Investor Presentation FY 2013

Transcription

1 Investor Presentation FY 2013 Francois Luscan President and CEO Xavier Leclerc de Hauteclocque CFO April 4, 2014

2 Forward Looking Statement 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, our future results of operations, financial condition, liquidity, prospects, growth, strategies or developments in the industry in which we operate. By their nature, forward-looking statements are subject to risks, uncertainties and assumptions that could cause actual results or future events to differ materially from those expressed or implied thereby. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. Forward-looking statements contained in this presentation regarding trends or current activities should not be taken as a representation that such trends or activities will continue in the future. We undertake no obligation to update or revise any forwardlooking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on any such forward-looking statements, which speak only as of the date of this presentation. The information contained in this presentation is subject to change without notice. No representation or warranty, express or implied, is made as to the fairness, accuracy, reasonableness or completeness of the information contained herein and no reliance should be placed on it. 2

3 Pro-forma financial statements are not directly comparable with audited financial statements The financials presented in this document are on a pro-forma ( PF ) basis and include both for FY 2012 and FY 2013 (as well as Q and Q4 2013) the combined Albéa and Rexam PC businesses, which allows a year-on-year comparison of the financial and operational performance of the combined business. However, these financials are not directly comparable with the audited consolidated financial statements for the financial year ended December 31, 2013 and 2012 of Twist Beauty Sarl and Partners SCA, which have been published on April 4th in conjunction with this presentation due to the following reasons: The audited consolidated financial statements for the year ended December 31, 2012 of Twist Beauty Sarl and Partners SCA are historical and do not include Rexam PC, as the acquisition was completed on December 31, The P&L for 2012 does not include the flow of Rexam entities. Both the audited consolidated financial statements for the year ended December 31, 2012 and 2013 of Twist Beauty Sarl and Partners SCA are under US IFRS, which is not the case for the PF Q and PF Q financial information provided in the investor presentation as we prefer to provide management figures (continued) 3

4 US IFRS accounting leads to small re-classification of revenues and adjusted EBITDA in the audited financial statements compared to the financials published in the trading update on February 6, 2014 As of December 31, 2013 Twist Beauty Sarl and Partners SCA held a 50% stake in CMi HK Ltd. According to US IFRS, this entity cannot be consolidated proportionately and has to be accounted for using the equity method. Approximately, $9.0 million of revenues and $0.4 million of adjusted EBITDA have been deconsolidated from the accounts presented in the trading update released on February 6, Financial statements for the year ended December 31, 2013 will be certified on April 11 The Board of Twist Beauty Sarl and Partners SCA met on April 2, 2014 to approve the consolidated financial statements for the year ended Audit procedures have been carried out and the audit report is expected on April 11, Perimeter changes in the investor presentation include the Tex acquisition in Q as well as the deconsolidation of Albéa Annecy and Sussex in Q In this investor presentation figures have been approximated to one decimal place, which may give rise to minor rounding differences when compared to the audited financial statements for the year ended December 31, 2013 Emerging countries include India, China, Indonesia, Brazil, Russia and Mexico 4

5 Agenda Key Achievements Strategy Update Financial and Operational Highlights Business and Group Financials Conclusion and Outlook 5

6 Key Achievements

7 Successful Execution of 2013 Projects Rexam PC Integration Customer Diversification Footprint People - Key talent retained, ensuring transition into one global organisation. Providing a strong team, focused on results. Customers - H issues contained, commercial approach redeployed along Albéa s umbrella. Products - Combined product offering provides further diversification in product portfolio and that fully supports clients needs. IT - Carve out successfully completed, with a unified reporting system going forward. Synergies - Identified synergies for year 1 achieved ahead of plan ($18.4 million at the end of FY 2013). - Total of $47.0 million maintained for the period Implementation of cash costs lower than originally planned, $128 million with a revised expectation for c.$100 million. Key Accounts - Strong engagement with key accounts maintained and demonstrated by increased sales of 4.1% year-on-year. Global Account - Further penetration of existing global accounts resulting in sales growth of 8.8% over the period. Small and Medium - Strong push in 2013, with sales growth of over 5.2% in FY All key projects delivered or progressing to plan Major footprint optimisation project in France completed in 2013 ( Dream ) - Three manufacturing sites consolidated into one % of machines reinstalled; no operational disruptions. Financing approved and operational rollout underway for the Be One project in Italy - Planned merger of two CRP sites; completion date maintained for June Move to Suzhou completed (Albéa) over 2013 and exit from Shanghai (Rexam PC) underway (commenced in November 2013 with completion due in May 2014) 7

8 Strategy Update

9 Established Global Leadership in the Beauty and Personal Care Packaging Market Premium positioning with reinforced offering post Rexam PC acquisition Offers broadest product portfolio in the industry Provides a unique one-stop shop Reinforces Operational Excellence Strengthened market position in overlapping market segments (esp. rigid beauty) Global leader in attractive pumps markets Revenues ($bn) 1 Fragrance Make up Markets Foam Oral care Skin care Laminate/ Plastic Tubes Rigid Beauty 1 st 1 st Fragrance Pumps 2 nd GLOBAL POSITION GLOBAL POSITION GLOBAL POSITION (Calmar) Lotion Pumps Foam Pumps Samplers 3 rd 1 st 1 st GLOBAL POSITION GLOBAL POSITION GLOBAL POSITION 9

10 Model Focused on Delivering to Customers Where They Play Servicing a growing variety of customers across the globe 22% FY 2013 sales by client category % of sales FY 2013 sales by region % of sales 27% 47% 20% 33% 51% Global Accounts Key Accounts Small & Medium Emerging Europe North America Predominantly in Beauty and Personal Care, but with entrenched know-how to expand application fields 10

11 Supporting Clients Success through Inspired Packaging FINE MIST - PANACHE Incomparable spray: light, airy and dry spray LASH VOLUME Brush CORSET BRUSH LASH CURLICIOUS Brush PORCELAIN Cool Eyecontouring applicator on a tube LOTION - EXTREME CLOSURE SELF SEALING ACTUATOR Protects your most sensitive formulas and prevents the formula from drying out at the exit point Plastic Glass REVEAL COMPACT A transparent cover and large mirror finally together, with a new opening gesture COOL SPIN A Cool Eyecontouring Applicator FINE MIST - PANACHE PULSE An extraordinary spray quality without propellant EZI FOAMER ON TUBE Provides foam with a single squeeze by mixing the air and the liquid in the tube 11 R-SHAPE TEARDROP TIO EYELINER Two-in-one

12 Innovation Through Combined Offering Albéa has launched tooling to incorporate Rexam pumps catalogue on its tubes in order to offer the widest range of airless tubes. Rexam had pumps in diameters of 25, 30, 35, 40 and 50 cm 12

13 Service Offering Strengthened by Enhanced Manufacturing Footprint in Europe and China Dream Project completed in FY 2013 Scale and flexibility Greater efficiencies Manufacturing excellence China north Footprint to be completed mid 2014 Centralised operations Improved operating conditions Reduced waste and logistics costs, leading to overall improved cost efficiency Enabling Us to Better Satisfy our Customers Needs 13

14 Attractiveness Continuing to Work Towards Rebalancing the Group s Performance Economic equation towards profitable growth High Old flagship Grow Engines Invest and grow Investment Grow first then realign profits Turnaround Fix & grow Low 14 (Group s current adj. EBITDA margin) TODAY GOING FORWARD 0 5 % 5-10 % 10-15% 15 20% Sales Growth YTD 2013 vs. YTD 2012 Evolving alongside our clients Ambition to achieve similar profitability of peers going forward

15 Along Well Defined Strategic Priorities and Clear Operational Path TRANSFORMATION AGENDA STRATEGIC PRIORITIES INTEGRATION OF REXAM PC PROFITABILITY AND OPERATIONAL EXCELLENCE EMERGING MARKETS OPERATIONAL OBJECTIVES OPTIMISE INDUSTRIAL FOOTPRINT ENHANCE COMMERCIAL CAPABILITIES FURTHER INSTIL CULTURE OF INNOVATION ALIGNED WITH GROUP S STRICT FINANCIAL FRAMEWORK FOLLOWING A DISCIPLINED APPROACH TO RESOURCE ALLOCATION AND CASH MANAGEMENT DELEVERAGE 15

16 Financial and Operational Highlights

17 Strong Q4 Performance Underpins FY 2013 Profitability Key Financials FY 2013 Group Sales (*) at $1,562.1 million, up 5.8% year-on-year - Organic Group Sales at constant currency up 5.8% year-on-year FY 2013 Adjusted EBITDA (*) at $155.9 million, up 17.0% year-on-year Q4 Group Sales at $393.8 million, up 10.3% year-on-year - Organic Group Sales at constant currency up 10.8% year-on-year Q4 Adjusted EBITDA at $39.7 million, up 46.0% year-on-year. Cash and Liquidity Operating Cash Flow (*) at $34.5 million in Q and at $38.2 million for FY 2013 Negative Free Cash Flow (*) of $155.2 million over FY 2013, however ahead of management expectations Total Cash and Availability (**) of $167.9 million as of December 31, 2013 Net Debt (***) at $680.2 million as of December 31, 2013 Net leverage at 4.36x as of December 31, 2013 (*) Including CMI (HK) Ltd. (**) Cash and Availability position includes $83.6 million of cash and cash equivalents and $84.3 million of undrawn lines as of December 31, 2013 (***) Net Debt under IFRS. Defined as total Albéa Gross Debt minus Cash and Cash equivalent as of December 31, Gross Debt amounted to $763.8 million as of December 31, 2013 and includes the bonds issued last October 2012 (net of amortised financing fees), factoring, ABL, etc. For more details please see the note Borrowings in the audited consolidated financial statements for the period ended December 31,

18 Despite Challenging Operating and Economic Conditions Currencies Positive USD/EUR effect compensating for adverse currency fluctuations (negative translation effects on sales) mostly coming from Brazilian Real, Indonesian Rupiah, Indian Rupee. Weaker USD indirectly affects other financial items (e.g. net debt). Economic Environment Lower growth in most emerging markets continues, in particular in China and Brazil, but still attractive. Developed markets remain sluggish across the board. Inflation remains high in several emerging markets and pass through clauses are critical. Customers and Competition Greater flexibility required from customers on certain operational aspects (e.g. shorter lead-times) and on financial considerations (e.g. longer payment terms). Capex for sales growth projects are more volatile, as associated with a higher probability of staying idle during business transfers that take more and more time. Intensity of competition persists with competitors in financial difficulties looking for volume. 18

19 Implementation costs cash out FY 2013 Synergy realisation FY 2013 FY 2013 update Objective to generate $47.0 million savings by FY 2016 Executing on Realisation of Synergies from Acquisition SG&A Redundant stand-alone costs of $11 million (*) c.$40.0 million implementation costs vs. $45.0 million previously Manufacturing Footprint Optimisation c.$16.0 million net implementation costs (after China Compensation) vs. $22.0 million previously Procurement c.$8.0 million net implementation costs vs. $16.0 million previously 60% $22.0m savings (vs. $21.0 million previously) 15% 25% 65% $18.0m savings (vs. $16.0 million previously) 10% 25% 46% $7.0m savings (vs. $9.0 million previously) 54% IT Corporate/Other Headcount Asia Brazil/Mexico Europe Metal Parts Resins/Others $16.9 million of savings achieved through December 2013 Year 2 Target maintained at $19.9 million Annecy sale completed as of October 1 Year 2 Target maintained at $7.0 million Other projects progressing well $1.5 million achieved through December 2013 Year 2 target confirmed at around $3.0 million $18.4m synergies achieved by the end of FY 2013 $22.1m accounting for the effect of Annecy deconsolidation Capex $9.4m Restructuring and Integration $15.2m Separation $18.8m TOTAL $43.3m 19 (*) Corporate overhead and administrative functions integration

20 Divestments Allow for Greater Focus on Core Business Sussex IM Vacheron Group Cotuplas Part of Rexam PC acquisition considerations. Terminated by mutual consent a non-strategic subcontracting agreement. Albéa Thomaston sold a limited number of toolings and equipment previously used by Sussex. Finalised an industrial agreement with the Vacheron group. Transferred Albéa Annecy SAS, which used to belong to the Rexam s Personal Care division, to Vacheron Industries. Maintained project management for all plastic injection and assembly activities while integrating metal-plastic solutions for all of its regions. French subsidiary specialising in the design and manufacturing of production machinery. Generated sales of approx. 5.6 million in Equipment production sector has become highly specialised leading to divestment decision. Will continue to purchase equipment from and engage in development work with Cotuplas. Deconsolidating $20.0 million of sales on a PF basis for FY 2013 Positive EBITDA impact of the three transactions on a PF basis for FY 2013 is $2.2 million 20

21 Business and Group Financials

22 Strong Top Line Performance In $ million unless stated otherwise PF Q PF Q Delta PF FY 2013 PF FY 2012 Organic Group Sales % 1, , % - Tubes % % - Cosmetic Rigid Packaging (CRP) % % - Corporate Acquisitions and Disposal effects (*) - (5.3) - (3.0) (5.3) - FX translation effects (**) - (3.7) - - (7.4) - - Tubes - (1.0) - - (3.1) - - CRP - (2.7) - - (4.2) - Reported Group Sales (***) % 1, , % Delta Organic Group Sales at constant currency by regions (****) - Europe % % - North America % % - Emerging countries % % (*) Tex acquisition completed in Q2 2012; Sussex and Albéa Annecy deconsolidated in Q (**) 2012 at 2013 rates (***) Including CMI (HK) Ltd. (****) Sales from Corporate in the amount of $0.4 million are excluded from the breakdown by region for FY

23 YTD 2012 reported FX YTD 2012 adjusted Price Volume / Mix YTD 2013 reported Encouraging Commercial Momentum in the Tubes Division In $ million unless stated otherwise Q PF Q Delta FY 2013 PF FY 2012 Delta Organic Sales % % FX translation effects (*) - (1.0) - - (3.1) - Acquisition and disposal effects Reported Sales % % FY 2013 Sales Bridge In $ million (2.4) Organic Sales at constant currency by regions, of which: % % - Europe % % - North America % % - Emerging countries % % Adjusted EBITDA % % - in percentage of Sales 12.9% 10.9% 203 bps 11.8% 11.4% 41 bps Capital Expenditure ( Capex ) (**) (58.5) % (31.1%) - in percentage of Sales 5.5% 15.2% (972) bps 5.0% 8.0% (296) Bps (*) 2012 at 2013 rates (**) Excluding $1.9 million in Q ($12.9 million FY 2013) under finance lease for the building of the new plant in Ste Ménéhould Strong volume growth in all geographies, in particular in Emerging Countries where Albéa s commercial activities have continued to expand. EBITDA margin improving year-on-year thanks to investment made, with resolution of operational issues in South East Asia now underway. Capex decrease in line with management expectation. Although flat with Finance Lease of Dream project in France. 23

24 YTD 2012 reported FX translation Perimeter changes YTD 2012 adjusted Price Volume / Mix YTD 2013 reported CRP Sales Lifted by a Strong Q In $ million unless stated otherwise PF Q PF Q Delta PF FY 2013 PF FY 2012 Delta Organic Sales % % FX translation effects (*) - (2.7) - - (4.2) - Acquisition and disposal effects (**) - (5.3) - (3.0) (5.3) - Reported Sales (***) % % FY 2013 Sales Bridge In $ million (3.0) 900 (5.7) Organic Sales at constant currency by regions, of which: % % - Europe % % - North America % % - Emerging countries % % Adjusted EBITDA (***) % % - in percentage of Sales 7.3% 6.8% 49 bps 10.0% 9.9% 9 bps Capital Expenditure ( Capex ) (****) (17.5)% (11.4)% 24 - in percentage of Sales 8.9% 11.6% (269) bps 6.3% 7.3% (106) bps (*) 2012 at 2013 rates (**) Tex acquisition completed in Q2 2012; Sussex and Albéa Annecy deconsolidated in Q (***) Including CMI (HK) Ltd. (****) Excluding $6.9 million and $1.4 million under finance lease for UV5 / Simandre and Annecy in FY 2013, of which $1.5 million in Q for UV5 / Simandre 850 Volume growth in Q4 mitigate softer performance in H1 2013, due to slower pace and postponement of product launches. Positive developments in Europe and Emerging markets in particular in Q4, whilst North America trading remains soft. EBITDA margins stable year-on-year. Capex down year-on-year, reflecting the partial completion of certain investment projects during Capex flat year-onyear including finance lease.

25 FY 2013 Financial Highlights (1/2) In $ million PF Q (*) PF Q Delta PF FY 2013 (*) PF FY 2012 Delta Group Sales % 1, , % COGS (328.2) (296.2) 10.8% (1,281.0) (1,197.7) 7.0% Gross Profit % % SG&A (42.8) (48.9) (12.3)% (185.9) (200.3) (7.2)% Restructuring and project costs (11.3) (37.0) (69.4)% (46.5) (66.0) (29.5)% Other (**) (4.4) (7.7) (43.3)% (31.1) (6.5) N.M. Operating Profit 7.0 (32.8) N.M N.M. Operating Profit 7.0 (32.8) N.M N.M. + Operational non cash items % % + Restructuring and project costs (69.4)% (29.5)% + Add backs (***) (50.7)% 19.7 (1.4) N.M. = Adjusted EBITDA % % - in percentage of Sales 10.1% 7.6% 246 bps 10.0% 9.0% 96 bps (*) Including CMI (HK) Ltd. (**) Includes Annecy and Sussex disposals impact, Cotuplas impairment and depreciation of intangible assets (***) Sun fees, impairment, badwill, purchase accounting, losses on disposals, 25

26 FY 2013 Financial Highlights (2/2) In $ million PF Q (*) PF Q Delta PF FY 2013 (*) PF FY 2012 Delta Adjusted EBITDA % % D&A (18.8) (18.0) 4.4% (72.1) (62.3) 15.7% Restructuring and project costs (11.3) (37.0) (69.4)% (46.5) (66.0) (29.5)% Other (2.5) (5.0) (50.7)% (19.7) 1.4 N.M. Operating Profit 7.0 (32.8) N.M N.M. Net Finance costs (income) (**) (14.4) (19.5) (26.0)% (51.6) (67.7) (23.8)% Profit from continuing operations before income taxes (7.4) (52.3) (85.9)% (34.0) (61.3) (44.6)% Income tax (expenses) / benefit 0.3 (2.5) N.M. (6.8) (17.8) (61.7)% Profit / (loss) for the Period (7.1) (54.8) (87.0)% (40.8) (79.1) (48.4)% (*) Including CMI (HK) Ltd. (**) Including unrealised FX gains on USD tranche of bind issue 26

27 Majority of Non-Recurring Items Recognised Over FY 2013 In $ million $46.5 million 2013 Acq. and Integration Footprint optimisation Other Restructuring Relocation Currently no footprint optimisation planned for FY Lower integration cost expected going forward. Continued focus on stand alone cost savings. Lower pace of restructuring. 27

28 Implementation and Separation Costs Reduced to $100 million for the Period Factors Past Guidance Management Indications In $ million June 2013 FY 2013 FY 2014 FY 2015 FY 2016 Previous Indications FY 2013 Status Acquisition Fees $60.0 million in total to impact FY 2013 due to delay in acquisition (57.8) Completed Implementation and Separation Lower by $20.0 million Currently expected at $100.0 million (43.3) (40.0) (10.0) (7,0) Of which c. 40 million of Capex to be spent over FY IT: Done Annecy: Done China: Started Rigid France: Started Metal US: Delayed Chinese Grant Now confirmed at $46.0 million, of which $32.0 million to be received in FY First $32.0 million received in 2013 Confirmed upon completion in H Synergies Now revised upwards to $47.0 million, from originally $45.0 million 18.4 Max 29.0 of additional cost savings by 2016 $18.4 million generated in FY 2013 $22.1 including Annecy effects 28

29 YTD 2012 reported FX translation Perimeter changes YTD 2012 adjusted Price Volume / Mix YTD 2013 reported YTD 2012 reported FX translation Perimeter changes YTD 2012 adjusted Tubes CRP and Dispensing Other (*) YTD 2013 reported FY 2013 Group Sales Bridges FY 2013 Sales Bridge by Drivers In $ million FY 2013 Sales Bridge by Divisions In $ million , , , , , , (3.0) (8.1) 1450 (3.0) (*) Other includes Trading activities 29

30 YTD 2012 reported FX translation Perimeter changes YTD 2012 adjusted Price Volume / Mix Inflation Cost reduction SG&A Other YTD 2013 reported FY 2013 Adjusted EBITDA Bridge By Drivers In $ million (1.1) 120 (7.7) (14.6) 16.0 (6.1) Strong uplift in volume and product mix offset price decreases and cost inflation. SG&A and other cost savings drive increase in profitability. Operational inefficiencies in Indonesia and Brazil identified and currently being resolved

31 Positive Operating Cash Flow for FY 2013 In $ million PF Q (*) PF Q Delta PF FY 2013 (*) PF FY 2012 Delta Adjusted EBITDA % % Change in Working Capital (**) N.M N.M. Capital Expenditure (***) (30.9) (48.3) (36.0)% (90.2) (115.4) (21.8)% Other (Restructuring and Integration) (11.9) (17.4) (31.8)% (27.9) (29.8) (6.3)% Operating Cash Flow 34.5 (27.6) N.M N.M. Strong reduction of overdue amounts from $26 million to $14 million. Advance of receivables from some customers. Temporary safety stockpiling to support on-going plant move as well as timing of customer launches starting to unwind. Capex spend totalling $90.2 million for FY 2013, well within the range previously provided by Management. (*) Including CMi (HK) Ltd. (**) Excluding Acquisition fees impact in WC (***) Excluding Dream, Simandre, Annecy and IT 31

32 FY 2013 Capex Reconciliation In $ million FY 2013 Capex as disclosed in earnings presentations (90.2) Add back (8.7) Finance lease 11.1 Separation costs (6.9) Implementation costs (5.7) China move (7.3) Subtract (3.5) Proceeds from disposal of fixed assets (3.5) Capex as disclosed in the Financial Statements (102.5) 32

33 FY 2013 FCF Reconciliation In $ million PF FY 2013 (*) Adjusted EBITDA Change in Working Capital (**) 0.5 Capital Expenditure incl. Synergy (***) (90.2) Restructuring and Integration (Synergy and Stand-alone) (27.9) Operating Cash Flow as disclosed in the presentation 38.2 Tax paid (18.4) Separation costs (18.8) Sun fees (4.4) Interest costs (50.1) Net China compensation 28.0 Dream finance lease (non cash) (12.9) Rexam acquisition cash out (96.9) Perimeter effects (Annecy, Cotuplas) (9.0) Other (11.0) Free Cash Flow (155.2) (*) Including CMI (HK) Ltd. (**) Excluding impact of acquisition fees on WC (***) Excluding Dream, Simandre, Annecy and IT 33

34 Net Debt Evolution Since Rexam PC Acquisition In $ million (38.2) Albea stand-alone debt, preacquisition Rexam acquisition Proforma debt at deal closing as of December 31, 2012 Operating cash flow YTD 2013 Other cash debt items YTD 2013 (*) Non-cash debt items YTD 2013 (**) Net Debt as of December 31, 2013 (*) Other cash debt items include: Interest, Chinese compensation, tax, separation costs (**) Non cash debt items mainly include: Accrued interest, Dream and Forex losses 34

35 Leverage at 4.36x as of December 31, 2013 In $ million As of December 31, 2013 Liquidity Of which cash and cash equivalents Of which undrawn lines 84.3 Net Debt Adjusted EBITDA Net Debt / Adjusted EBITDA multiple 4.36 In $ million As of December 31, 2013 Cash on hand 83.6 North America ABL facility amount 60.0 Facility borrowing base as of December 31, Less amount utilised under NA ABL (10.1) Less minimum availability under NA ABL (7.5) North America ABL Net Availability 29.2 Europe A/R facility amount Facility borrowing base as of December 31, Less amount utilised under EUR A/R (42.0) Europe A/R Net Availability 55.1 Total Cash and Available Liquidity

36 Debt Issuance Programme: Details of Bond Financing Bonds issued in October 2012 Issuer and issuer jurisdiction Key Facts* Albéa Beauty Holdings S.A., Luxembourg Volumes and Terms 200 million 8.75% Senior Secured Notes due 2019 Listing Governing law Optional redemption Change of Control Covenants Corporate Ratings (*) For more details see Offering Memorandum (**) See following slide $385 million 8.375% Senior Secured Notes due 2019 Irish Stock Exchange New York Prior to Nov 1, 2015 and pursuant to equity claw back provision, up to 40% of the aggregate principal amount of the Notes (set redemption price) Prior to Nov 1, 2015, notes may be redeemed at all time, in whole or in part, at a price equal to 100% of the principal amount plus accrued and unpaid interest to the redemption date and a make-whole premium Other conditions apply after the end of the no call period. Main events that would constitute change of control: IPO Sale, lease, transfer, conveyance or other disposition of all or substantially all of the assets of the Issuer and its Restricted Subsidiaries Secured and subordinated, pari passu, negative pledge, cross default, no financial covenants Additional debt to be incurred by issuer or any restricted subsidiary along set debt ratio test (**) S&P: B+ / Stable Moody s: B2 / Stable 36

37 Permitted Debt and Guarantor Package: Status as of December 31, 2013 Permitted Debt (since Oct. 30 th 2012) Items Total Capacity (in $ million) Remaining Available Amount as of Dec 31, 2013 (in $ million) Capital Leases General Basket Local Overdraft and Working Capital Total Guarantor Package As per Offering Memorandum (June 30, 2012) As of December 31, 2013 Revenues 53.0% 47.0% 50.3% 49.7% EBITDA 47.0% 53.0% 44.3% 55.7% Non Guarantor Guarantor 37

38 Conclusion and Outlook

39 Continuous Assessment of Internal and External Drivers External Dynamics Operations Market environment remains challenging in all geographies (currencies, consumer demand). Start of the year shows lower growth in emerging countries (Brazil, China). General elections planned in India, Indonesia, Brazil. On-going focus on achieving operational excellence to meet more demanding customers. On track to achieve Year 2 synergies. Strategic and operational priorities clearly defined. Continuous endeavor to improve cash flow profile, through growth and further increase in profitability, leading to deleveraging over time. 39

40 More to Go on the Journey Established player in the beauty and personal care packaging market and optimally positioned to pursue growth opportunities. Proactively addressing our clients needs with custom-fit solutions according to size, business line, markets and geographical reach with strong focus on Operational Excellence. Wide and innovative product portfolio offering and within the various geographies that our clients are expanding into. Culture of innovation and technological leadership underpins our product expertise. Enhanced manufacturing footprint to achieve greater scalability and efficiency. Well defined strategic and operational priorities underpin overall focus on growth and path towards value creation. 40

41 Q&A

42 Albéa s Financial Calendar Upcoming Earnings Releases Q Earnings Release May 15, 2014 Q Trading Update July 24, 2014 Q Earnings Release August 28, 2014 Q Earnings Release November 13,