Slide 1: Q3 Trading Update
Q3 TRADING OCTOBER 28 , 2021 TH UPDATE
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: Esther Berrozpe, Chief Executive Officer
Esther Berrozpe Chief Executive Officer Q3 2021 Trading Update – October 28th 2021 3
Slide 4: Agenda
Agenda Strategic Priorities Key Highlights Update Q3 Trading 2021 Update Outlook Q&A Q3 2021 Trading Update – October 28th 2021 4
Slide 5: Key Highlights Q3 2021
KEY HIGHLIGHTS Q3 2021 Stabilizing the top line Severe impact of Commodity Structural cost reductions Sequential growth Q1-Q2-Q3 Crisis: €28m higher costs on track: €15m Q3 LFL Stable and up reported (€45m YTD) (€42m YTD) Revenue (reported change y/y) Price change of main commodities Cumulative net
Slide 6: Q3 2021 Trading Update
Q3 2021 TRADING UPDATE Revenue +1% vs €508m in Q3 2020 €512m Stable LFL with positive price/mix REVENUE Solid growth in focus areas of Adult Care & Baby pants FX impact of +€5m Adjusted EBITDA -30% vs €57m in Q3 2020 ADJUSTED €40m Adjusted EBITDA margin -344bps to 7.8% vs 11.3% in prior year EBITDA
Slide 7: Recent Market Trends
RECENT MARKET TRENDS Growth in all three categories in Ontex core markets Increased activity outside the home Shoppers returning to stores Retailer brands growing share in Europe Positive pricing momentum Source: Nielsen Q3 2021 Trading Update – October 28th 2021 7
Slide 8: Financial Review
FINANCIAL REVIEW Peter Vanneste Chief Financial Officer Q3 2021 Trading Update – October 28th 2021 8
Slide 9: Q3 2021 Revenues
Q3 2021 REVENUES (€m) +0.9% reported % % % LFL 0.0% Stable LFL despite €13m orders not shipped due to supply chain disruptions Reported sales +0.9% with 4.5M€ currency impact, primarily through the strengthening of the Mexican Peso Q3 sales up 2% sequentially versus Q2 despite disruptions First pric
Slide 10: Q3 2021 Revenues by Category
Q3 2021 REVENUES BY CATEGORY Baby Care Adult Care Feminine Care Reported -17.2% +0.1% Reported -3.8% +5.4% Reported -3.6% -8.6% LFL -8.5% -1.1% LFL +2.7% +5.0% LFL -6.7% -9.0% reported (€m) reported (€m) reported (€m) 341 172 174 282 282 165 53 51 47 Q3 2019 Q3 2020 Q3 2021 Q3 2019 Q3 2020 Q3 2021 Q
Slide 11: Q3 2021 Revenues by Division
Q3 2021 REVENUES BY DIVISION Europe AMEAA Reported -9.0% -2.5% Reported -15.5% +6.5% LFL -7.5% -3.1% LFL +0.1% +5.0% reported (€m) reported (€m) 347 316 308 227 192 205 Q3 2019 Q3 2020 Q3 2021 Q3 2019 Q3 2020 Q3 2021 Q3 2021 showed +4% sequential sales growth versus Q2 Mid-single digit growth LFL do
Slide 12: Q3 2021 EBITDA
Q3 2021 EBITDA (€m) -17 EBITDA MARGIN EBITDA MARGIN 11.3% 7.8% Commodity cost inflation and supply disruption have a strong Strong net savings delivered in operating expenses; despite impact on EBITDA (margin) supply disruption and higher energy and transportation costs Very high raw materials price
Slide 13: Financial Position as at 30th September 2021
FINANCIAL POSITION AS AT 30TH SEPTEMBER 2021 Net Debt & Leverage Ratio (€m) Net debt slightly decreased vs. June 30 and December 31, 2020 861 848 843 837 756 Leverage impacted by lower EBITDA Capex remains tightly managed 4.3x Working capital slightly up on higher inventories due to 4.0x 3.9x 3.6x 3
Slide 14: Strategic Priorities Update
STRATEGIC PRIORITIES UPDATE Esther Berrozpe Chief Executive Officer Q3 2021 Trading Update – October 28th 2021 14
Slide 15: Strategic Priorities
STRATEGIC PRIORITIES PORTFOLIO CUSTOMER PRODUCT OPERATIONAL FOCUS CENTRICITY INNOVATION EXCELLENCE Simplify the Strengthen Accelerate Improve cost business & customer relations cadence of competitiveness product portfolio & restore growth innovation & service levels ENVIRONMENT & Set clear long-term
Slide 16: Focused Agenda
FOCUSED AGENDA New Focused organization Key Enablers Portfolio & culture Roll out new organization Turnaround Europe Retailer Deliver flexibility at best cost model and performance Brands culture Maximize value creation Outperform in North America through Innovation Grow our business in emerging Gen
Slide 17: Organization and Culture Change Underway
ORGANIZATION AND CULTURE CHANGE UNDERWAY New organization Major reorganization underway & culture - Integration of Retail & Healthcare businesses - End-to-end Supply Chain organization in place Innovation strategy - New global platforms in place - Excellence Center for Global Process Engineering and
Slide 18: Building Momentum in Portfolio Priorities
BUILDING MOMENTUM IN PORTFOLIO PRIORITIES Focused Stopped revenue decline in European retail Portfolio - Double digit growth in Adult Care in retail channels - Mid single digit increase in Baby pants - Net positive balance of gains/losses in retail starting in Q4 North American growth continued - Ne
Slide 19: Significant Cost Out Delivery
SIGNIFICANT COST OUT DELIVERY Group headcount reduction of c.540 year to date Key Enablers Important steps in footprint design driving capacity utilization - Mayen (Germany) plant closure announced; headcount reduction of 350 OEE/scrap trends improving despite disruptions YTD SG&A 11.3% of sales, do
Slide 20: Outlook 2021
OUTLOOK 2021 Esther Berrozpe Chief Executive Officer 20
Slide 21: 2021 Outlook
2021 OUTLOOK Since the beginning of the year, Ontex has been generating significant net operating and SG&A costs savings, which have been important given the unprecedented rise in commodity raw material prices as the year progressed. More recently the Group has faced additional cost increases in ene
Slide 22: Conclusion
CONCLUSION Solid progress on our priorities Stabilizing revenue with sequential improvement in 2021 Structural cost savings being delivered in face of severe input cost increases Q3 2021 Trading Update – October 28th 2021 22
Slide 23: Annex
ANNEX Q3 2021 Trading Update – October 28th 2021 23
Slide 24: 9M 2021 Revenues
9M 2021 REVENUES (€m) -4.4% reported 1,561 % 1,493 % % % LFL -2.2% Q3 2021 Trading Update – October 28th 2021 24
Slide 25: 9M 2021 EBITDA
9M 2021 EBITDA (€m) -42 EBITDA MARGIN EBITDA MARGIN 11.7% 9.4% Q3 2021 Trading Update – October 28th 2021 25
Slide 26: Q3 Trading Update
Q3 TRADING OCTOBER 28 , 2021 TH UPDATE