Ontex FY 2020 results: Revenue decrease mainly from lower sales in Europe, operating margin improvement. New CEO sets strategic priorities to restore growth and value creation.

REGULATED INFORMATION

Ontex FY 2020 results:

Revenue decrease mainly from lower sales in Europe, operating margin improvement.

New CEO sets strategic priorities to restore growth and value creation.

Aalst-Erembodegem, February 24, 2021 - Ontex Group NV (Euronext Brussels: ONTEX) today announced its results for the three months and twelve months ending December 31, 2020.

• • Revenue:€2,087 million, -9% at reported currencies, -3% LFL vs. 2019 in a context of shifting demand patterns, and lost business in Europe

• • Adjusted EBITDA: €236 million, -4% at reported currencies, with margin of 11.3% (+55 bps): Strong procurement gains, favorable raw material indices, partly offset by lower operating leverage

• • Sales and Adjusted EBITDA impacted by major currency headwinds from March 2020

• • Adjusted EPS:€1.01, down 6%

• • Free cash flow: €60 million, net debt down 1.6%, leverage under control at 3.6x at December 31,

  2020

New Strategic Priorities

Since being appointed on January 1, CEO Esther Berrozpe has set Ontex's new strategic priorities to restore growth and value creation targeting the following key areas:

• • Portfolio focus: simplify the business and product portfolio

• • Customer centricity: strengthen customer relations and restore growth

• • Innovation: refocus R&D investments to accelerate the cadence of new product launches

• • Operational excellence: restore manufacturing and service performance

• • Environmental and social: set long-term goals and roadmap

• • Organization & Culture: transform the culture of the group to drive accountability and performance with a streamlined organization

Esther Berrozpe, Ontex CEO, commented: "I am excited to have taken over as CEO of Ontex. The company possesses a number of major assets that once realigned represent significant potential for value creation for our shareholders. Past initiatives have neither been sufficient nor have they delivered the expected benefits. We have already started work on setting our priorities for the future to return Ontex to growth, sustainable margins and cash generation with a solid financial structure. We will share our plans at a later date with the full management team.

I know that I can count on the commitment of Ontex's employees to rise to this challenge and build a new successful chapter for the Group."

2021 Outlook

Based on current visibility, we expect a low double digit decrease of Group LFL revenue in Q1 against a high comparable basis in 2020, with Europe's sales hitting their low point in this quarter. A sales recovery is expected to start in Q2.

The immediate focus is to turn our strategic priorities into deliverable action plans in a context of increasing raw material prices.

We will provide updates on our 2021 prospects as we progress.

1

All definitions of Alternative Performance Measures (APMs) in this press release can be found in Note 5 of the Notes to the Consolidated Financial Information

REGULATED INFORMATION

Key Financials for FY 2020 and Q4 2020

Full Year

Fourth QuarterIn € million, except per share data

2020

2019

Variance

2020

2019

Variance

Reported Revenue

2,086.8

2,281.3

LFL Revenue

2,210.7

2,281.3

Adjusted EBITDA

235.6

245.1

-8.5%-3.1%-3.9%

525.5

592.6

570.8

592.6

52.5

72.7

-11.3% -3.7% -27.7%

Adjusted EBITDA Margin

11.3%

10.7%

55 bps

10.0%

12.3%

-227 bps

Adjusted EBITDA at constant currencies

309.7

245.1

26.4%

78.0

72.7

7.2%

Adjusted EBITDA Margin at constant currencies

14.0%

10.7%

323 bps

13.7%

12.3%

139 bps

Adjusted profit/(loss) for the period

81.6

86.4 -5.5%

Adjusted EPS

1.01

1.07 -5.6%

Non-recurring income and expenses

(37.9)

(70.3) -46.2%

Profit/(Loss) for the period

54.0

37.3 44.9%

Basic EPS

0.67

0.46 44.8%

Free Cash Flow

59.5

109.7 -45.8%

Net Debt

847.6

861.3 -1.6%

Net Debt / LTM Adjusted EBITDA

3.60x

3.51x 0.09x

Notes which apply to this document

Unless otherwise indicated, all comments in this document on changes in revenue are on a like-for-like basis (at constant currencies). Definitions of Alternative Performance Measures (APMs) in this document can be found in note 5 of the Notes to the Consolidated Financial Information.

Due to rounding, numbers presented throughout this press release may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.

Dividend related to 2020

The Board of Directors will decide on their proposal for the payment of a dividend related to 2020 ahead of the AGM.

FY 2020 Highlights 2020 was marked by volatility in demand, operating conditions and currencies related to the COVID-19 pandemic from March onwards.

After a surge in demand drove our first quarter sales to record levels, in particular in Europe, activity dropped sharply in the second quarter, and demand across the traditional distribution channels did not return to pre-pandemic levels. In the second half, our sales were impacted by the pandemic-related shift to online sales, where retail brands are less present. Furthermore, demand decreased in several emerging markets due to economic downturn. Our reported sales also reflect the steep and lasting depreciation of most emerging market currencies.

Revenue of €2,087 million was down 3.1% LFL for the full year 2020, and down 8.5% on a reported basis. This includes a €130 million unfavorable currency effect from the major depreciation of several key functional currencies against the euro, notably the Mexican Peso, Brazilian Real and Turkish Lira. The decrease in LFL sales mainly reflects lower demand for personal hygiene products

2

All definitions of Alternative Performance Measures (APMs) in this press release can be found in Note 5 of the Notes to the Consolidated Financial Information

REGULATED INFORMATION

in tracked retail channels from the second quarter onwards as well as contract losses in Europe, partly offset by a resilient performance in Healthcare and growth in Brazil, Turkey and the US.

Adjusted EBITDA of €236 million in 2020 was down 3.9% compared with prior year, and Adjusted

EBITDA margin was up 55 bps to 11.3%. At constant currencies, Adjusted EBITDA stood at €310

million (up 26.4%): Strong procurement savings and lower raw material indices outweighed the impact of lower sales and operating leverage, inflation on costs and COVID-19 related costs for €14 million. The full year currency impact was €74 million unfavorable.

Free cash flow stood at €60 million, down €50 million compared with 2019, on lower cash generation from recurring trade activities and higher outflows related to non-recurring items.

Capital expenditure net of disposals was €105 million.

Net debt stood at €848 million at December 31, 2020, a reduction of €30 million vs. September 30, 2020 and €14 million vs. December 31, 2019. Leverage remained under control at 3.60x at

December 31, 2020, and we remained in full compliance with our bank debt leverage covenant at December 31, 2020. Net debt excluding IFRS 16 Lease liabilities was €715 million at year-end.

Transform to Grow (T2G)

Ontex generated €66 million of T2G-related gross gains in Adjusted EBITDA at constant currencies in 2020.

The operational workstreams delivered gross gains of €102 million. We remained ahead of our targets in procurement, excluding any benefit from lower raw material indices, but as already reported, the delivery of our improvement targets in manufacturing and supply chain has been taking more time than initially anticipated and was below expectations.

Lower business with several retail brand customers hindered the deployment of planned initiatives to enhance customer value propositions and product mix optimization. Consequently, the T2G commercial workstreams did not deliver the expected benefits, and the unfavorable evolution of volumes and price/mix, as well as marketing investments to support our brands, had a negative impact of €36 million on Adjusted EBITDA in 2020.

The forecast cost for the implementation of T2G over 2019 - 2022 has been reduced by €25 million, from €85 million to €60 million, reflecting lower reorganization expenses as well as cuts in

performance-based professional fees and management incentives. As previously disclosed, our capital expenditure for 2020 and 2021, including investments related to T2G, will remain within 5% of net sales.

3

All definitions of Alternative Performance Measures (APMs) in this press release can be found in Note 5 of the Notes to the Consolidated Financial Information

REGULATED INFORMATION

Operational Review: Categories

Full Year

Fourth Quarterin € million

2020

2019

% ∆ as reported

% ∆ at

LFL

2020

2019

% ∆ as reported

% ∆ at

LFL

Ontex Reported Revenue

2,086.8

2,281.3

-8.5%

-3.1%

525.5

592.6

-11.3%

-3.7%

Baby Care

1,162.5

1,345.7

Adult Incontinence

679.5

692.0

Feminine Care

212.2

212.7

Other

32.6

30.9

-13.6% -1.8% -0.2% +5.4%

-7.1%+3.3%-1.5%+16.8%

290.8

356.0

175.8

174.9

50.0

53.1

9.0

8.6

-18.3% +0.5% -6.0% +5.4%

-9.3% +8.6% -9.9% +19.2%

FY 2020 sales in Baby Care decreased by 7.1% versus prior year. After a strong surge at the end of the first quarter triggered by the pandemic outbreak, market demand for Baby Care products contracted in retail channels and accelerated in online channels as consumer purchase habits shifted. Contract losses also accounted for lower sales in Europe. Demand in several emerging markets decreased due to the economic downturn, outweighing growth in Brazil and the US. Overall, baby pants outperformed baby diapers, particularly in the AMEAA Division.

Adult Incontinence products delivered the best category revenue performance for the third consecutive year, growing by 3.3% in FY 2020. Adult Inco sales in retail channels grew 8% thanks to our leading position supplying our retail customers with their proprietary brands in Europe, as well as strong Ontex brand sales in Brazil, Mexico and Turkey. In our Healthcare Division, growth in the self-pay channel, home delivery and e-commerce offset lower activity with hospitals and nursing home due to the pandemic. The shift in demand towards Adult pants continued, resulting in sales growth that outpaced the overall category.

Feminine Care revenue was down 1.5% for the full year 2020. Lower revenue in Europe, from lower in-store demand for retail brands and contract losses, outweighed the growth reported by the AMEAA Division in the first half of the year.

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All definitions of Alternative Performance Measures (APMs) in this press release can be found in Note 5 of the Notes to the Consolidated Financial Information