Albea Q1 2018 trading update VDER - albea-group.com · INNOVATION, DEVELOPMENT & DESIGN - Trading Update – Q1 2018. 4 of growth and expertise A history ... Axel Moreau Executive

Trading Update Q1 2018Albéa Group

GennevilliersMay 31, 2018

e

COMPANYOVERVIEW

3

Albéa is a global leader in beauty, personal care, oral care, pharmaceutical

and food packaging.

At a glance Albéa

15,500+EMPLOYEES

39INDUSTRIAL FACILITIES

IN 16COUNTRIESWORLDWIDE

$1.5BILLION

IN 2017 (+4% vs 2016)

$70MILLION

IN 2017

~200 PEOPLE

IN TOP 50 PATENTFILERS IN FRANCE

SALES INVESTMENTINNOVATION,

DEVELOPMENT & DESIGN

- Trading Update – Q1 2018

4

of growth and expertiseA history

2004 2010 2011 2012

#1 IN PLASTIC TUBES #1 IN LAMINATE TUBES #1 IN COSMETIC RIGID PACKAGING

#2 IN DISPENSING SYSTEMS

2016

2004

Cebal and Techpack –

previously part of

Pechiney Emballages –

become Alcan Packaging

(AP) Beauty

July 2010

AP Beautyis 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-Estlaminate tube facility

(Slovakia)

March 2018

PAI Partnersprivate equity fund

is Albéa’s

new shareholder

February 2018

Acquisition of

Covit metal parts

expert (Spain)

2018

CONSOLIDATION


5

Global reach, local presence39 facilities in 16 countries

Sales by regions

23 sites triple-certified

ISO9001 ISO14001

OHSAS18001

12 sites holdPharma/Foodspecifications

49%

37%

14%

Europe Americas Asia

SPAIN

1

METAL


6 - Trading Update – Q1 2018

(*) Cash and Availability position includes $98.9 million of net cash and $153.2 million of undrawn lines as of March 31, 2017 (it includes $85.3 million RCF undrawn)

(**) Net Debt (non-GAAP IFRS measure) , defined as total Albéa Gross Debt minus Cash and Cash equivalent as of March 31, 2018 at Albéa SA level . Net Debt does not include post PAI acquisitions impacts as equity/net debt IFRS classification still under review with auditors.

.

Key Organic Financials

� Q1 2018 Group Sales at $402.6 million, up 3.8% year-on-year at same rate and perimeter

� Q1 2018 Group EBITDA at $49.0 million, up 1.8% year-on-year at same rate and perimeter

� LTM Reported EBITDA of $194.7 million as of March 31, 2018

Cash and Liquidity

� Negative Operating Free Cash Flow of ($12.1) million in Q1 2018

� Total Cash and Availability (*) of $252.1 million as of March 31, 2018

� Net Debt (**) of $ 867.2 million as of March 31, 2018 excluding acquisition debt

Encouraging sales growth with still margin expansion in Q1 2018

Other

� Completion of COVIT acquisition the 27th February, 2018

7(*) 2017 sales/Adjusted Ebitda at 2018 rates

2018 sales/Adjusted Ebitda restated with perimeter effect

Q1 2018 Growth up by 3.8% driven by strong Europe and America

In $ million Q1 2018 Q1 2017 Delta

Organic sales (*) 402,6 388,1 3,8%

Europe 217,1 204,8 6,0%

America 144,1 140,4 2,6%

North america 120,7 119,4 1,1%

South America 23,4 21,0 11,4%

Asia 53,9 56,3 -4,2%

China & Hong Kong 29,7 35,0 -15,1%

Southeast Asia 24,2 21,3 13,6%

Perimeter effect (Covit) 1,6 1,6

FX translation effects 29,2

Organic Sales by segment (*) 402,6 388,1 3,8%

Tubes 178,0 166,2 7,1%

CRP 224,3 221,9 1,1%

Reported sales 404,2 358,9 12,6%

Organic Adjusted Ebitda (*) 49,0 48,1 1,8%

Europe 27,7 25,3 9,6%

America 21,3 21,2 0,3%

North america 16,1 17,7 -9,2%

South America 5,2 3,5 49,4%

Asia 6,6 6,4 3,1%

China & Hong Kong 2,1 4,0 -47,5%

Southeast Asia 4,5 2,3 89,9%

Perimeter effect (Covit) 0,3 0,6

FX translation effects 3,1

Organic Adjusted Ebitda by segment 49,0 48,1 1,8%

Tubes 25,2 23,3 8,2%

CRP 30,4 29,6 2,7%

Reported Adjusted Ebitda 49,3 45,0 9,4%


8

Underlying negative Free Cash Flow impacted by the growth of our activity

Operating Free Cash flow is negative in Q1 impacted by :

� Significant growth on Sales (+ 3.8%) with temporary hit on Overdues

� Higher level of Inventories to secure good trend on Sales for the coming month

� Capex expenditures continue to be under close monitoring (3.9% of the sales in Q1)


Cash Flow - Albéa Group Q1 2018 Q1 2017

Adjusted EBITDA 49,3 45,0

Trade WC (41,8) (15,5)

Capex (15,9) (13,1)

Restructuring (1,3) (1,5)

Other WC (2,4) 0,7

Operating Free Cash Flow (12,1) 15,6

Tax paid (5,1) (3,1)

Projects costs 0,1 (4,1)

Sun Management fees (0,8) (1,2)

Interest costs (2,0) (1,7)

Other (3,1) (2,2)

Underlying Free Cash Flow (22,9) 3,2

Shenzhen net disposal 3,2

Covit acquisition (23,2)

Repricing effects (*) 47,4

Free Cash Flow 1,3 6,4

(*) Positive realized forex USD 63 million, fees USD (2.2) million and interest paid in advance USD (13.5) million

9

Adequate liquidity

In $ millionAs of Mar 31,

2018

Cash on hand Of which:- Europe- Americas- Asia

98.9 (*)

37.152.19.8

North America ABL facility amount 60.0

Facility borrowing base as of Mar. 31, 2017 55.3

Less amount utilised under NA ABL (3.0)

Additional FILO availability under NA ABL 4.7

North America ABL Net Availability 57.0

Europe Factoring facility amount 141.7

Facility borrowing base as of Mar. 31, 2017 26.2

Less amount utilised under EUR Factoring (15.3)

Europe A/R Net Availability 10.9

RCF Availability 85.3

Total Liquidity 252.1

(*) Excluding cash in Hercule holdings - Trading Update – Q1 2018

In $ million As of Mar 31,

2018

Consolidated Senior Secured Net Debt (*) 846,2

LTM Adjusted EBITDA 194,7

Leverage 4,35

(*) Consolidated Senior Net Debt Albéa Beauty Holding is calculated in accordance the definition disclosed in the Term Loan B Agreement

Leverage at 4.35x

PRODUCTS& MARKETS

11

Cat’s Eyesfamiy

D.N.AirlessNew Actuators

Our latest product innovations

Ovation™ Reflexion™ tubes O2 Wall™ tubes Tear Drop Artist Bubble

Nea Platform SP22 Panache Pulse

Sofix Premia Fancy & SatinyFoam Actuators

Magic Lashes family

Parisian Kiss Skyline SticksMaestro Onyx & QuartzCompacts


12

Hypnotic Lash Care brush Clarins – Teint Compact Haute Tenue Algenist - Hydrating Setting Mist

Proud of our achievementsAwards

Estée Lauder – Pure Color EnvyL’Oréal – Ice Tube Jean-Paul Gaultier - Scandal


GOING FORWARD

14

Our vision has remained unchangedThroughout our history,

We want to be

the best Beauty company

for all our stakeholders –

customers, employees, shareholders, suppliers, communities....


15

Albéa Management Team

VP & GMBeauty

SolutionsLaurent

Bourgoin

Albéa CEO & PresidentFrançois Luscan

Executive VP, Global Business Services & Solutions

François Tassart

Executive VP, Human Resources & EHS

Axel Moreau

Executive VP, Americas

Jose Filipe

Executive VP & General Counsel, Company SecretaryCharles-Antoine Roucayrol

Executive VP, Transformation

Luc Rousselet

VP, Communications

Cécile Tuil

Executive VP, Tubes Arnaud Schuh

Executive VP, Cosmetic Rigid Packaging & Dispensing Systems

Guillaume de Demandolx

Executive VP, Beauty Solutions Xavier Leclerc de Hauteclocque

VP & GMDispensing

SystemsJoseFilipe

VP & GMChina

Michael Zhang

VP & GMCRP

EuropeSerge Darsat

VP & GMCRP

N. AmericaCarlosRubio

VP & GMBrazil

Rodrigo Brett

VP & GMTubes

EuropeFrederic Schryve

VP & GMTubes

N. AmericaRoy

Turner

VP & GMIndia

LesterPinto

VP & GMIndonesia

David Tanudisast

ro

Chief Financial Officer & Executive VP

Bruno Manac’h

Executive Committee

As of May 31, 2018

16

PAI Partners – pan-European leader in Private EquityExperienced, committed and focused Fund has consistently delivered long-term performance

Sample of General Industrials Realised Investments

� Leading pan-European private equity firm and amongst the most experienced of its asset class

� Origins dating back to 1872 as the principal investment arm of Paribas; raising third party funds since 1998

� 8 offices across Europe and North America

� 60 experienced investment professionals of which 19 Partners have an average tenure at PAI of 16 years

� €13.8bn of capital raised to date and €8.4bn current AuM

� Our investors are global pension funds, insurance companies, governmental organisations, banks, fund of funds and HNW individuals

� Invests out of PAI Europe VI, a €3.3bn fund which closed in March 2015

� Since 1998, invested over €9.4bn in 63 buyout transaction across Europe with strong track record of outperformance for our investors

� Focuses on five core sectors, enabling deep sector knowledge

� Transformational investment strategy creating market leaders through consolidation and strategic partnerships

� Focused on markets where growth can be sustained through economic and financial market cycles

� Outstanding track record in General Industrials sector

� 11 Investments representing a total EV of €8.0bn accounting for some of the most successful PAI investments

Sample of other benchmark PAI Investments

VI

VIV

III

VI VIV

IV


17

Organization chart –Post PAI Acquisition

Albéa Group structure – [March 31, 2018]


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Albea Q1 2018 trading update VDER - albea-group.com · INNOVATION, DEVELOPMENT & DESIGN - Trading Update – Q1 2018. 4 of growth and expertise A history ... Axel Moreau Executive

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