Fiberweb plcFull Year Results - 2011

Daniel Dayan, CEODan Abrams, CFO

1 March 2012

Fiberweb plc – Full Year Results 2011

HighlightsDaniel Dayan

Financial ReviewDan Abrams

OutlookDaniel Dayan

A Challenging Transitional Year

• Extreme raw material increases in H1

• Creation of Geosynthetics Division

– £20m Terram; £15m Bodds; £8m Tubex; £30m US

• Rationalisation at Terram (H1), Berlin (H2)

• Creation of Technical Fabrics Division

– £130m ‘old’ Industrial; £90m Drier Sheet and Hygiene

• Restructuring following hygiene disposal

A Year of Strategic Transformation

• £300 million, more tightly-focused, specialty industrial and construction materials business

– Focus areas: Filtration, Geosynthetics, Specialty Construction, Medical

• Net cash c£10 million after disposal expenses

• Significant US post-retirement benefit changes

• Dividend maintained in-line with expectations

– 2p final, 3p total

Strategy

To deliver superior shareholder returns through becoming a global leader in

the intelligent application of materials technology

New medium-term financial goals:

• Sales growth: 2xGDP

• Return on sales: 8-10%

• Return on capital employed: >15%

Landscape+£20m

Drier Sheet£40m

Filtration£40m

Geospec.£45m

Tech. Specialities

£50m

Construction£45m

Hygiene£50m

High

MARGIN

Low

Low HighSHORT-TERM GROWTH POTENTIAL

Innovate, invest and

grow

Selectively develop

Protect and improve

‘New’ Fiberweb Portfolio

Financial Review

Dan Abrams, CFO

1 March 2012

Hygiene Disposal Eliminated Net Debt

£m

Cash proceeds ($260m @ $1.5543)

Vendor loan note

Net assets disposed

Disposal costs

167.3

16.7

(199.2)

(8.8)

Tax arising on disposals (7.4)

Recycling of FX differences from reserves 32.9

Profit on disposal 1.5

Exit multiples:6.2x 2010 adjusted EBITDA14.6x 2010 adjusted EBIT

Transformed Balance Sheet

ROCE

31 Dec 2011

135.5

46.1

15.4%

22.0

178.8

5.6%

£m

PPE & Intangibles

Working Capital

Trade Working Capital/Sales

Net Cash

Net Assets

Financing Secure

• Net cash of £22 million at 31 December 2011

– Transaction/Swap costs of £9 million

•Multi-currency facility of £50 million; $40 million and €30 million, expires July 2013

– Covenants: Gearing 2.75x, Interest cover 5.00x

• 2012 financing charge expected c£2 million

• $26 million 6% vendor note – receivable 31 December 2012

Improvement in Pension Position

£m Assets Liabilities Net liability

At 31 December 2011 37.8 (64.3) (26.5)

At 1 January 2011 35.0 (70.5) (35.5)

PRMB changes - 9.3 9.3

Actuarial loss

- 5.9 5.9Disposed

(0.5) (8.8) (9.3)

Interest 1.9 (3.4) (1.5)

Other changes 1.4 3.2 4.6

Continuing Benefit of Historic Tax Losses

£(5.1)m

£0.8m

£3.0m

(0.8)p

£3.4m

£m 2011

Underlying PBT

Underlying Tax Credit

Deferred Tax

Underlying EPS

Cash Tax Paid

• Deferred tax credit in respect of US, UK, Italian losses: £3.0m (2010: £3.6m)

• Tax losses: US $35m, UK £15m

Group Cashflow Dominated by Disposals

Net proceeds on disposals

£m

Net debt b/fwd

Hygiene £161.2m net, Other £18.3m

Total cashflow

Net cash c/fwd

Exchange differences & facility fee amortisation

20.5

(23.4)

(9.4)

(9.7)

179.5

2011

23.8

0.1

(151.2)

175.4

22.0

(2.2)

Cash from continuing operations

Group capex

Net interest paid

Dividends

Acquisitions

Rights issue

Other

(6.0)

Raw Materials – Net Adverse Impact £3.8m

• Continuing business polymer mix:

25kt PET, 40kt PP, 35kt others (mainly PP/PET fibres)

• Contractual pass-through continues on circa 40% of continuing sales

1) 2010 hedging profit £5.4 million

£m

(16.0)

13.1

(2.9)

(3.8)

Raw material cost impact

Pricing actions (82% recovery)

Net raw material cost impact

Hedging loss 1)

Net impact

(0.9)

A New Base for Profit Growth

1) Normalised applies the debt and tax structure pertaining post-disposal to the underlying 2011 numbers

2011 as reported

£m

Revenue

Underlying operating profit

Underlying operating profit margin %

Interest (full Group charge)

Underlying (loss)/profit before tax

297.8

10.8

3.6%

(15.9)

(5.1)

Underlying tax 3.8

Underlying earnings (0.8)p

Dividend

2011Normalised1)

297.8

10.8

3.6%

(2.0)

8.8

(2.9)

3.4p

2p final, 3p total

Outlook

Daniel Dayan, CEO

1 March 2012

Strategic Programmes

MARGIN GROWTH

Pricing Mix

Innovation

SALES GROWTH

Market Share Innovation

Emerging Markets

COST REDUCTION

Q5Zero Conversion Costs

Central Costs

Central• Headcount reduction in

central functions• Tax planning opportunities

COST REDUCTION

Q5Zero Conversion Costs

Central Costs

Cost Reduction Plans Well-Advanced

Technical Fabrics• New line at Terno d’Isola

replacing 3 smaller lines• Full-year impact of

Königswinter rationalisation

• Upgrade/expansion of Aschersleben specialty laminate line

• Global organisation replacing regional overheads

Geosynthetics• Needlepunch

commissioning Q2 2012 at Maldon

• Final Pontypool closure mid-2012

• Full-year impact of Tubex• Conversion centre

rationalisation at Old Hickory

• SG&A reduction in US

MARGIN GROWTH

Pricing Mix

Innovation

Margin Growth from Mix and Pricing

Geosynthetics

• Pricing notice periods reduced

• Increased export efforts for geospecialties

• Solution selling for grass/soil reinforcement

• High-speed rail solutions

Technical Fabrics

• Pricing notice periods reduced• More pass-through contracts• Selective growth in hygiene• Clear focus on filtration and

technical specialties• Transatlantic synergies• Meltblown from Europe to NA• PET from NA to Europe

SALES GROWTH

Market Share Innovation

Emerging Markets

Innovation and Share Gain Driving Growth

Technical Fabrics

• Steady growth in polyethylene fabrics with unique properties

• New filtration products based on unique technologies

• Several medical initiatives in specialty patient sheets, ostomy, face masks

• Biodegradable crop covers

Geosynthetics

• Sustained share gain in housewrap

• Renewed NA roofing range

• Biodegradable tree shelters

• Enhanced efforts in MidEast/India/Russia

Looking Forward with Confidence

•More focused Group with new management structure

• Group more agile on pricing

• Cost reductions ongoing during Q1-Q3 2012

• Focus on innovation, flexibility, margin

• Opportunity to leverage brand strengths

• Expect significant progress towards our medium-term financial goals