading Review Ontex
Slide 8: Outperforming flat hygiene markets in Q3 2018
Outperforming flat hygiene markets in Q3 2018 LFL up 3% ex Brazil with positive price/mix across the board Group revenue review Sales bridge Q3 2018 (€m) • Reported revenue 3.6% lower in Q3 (-3.2% 9M) 2.9% 587.6 • LFL +3.0% excluding Brazil • LFL revenue +0.8% (+0.5% 9M) -2.1% 566.6 -4.3% • Top line
Slide 9: Category review
Category review LFL performance supported by strong LFL growth in Adult Inco LFL sales growth • Babycare LFL revenue down 0.5% in Q3 (-2.0% 9M), cycling 9M 2018 Q3 2018 strong comparables in 2017 % reported group sales1 58% 31% 10% 58% 30% 10% • Double-digit growth in baby pants supported by new pro
Slide 10: Mature Market Retail: 38% of Q3 reported group sales
Mature Market Retail: 38% of Q3 reported group sales LFL down against a high comparable • LFL 3.9% lower in Q3 (-0.9% 9M) LFL revenue (€m) and sales growth • Year-on-year pricing was positive in Q3 -0.9% • Broad-based price increase to partly offset higher 673 667 Group-wide input costs led to lower
Slide 11: Americas Retail: 28% of Q3 reported group sales
Americas Retail: 28% of Q3 reported group sales Solid LFL growth in Mexico and US with sequential improvement in Brazil • +1.9% LFL growth in Q3 (-0.9% 9M) LFL revenue (€m) and sales growth • Revenue outside Brazil up 14.2% LFL in Q3 -0.9% • Mexico: portfolio of local Babycare and Adult Inco 474 469
Slide 12: Growth Markets: 8% of Q3 reported group sales
Growth Markets: 8% of Q3 reported group sales Continued LFL growth on positive price/mix and volumes • LFL revenue +8.9% in Q3 (+10.7% in 9M) LFL revenue (€m) and sales growth • Higher volumes & positive price/mix across most categories & geographies +10.7% 157 142 • Growing Babycare sales amidst hi
Slide 13: MENA: 7% of Q3 reported group sales
MENA: 7% of Q3 reported group sales Improved LFL growth as consistent actions delivering • LFL revenue +16.2% in Q3 (-1.4% 9M) LFL revenue (€m) and sales growth • Babycare sales up due to both volumes and positive -1.4% price/mix 139 137 • Turkey benefited from Canbebe baby diaper innovation, contin
Slide 14: Healthcare: 19% of Q3 reported group sales
Healthcare: 19% of Q3 reported group sales Stable LFL revenue as positive product mix offset lower volumes • LFL revenue down 0.1% in Q3 (+1.9% 9M) LFL revenue (€m) and sales growth • Growth of Adult pants and Light Inco products in most +1.9% markets 324 330 • Slight decrease in volumes as we conti
Slide 15: Adjusted EBITDA margin
Adjusted EBITDA margin Continued self-help masked by input costs and FX Adjusted EBITDA of €58.1 million, 14.8% below last year Adjusted EBITDA margin bridge Q3 2018 (% and bps) • Positive price/mix in all Divisions and categories +237 bps • Continued delivery of savings and efficiencies 12.1% • Pro
Slide 16: Outlook
Outlook
Slide 17: Outlook
Outlook Strategic progress and priorities • On track for low single-digit LFL growth for 2018 in broadly flat hygiene markets • Price/mix actions and cost saving initiatives will continue and further value-creating actions will be considered as required, in light of sustained input cost pressures an
Slide 18: Q&A
Ontex~ tex Q&A
Slide 19: Appendix
Appendix
Slide 20: Performance overview for Q3 & 9M 2018
Performance overview for Q3 & 9M 2018 % as % as In millions of Euro Q3 2018 Q3 2017 % LFL 9M 2018 9M 2017 % LFL reported reported Per Division Mature markets retail 217.3 227.6 (4.5%) (3.9%) 662.9 673.2 (1.5%) (0.9%) Growth markets 46.9 45.5 3.2% 8.9% 146.7 141.9 3.4% 10.7% Healthcare 107.5 107.7 (0
Slide 21: Alternative Performance Measures
Alternative Performance Measures The following alternative performance measures (non-GAAP) have been included in this presentation since management believes that they are widely used by certain investors, securities analysts and other interested parties as supplemental measures of performance and li
Slide 22: Thank you
Thank you