Asaleo Care : Full Year Results Presentation

Important Notice and Disclaimer

This presentation has been prepared by Asaleo Care Limited (ACN 154 461 300) (Company). This presentation contains summary information about the Company, its subsidiaries and the entities, businesses and assets they own and operate (together, the Group) and their activities current as at 16 February 2021 unless otherwise stated and the information remains subject to change without notice. This presentation contains general background information and does not purport to be complete. It has been prepared by the Company with due care but so far as applicable laws and regulatory requirements permit, the Group and its officers, employees and representatives provide no representation, warranty or assurance, express or implied, in relation to the accuracy, reliability, fairness or completeness of the information, opinions or conclusions in this presentation. This presentation is not directed at, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any jurisdiction where such distribution, publication, availability or use would be contrary to applicable law or regulation.

Not an offer or financial product advice: The Company is not licensed to provide financial product advice. This presentation is not and should not be construed as, and does not contain or purport to contain, legal, tax, accounting or investment advice or an offer or an invitation to sell, or a solicitation of an offer to buy, directly or indirectly, securities in any member of the Group or any other financial products. This presentation is for information purposes only.

Financial data: All dollar values are in Australian dollars ($ or A$). Any financial data in this presentation is unaudited.

Effect of rounding: A number of figures, amounts, percentages, estimates, calculations of value and fractions in this presentation are subject to the effect of rounding. Accordingly, the actual calculation of these figures may differ from the figures set out in this presentation. Similarly, diagrams used in this presentation are illustrative only and may not necessarily be shown to scale.

Underlying financial information: As a result of non-recurring income and expenditure in FY20 and FY19, underlying financial information is included in this presentation.

Past performance: Any operating and historical financial information given in this presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of the Company's views on its future performance or condition. Actual results could differ materially from those referred to in this presentation. You should note that past performance of the Group is not and cannot be relied upon as an indicator of (and provides no guidance as to) future Group performance.

Future performance: This presentation contains certain "forward-looking statements". The words "expect", "anticipate", "estimate", "intend", "believe", "guidance", "propose", "goals", "targets", "aims", "outlook", "forecasts", "should", "could", "would", "may", "will", "predict", "plan", "project" and other similar expressions are intended to identify forward-looking statements. Any indications of, and guidance on, future operating performance, earnings and financial position and performance are also forward-looking statements. Forward-looking statements in this presentation include statements regarding the Company's future financial performance, growth options, strategies and new products. Forward-looking statements, opinions and estimates provided in this presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Recipients of this presentation are strongly cautioned not to place undue reliance on forward-looking statements.

Forward-looking statements, including projections, guidance on future operations, earnings and estimates (if any), are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. No representation is given that the assumptions upon which forward looking statements may be based are reasonable. This presentation contains statements that are subject to risk factors associated with the Group's industry, or statements which may assume the success of the Group's business strategies, the success of which may not be realised within the period for which the forward-looking statement may have been prepared, or at all. These forward-looking statements may be affected by a range of variables which could cause actual results or trends to differ materially, including but not limited to earnings, capital expenditure, cash flow and capital structure risks and general business risks. No representation, warranty or assurance (express or implied) is given or made in relation to any forward-looking statement by any person (including but not limited to its accuracy, likelihood of achievement or reasonableness). In particular, but without limitation, no representation, warranty or assurance (express or implied) is given that the occurrence of the events expressed or implied in any forward-looking statements in this presentation will actually occur. Actual operations, results, performance or achievement may vary materially from any projections and forward-looking statements and the assumptions on which those statements are based. Any forward-looking statements in this presentation speak only as of the date of this presentation. Subject to any continuing obligations under applicable law, the Company disclaims any obligation or undertaking to provide any updates or revisions to any forward-looking statements in this presentation to reflect any change in expectations in relation to any forward-looking statements or any change in events, conditions or circumstances on which any such statement is based. Nothing in this presentation will under any circumstances create an implication that there has been no change in the affairs of the Group since the date of this presentation.

Non-IFRS terms: This presentation contains certain financial data that has not been prepared in accordance with a definition prescribed by Australian Accounting Standards or International Financial Reporting Standards, including the following measures: EBITDA, EBITDA margin, EBIT, maintenance capital expenditure, growth capital expenditure or performance improvement capital expenditure. Because these measures lack a prescribed definition, they may not be comparable to similarly titled measures presented by other companies, and nor should they be considered as an alternative to financial measures calculated in accordance with Australian Accounting Standards and International Financial Reporting Standards.

Although the Company believes that these non-IFRS terms provide useful information to recipients in measuring the financial performance and the condition of the business, recipients are cautioned not to place undue reliance on such measures. 2

• • Retail and B2B Healthcare collectively up 6.7%

• • Market share growth in key retail categories

• • Professional Hygiene down only 4% despite COVID-19 restrictions impacting "away-from-home" activity

• • EBITDA up 6.3% despite 11% increase in brand investment

• • Margin growth 1.9pp; favourable input costs, mix

• • Continuing NPAT up 25.2%

• • No COVID-19 related government assistance

• • Net debt reduction $44.4m

• • Leverage ratio down to 1.21

• • Dividend declared 3 cps; fully franked

• • Finance facilities extended

• • Less exposure to capital intensive, low margin consumer tissue

• • Exited baby category NZ

• • TOM Organic acquisition completed 29 January 2021

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