Slide 1: Q3 2017 Trading Update
Q3 2017 Trading Update November 8, 2017
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 06 Outlook 17 Q&A 19 Appendix 20 Confidential 3
Slide 4: Ontex Highlights
Ontex Highlights
Slide 5: Q3 2017 highlights
Q3 2017 highlights Continued strong revenue growth in challenging market conditions Q3 2017 LFL growth across all categories and well ahead of our markets • Reported Group revenue of €592.4 million for Q3 2017, up 16.1% on a reported basis (+19.9% 9M 2017) LFL revenue • Q3 2017 like-for-like (LFL) r
Slide 6: Trading Review
a Trading Review Ontex
Slide 7: LFL growth across all categories and well ahead of our markets
LFL growth across all categories and well ahead of our markets Strong volume growth drives higher LFL revenue Group revenue review Sales bridge 9M 2017 (€m) 1,766.3 • Reported revenue up +16.1% in Q3 2017 (19.9% 9M 2017): 1,472.8 • LFL revenue up 4.3% in Q3 2017 (+4.9% 9M 2017), driven by four of fi
Slide 8: Category review
Category review All categories registered solid LFL growth • Mid-single digit LFL growth across all categories in 2017 LFL sales growth YTD, including a strong Q3 2017 % Q3 reported group sales1 60% 29% 10% • Babycare LFL revenue +4.6% in Q3 2017 (+6.1% 9M 2017), • LFL outperformance in Western Euro
Slide 9: Mature Market Retail: 38% of Q3 reported group sales
Mature Market Retail: 38% of Q3 reported group sales Another robust quarter of revenue growth • Continued like-for-like revenue increase YoY, well ahead of LFL revenue (€m) and sales growth our market +4.6% • Volumes in most of our markets continued to drive a strong 670 641 top line performance • D
Slide 10: Americas Retail: 29% of Q3 reported group sales
Americas Retail: 29% of Q3 reported group sales Further market share gains in Mexico, with Brazil diaper sales lower • +7.0% LFL growth in Q3 2017 (+11.4% 9M 2017) LFL revenue (€m) and sales growth • Further market share gains in both Babycare and Adult inco +11.4% in Mexico, and increased revenue i
Slide 11: Growth Markets: 8% of Q3 reported group sales
Growth Markets: 8% of Q3 reported group sales Continued LFL growth in highly competitive markets • Like-for-like revenue +2.7% in Q3 2017 (+9.5% 9M 2017) LFL revenue (€m) and sales growth • Impacted by supply constraints for some of our fastest +9.5% 132 growing products and inventory reductions by
Slide 12: MENA: 7% of Q3 reported group sales
MENA: 7% of Q3 reported group sales Babycare in Turkey more than offsets progress in rest of Division • Like-for-like revenue down 1.0% in Q3 2017 (+0.9% in 9M LFL revenue (€m) and sales growth 2017) +0.9% • Market environment remained particularly challenging in 154 155 Turkey, and in the Babycare
Slide 13: Healthcare: 18% of Q3 reported group sales
Healthcare: 18% of Q3 reported group sales Higher volumes driven by continued innovation • Like-for-like revenue up 1.5% in Q3 2017 (+1.1% 9M 2017) LFL revenue (€m) and sales growth • Increased volumes of branded Adult inco products +1.1% 323 327 • Continued innovation by Serenity in Spain, where we
Slide 14: Update on Ontex Brazil
Update on Ontex Brazil Taking strong actions in challenging diaper market conditions • New management team in place since June 2017 Brazil baby diaper market value • Starting to see positive signs following actions taken to 3.5% improve competitiveness and defend our baby diaper share -3.3% • Antici
Slide 15: Adjusted EBITDA margin
Adjusted EBITDA margin Margins lower, impacted by raw materials, Brazil and FX Key margin drivers Adjusted EBITDA up 7.9% to €68.2 million • Mainly influenced by: • Strong top line performance and savings programs offset higher raw material costs and increased distribution expenses • Continued inves
Slide 16: Net debt and leverage
Net debt and leverage Maintained resilient balance sheet Reported debt position and liquidity as of September 30, 2017 Reported net debt position as of 30 September, 2017 900 849.2 6.00 Net Debt Calculation (€m) 800 743.9 751.1 5.00 Gross debt 945.7 700 664.9 4.90x 585.1 4.00 Cash & cash equivalents
Slide 17: Outlook
Outlook
Slide 18: Outlook
Outlook Strategic progress and priorities • Expect to continue top-line outperformance in our markets in Q4, led by category growth in Adult Inco, which will confirm an annual run rate of €2.4 billion revenue • Pressures in Brazil expected to continue which, together with FX and commodities headwind
Slide 19: Q&A
Ontex~ tex Q&A
Slide 20: Appendix
Appendix
Slide 21: Performance overview for Q3 & 9M 2017
Performance overview for Q3 & 9M 2017 % as % as In millions of Euro Q3 2017 Q3 2016 % LFL 9M 2017 9M 2016 % LFL reported reported Per Division Mature markets retail 227.8 214.6 6.1% 6.0% 673.6 640.6 5.1% 4.6% Growth markets 45.6 43.8 4.1% 2.7% 142.1 120.6 17.8% 9.5% Healthcare 107.7 106.8 0.8% 1.5%
Slide 22: 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 23: Thank you
Thank you