e Trading Update Q3 2018 Albéa Group Gennevilliers, Nov. 30 th 2018 Gennevilliers
COMPANY OVERVIEW
Albéa at a glance All you need to know 3 - Trading Update Q3 2018
We serve the world s dynamic brands Big and small, local and international 4 - Trading Update Q3 2018
We contribute to our customers success Tubes L Oréal Revitalift Miracle Blur SOS Primer Clarins Givenchy Cushion Kiss L Occitane Rose & Cream Dove Derma Spa Klorane Nutrition Garnier Belle Color President Toothpaste J&J Eczema Essentials Beneditca Mayonnaise K2R CRP La Bouche Rouge Maybelline Super Stay Matte Ink Dior Palette 5 Couleurs Makeup For Ever Ultra HD Pressed Powder Cover Girl Peacock Benefit Bagdal Bang! Clarins Perfect Skin Pores & Matite Avon - Mark Touch & Glow Cartier L Envol Dolce & Gabbana Dolce Dispensing Systems Armani Si Sampler Lancôme La Vie est Belle Jean-Paul Gaultier Scandal Tiffany&Co Tiffany Aesop Protective Facial Lotion Nuxe Aquabella Maybelline Super Stay Harry s Post-Shave Mist Cranium Care Head Wash Chanel Deodorant Johnson & Johnson Clean & Clear Beauty Solutions L Occitane Peony Pouch Coach Perfume accessory Sephora Kiss Me Balm Black Up Contouring 3D Sponge KLM Business Class Avon Mark Eyeshadows Monnaie De Paris Le Petit Prince Collection Natura Aquarella 5 - Trading Update Q3 2018
We operate 39 facilities in 16 countries Global reach, local presence 6 6 - Trading Update Q3 2018 23 sites triple-certified ISO9001 ISO14001 OHSAS18001 12 sites hold Pharma/Food specifications
We are proud of our history Growth and expertise 2004 Cebal and Techpack previously part of Pechiney Emballages become Alcan Packaging (AP) Beauty July 2010 AP Beauty is acquired by Sun Capital Partners private equity fund November 2010 AP Beauty becomes Albéa January 2011 Acquisition of Betts (laminate tubes) November 2011 Acquisition of Eyelematic (decoration & surface treatment) April 2012 Acquisition of Tex China (rigid cosmetic packaging) December 2012 Acquisition of Rexam PC (rigid cosmetic packaging & dispensing systems) February 2016 Acquisition of Silgan s plastic tube assets (North America) August 2016 Acquisition of Scandolara Tub-Est laminate tube facility (Slovakia) February 2018 Acquisition of Covit metal parts expert (Spain) March 2018 PAI Partners private equity fund is Albéa s new shareholder 2004 2010 2011 2012 2016 2018 #1 IN PLASTIC TUBES #1 IN LAMINATE TUBES #1 IN COSMETIC RIGID PACKAGING #2 IN DISPENSING SYSTEMS CONSOLIDATION 7 - Trading Update Q3 2018
Circularity ONE AMBITION We want to improve the environmental, social and economic footprint of our business, while actively contributing to the development of an efficient circular economy in the beauty and personal care industry. FOUR PILLARS TWO TARGETS 8 - Trading Update Q3 2018
FINANCIAL DATA
Viable & Sustainable Sales Growth in Q3 2018 with steady margin pace Key Organic Financials Q3 2018 Group Organic Sales at $1 177.8 million, up 3.4% year-on-year at same rate and perimeter Q3 2018 Group Organic EBITDA at $146.8 million, slightly down -1% vs last year at same rate and perimeter LTM Reported EBITDA (*) of $193.6 million as of September 30, 2018 Cash and Liquidity Positive Operating Free Cash Flow $27.9 million at of September 30, 2018 Total Cash and Availability (**) of $226.6 million as of September 30, 2018 Net Debt (***) of $ 853.4 million as of September 30, 2018 excluding acquisition debt (*) LTM Adjusted EBITDA (including 7 months of COVIT) (**) Cash & Availability position includes $92.3 million of net cash and $134.2 million of undrawn lines as of September 30 th 2018 (of which $86.5 million of undrawn RCF) (***) Net Debt (non-gaap IFRS measure), defined as total Albéa Gross Debt minus Cash and Cash equivalent as of September 30 th 2018 at proforma level Albea Beauty holding including all TLB loan post novation operation 10 - Trading Update Q3 2018
Continuous Growth in Sales by +3.4% Q3 2018 YTD still driven by strong Brazil and good Europe In $ million Q3 2018 Q3 2017 Delta Q3 2018 YTD Q3 2017 YTD Delta Organic sales (*) 379,5 370,3 2,5% 1 177,8 1 139,5 3,4% Europe 198,4 189,5 4,7% 627,1 593,1 5,7% America 139,1 139,2-0,1% 425,9 419,4 1,5% North america 117,7 120,8-2,6% 358,2 361,8-1,0% South America 21,4 18,4 16,4% 67,6 57,6 17,5% Asia 56,6 54,8 3,3% 166,9 168,3-0,8% China & Hong Kong 33,8 34,3-1,4% 98,3 105,3-6,7% Southeast Asia 22,7 20,4 11,2% 68,6 63,0 9,0% Perimeter effect (Covit) 3,2 4,0 9,3 9,9 FX translation effects -8,8 32,7 Organic Sales by segment (*) 379,5 370,3 2,5% 1 177,8 1 139,5 3,4% Tubes 157,4 157,3 0,0% 500,3 486,4 2,9% CRP 222,2 213,0 4,3% 677,5 653,1 3,7% Reported sales 382,7 379,0 1,0% 1 187,1 1 106,8 7,2% Organic Adjusted Ebitda (*) 46,3 45,4 2,1% 146,8 148,3-1,0% Europe 26,4 23,2 13,5% 83,2 75,9 9,6% America 16,0 18,9-15,2% 58,1 61,6-5,6% North america 12,2 15,7-22,0% 44,6 51,5-13,5% South America 3,8 3,3 17,7% 13,5 10,1 34,4% Asia 7,8 6,8 15,7% 21,2 21,1 0,2% China & Hong Kong 3,7 3,1 18,9% 9,4 11,2-16,0% Southeast Asia 4,1 3,6 12,9% 11,8 9,9 18,7% Perimeter effect (Covit) 0,4 0,8 1,7 2,5 FX translation effects -1,5 2,9 Organic Adjusted Ebitda by segment 46,3 45,4 2,1% 146,8 148,3-1,0% Tubes 20,5 21,1-3,0% 69,5 70,2-0,9% CRP 29,8 27,8 7,0% 93,0 88,5 5,1% Reported Adjusted Ebitda 46,8 46,9-0,2% 148,5 145,4 2,2% 11 - Trading Update Q3 2018 (*) 2017 sales/adjusted Ebitda at 2018 rates 2018 sales/adjusted Ebitda restated with perimeter effect
Positive Operating Free Cash Flow Cash Flow - Albéa Group Q3 2018 YTD Q3 2017 YTD Adjusted EBITDA 148,5 145,4 Trade WC (57,4) (28,9) Capex (54,2) (43,9) Restructuring (3,7) (4,2) Other WC (5,3) (7,4) Operating Free Cash Flow 27,9 61,0 Tax paid (21,5) (12,3) Projects costs (8,6) (10,7) Sun Management fees (0,8) (3,4) Interest costs (28,9) (35,6) Other (1,2) (1,7) Underlying Free Cash Flow (33,1) (2,8) Shenzhen net disposal 3,2 Covit acquisition (23,3) M&A Savcor and CEP (4,5) Refinancing (199,5) Repricing effects (*) 56,8 Novation (**) 8,2 Decrease in Operating Free Cash Flow vs. Last year: Strong level of sales lead a higher Trade Working capital Good monitoring in order to secure positive trend on Sales in the coming quarters +$10.3 million in Capex expenditures to support growth in activity Free Cash Flow 4,1 (199,0) (*) Positive realized forex USD 63 million, Repricing fees USD (3.2) million and EUR CAP for USD (3) million (**) Positive FX due to Transfer of USD 252.9m to US entities and Repayment of existing USD loan in Luxembourg 12 - Trading Update Q3 2018
Appropriate liquidity In $ million As of Sept. 30 th 2018 Leverage at 4.22 x Cash on hand Of which: - Europe - Americas - Asia 92.3 (*) 25.9 15.1 51.3 North America ABL facility amount 60.0 Facility borrowing base as of Sept. 30 th 2018 56.6 Less amount utilised under NA ABL 12.6 Additional FILO availability under NA ABL 3.4 North America ABL Net Availability 47.4 Europe Factoring facility amount 133.1 Facility borrowing base as of Sept. 30 th 2018 24.0 Less amount utilised under EUR Factoring (23.7) Europe A/R Net Availability 0.4 RCF Availability 86.5 Total Liquidity 226.6 13 - Trading Update Q3 2018 (*) Excluding cash in Hercule holdings
GOING FORWARD
We share a vision We want to be the best company for all our stakeholders 15 - Trading Update Q3 2018
Albéa Management Team Executive Committee As of July 27, 2018 Albéa CEO & President François Luscan Chief Financial Officer & Executive VP Bruno Manac h Executive VP, Global Business Services & Solutions François Tassart Executive VP, Human Resources & EHS Axel Moreau Executive VP, Transformation Luc Rousselet Executive VP & General Counsel, Company Secretary Charles-Antoine Roucayrol VP, Special Projects Jose Filipe VP, Communications Cécile Tuil Executive VP, Tubes Arnaud Schuh Executive VP, Cosmetic Rigid Packaging & Dispensing Systems Guillaume de Demandolx Executive VP, Beauty Solutions & America Xavier Leclerc de Hauteclocque Tubes Europe Arnaud Schuh Tubes N. America Roy Turner India Lester Pinto Indonesia David Tanudisastro Dispensing Systems Bill Riley China Michael Zhang CRP Europe Serge Darsat CRP N. America Carlos Rubio Brazil Rodrigo Brett Metal Llui Munne Beauty Solutions Laurent Bourgoin 16
Albéa Group structure [September 30, 2018] Organization chart (*) Post PAI Acquisition & June TLB Novation operation shortly renamed Albéa Group S.A.S. (*) The chart above reflects the corporate and financing structure of the group as at 30 June 2018. Certain changes to our corporate structure have occurred since 30 June 2018, and we expect additional changes to continue optimizing our corporate structure will continue in the near term 17 - Trading Update Q3 2018
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