Investor PresentationFull Year 2015Albéa Beauty Holdings SA
GennevilliersApril 14th, 2016
Today’s Speakers
François LuscanPresident & CEO
31 years of experience in Beauty and Packaging industries
Led Alcan Beauty Packaging’s transition to Albéawith new shareholder (Sun Capital) in 2010
Xavier Leclerc de HauteclocqueExecutive VP & Chief Financial Officer
10 years of experience in Beauty and Packaging industries
Previously, held finance roles at CamaudMetalbox(Crown Cork & Seal), Guerlain (LVHM Group) and as CFO of Brake France (CD&R)
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Forward looking statement
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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 forward-looking 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.
Agenda
� Company overview
� Business update
� Financial and Operational Highlights
� Group Financials
� Key Takeaways
� Appendices
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Company overview
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Albéaat a glance
Albéa is a global leader in beauty, personal care, oral care, pharmaceutical and food packaging
15,000+EMPLOYEES
38 INDUSTRIAL FACILITIES IN 14COUNTRIES ACROSS THE WORLD
SALES:
US$ 1.4 BILLIONINVESTMENTS:
80 MILLIONUS$ IN 2015
INNOVATION, DEVELOPMENT & DESIGN:
∼ 200 PEOPLEIN TOP 50 PATENT FILERS IN FRANCE
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The Global Leader in Beauty and Personal Care Packaging
Global Market Leadership
A Leading provider of beauty, personal care and oral care packaging
#1 in rigid packaging, which includes plastic & laminate tubes, in lipstick and mascara, in foam pumps & fragrance samplers worldwide
#2 in dispensing systems, which includes fragrance pumps worldwide
Powerful presence in emerging markets
$1,398m Sales
$158m Adj. EBITDA
15,364 employees worldwide as of December 2015
38 production facilities in 14 countries; headquarters in France
Key Figures (2015)
Sales by Geographic Region Sales by Segment Sales by Customer Type
41%
59%
Tubes Cosmetic Rigid Packaging
51%
27%
22%
Global Accounts Key Accounts Small & Medium Accounts
45%
38%
17%
Europe Americas Asia
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A comprehensive product range
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Four expertise
TUBES DISPENSING SYSTEMS
COSMETIC RIGID PACKAGING
BEAUTY SOLUTIONS
#1 in plastic and laminate tubes
#1 in foam pumps and fragrance samplers
#2 in fragrance pumps recognized expert in
lotion pumps
#1 in mascara (pack + brush) #1 in lipstick
(mechanism + shell) recognized expert
in fragrance caps, compact, lipgloss, skincare packs
market-valued provider of promotional items, stock items and accessories, full-service
solutions
One-Stop-Shop service Easier project management, faster time -to-marketAlbéa’s One-Stop-Shop capabilities support fast time-to-market and easy project management with single point of contact for cross-technology developments, complex logistics, multiple product expertise.
COMPLETEPACKAGING SOLUTIONS
Complete packaging solutions provide added-value technical
synergies and projectmanagementoptimization
Tube + Pump
Complete solutionsClosure + Decoration + Pump
Full service: pack + formula
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Closure + Pump + Sampler
Closure +Pump
Combined packaging solutions provide added-value supply-chain
optimization
Tubes+Applicators
COMBINEDPACKAGING SOLUTIONS
Semi-automatic assembly
Automated assembly
High-speed complex assembly
Printing
Varnishing
Metalizing
Electroplating
Laser
Hot stamping
Anodizing
Labelling
Technical know-how
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100% integrated
Innovation & Development
Conversion Decoration Assembly Supply-ChainRaw MaterialsEND MARKET
Mold design
Mold prototypes
Printing plates
Sample production
Compatibility testing
Functional testing (impact resistance, resistance to wear)
Industrialization
Plastic resins/films
Aluminum
Inks
Metal
Extrusion
Tube laminate (web) production
Tube-making
Injection
Blow-moulding(IBM, EBM)
Multi-injection
Elastomer over-moulding
Metal forming (stamping, eyeleting,
embossing)
Just-in-time delivery
Supplier-managed inventory
Dual sourcing
Complex turnkey projects
Complementary sourcing of
packaging and accessories
Services
• Project Management • Intellectual Property • Regulatory Affairs • Full Service • Kitting • Account Management
Albéa
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A unique value proposition
BROAD RANGEOF PACKAGING SOLUTIONS
Providing innovation, design & development capabilities and offering one-stop-shop opportunities across our product range.
INDUSTRIAL EXPERTISE
Investing continuously in new equipment, buildings, operating processes and training to leverage our technical know-how and our integrated conversion, decoration, assembly metallization and molding capabilities.
LOCAL PRESENCE AND GLOBAL REACH
Supporting all our international, regional and local customers’ ambitions with our 38 sites across Europe, Asia and the Americas.
COMMITMENT TO CORPORATE SOCIAL RESPONSIBILITY
Acting responsibly and impacting positively the world we live in –with a 10-year track record.
PASSIONATE PEOPLE
Contributing to the success of our customers and the happiness of their customers for more than 50 years.
Business update
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2015 was a great year
� Albea has been able to deliver solid growth in most market offset by footprint projects
� Albea focus on fundamentals to improve EHS, Quality, Supply Chain and New Product Development as wellcontinuous improvement and procurement.
- New sites with ISO certifications and OHSAS across our footprint- 20 sites with no accident at all
� Albea focus on transformation of our sites, our processs and enter in the Digital era- 2 new SAP rollouts without busines disruption now covering close to 70%- 700 people trained on a new collaborative NPD platform- 10 sites are now using smart glasses for remote maintenance and agility- S&OP program progressing well toward a new supply chain model- First digital printers for tubes to offer best in class lead times- 3D printing investment to better serve our customers- Albea pulse for real time monitoring of industrial performance on smartphone
� Albea focus on people with with a new structure and new talents- development on social network (twitter, Linked in)
� Albea focus on delivering CSR commitment- Albea ranked by Ecovadis in the top 30% performers for sustainability
� With all those fundamentals and transformation in progress Albea has been able to better serve our customersand increase our share of wallet with Innovations and New products.
Business update
1.Market Evolution
Market : where do we play ? From total market to Albéa’s addressable markets
2.0
2.4
2.6
3.0
6.2
1.0
2.6
1.1
14.4
0.31.8
0.31.4
0.6 0.4 0.1
1.2
2.0
1.4
1.7
1.5
0.61.4
1.8
1.8
5.0
0.10.4
7.8
Total market 2013 Not Addressed by Albéa Addessed by Albéa
22.2
Corrugated board
Plastic tubes/laminate tubes
Plastic bottles & jars
Glass bottles & jars
Cosmetic cases
Lids, caps & closures
Folding cartons
Pumps & sprays, incl. Aerosols
Flexible plastic packaging
Flexible paper packaging
Metal containers
Tubes
CRP
Dispensing
World market for personal care packaging and Albéa’ s addressable markets (World, 2013, M$)
Albéa addresses:� Most of cosmetic cases, lids, caps and
closures (60% to 85% of segments)� Most of pumps and sprays (except the
aerosol segment)� Most plastic and laminate tubes and a share
of rigid plastic bottles and jarsAlbéa does not address:� Glass bottles and jars� Secondary packaging (folding cartons,
corrugated bard…)� Flexible paper and plastic packaging� Metal containers (mostly aerosols)
Source: Albéa 5Y plan, Smithers Pira, Arthur D. Little analysis
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Macro Trends
Products
Services Customers
Macro TrendsMacro Trends
� Market growth consistently exceeding GDP growth over the last 20 years
� Growth forecast has been reviseddown (Euromonitor)
� Growth is expected to come from Asia and Skin Care
� Corporate Social Responsibility and environment (COP21 summit)
Services / SLAServices / SLA
ProductsProducts
CustomersCustomers
� Agility & flexibility is key
� Shorter Lead-Time
� Zero Defects requirement to remove the controls in their premises
� Digital Printing
� 3D printing
� Make up is one the winning segment while Skin care slowing down in 2015
� Product commoditization pushing prices and value down
� Switch Plastic tubes to Laminate in Europe
� Sampler market flat/decline at lower price due to alternative available
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Market TrendAttractive market growing faster than GDP but facing significant and faster changes…
� New chanel of distribution (Digital) allowing Small & Medium accounts to emerge
� Direct distribution business model under pressure
� Destocking more than in the last 3 years and implementing new Supply Chain model
� Global Accounts volatility increasewidely.
Sales by Product lines at same rates (*)
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(*) at December ratesAdjusted for Sussex, trading China, Annecy
Sales by Geographies at same rates (*)
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(*) at December ratesAdjusted for Sussex, trading China, Annecy
4,0%
2,5%
3,5%
3,0%
2,0%
0,0%
Skin Care
Oral Care
Hair Care
Fragrances
Colour Cosmetics
15-1
8 G
row
th F
orec
ast
Growth and positioning by end market(Retail value – constant price & Forex rates)
MajorSignifiantLimited
Source: Euromonitor, Albéa, Arthur D. Little analyses
Albéa positioning
Opportunity to leverage lotion airless sub-segment growth (>5%), but would require development / acquisition of new offering
Albéa can enter the hair dye sub-segment with the O2Wall product which is an attractive alternative to the existing
aluminum tube technology
Opportunity to benefit from sun care / sun protection growth (~5%) with
existing offering
Market AttractivenessOverall segment growth forecasts are limited, with attractive sub-segments for Albéa to focus on…
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Business update
2.Our Fundamentals
OperationsLocal performance and global excellence
QUALITY EXCELLENCE
SUPPLY CHAIN
SALES & OPERATIONSPLANNING
TRAINING & HR SYSTEMS
SERVICE & RESPONSIVENESS
EHS FIRST
CONTINUOUS IMPROVEMENT
INDUSTRIAL EFFICIENCY
COMPETITIVENESS
NEW PRODUCT DEVELOPMENT
World-class operating processes and common KPIs combining management systems,mindset and behaviour, rolled-out accross our international footprint and supported by
best practices sharing and global expert networks .
New Product Development Process Providing focus and resources
5 Project Types
� Standard product (new color, new printing design)
� Standard product for customer with physical changes
� Without functional & interfaces product change
� Without manufacturing process change
� Specific customer development
� Internal innovation
� Specific strategic / industrial projects
� Technologies / Manufacturing line transfers
� New specific process or technology development
4 Integrated Approaches
Supply Chain & Supplier Management
Product, Process, Means Management(Performance)
Project Management(Quality, Cost, Time)
Need Management(Voice of Customer / Market)
Product Launches
Beauty SolutionsAir France
In-flight Tote
CRPL’Oréal Paris Gloss Nectar
Wild
DispensingChanel
Ultra Correction
TubesAvon
Ultra Color Glossy Tube
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2
3
4
5
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Business update
3.Our People, Culture and Social Responsibility
Deep expertise in beauty and packaging sector
Goal driven Management team with significant experience
ALBÉA CEO & PRESIDENT
François LuscanEXECUTIVE
COMMITTEE
EXECUTIVE VP & CFO
Xavier Leclerc de Hauteclocque
EXECUTIVE VP SALES & MARKETING
François Tassart
CHIEF TRANSFORMATION & DIGITAL OFFICER
TBA
EXECUTIVE VP NORTH ASIA & BUSINESS DEVELOPMENT
Thierry Rabu
EXECUTIVE VP HUMAN RESOURCES
Axel Moreau
EXECUTIVE VP AMERICAS
Jose Filipe
EXECUTIVE VP & GENERAL COUNSEL
Charles -Antoine Roucayrol
EXECUTIVE VP SOUTH ASIA
Adrian Haughton
4 years
X years
> 10 years
6 years
> 10 years
> 10 years
5 years
4 years
CRP AMERICAS
Carlos Rubio
DISPENSINGASIA
Thierry Rabu
EXECUTIVE VP TUBES PRODUCT LINE
Adrian Haughton
TUBES EUROPE
Laurent Villemin
TUBES AMERICAS
Roy Turner
INDIA
Lester Pinto
INDONESIA
David Tanudisastro
EXECUTIVE VP DISPENSING PRODUCT LINE
Jeroen Hooft
DISPENSING EUROPE
Jeroen Hooft
DISPENSING AMERICAS
ThomeBrito
EXECUTIVE COSMETIC RIGID PACKAGING PRODUCT LINE
Guillaume de Demandolx
CHINA
Michael Zhang
CRP EUROPE
Serge Darsat
BRAZIL
Rodrigo Brett
4 years
Joined 2016
3 years
31 years
>10 years >10 years 6 years >10 years
1 year >10 years 4 years
4 years 5 years
X years at AlbeaIndicates new hire since 2014
LEGEND
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Corporate Social ResponsibilityOur priorities for from 2015 to 2020
We want to improve the environmental, social and economic footprint of our activities across the world, for all our people and all our stakeholders, in all the communities where we operate.It is our commitment to grow our company while acting responsibly and impacting positively the world we all live in.
OUR PRIORITIES FOR 2020
→ Safety & wellbeing→ Engagement & inclusion→ Communities involvement
→ Eco-design (3R)→ Packaging safety & regulatory
compliance→ Packing & transportation
→ All sites ISO 14001 / OHSAS 18001 certified
→ Efficient use of energy and water
→ Reduction of waste, CO2 and VOC emissions
→ Social compliance→Green innovation→ Solidarity sourcing
OUR PEOPLE & COMMUNITIES
We want all our people to be safe and feel engaged; we want our communities to benefit from all our everyday industrial and commercial activities.
OUR PRODUCTS
We want to design, manufacture, source, sell and ship in the most sustainable way possible all the products we create as well as the products we develop for our customers - across their whole lifecycle.
OUR OPERATIONS
We want to strive for world-class operating excellence in all our facilities across the world, ensuring health and safety, resource efficiency and environmental friendliness.
OUR SUPPLIERS & PARTNERS
We want all our suppliers and partners to ensure the wellbeing of their people, contribute responsibly to our environmental footprint, and help create value for the whole ecosystem.
3 priorities for 2020� All sites ISO 14001 / OHSAS 18001 certified� Efficient use of energy and water� Reduction of waste, CO2 and VOC emissions
Priorities 2015 - 2020 Ambition 2015 Next steps
ISO certifications2015 – 2020:More than 90% plants certified by 2020.
50% are triple certified
Challenge: Some reluctance to engage in ISO 9001Collect all SA 8000 certificatesKeep following other certifications
Energy savingsReduce Albéa energy intensity by 10% over 2015-2020.
Energy reduction by 15%Estimation of savings by Energy leaders: 2M$ for full year
Water N/A N/A N/A
VOC/ Waste
0 waste landfilled in 2015Reduce by 50% VOC emissions in site with highest emission level over 2015-2020 (Semarang, Matamoros, Shanghai RM, Zhongshan Tex).
6 plants: hazardous wastelandfilled18 plants: non hazardous wastelandfilled
Better understand plants issues vs landfill diversionSet up goal for 2020 (CSR sharing program tool feedback)Define haz. Waste definition at group level.
Industrial RiskManagement
60% of Albéa Risk Grade in 202052% of Risk Grade9 sites recognized as HighlyProtected Risks
Corporate Social Responsibility
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Business update
4.Our Customers & products and rewards
Balanced blue chip customer base with long-standing relationships
Global account ~ 51%
Regional account ~ 27%
Local account ~ 22%
Rank Customers % of Revenue FY2015Relationship
length
1 L’Oreal 15%
2 LVMH 7%
3 Estée Lauder 6%
4 Procter & Gamble 6%
5 GlaxoSmithKline 5%
6 Natura 4%
7 Coty 4%
8 Avon 4%
9 Unilever 2%
10 Mary Kaye 2%
Top Ten c.53%
Strong Relationship with Global FMCGs
Ave
rage
leng
th 2
0 ye
ars
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FY 2015 Revenue (weight by Account Type)
Innovation and Development Capabilities
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Experts that make a difference
We manufacture or source innovative items that offer
improved ergonomics, visualdifferentiation, new
gestures, affordable price, trendier look
We invent new technologies and new processes to make packaging stand out and be
more efficient, more competitive,
environmentally-friendlier
We turn into reality the packaging that our customers have imagined, overcoming
technical challenges and designing
to cost
200-people teamacross the world
Computer-AssistedDesign for creation,
optimization& manufacturing
Advancedmaterials
and technologies
Rapid prototyping
& virtual representation
Intellectual property
(over 2,000 patents)
My Style family
D.N.Airless Ø35
Our latest product innovations
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Ovation™ Reflexion™ tubes O2 Wall™ tubes Greenleaf® web Artist Bubble
TUBES
DISPENSING SYSTEMS
COSMETICRIGID
PACKAGING
Beauty BlossomInserts
SP22 Panache Pulse
Sofix EZ’R Fancy & SatinyFoam Actuators
Beauty Eye D family
Cushion tint Cushion tint Lip kiss Attraction Compact
Awards
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Proud of our achievements
Marionnaud Hydra&SublimBB Cream
AttractionTMCompact
Babyganics
SephoraOutrageous Curl
Guerlain Parure Gold
Air FranceGivenchy La Première – Amenity kit
Financial and Operational Highlights
Currencies
� Volatility on EUR and BRL vs. USD
� FY 2015 unfavourable translation effects on Sales for $176.6 million (mainly EUR/USD for $109.8 million)
� Negatively impacted mainly by EUR/USD for $109.8m, USD/BRL for $32.1m, USD/PLN for $13.3m, USD/RUB for $5.7m, USD/MXN for $4.7m, USD/GBP for $4.3m, USD/IDR for $3.8m
� FY 2015 translation effect hits EBITDA by $19.9 million,
� Mainly due to EUR/USD for $9.2m, USD/BRL for $5.5m and USD/PLN for $2.3m
� FY 2015 favourable translation effects on Net Debt for $31.2 million
N.B. a -10 cts EUR/USD variation impacts Group Sales unfavourably by $50 million per annum
Customers and Competition
� Coty obtains EU green light for Procter & Gamble beauty business acquisition
� Customers report single digit growth including price effect (some global accounts still in the red area)
� RPC to buy bottle-tops maker Global Closure Systems (GCS)
� AptarGroup announces the acquisition of Mega Airless(formerly known as Mega Plast)
� Topline integrates Texen(PSB Group)
� Some competitors still facing financial & operating issues
� Last ETMA reporting FY 2015 (*) reports deliveries’ volumes down worldwide by 1.7% vs. last year, with Laminate up by 2.5%, Plastics down by -1.5%
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Volatility, uncertainty, complexity & ambiguity
Economic Environment
� US seems back to fiscal uncertainty while Eurozone growing despite headwinds
� Brazil’s economy is struggling, with inflation running high, rating agencies weighing downgrades
� China has been front and center in the world’s financial news with a drop in equity prices, a slowing economy and policy-directed currency depreciation
� Most UK opinion polls point in the direction of a vote to remainin the EU, even if the outcome isnot guaranteed yet
� India has fared relatively betterwith respect to financial and economic sector performances
� Elections failed to contain the momentum of currencydepreciation in Brazil and Indonesia, evidence of lowbusiness confidence in theirgovernments
(*) FY 2015 ETMA reporting = European Tube Manufacturers Association
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(*) Cash and Availability position includes $96.8 million of net cash and $36.0 million of undrawn lines as of December 31, 2015(**) Net Debt under IFRS, defined as total Albéa Gross Debt minus Cash and Cash equivalent as of December 31, 2015.
Gross Debt amounted to $726.9 million, as of December 31, 2015 and includes the bonds issued October 2012 /February 2015 (net of amortised financing fees), factoring, ABL, etc. For more details please see the note “Borrowings” in the unaudited consolidated financial statements for the period ended December 31, 2015
Key Organic Financials
� Q4 2015 Group Sales at $332.6 million, up 5.0% year-on-year, at same rates
� FY 2015 Group Sales at $1,397.7 million, up 1.1% year-on-year, at same rates
� Q4 2015 Adjusted EBITDA at $39.3 million, up 10.4% year-on-year, at same rates
� FY 2015 Adjusted EBITDA at $158.0 million, up 6.5% year-on-year, at same rates
Cash and Liquidity
� Positive Free Cash Flow of $3.2 million in Q4 2015
� Positive Free Cash Flow of $13.7 million FY 2015
� Total Cash and Availability (*) of $132.8 million as of December 31, 2015
� Net Debt (**) of $630.1 million as of December 31, 2015
� Net leverage at 3.99x with FY 2015 Adjusted EBITDA
Good performance in a volatile environment for FY 2015 with Sales and EBITDA, up by 1.1% and 6.5%
Organic Sales - Analytical 332.6 316.7 5.0% 1,397.7 1,382.9 1.1%
- Tubes 139.3 136.9 1.8% 577.6 574.6 0.5%
- CRP 193.3 179.8 7.5% 820.1 808.3 1.5%
FY 2015 organic sales up 1.1% and EBITDA up 6.5% with good performance on Q4 overall
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Organic Sales (*) 332.6 316.7 5.0% 1,397.7 1,382.9 1.1%
- Europe 149.5 156.3 (4.4)% 634.9 652.0 (2.6)%
- Americas 129.4 107.9 19.9% 531.5 508.5 4.5%
- Asia 53.8 52.5 2.4% 231.3 222.4 4.0%
Disposal effects - -
FX translation effects (**) 34.5 176.6
Reported Sales 332.6 351.3 (5.3)% 1,397.7 1,559.5 (10.4)%
Adjusted Organic EBITDA(*) 39.3 35.6 10.4% 158.0 148.4 6.5%
- Europe 18.2 19.9 (8.1)% 68.3 72.2 (5.3)%
- Americas 18.9 10.8 74.8% 74.1 59.9 23.6%
- Asia 9.2 5.8 57.8% 25.6 23.3 9.9%
Disposal effects - -
FX translation effects (**) 4.7 19.9
Adjusted Reported EBITDA 39.3 40.3 (2.6)% 158.0 168.3 (6. 1)%
In $ million unless stated otherwise
Q4 2015
Q4 2014
DeltaYTD 2015
YTD 2014
Delta
(*) Sales / EBITDA are 2014 at 2015 rates(**) 2014 at 2015 rates
Group Financials
Soft year in Europe with lesser demand
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In $ million unless stated otherwise
Q4 2015
Q4 2014
DeltaYTD2015
YTD2014
Delta
Organic Sales 149.5 156.3 (4.4)% 634.9 652.0 (2.6)%
FX translation effects (*) 21.6 126.3
Disposal effects - -
Reported Sales 149.5 177.9 (16.0)% 634.9 778.4 (18.4)%
Adjusted Organic EBITDA 18.2 19.9 (8.1)% 68.3 72.2 (5.3)%
- in percentage of Sales 12.2% 12.7% (49)bps 10.8% 11.1% (30)bps
Capital Expenditure (Capex) (**)
8.8 8.4 4.1% 34.9 43.9 (20.4)%
- in percentage of Sales 5.9% 5.4% 48bps 5.5% 6.7% (123)bps
Organic Sales - Analyticalin $ million
Q4 2015
Q4 2014
DeltaYTD2015
YTD2014
Delta
Regional view
Europe total (***) 149.5 156.3 (4.4)% 634.9 652.0 (2.6)%
Product family view
Tubes 73.2 75.1 (2.6)% 306.4 317.8 (3.6)%
Rigid Packaging 38.9 42.9 (9.5)% 167.4 176.2 (5.0)%
Dispensing 30.5 29.4 3.9% 124.8 124.4 0.2%
Beauty Solutions 6.9 8.9 (22.1)% 36.3 33.6 7.9%
• Euro area GDP expands 0.3% QoQwith German expansion and Italy/France disapointing
• Q4 negative translation impact on sales in all currencies against USD exchange rate by $21.6m, mainly on EUR ($19m) and PLN ($3m)
• Same negative translation impact on EBITDA in Q4 by $2.8. mainly withEUR at $2m and PLN at $0.4
• YoY prices up by 0.2% in the Eurozone and the UK in December2015, same in France while Polishinflation rate down by 0.5%
Macro and Market
Dynamics
(*) 2014 at 2015 rates(**) Capex cash out net of proceeds + new finance lease(***) Europe includes Russia & Poland
• Q4 Organic sales down by -4.4% at $149.5m, negatively impacted by Tubes, Rigid and Beauty Solutions while Dispensing up by +3.9% vs. last Q4 2014
• Q4 2015 Organic EBITDA down by $1.7m, mainly due to Rigid down by -$1.9m; Dispensing up by +$0.6, Beauty Solutions down by -$0.3m and Tubes flat
Financial Review
• Large investment and productivity program focusing on lipstick production in France and Italy fully benefitting from new plant productivity impact
• European foam market good performance compensating Fragrance and Lotion lower markets
• Start of supplies of Hair Dye tubes, providing strong advantage against aluminum tubes
• Weak conditions for Plastic tubes, impacting particularly French business
Operational Review
Americas FY2015 good performance with organic sales up by 4.5% and margin significantly up
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In $ million unless stated otherwise
Q4 2015
Q4 2014
DeltaYTD 2015
YTD2014
Delta
Organic Sales 129.4 107.9 19.9% 531.5 508.5 4.5%
FX translation effects (*) 9.4 37.2
Disposal effects - -
Reported Sales 129.4 117.3 10.3% 531.5 545.7 (2.6)%
Adjusted Organic EBITDA 18.9 10.8 74.8% 74.1 59.9 23.6%
- in percentage of Sales 14.6% 10.0% 460bps 13.9% 11.8% 215bps
Capital Expenditure(Capex) (**)
12.9 6.2 N.M. 29.4 23.8 23.2%
- in percentage of Sales 9.9% 5.8% 416bps 5.5% 4.7% 84bps
Organic Sales - Analyticalin $ million
Q4 2015
Q4 2014
DeltaYTD2015
YTD2014
Delta
Regional view
North America (***) 104.2 92.4 12.8% 442.9 428.3 3.4%
South America 25.1 15.5 62.6% 88.6 80.2 10.5%
Product family view
Tubes 51.6 47.3 9.1% 212.2 200.1 6.1%
Rigid Packaging 37.3 31.6 18.1% 163.7 157.4 4.0%
Dispensing 34.5 23.9 44.2% 129.0 121.8 5.9%
Beauty Solutions 5.9 5.0 17.9% 26.6 29.2 (8.7)%
• US GDP expanded by 1.0% QoQ• Brazil GDP shrinks for 4th straight
quarter at -1.4% while Mexico GDP growth slows +0.5% QoQ
• Q4 negative translation impact of BRL and MXN vs. USD exchange rate on Sales by $9.4m, respectively $8.1m and $1.2m
• Same negative translation impact on EBITDA in Q4 by $1.7m mainly due to BRL for$1.5
• Inflation rates in Brazil up by 10.7% (highest since Dec. 2003) and Mexico 2.1% YoY
• Consumer prices in the US up 0.7% in December 2015 YoY
Macro and Market
Dynamics
(*) 2014 at 2015 rates(**) Capex cash out net of proceeds + new finance lease(***) North America includes the US, Canada & Mexico
• Q4 2015 Organic sales very good performance by +19.9% in all regions and all products lines vs. Q4 2014
• Q4 2015 Organic EBITDA up by almost +$8.1m; Dispensing +$4.9, Tubes +$0.4, Rigid +$2.5 and Beauty Solutions +$0.3
Financial Review
• North America strong catch-up on Fragrance with slow but improving performance in Lotion
• Brazil launch for product replacement with better performance than last year
• Tubes good trend in the US supported by teams and technology
• US digital printer in ramping up replacing old printers
• North American successful launches with positive profitability impact and improved product mix
• Brazil stable performance with strong demand on Lipstick segment
Operational Review
FY 2015 Sales in Asia up 4.0% with operating profitability up by 9.9%
39
In $ million unless stated otherwise
Q4 2015
Q4 2014
DeltaYTD2015
YTD2014
Delta
Organic Sales 53.8 52.5 2.4% 231.3 222.4 4.0%
FX translation effects (*) 3.5 13.1
Disposal effects - -
Reported Sales 53.8 56.0 (4.1)% 231.3 235.5 (1.8)%
Adjusted Organic EBITDA 9.2 5.8 57.8% 25.6 23.3 9.9%
- in percentage of Sales 17.0% 11.0% 598bps 11.1% 10.5% 60bps
Capital Expenditure (Capex) (**)
2.8 6.7 (58.9)% 11.2 22.2 (49.8)%
- in percentage of Sales 5.1% 12.8% (765)bps 4.8% 10.0% (516)bps
Organic Sales - Analyticalin $ million
Q4 2015
Q4 2014
DeltaYTD2015
YTD2014
Delta
Regional view
China & Hong-Kong 34.2 31.7 7.8% 145.2 138.5 4.8%
South East Asia (***) 19.6 20.8 (6.0)% 86.1 83.9 2.7%
Product family view
Tubes 14.5 14.4 0.3% 58.9 56.7 3.9%
Rigid Packaging 33.1 34.1 (2.9)% 149.1 146.6 1.8%
Dispensing 6.2 4.0 54.2% 23.2 19.1 21.4%
Beauty Solutions - - - - - -
• China GDP growth slows in Q4 at +1.6% QoQ (lower than Q3 and below market expectations)
• Indonesian GDP shank -1.8%, QoQ• Q4 Trading Activity in Asia hit by
Forex translation effects on sales for $1.3m; USD/IDR around -1.0m$
• Inflation rates in India at 5.6% and Indonesia at 3.4% YoY
• YoY inflation rate in China recordedat 1.6% in December 2015 (same in September 2015)
Macro and Market
Dynamics
(*) 2014 at 2015 rates(**) Capex cash out net of proceeds + new finance lease(***) South East Asia includes India & Indonesia
• Q4 2015 Organic sales up by +2.4% with China up by +2.5m and South East Asia down by -$1.2m; with Dispensing up by +$2.2 and Tubes +$0.1m while Rigid down by -$1.0
• Q4 2015 Organic EBITDA up by $3.4m mainly due to Rigid activity up by +$2.9
Financial Review
• Market slow down in both India and Indonesia, but some good prospects out of Oral care market may bring additional growth
• Indian Oval tubes innovation brings new business on Skin care market
• Rigid situation stabilized in Suzhou after footprint program allowing better competitiveness , lower labor cost, complexity reduction and improved agility
• Indonesia continues to outperform Rigid market with excellent product quality and successful launches against local market uncertainty
Operational Review
40 – INTRODUCTION
60% 60%6 out of 10 clusters representing 60% of sales grew by 4.5% in 2015 vs group’s sales growth at constant currency in FY 2015 of 1.0%
6 out of 10 clusters representing 60% of sales delivered EBITDA growth of 16% in 2015 at constant rate
52%6 out of 10 clusters representing 52% of sales in 2015, posted a EBITDA margin of 14% or above
Focussed on delivering strong performance across al l clusters Majority of clusters outperformed the market in FY 15
In $ million Q4 2015 Q4 2014 Delta YTD 2015 YTD 2014 Delta
Reported Sales 332.6 351.3 (5.3)% 1,397.7 1,559.5 (10.4)%
COGS (267.4) (286.2) (6.6)% (1,141.5) (1,268.0) (10.0)%
Gross Profit 65.2 65.0 0.3% 256.2 291.4 (12.1)%
SG&A (44.7) (41.1) 8.7% (167.9) (188.6) (11.0)%
Restructuring and project costs
(14.0) (7.9) 76.3% (27.4) (28.7) (4.4)%
Other (5.2) (4.4) 19.0% (18.1) (16.1) 12.6%
Operating Profit 1.3 11.6 N.M. 42.8 58.1 (26.3)%
Operating Profit 1.3 11.6 N.M. 42.8 58.1 (26.3)%
+ Operational non cash items
21.3 18.7 13.5% 80.8 76.1 6.2%
+ Restructuring and project costs
14.0 7.9 N.M. 27.4 28.7 (4.4)%
+ Add backs 2.7 2.1 29.3% 7.0 5.5 27.5%
= Adjusted EBITDA 39.3 40.3 (2.6)% 158.0 168.3 (6.1)%
- in percentage of Sales 11.8% 11.2% 58bps 11.3% 10.7% 58bps
41
Financial Highlights at various rate (1/2)
In $ million Q4 2015 Q4 2014 Delta YTD 2015 YTD 2014 Delta
Adjusted EBITDA 39.3 40.3 (2.6)% 158.0 168.3 (6.1)%
D&A (21.3) (18.7) 13.5% (80.8) (76.1) 6.2%
Restructuring and project costs
(14.0) (7.9) N.M. (27.4) (28.7) (4.4)%
Other (2.7) (2.1) 29.3% (7.0) (5.5) 27.5%
Operating Profit 1.3 11.6 N.M. 42.8 58.1 (26.3)%
Net Finance costs (32.4) (35.3) (8.3)% (114.5) (131.6) (13.0)%
Profit from continuing operations before income taxes
(31.1) (23.8) 30.8% (71.7) (73.5) (2.5)%
Income tax (3.7) 8.3 N.M. (15.4) 2.6 N.M.
Share of profit of associates - - N.M. 0.5 0.4 6.7%
Profit / (loss) for the Period (34.7) (15.5) N.M. (86.6) (70.5) 22.8%
Financial Highlights at various rate (2/2)
42
In $ million FY 2015 FY 2014
Cash flow from operating activities 158.2 126.5
o/w Adjusted Ebitda 158.0 168.3
o/w Change in Working Capital 40.4 28.5
o/w Income Tax paid (10.8) (14.7)
o/w Other (*) (29.5) (55.6)
Cash flow from Investing activities (73.1) (74.3)
o/w Capex with implementation costs (70.0) (93.8)
Finance lease additions (7.5) (14.7)
Interest paid (60.9) (61.7)
Other (2.9) (2.7)
Free Cash Flow 13.7 (26.9)
FY 2015 Positive Free Cash Flow at $13.7 million
43
(*) Mainly restructuring/projects cost and cash out on provisions for risk and contingencies
Change in Working Capital
� For the sixth quarter in a row, Positive Free Cash Flow in Q4 2015
� Q4 2015 Free Cash Flow at +$3.2 million � Working capital initiatives (receivables,
inventory with better DIO by 6 days)� Overdue at $7.7 (end of Q4 2015)
� FY 2015 Positive Free Cash Flow at +$13.7 million
Capex
� Investing in sales growth/renewal (49%), cost reduction/restructuring (23%) to fully support business and manufacturing capabilities (FY 2015)
� Q4 2015 Capital Expenditure including leasing at $25.2 million
� FY 2015 Capital Expenditures at $77.5 million, incl. leasing at $7.5 million
3,2
1,4
2,6
6,6
13,1
21,4
Q4 2015
Q3 2015
Q2 2015
Q1 2015
Q4 2014
Q3 2014
Free Cash Flow in $mios
$13.7m
FY 2015 Sales Bridge FY 2015 EBITDA Bridge
3,6 (2,3)
(19,9)
8,3
168,3
148,4
158,0
100
110
120
130
140
150
160
170
FY
201
4 R
epor
ted
FX
tra
nsla
tion
Per
imet
er c
hang
es
FY
201
4 O
rgan
ic
Tub
es
CR
P
Oth
er (
*)
FY
201
5 R
epor
ted
44
FY 2015 Sales & EBITDA Bridges by Divisions
In $ million In $ million
(*) Other includes Trading activities and Corporate
3,0 0,2
(176,6)
11,6
1 559,5
1 382,9 1 397,7
1200
1250
1300
1350
1400
1450
1500
1550
1600
FY
201
4 R
epor
ted
FX
tra
nsla
tion
Per
imet
er c
hang
es
FY
201
4 O
rgan
ic
Tub
es
CR
P
Oth
er (
*)
FY
201
5 R
epor
ted
FY 2015 Sales Bridge FY 2015 EBITDA Bridge
6,0
(8,0)
(19,9) (8,0)
19,6
168,3
148,4
158,0
100
110
120
130
140
150
160
170
FY
201
4 R
epor
ted
FX
tra
nsla
tion
Per
imet
er c
hang
es
FY
201
4 O
rgan
ic
Pric
e +
Pas
s th
roug
h
Infla
tion
Vol
ume
/ Mix
Cos
t
FY
201
5 R
epor
ted
45
FY 2015 Sales & EBITDA Bridges by Drivers
In $ million In $ million
(*) Other includes Trading activities and Corporate
(8,2)(176,6)
6,0
1 559,5
1 382,9 1 397,7
1200
1250
1300
1350
1400
1450
1500
1550
1600
FY
201
4 R
epor
ted
FX
tra
nsla
tion
Per
imet
er c
hang
es
FY
201
4 O
rgan
ic
Pas
s th
roug
h
Vol
ume
man
ufac
ture
d
Vol
ume
tool
ing
FY
201
5 R
epor
ted
17,0
In $ million
Net Debt Bridge FY 2015
46
(114.4)
10.8
64.5 4.34.0
17.1
(26.0)
500,0
520,0
540,0
560,0
580,0
600,0
620,0
640,0
660,0
680,0669.8
630.1
Positive Free Cash Flow $13.7 million
(*) mainly consulting fees and non recurring project (SAP implementation, plant optimization, Rigid Packaging Europe restructuring,…) (**) mainly Forex
Leverage at 3.99 X as at December 31st, 2015
47
In $ millionAs of
December 31 st
2015
Cash on hand 96.8
North America ABL facility amount 60.0
Facility borrowing base 41.9
Less amount utilised under NA ABL (7.9)
Less minimum availability under NA ABL (7.5)
North America ABL Net Availability 26.5
Europe A/R facility amount 109.1
Facility borrowing base 23.4
Less amount utilised under EUR A/R (13.8)
Europe A/R Net Availability 9.5
Total Liquidity 132.8
In $ millionAs of
December 31st 2015
Liquidity 132.8
- Of which cash and cash equivalents
96.8
- Of which undrawn lines
36.0
Net Debt 630.1
Adjusted EBITDA 158.0
Net Debt / Adjusted EBITDA multiple
x 3.99
� €45 million 8.75% Senior Secured Notes due 2019, dealt 28 January 2015 and fungible into existing €200 million Notes dealt October 2012
� 3-year committed Factoring facility of €100m (maturity June 2017) with Eurofactor and syndicated through Albéa pool of banks (Natixis, BNPP) late April 2015
� ABL line of $60m (extended maturity October 2019)
� S&P Albéa Beauty Holdings ‘B’ ratings affirmed on improved liquidity profile; outlook ‘Stable’ (Update 8 October 2015)
Permitted debt and guarantor package: Status as of December 31st, 2015
Items Total Capacity(in $ million)
Remaining Available Amount as of Dec 31, 2015 (in $ million & %)
Capital Leases 30.0 20.5 (68%)
General Debt Basket 35.0 - (*)
Local Overdraft and Facilities 30.0 22.3 (74%)
Credit Facilities 70.0 54.6 (78%)
Total 165.0 97.4 (59%)
Revenues
EBITDA
As per Offering Memorandum (June 30, 2012)
As of December 31, 2015
47,0%53,0%
Non Guarantor Guarantor
Permitted Debt (since Oct. 30 th 2012)
Guarantor Package
48
47,0% 55.7%53,0%
49.7%54,1%45,9%
66,9%
33,1%
(*)Additional notes issued in February 2015 taken from Credit Facilities and General Debt Basket (45m€) at end of December 2015 EUR/USD
Significant progress with positive results
• Capitalised on our track record of footprint optimisation to drive further efficiency of the plant and network
• Specialize Rigids plant in France and reduce headcount• Group plants in China could be further optimized
Similar transformation completed in France “Dream” (2013), Italy “Be One” (2014), China North (2015) with great success.
France and China have started in 2015 and will end in 2017
• Following Rexam acquisition, we have completed 90% or $37m of the expected synergies at same rate
• Project completed on time at less than 50% of the expected cost
Reduced standalone SG&A by $22 and achieved footprint savings of $15
• 9 SAP implementations left: 3 planned in 2016 and the rest in 2017• Leverage new common platform to set up shared services,
streamlining supply chain processes, master data and reduce SG&A• Focusing on span of control and transactional costs optimisation
we had 22 different systems and are now covering 70% of the business with SAP. No business disruption.
SAP Roll out 2016 (3 sites), 2017 (3 sites), 2018 (3 sites)
• Require strong NPD process to promote agility with customers• Invested in an IT platform to monitor stage gate processes and
trained more 700 people on this in the last 12months• Provides ability to be able to answer customer requests faster and to
adapt the process to the product’s complexity vs. our standards
Recently won a significant project thanks to quick and efficient processes vs. competitors
• Building a S&OP platform in order to optimise our supply chain and global footprint to drive agility in responding to customer requests
• Reinforce our flexibility to adapt to market changes quicker with modularity, plugability and standardisation
• Investing in Automation, Digital Printers and 3D printers
Good regional success of “sister plants” that are transferring assets from one country to another to adapt quickly to demand ( India/Indonesia. Mexico/ Brazil). Ability to load one plant vs. another to optimize workload in Europe
SAP
ACTION TRACK RECORD TIMING
• Customer expectation is increasing to “zero defect” and requires improvement in our our operational performance
• Need to implement Statistical Process Control equipment on our assets in order to control quality before vs after production
Reducing quality at Albea in the last years as Rexam is being brought to our level
Pilote investment in 2016 with $4m for Mexico, France and US
FOOTPRINT
NEW PRODUCT DEVELOPMENT
SUPPLY CHAIN (S&OP)
QUALITY
SYNERGIES
INFORMATION SYSTEMS
Transformation well underway
49
Key Takeaways
Supporting all our customers’ ambitions2016 Strategic Priorities
51
• Growth: geographies, brands, partners, business mod els (incl. Full Buy)• Agility: time-to-market, fast response, effective p rocesses, flexible service• Customer-valued products, services and innovation ( incl. digital) • CSR: 2015-2020 Roadmap and targets• Teamwork, engagement and talent management• Capital Expenditure: support growth and maintain te chnical leadership
• Technical innovation (web, decor, processes)• Global industrial strategy to optimize assets and e xpand with our customers• Operational excellence & global technical networks
• Footprint specialization• Automation• Operational excellence & global expert networks
• Fast innovation and alliances• Flexible industrial model (incl. customization / s tandardization)• Operational excellence
Albéa
Tubes
Cosmetic Rigid Packaging
Dispensing Systems
Beauty Solutions
• Expand offering and partners networks; target new marke ts• Adjust offering to customer needs and grow customer base• Adapt organization model and leverage Albéa capabilitie s
Close client relationships and innovation a key diff erentiator
Evolving client behaviour necessitates greater flexibility
Agility� Proximity & shorter lead times� Increased destocking behaviour� Technical expertise
Market Access� Offering adapted to new channels
of distribution (e.g. Digital) � Reliable support in Emerging
markets
Sustainability� Environment � Social / Ethical � Health
Productivity� Zero defects requirements� Product cost (Digital / 3D printing)� Supply chain efficiency� Automation
52
CLIENT REQUIREMENTS AGILITY MARKET ACCESS PRODUCTIVITY SUSTAINABILITY
PRIMARY STRATEGIC INITIATIVES
� Revenue management � Hair Dye � Cosmetic Laminate
� Automation� Footprint� SG&A optimisation
� Our people� Our Product design� Our operation efficiency
(waste, CO², water..)
ST
RA
TE
GIC
E
NA
BLE
RS
New product Development / Innovation � �
Supply Chain Improvements � � �
Quality � � � �
Information Systems (incl. Internet of things) � � �
Manufacturing Excellence (incl. 3D printing) � � �
Standardisation of Assets and Processes � �
Dedicated Transformation Team � � �
Human Resources � �
ST
RA
TE
GIC
A
CC
ELE
RA
TO
RS M&A �
Faster production equipment upgrade �
Faster IT implementation plan � �
Rolling out an execution plan across every strategic pillar
Synchronizing our strategy to meet the needs of the Customer
RESULTING IN ALBEA’S STRATEGIC INITIATIVES
53
Upcoming earnings releases
Albéa communication calendar 2015-2016
55
Q1 2016 Earnings Release May 24th, 2016
July 22ndQ2 & H1 2016 Trading Update July 22nd, 2016
AQ2 & H1 2016 Earnings Release August 25th, 2016
Q3 2016 Earnings Release November 10th, 2016
Q4 & FY 2016 Trading Update Mid-January 2017
Appendices
Packaging and More