Harper Hygienics S.a. · GPW:HRP

Harper Hygienics — Investor Presentation (April 2017)

11 slides from Harper Hygienics's investor presentation, Apr 26, 2017

  1. Slide 1: Presentation for investors

    Presentation for investors 26 April 2017

  2. Slide 2: Forward looking statement

    Forward looking statement This presentation may contain forward-looking statements based on current assumptions and forecasts made by the management of Harper Hygienics. Different uncertainties and other factors could lead to material differences between the actual future results, financial situatio

  3. Slide 3: Briefly about iCotton

    Briefly about iCotton European company with unique expertise in CIS region  iCotton established as Italian-Russian joint venture from Liepaja (Latvia) producing the wide range of products including wet wipes, baby products, household goods and household chemicals  The Company has distribution netw

  4. Slide 4: Winning combination

    Winning combination Acquisition of Harper Hygienics will enable to build one of the largest players in cotton hygienic products in Europe  Opportunity to scale up the business  Access to Polish market, which is one of through better access to key markets the largest in Eastern Europe including Rus

  5. Slide 5: European leader in cotton hygienic products and wet wipes

    European leader in cotton hygienic products and wet wipes Key retail clients and markets of the Group Key countries of presence Markets where the Group is a major player  Combined sales geography of Harper Hyginiecs, iCotton and Cotton Club Note: term “the Group” refers to Harper Hyginiecs, iCotton

  6. Slide 6: European leader in cotton hygienic products and wet wipes

    European leader in cotton hygienic products and wet wipes European competitive landscape in peer group Over EUR 190 mln 99 95 55 55 50 47 46 46 44 41 9 Combined Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 sales Notes: • Data represents revenue numbers for 2016 year stated in EUR m

  7. Slide 7: Brand portfolio

    Brand portfolio Strong combination of recognized brands and wide product range Cotton pads and buds Wet wipes Baby products Other cosmetic and household products  Portfolio of brands with leading market position and wide recognition in CIS region 7

  8. Slide 8: Ways to address key challenges

    Ways to address key challenges New strategy and synergies  Heavy price competition in Poland  Improve quality of Cleanic brand (cotton pads), selective return to spunlace material !  resulting in margin pressure High concentration with key clients and  Switching to B2C - transfer of Lure brand (

  9. Slide 9: CAPEX to unlock potential

    2017 CAPEX program CAPEX to unlock potential  Improve gross and EBITDA margin Why?  Improve quality of end products (based on key clients’ demand)  Reduce bottlenecks and improve production efficiency Modernization of  Modernization of plastic production for cotton buds EUR 0.5 mln cotton buds 

  10. Slide 10: Financial performance

    Financial performance Short-term financial objectives  Review financial budget for FY2017 based on Q1 2017 performance  Recover historical sales volumes in CIS markets (historically up to 20% of sales)  Financing working capital - provided by iCotton (up to EUR 5 mln)  Debt repayment according t

  11. Slide 11: Goals for existing business

    Goals for existing business Preliminary targets Sales Realization of revenue synergies with iCotton and Cotton Club Sales revenue 31% CAGR Revenue from Cleanic brand in baby products and Lure/Petino brands in low cost segment (based on Arvell) (from 2016) New products and export markets development

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