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Integrated annual report 2023
Here for you.
Contents
Strategic report
Corporate
Governance,
Risk &
Rémuneration
Financial
statements
Sustainability/
Non-fi nancial
Statements
03 I Our vision for Ontex
05 I Ontex. Here for you.
06 I Our categories
07 I Our strategic priorities
08 I How we create value
09 I Our achievements
22 I Corporate Governance Report
46 I Risk Report
58 I Remuneration Report
77 I Statement of the Board of Directors
78 I Independent auditor’s report
91 I Consolidated statements
99 I Notes to the statements
177 I General information
178 I ESG governance at Ontex
186 I Sustainability Strategy
187 I Stakeholder engagement
189 I Double materiality
193 I Climate change
212 I Our workforce
239 I EU taxonomy reporting
244 I Auditor’s report
248 I GRI content index
254 I Glossary
255 I About this report
03
22
74
177
Corporate Governance, Risk & Remuneration Financial statements Sustainability/Non-Financial Statements
2 I Ontex Integrated annual report 2023
Strategic report
2 I Ontex Integrated annual report 2023
Our vision for Ontex
Dear shareholder,
It is our pleasure to share our 2023 annual
report with you, highlighting the progress in our
transformation journey. 2023 was an exciting
year of strategic execution, achieved through
partnering with all our stakeholders, whom we
thank for their trust and support. Our focus on
our Core Markets and structural transformation
initiatives resulted in the further restoration of
our protability and cash position, giving us the
condence to continue the journey with the same
focus.
On a transformative journey
together
As we shared with you one year ago, our vision
is to be the number one trusted partner for
retail and healthcare brands across our product
categories (baby, feminine and adult care) in both
Europe and North America.
As we progressed on the execution of our strategy
in 2023, we reduced complexity in our product
portfolio and footprint, we increased our speed-
to-market on consumer-winning innovations, we
increased the eciency of our operations and we
crossed critical milestones on the strategic options
for our non-core activities.
We are very pleased to report strong nancial
results for 2023, a direct outcome of our focused
actions and initiatives, for which the entire Ontex
team deserves all the credit.
In 2023, the rst year of our transformation plan,
we focused on accelerating our key drivers for
value creation: business expansion, competitive
and sustainable innovation, and best-in-class
operations.
Expanding our business
We invested signicantly into growing our
business: winning new customers, nding
growth opportunities with existing customers,
and building relationships with potential new
customers. Simplication means that we have
ramped up eciency and enhanced focus in
everything we do, to maintain a high level of trust
and collaboration from our customers.
With continued volatile raw material cost ination,
pricing continued to play an important role.
Throughout 2023 we ensured that our products
and services were competitively priced, while
safeguarding healthy margins.
Partnering for competitive and
sustainable innovations
We launched four consumer-winning innovations
across our product categories in 2023, enhancing
our overall product mix and positively impacting
the market. We’re particularly proud of product
developments like Dreamshield, the baby pant
with revolutionary anti-leak technology crafted by
our world-class engineering team in our Global
Excellence Center in Mayen, Germany. X-Core, the
innovative core technology for light incontinence
and Satin Sense, our latest tampon innovation, are
other new products for which we’re receiving very
positive market feedback and that emphasize our
ongoing commitment to sustainable innovation,
as we continue to improve our products to reduce
environmental impacts.
In 2023, we further reduced our own (Scope 1 and
2) carbon emissions, bringing a 54% reduction
compared to the base year 2020.
Hans Van Bylen, Chairman of the Board
Gustavo Calvo Paz, CEO
Strategic report Corporate Governance, Risk & Remuneration Financial statements Sustainability/Non-Financial Statements
3 I Ontex Integrated annual report 2023
I Our vision for Ontex I Ontex. Here for you. I Our categories I Our strategic priorities I How we create value I Our achievements I
“This year’s positive
results represent
a major milestone
for the Group in
delivering on our
commitments. As the
journey continues,
we set our ambitions
higher.“
“In 2023 we focused
on accelerating
our key drivers
for value creation:
business expansion,
competitive
and sustainable
innovation, and best-
in-class operations.”
Hans Van Bylen, Chairman of the Board
Gustavo Calvo Paz, CEO
We are proud to have received an A- rating from
CDP for leadership in corporate transparency
and performance on climate change for our 2023
contributions.
Best-in-class operations
In 2023, we’ve witnessed truly remarkable results
from our cost transformation program, delivering
signicant structural cost savings and setting a
strong foundation for sustained growth. This has
been enabled by our laser-sharp focus on strategic
execution and continuous improvement towards
simplicity and eciency.
At the same time, we are substantially increasing
our production capacity and investing in the
harmonization of our assets across Europe.
Governance evolution
Throughout 2023, we have invested further in
creating a diverse workplace where everyone can
deliver their best: with robust processes, simplied
structures and purpose-driven incentives. For
instance, reducing the size of our Board and our
Executive Committee enabled faster decision-
making and accelerated the execution of our
strategy. At our annual general meeting last May
our shareholders overwhelmingly voted in favor
of a long-term incentive scheme, rmly aligning
management remuneration with shareholder
returns and linking short-term executive
remuneration with non-nancial targets (CO2
emissions and the accidents rate).
The sustainability agenda has reached a pivotal
moment for environmental responsibility and
corporate accountability. Our in-house approach
fosters insights, organizational learning, and risk
mitigation. Engaging directly with our suppliers, we
streamlined data collection and reinforced internal
ownership. Beyond meeting regulatory compliance
we see sustainability as an opportunity for growth
and innovation. Our emphasis on short-term value
creation for stakeholders serves as our compass
for achieving long-term success.
On track for growth – together
Our success is founded on our people and our
culture. Every Ontex team member contributes
to the excellence of the execution of our strategy.
The key to success is our ability to work together as
a true team, starting with our renewed Executive
Management team.
Our achievements are the result of the collective
eort of our people, who have the drive to always
strive for better and ultimately make it happen.
We support our people to ensure everyone
understands and is recognized for their critical
contribution to the Ontex story. This year’s positive
results represent a major milestone for the Group
in delivering on our commitments. As the journey
continues, we set our ambitions higher. The solid
improvement in our nancial performance and
cashow generation allows us to ramp up our
investments for future growth, innovation and
further eciency gains.
2023 puts us well on track to restoring value
creation for all our stakeholders.
Here for you.
Strategic report Corporate Governance, Risk & Remuneration Financial statements Sustainability/Non-Financial Statements
4 I Ontex Integrated annual report 2023
I Our vision for Ontex I Ontex. Here for you. I Our categories I Our strategic priorities I How we create value I Our achievements I
Making everyday
life easier, across
generations.
Since 1979 we have been on a simple
mission – to partner with our stakeholders
and make great quality products
accessible to all. Over time we have grown
into an international company in the
baby, feminine and adult care categories,
trusted by people of all generations, to
make their everyday lives that little bit
easier.
Today, we are guided by the same belief
we started with - the more you care about
what you do, the more successful you
can become. It’s our approach to life and
business that allows us to showcase our
passion for sustainable innovation. It also
inspires us to constantly improve what we
do and work with our partners to create
a better future for their business, their
customers and the wider world.
Ultimately, we commit to delivering the
very best value and quality for all our
customers and will continue to make that
happen for generations to come.
Ontex. Here for you.
5 I Ontex Integrated annual report 2023
Strategic report Corporate Governance, Risk & Remuneration Financial statements Sustainability/Non-Financial Statements
I Our vision for Ontex I Ontex. Here for you. I Our categories I Our strategic priorities I How we create value I Our achievements I
Caring for a baby is one of life’s major
changes and we are here to make
everyday life easier for people during
this exciting and sometimes challenging
time. Baby care products account for
about half of our business. We partner
with retailers to develop baby pants and
diapers, focusing on getting aordable
and innovative equivalents to A-brands
to market fast, which makes everyday life
easier for many people. Ontex is reaping
rewards from the growing consumer
preference for baby pants (versus
diapers), and our products in this category
are a winner in the market. Our focus on
eciency helps us to keep our baby care
products more aordable.
We are also leaders in feminine care in
Europe, providing a range of products
including ultra-towels, u towels,
panty liners and tampons. We believe
that everyone should have access to
personal care products that not only
inspire condence but also oer great
value. The feminine care innovations
brought to market in 2023 exemplify our
focus on fast innovation delivery in our
Core Markets. This is a crucial element
of our strategy to become the number
one partner to the retail and healthcare
sectors in Europe and North America.
Many people experience various degrees
of incontinence but can enjoy everyday life,
thanks to the products we oer. We have
more than 40 years of experience in this
category and use it to help millions of people.
Our products include light, medium and
heavy incontinence products sold through
healthcare institutions as well as retailer
brands. In Europe we hold a strong position
in the healthcare sector, and we have major
growth ambitions in this category. In 2023,
we launched our innovative
X-CORE technology,
a light incontinence product which oers
improved protection, comfort and discretion.
Feminine care
Baby care
Adult care
…across
generations
Our categories
Strategic report Corporate Governance, Risk & Remuneration Financial statements Sustainability/Non-Financial Statements
6 I Ontex Integrated annual report 2023
I Our vision for Ontex I Ontex. Here for you. I Our categories I Our strategic priorities I How we create value I Our achievements I
Our strategic priorities
In 2022, we began refocusing Ontex’ strategy on Retail and Healthcare brands and strengthening our leadership in
Europe and North America. Subsequently, we embarked on a transformation journey with focus on 5-pillars: customer-
centricity, competitive innovation, sustainability performance, cost-ecient operations and a lean and performance-driven
organization, to create value for all our stakeholders. Since then, this strategic focus continues to fuel our transformation.
Going forward, to win together with our customers, we increase investments and sharpen our focus on three value creation
drivers: business expansion, competitive and sustainable innovation, and best-in-class operations. Laser focus on the
execution of our strategy is enabled by our people and culture.
Key enabler: our people
and our culture
Ultimately, it’s our people that dene the success
of Ontex’s transformation. Our success is based
on that collective drive to always go together,
strive for improvement and ultimately make
it happen. As with every ambition or plan,
execution denes the outcome. Therefore, we
nurture and cherish a positive and collaborative
culture, where everyone understands and is
recognized for their critical contribution.
>
Read more about life at Ontex
Business expansion
Our ambition is to establish strong partnerships with our
retail and healthcare customers and to be their partner
of choice oering a superior value proposition. In Europe
we aim to further strengthen our leadership as the
number one retail brands supplier and to maintain our
solid number two position in the healthcare sector. We
also want to strengthen our share in selected categories
in which we have a strong competitive advantage.
In North America, our prime source of business
expansion, we are planning for double-digit top-line
growth, by upscaling our position in the market. We
believe we can achieve this by partnering with top
retailers to build and grow their retail brands in the North
American market where these have signicant potential,
leveraging our unique selling proposition based on our
experience in Europe.
Best-in-class operations
We aim to deliver operational eciencies
and excellence across the end-to-end supply
chain. A major enabler for this is the overall de-
complexication of our operations, including
harmonization of product platforms and equipment.
Competitive and sustainable
innovation
Ontex aims to be the fastest provider of A-brand
equivalents to our retail customers, while also
developing more sustainable products. That’s why we
are investing signicantly in research and development
and technical upgrades to our production lines.
Strategic report Corporate Governance, Risk & Remuneration Financial statements Sustainability/Non-Financial Statements
7 I Ontex Integrated annual report 2023
I Our vision for Ontex I Ontex. Here for you. I Our categories I Our strategic priorities I How we create value I Our achievements I
How we create value
Our capital Our input Our business model Our output Our impact
1
EMPLOYEES
7,500+
EMPLOYEES
25%
WOMEN IN LEADERSHIP
3.52
ACCIDENTS
PER MILLION HOURS
WORKED
84%
RETENTION RATE
MARKETS &
SOCIETY
€2.3 bn
RECEIVED FROM
CUSTOMERS IN 110+
COUNTRIES
€1.8 bn
PAID TO SUPPLIERS IN
70+ COUNTRIES
€21 m
TAXES PAID
65%
OF PRODUCTS WITH ECO
AND/OR HEALTH LABELS
INNOVATION
&IP
6
R&D CENTERS
€19 m
OPERATIONAL &
CAPITAL EXPENDITURE
MORE THAN
600
ACTIVE PATENTS AND
APPLICATIONS
15
NEW PATENT
FAMILIES
RESOURCES &
ENVIRONMENT
361 GWh
ENERGY CONSUMPTION
OF WHICH 80%
RENEWABLE ENERGY
46%
RENEWABLE MATERIALS
IN OUR PRODUCTS
-54%
LOWER SCOPE 1-2
CARBON EMISSIONS VS
2020
-4%
INCREASE SCOPE 3
CARBON EMISSIONS VS
2020
OPERATIONS
16
FACTORIES
€96 m
CAPEX
+5%
OVERALL EQUIPMENT
EFFECTIVENESS (OEE)
IMPROVEMENT
21 bn
HYGIENE ITEMS
PRODUCED
FINANCIAL
CAPITAL
€665 m
NET FINANCIAL DEBT
€626 m
MARKET CAPITALIZATION
€223m
ADJUSTED
EBITDA
€9 m
FREE CASH FLOW (AFTER
FINANCING)
1 Ontex has identied six UN Sustainable Development Goals on which it can have the most impact, through its operations or across the value chain, in line with the materiality analysis. You can read more about this topic in section 1.5.4. of the sustainability statements of this report.
Competitive and
sustainable innovation
Business
expansion
Best-in-class
operations
Strategic report Corporate Governance, Risk & Remuneration Financial statements Sustainability/Non-Financial Statements
8 I Ontex Integrated annual report 2023
I Our vision for Ontex I Ontex. Here for you. I Our categories I Our strategic priorities I How we create value I Our achievements I
Our achievements
Ontex optimized its supply
chain, leveraged economies of
scale, simplied procurement
operations, streamlined
warehouse operations,
and seamless collaboration
between the supply chain
and r&d functions. The cost
transformation program
delivered €91 million in gross
savings in the Total Group, a
simplied product portfolio,
improved Overall Equipment
Eectiveness (OEE), SAP
transition in North America,
and ongoing investments in
productivity amid ination.
>
Read more
We create value through
sustainable innovation. Our
sustainability targets are
mapped across four topics:
climate action, circular
solutions, building trust, and
a sustainable supply chain.
Initiatives include reducing
emissions in our operations
and across the value chain,
adopting sustainable
packaging, and cutting
landll waste. Integrating ESG
considerations is hard-wiring
sustainability into our business
practices.
>
Read more
We are going back to the basics,
focusing on bringing aordable
equivalents to A-brands to
market fast, making everyday
life easier for many people.
Our innovation and r&d teams
spearheaded innovations in
each Ontex category (Baby
Care, Feminine Care and
Adult Care), which were met
with great enthusiasm by
our customers. Adult pants,
utilizing X-CORE technology,
proved both convenient and
budget-friendly. Successful
developments, including the
ConDaily panty liner and
DreamShield pants, showcased
Ontex’s ongoing commitment
to innovation and leadership.
>
Read more
Ontex won new contracts in our
healthcare channel and with
retailers. In North America, new
inhouse capacity is leveraging
data for a competitive edge.
Customer segmentation fueled
our innovation and successful
product developments.
>
Read more
In 2023, Ontex teams
transformed from resilience
to strength. Executive roles
merged, new talent was
recruited, and executive short-
term remuneration was linked
more directly also to non-
nancial targets, emphasizing
ESG and safety. Performance
initiatives focused on uplifting
workplace capabilities as well
as launching a global Pulse
survey and a role-modelling
program for the Ontex PRIDE
Values by the company
leadership and peer-nominated
Pride Values Champions.
>
Read more
Employees Markets
& society
Innovation Resources &
environment
Operations
Core Markets revenue reached
€1,795 million, +10% like-for-
like, driven by volume growth
in selected categories and
pricing. This brought €174
million of adj. EBITDA achieving
an average margin of 9,7%.
The adj. EBITDA improved
for six consecutive quarters
beneting from growth and
relentless execution of the
cost transformation program.
Adding the solid delivery from
discontinued operations in
Emerging Markets, the free
cash ow of the Total Group
turned positive. Moreover,
supported by the divestment
of our Mexican business, we
strengthened our balance
sheet with a leverage ratio
declining to 3.3x.
>
Read more
Financial
Strategic report Corporate Governance, Risk & Remuneration Financial statements Sustainability/Non-Financial Statements
9 I Ontex Integrated annual report 2023
I Our vision for Ontex I Ontex. Here for you. I Our categories I Our strategic priorities I How we create value I Our achievements I
Highlights
In 2023, we’ve evolved from resilience
to optimism and condence, thanks to
providing clarity on the direction of our
company and our increased emphasis
on collaboration between our more than
7,500 employees. By working together, we
have built up our teams’ joint capabilities
and delivered excellent results.
In May 2023, the proposal to link
a signicant part of the short-term
executive remuneration with non-nancial
targets (CO2 emissions and the accidents
rate) was approved by our shareholders
with more than 95% of the votes cast. The
shift towards our focus on what creates
value for our stakeholders in the short
term, is our guide towards long-term
success.
In 2023, local compliance manager roles
moved from hr to nance. Despite this
change, hr managers continue to play a
crucial role in ensuring that people not
only live the organization’s values but
are also comfortable in speaking up.
Positive recognition of ethical behavior is
on the rise: cases reported through our
compliance system have gone up overall,
while problematic cases have gone down.
Ontex strives for a safety culture that
protects all our workers. Occupational
safety is a high priority. In 2023, we
reduced our accident rate by 31%
compared with 2020, and by almost 7%
compared with 2022. Further reduction
of the accident rate is a top priority for
2024 and beyond. Read more in the
Occupational Health and Safety section
of the Sustainability Statements in this
report.
Performance
• Ontex actively invests in creating
awareness and moving towards gender
parity. For example, we monitor
gender neutrality during the annual
performance review process and
organize information sessions on the
gender pay-gap. Ensuring that our
performance calibrations are gender-
neutral is very important to us.
• Capability uplift is at the core of
our ambition to build a lean and
performance-driven organization,
• In December 2023 we launched our
Pulse survey: a user-friendly global
survey that allows us to take the pulse
of the entire organization regularly as
part of our cultural change program.
The survey oers the opportunity for
feedback and dialogue and is a rst step
to further building a workplace where
everyone feels engaged and energized.
• In 2023, we also launched our global
PRIDE Values Champions program.
Everyone at Ontex was asked to
nominate colleagues and teams that
exemplify our values.
Employees
“2023 was a year of
building strength
and performance in
our teams. We will
continue this in 2024,
making our teams
even stronger and
more collaborative,
for even better
results.”
Jonas Deroo, Chief HR and Legal Ocer and Secretary General
Strategic report Corporate Governance, Risk & Remuneration Financial statements Sustainability/Non-Financial Statements
10 I Ontex Integrated annual report 2023
I Our vision for Ontex I Ontex. Here for you. I Our categories I Our strategic priorities I How we create value I Our achievements I
Story
2023 PRIDE Values Champions
Our PRIDE values (Passion, Reliability, Integrity,
Drive and Everyone) dene what we stand
for at Ontex. We care deeply about our work,
because we believe that this is directly linked
with job satisfaction and successful outcomes.
In 2023, we re-emphasized the importance
of our PRIDE values with a set of dedicated
activities. Leading by example matters; that’s
why our leadership teams kickstarted the
program with a commitment to role-model
these behaviours. To maintain focus and
truly bring this culture to life, our executive
management committee (EMC) and executive
leadership team (ELT) engage in an ongoing
process. We expect to roll out this program to
more leaders throughout Ontex.
We followed through by organizing the rst
edition of an annual awards ceremony to
recognize outstanding Ontex employees and
teams who demonstrate these values in their
everyday work: our PRIDE Value Champions!
Launched in July 2023, the process began
with an invitation for each Ontex employee
to nominate a colleague (or team) from
any part of the business, in any job role for
demonstrating PRIDE Value behaviors. This
resulted in more than 600 nominations from
all layers and regions of the group.
In October 2023, we hosted a special awards
ceremony in Spain, where our six PRIDE
Champions were put in the spotlight. Their
direct colleagues and the leadership team
shared their appreciation for the remarkable
contribution to Ontex’ culture.
Congratulations once again to the six 2023
PRIDE Value Champions: Naomi Gill, Je
Nance, Aurélie Salsarulo, GEC Lab Team
Mayen, AMU2 Buggenhout, and Sao Paolo
International Merchandising team.
ACCIDENT RATE PER MILLION HOURS
WORKED
EMPLOYEE GENDER
WOMEN IN LEADERSHIP
2020 2021 2022 2023
5.45
2.96
3.78
Goal 2030
0%
2020 2021 2022 2023
25%
25%
26%
20%
67% men
33% women
3.52
Strategic report Corporate Governance, Risk & Remuneration Financial statements Sustainability/Non-Financial Statements
11 I Ontex Integrated annual report 2023
I Our vision for Ontex I Ontex. Here for you. I Our categories I Our strategic priorities I How we create value I Our achievements I
Markets & society
Highlights
We made signicant progress in restoring
protability in Europe in 2023, although not
yet returned to pre-Covid and ination crisis
levels. The operating environment remains
complex: shifting from ination to deation
and involving various category changes
across countries and channels. Building on
the learnings from 2021 and 2022, we have
established a sustained competitive position
and won new contracts in the healthcare
channel.
As part of our simplication agenda, we are
using a customer segmentation strategy,
tailoring oerings and innovations to specic
customer groups. This implies that we involve
customers in innovation development at
an early stage. The result is particularly
successful product developments, such as
our upgraded Dreamshield baby pants, an
innovative barrier solution for small-sized
open diapers, and a new tampon, SatinSense,
with a superior experience for the consumer.
In North America, the strongest source
of growth for Ontex, we are uniquely
positioned as the only company with
bi-coastal manufacturing capacity. This
strategic advantage ensures lean, cost-
ecient operations and reliable supply for
our customers. As we scale up, we’re also
cultivating strong, long-term partnerships
with top retailers in the region.
Paul Wood, President North America Division
“We leverage
Consumer-packaged
goods (CPG) data
analytics and thought
leadership in our
collaboration with
retailer partners,
treating their private
brands as if they were
our own.”
Strategic report Corporate Governance, Risk & Remuneration Financial statements Sustainability/Non-Financial Statements
12 I Ontex Integrated annual report 2023
I Our vision for Ontex I Ontex. Here for you. I Our categories I Our strategic priorities I How we create value I Our achievements I
Performance
• Revenue from Core Markets was
€1,795 million in 2023, a 10% like-for-like
improvement, driven by price increases.
In adult care revenue growth was 16%,
with strong growth in the healthcare
channel. Baby care revenue grew 5% and
feminine care 9%, both on pricing.
• Implementing our strategy means
refocusing on Core Markets, engaging
more deeply with customers and
suppliers, and updating our approach
towards competitive categories.
Our progress is evidenced by positive
customer feedback and survey results.
Our customers say they are excited to
see a more engaged and future-oriented
outlook from us.
• 2023 was a very strong year for Ontex
in our healthcare channel in Europe. We
solidied our number two position and
won new contracts in several countries.
There is continued budget and cost
pressure on healthcare customers, so
our success in 2023 shows that we have
a competitive oering to assist healthcare
institutions during these dicult times.
• Implementing our strategy has also
meant making tough decisions. In
2023, we discontinued our baby diaper
subscription business as it did not align
with the core strategy. There were
signicant and valuable learnings but
ultimately it was not in line with our value
creation ambition.
• In the US market, we’re leveraging data
analytics to enhance our competitive
advantage. Our investments in data
acquisition and analysis allow us to
gain valuable insights into shopping
patterns and consumer preferences.
This approach fosters a partner-oriented,
consumer-driven, and relationship-based
way of working.
Story
Data-driven market analysis in
North America
In today’s ercely competitive business
landscape, data analysis is integral to success,
particularly in the fast-moving consumer goods
sector. At Ontex, we strategically invest in data
utilization to fortify our competitive edge. By
discerning similarities and nuances in the data
between European and U.S. retailers, we gain
critical insights into product performance,
demand forecasts, and market dynamics in
North America—similar to industry norms among
Consumer-packaged goods (CPG) companies.
Our commitment to customer centricity drives
our in-house data capacity expansion, enabling
tailored product oerings and enhancing
customer satisfaction. This approach, embraced
by forward-thinking U.S. retailers, fosters
partnerships, consumer-driven strategies, and
sustainable growth.
Strategic report Corporate Governance, Risk & Remuneration Financial statements Sustainability/Non-Financial Statements
13 I Ontex Integrated annual report 2023
I Our vision for Ontex I Ontex. Here for you. I Our categories I Our strategic priorities I How we create value I Our achievements I
Innovation
Highlights
We are going back to the basics, focusing on
bringing aordable equivalents to A-brands to
market fast, which makes everyday life easier
for many people. Our Innovation and R&D teams
spearheaded innovations in each Ontex category
(Baby Care, Feminine Care and Adult Care).
Our innovation strategy is built upon four
elements that are the cornerstones of our
success:
• the pursuit of the fastest A-brand equivalent.
• a commitment to cost-conscious product design,
by focusing on cost-eective components and
construction during product design without
jeopardizing consumer and customer value.
• the unication of our eorts through product
platforms, with the emphasis on simplication
as this will help us to create speed in
industrialization.
• a relentless dedication to more sustainable
product design for all our product categories,
prioritizing the reduction of plastics and
greenhouse gas emissions.
Competitive innovation drives Ontex’s value
creation, focusing on making everyday life easier
for many people across four key pillars: fast
equivalent to A-brands, cost-conscious design,
product platforms, and sustainable product
design.
Speed to market is of the essence and our
acceleration program relies on 3 pillars: focus,
organizational structure and ways of working
and strong cross-functional collaboration. Taking
ownership and assuming accountability are
paramount to ensure success.
In order to create focus we changed the
innovation and R&D organization with the aim to
Annick De Poorter, Chief Innovation and Sustainability Ocer
“We are focused on
partnering with our
customers to achieve
great results. We
have a positive spirit,
we are all working
towards the same
goal, and we are
resilient. You really
cannot buy that.”
Strategic report Corporate Governance, Risk & Remuneration Financial statements Sustainability/Non-Financial Statements
14 I Ontex Integrated annual report 2023
I Our vision for Ontex I Ontex. Here for you. I Our categories I Our strategic priorities I How we create value I Our achievements I
create the right focus and install end-to-end
responsibilities per product category. We
enhanced our integrated innovation process
and installed a new design and development
process that strengthens customer-
centricity by involving top customers. Ontex
aligns innovation with customer needs
while maintaining competitive edge and
accountability throughout its organization.
Cross-category meetings foster
collaboration with suppliers, enriching the
internal innovation management system.
By prioritizing product safety, service,
quality, price, and sustainability, Ontex
aligns innovation with customer needs
while maintaining competitive edge and
accountability throughout its operations.
Performance
Faster innovation, including fast-follow
innovation, is part of Ontex’s vision to be
the number one partner to the retail and
healthcare sectors in Europe and North
America, and this ambition is supported by
our R&D teams and the capacities of the
Global Excellence Center in Mayen, Germany.
In 2023, we improved the processes behind
our innovation eorts, simplifying the R&D
organization and the innovation processes
with full focus on our 3 product categories, to
allow us to leverage our profound expertise
when partnering with our customer to
develop innovations that ultimately make
everyday life easier for millions of people,
across generations.
Decomplexication enables us to roll out
innovations at scale and in line with our
strategic priorities. For example, harmonizing
our machine technology enables faster
industrialization of our innovations and
accelerates speed to market. It brings more
interchangeability across our production
lines, which helps us improve our service
level to customers. Harmonizing our product
platforms also reduces complexity: meaning
less changeover, higher run-ability, and higher
output per line.
New personal care products were developed
in each of our product categories. An
innovative core for adult disposable
pants improves performance thanks to its
channeled X-CORE technology, meeting
consumers’ needs for protection, comfort
and discretion. Launched in December 2023,
our latest tampon innovation SatinSense is
a product oering an unprecedented level
of comfort. In Europe, Ontex has developed
the ultimate daily liner: ConDaily, a source
of great pride for the product development
team at Ontex.
Story
Strategy in action: the power of collaboration
Our commercial teams, in partnership with
R&D, are working to simplify our product
portfolio while safeguarding our customer
relationships. This endeavor also involves our
supply chain, quality, and operations teams
to ensure adaptation of our production
processes and assets to the decomplexied
portfolio. Our aim is to uphold the service
levels and quality standards agreed upon with
our customers while mitigating any increase
in production costs. This collaborative eort
is already bringing tangible results today and
promises continued success in the future.
Moreover, the optimization of our product
portfolio has spurred our procurement team
to review our supplier contracts for non-
woven materials, a critical raw material in
our products. Simplifying our portfolio has
led to more standardization in non-woven
materials, enabling us to procure at a larger
scale from fewer suppliers. This consolidation
has led to improvements in product quality,
customer service and operational eciency.
Additionally, this optimization positively
impacts our production teams by reducing
the need to switch raw materials frequently
during the production process.
This is just one of many examples highlighting
how our cross-departmental collaboration is
leading to high-impact outcomes across the
Ontex Group.
Strategic report Corporate Governance, Risk & Remuneration Financial statements Sustainability/Non-Financial Statements
15 I Ontex Integrated annual report 2023
I Our vision for Ontex I Ontex. Here for you. I Our categories I Our strategic priorities I How we create value I Our achievements I
Resources & environment
Highlights
Sustainable innovation is a top- and bottom line value
creation driver at Ontex, as much of our sustainability
eorts are linked to the choice of raw materials and
innovation. Our 2030 Sustainability Strategy sets out a
common agenda for all Ontex units with goals in four key
areas: climate action, circular solutions, building trust, and
sustainable supply chain.
In 2023, we conducted a comprehensive double materiality
assessment. As a result, we are in the process of updating
our Sustainability Strategy and goals to align with the
ndings of the assessment. The updated Sustainability
Strategy will be published in the course of 2024.
As part of our ongoing commitment to sustainability
and responsible business practices, we have
integrated environmental, social, and governance (ESG)
considerations into our short-term incentive plan. To
measure our ESG-related performance, key indicators
include greenhouse gas emissions (scope 1-2-3) and
accident frequency rate.
Laurent Nielly, President Europe Division
“We are seeing an
increase in backlash
against greenwashing.
Our Sustainability
Strategy is framed by
a fact-based multiyear
journey and focused
on elements that we
believe we can impact
on a meaningful scale.
We are making changes
not only to comply with
regulations, but because
we’re committed to being
part of the solution.”
Ontex sustainability topics at a glance
Climate action
• -80% Scope 1-2 carbon emissions by
2030 (vs 2020)
• 100% Renewable electricity by 2030
• -25% Scope 3 emissions by 2030 (vs
2020)
Circular solutions
• 100% sustainable packaging by 2025
• Advance sustainable products
• Pilot end-of-life solutions
• Zero production waste to landll
Building trust
• Zero occupational accidents
• Achieve gender parity in leadership
Sustainable supply chain
• Improving the sustainability performance
of our supply chain
• Ensure sustainable origin of our
renewable materials
• Product safety & transparency –
100% Chemical Footprint by 2030
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Performance
• In 2023, Ontex further reduced Scope 1
and 2 emissions bringing a 54% reduction
compared to the base year 2020.
Additionally, Ontex reduced its Scope 3
emissions with 4% versus base year 2020.
Ontex is proud to have received an A- rating
for leadership in corporate transparency
and performance on climate change for its
2023 contributions.
• We’re delighted to have earned a place
on CDP’s 2023 Supplier Engagement
Leaderboard, in recognition of our eorts to
measure and reduce climate risk within our
supply chain.
• Ontex is actively working to enhance the
environmental prole of its packaging. In
2023, we increased the share of recycled
content in our packaging to 20%.
• In 2023, 95% of our wood-based raw
materials came from certied or controlled
sources falling just 5% short of our 100%
target. The share of products with an eco-
or health-label has also jumped from 48%
in 2022 to 65% in 2023 in part due to our
eorts in actively promoting certications
among our client base.
• Ontex continues to partner with Woosh to
make diaper recycling a reality in Ontex’s
home country of Belgium. This ensures
ongoing learning and design with recycling
in mind for the innovation teams.
Story
Sustainability in action:
Dourges, France
Our factory in Dourges, France, which produces adult
incontinence products, reduced its waste volume
by 21% in 2023. The Dourges Team of more than
200 people set measurable and ambitious targets,
including a comprehensive roadmap towards
sustainability, more stringent scrap reduction goals,
and metrics for waste reduction and reuse.
The skills enhancement program for operators
and the organization includes distribution of a
quality book and instructional videos, tutor support,
live scrap results displayed on TV screens along
production lines, and the implementation of new
waste labels on bins to promote better waste sorting
practices. The campaign on scrap and raw materials
entails initiatives at both individual production lines
and across the entire factory, targeting specic
materials. Celebrating European Waste Reduction
Week in December 2023 also contributed to raising
awareness onsite.
Under the waste reduction program, an ongoing
partnership with a waste treatment company is
aimed at zero-landll for production waste, in
line with Ontex’s Sustainability Strategy. Waste
data (APIs) have been implemented, using the
supplier’s software, to help better manage our waste
production and eciently sort cardboard and plastic
waste.
PLASTIC BAGS WITH RECYCLED
CONTENT
RECYCLING INDEX MANUFACTURING
WASTE
RENEWABLE ELECTRICITY
SCOPE 1-2 EMISSIONS
- 54%
Scope 1-2 emissions
in 2023 vs base year
2020
6 plants
with solar panels
2020 2021 2022 2023
2021 2022 2023
2021 2022 2023
2021 2022 2023
Goal 2030
Goal 2030
Goal 2025
Goal 2025
100%
-40%
91%
95%
9%
-55%
-54%
93%
90%
92%
92%
19%
20%
-80%
100%
100%
30%
(BASE YEAR)
Read more about Ontex’s
commitments in our
sustainability statements
Environment
• Climate change: Section 6
• Resource use and circular
economy: Section 7
• Microplastics: Section 8
• Water: Section 8
• Biodiversity and ecosystems:
Section 8
Social
• Own workforce: Section 9
• Occupational health & safety:
Section 9
• Local community initiatives:
Section 9
• Workers in the value chain:
Section 10
• Consumer safety: Section 11
Governance
• ESG Governance: Section 2
• Business ethics: Section 2
• Stakeholder engagement & double
materiality: Section 4-5
• EU Taxonomy, GRI table:
Section 15
As a leading company in personal care
products, Ontex plays an important
role in contributing to the achievement
of the UN Sustainable Development
Goals. We focus on goals 1, 3, 5, 12, 13
and 15, as this is where we have our
expertise and can make the greatest
contribution.
-4%
Scope 3 emissions
in 2023 vs base
year 2020
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17 I Ontex Integrated annual report 2023
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Operations
In production, we further optimized our network
by reducing the number of warehouses (by
three in 2023). This improves our operations and
also narrows our local focus, which accelerates
the transfer of best practices in the same asset
category between sites.
A major accomplishment of 2023 is the
heightened collaboration between the supply
chain and R&D teams, allowing us to deliver cost-
savings and improve design to value.
Every new product or qualication involves
increasingly tight coordination across the R&D,
quality and industrialization teams. Our processes
have been ne-tuned for optimal eciency and
have been implemented in every plant.
There have been many challenges associated
with our industrial transformation this year, but
the team has risen to the challenge and delivered
great results.
Marco Querzoli, Chief Supply Chain Ocer
“When I rst joined
Ontex, I told my
team that I would
like to think of us
as an orchestra. An
orchestra is not about
any one instrument,
but how everyone
plays together in a
symphony. We work
together on common
objectives: one voice,
one team.”
Highlights
In 2023, we ramped up the investment in our
operations, allocating €96 million, equal to 4.1%
of revenue in early 2023, rising to 4.7% by the end
of 2023, exceeding 5% for Core Markets. Most
investments target operational eciency and
business expansion in Core Markets.
In 2023, our cost transformation program
delivered €91 million in structural savings, of
which €72 million in our Core Markets, reducing
our operating cost base by about 5% for a second
consecutive year. Our supply chain is central to
this achievement because it’s critical for cost-
eciency. Levers range from procurement to
logistics and everything in between. For example,
in procurement this means leveraging the
economy of scale, and the ongoing process of
simplication. We’re reducing the number of
suppliers, optimizing machinery, and standardizing
our customer proposal so that we can provide a
customizable retail brand portfolio while reducing
costs.
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Performance
• The cost transformation program
delivered over €91 million in gross
savings, equivalent to approximately 5%
operational cost base reduction.
• Reducing complexity is a strategic
decision. Already we’ve simplied our
product portfolio, a crucial step in our
journey to improve service levels, as
well as innovation speed and cost. This
enhanced eciency spans the entire
value chain, beneting manufacturing,
procurement, and supply chain
processes alike.
• An outstanding achievement in Q4 2023
was our reduction of scrap levels and
improvement of our Overall Equipment
Eciency (OEE).
• We’ve recently completed the transition
to the SAP enterprise resource planning
platform in all our North America
operations, meaning that all teams
are now on the same platform. This
will enable us to better leverage the
standardisation of processes supported
by the system and hence presents a
great opportunity for us moving forward.
• Our engineering group is working on
change management with a phased
approach to faster machine production
and bringing dierent generations of
machines up to the same production
level.
• Cost transformation is based on
simplicity and focus, sometimes
resulting in decisive action. At our Global
Excellence Center in Mayen, Germany,
we intend to no longer assemble our
own machinery and switch to partnering
with a third party. This dierent way
of working required a lot of change
management and leverage internal
knowhow and external capabilities.
• Sustaining our productivity eorts amid
continued ination requires investments
in new capabilities and tools. There is a
rising cost to unlock productivity, as all
low-hanging productivity fruit has been
picked. Now, the challenge is to keep
pace in a very competitive environment
and oset costs.
Story
Trust and transparency:
how our products are made
Ontex has a long tradition of product innovation,
and with that comes considerable inhouse
expertise. As a reliable and eective partner
for our business customers, we develop our
innovations with the clear ambition to be fast and
to make our products more accessible and more
sustainable.
We invite customers to join our innovation
journey through live demonstrations. Instead of
slide presentations, we oer hands-on showcases
of how our diapers are made. Numbered tables
display materials, and we walk partners through
the process. This transparency reects our
commitment to being reliable collaborators.
This openness around our production process is
founded on our belief that care can drive change
and success, and it reconrms our commitment
to be the most reliable partner for our customers.
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19 I Ontex Integrated annual report 2023
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Financial
Highlights
2023 ended with an adjusted EBITDA in Core
Markets of €174 million and Total Group
of €223 million, marking six consecutive
quarters of improvement for Ontex. This is a
key outcome from the rst year of execution
of our three-year strategic plan and proves
that our eciency, innovation and expansion
strategic actions are paying o.
Thanks to our cost transformation program
and further protable business growth, we
anticipate that the adjusted EBITDA margin
will continue to improve towards a range of
11% to 12% in 2024. In our Core Markets we
expect revenue to grow by low single digit
like-for-like, supported by strong double-digit
like-for-like growth in North America. In these
challenging times of ination, now turning
for some input costs in deation, sales prices
will be actively managed to secure our prot
margins.
We managed to turn the free cash ow (after
nancing) positive to €9 million while at the
same time stepping up the investments to
€96 million. In 2024, we will accelerate our
strategy by an investment level of more
than 6% of Core Markets’ revenues but are
self-funding this since we expect the free
cash ow to further improve. This will unlock
important value creation for our stakeholders.
We managed to restore a strong nancial
position. Leverage nearly halved over the
year from 6.4x to 3.3x, and we expect the net
debt as compared to the adjusted EBITDA of
the last twelve months to further reduce by
year-end 2024 to below 3.0x. Furthermore,
a signicant liquidity buer secures our
nancial resilience. We continue focusing on
deleveraging by free cash ow generation
and executing the divestment program of
discontinued operations in Emerging Markets.
Geert Peeters, Chief Financial Ocer
“I absolutely love
the good vibe and
passion in the Ontex
team - and I feel
blessed to be able to
present the strong
nancial results of
2023. All key gures
moved signicantly in
the positive direction.”
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Performance
• Adjusted EBITDA of Core Markets increased
to €174 million, up 67%, thanks to volume
mix improvement of €5 million and the cost
transformation program delivering €72
million, which reduced the operating cost
base by 5% for a second consecutive year.
Pricing contributed to osetting additional
input costs, SG&A ination and adverse
forex impact. The adjusted EBITDA margin
rose to 9.7%, up 3.5 percentage points. The
operating prot recovered to €88 million,
compared to a loss of €(69) million a year
ago.
• Prot for the year of the Total Group was
€35 million, €27 million from continuing
operations (Core Markets) and €8 million
from discontinued operations (Emerging
Markets). Basic earnings per share thereby
turned positive at €0.43 representing a
signicant turnaround since 2020.
• Free cash ow of the Total Group turned
positive at €9 million, compared to €(115)
million in 2022, with EBITDA growth
enabling further investments in the Group’s
transformation.
• Net nancial debt of the Total Group
reduced by 23% in 2023 and over the year
to €665 million, including the net proceeds
received from the leverage ratio improved
from 6.4 times at the start of the year to 3.3
times at the end of 2023.
SOLID REVENUE GROWTH
MAINTAINING 5% OPERATING
COST REDUCTION
TOTAL GROUP FCF
1
TOTAL GROUP LEVERAGE
CORE MARKETS REVENUE
CORE MARKETS ADJ.
EBITDA MARGIN
€1.8bn
+10% YOY LFL
€9m
vs €(115)m
in 2022
9.7%
+3.5ppYOY
3.3x
vs 6.4x
in December 2022
2022 2023
1,795
1,672
+10%
LFL
Revenue
LFL growth,
Core Markets
Revenue,
Core Markets
(in €M)
2022 2023
72
56
4.9%
5.1%
YOY operating
cost reduction
in %,
Core Markets
Gross operating
cost reduction,
Core Markets
(in €M)
STRONG ADJ. EBITDA
IMPROVEMENT, CORE MARKETS
STEPPING UP THE INVESTMENT
LEVEL
6
TH
CONSECUTIVE Q
LY
ADJ. EBITDA IMPROVEMENT
6.2%
9.7%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2022 2023
24
44
19
43
21
41
40
47
5.4%
5.6%
8.8%
9.1%
9.7%
9.5%
10.4%
4.8%
Adj. EBITDA
margin,
Core Markets
Adj. EBITDA,
Core Markets
(in €M)
2022 2023
96
62
~3%
~5%
Capex / revenue
Core Markets
Capex,Total
Group
(in €M)
2022 2023
174
104
Adj. EBITDA
growth, Core
Markets
FY adj. EBITDA,
Core Markets
(in €M)
+67%
1 Free Cash Flow after nancing cash-out.
Strategic report Corporate Governance, Risk & Remuneration Financial statements Sustainability/Non-Financial Statements
21 I Ontex Integrated annual report 2023
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Corporate
Governance,
Risk &
Remuneration
Strategic report Corporate Governance, Risk & Remuneration Financial statements Sustainability/Non-Financial Statements
23 I Ontex Integrated annual report 2023
Corporate Governance Statement
THE COMPANY IS COMMITTED TO UPHOLDING HIGH STANDARDS OF CORPORATE GOVERNANCE. IT APPLIES THE BELGIAN CORPORATE GOVERNANCE
CODE (2020) FOR LISTED COMPANIES (THE “2020 CORPORATE GOVERNANCE CODE”), WHICH CAN BE FOUND ON THE WEBSITE OF THE BELGIAN
CORPORATE GOVERNANCE COMMITTEE (HTTPS://CORPORATEGOVERNANCECOMMITTEE.BE).
FURTHER, THE COMPANY HAS ADOPTED A CORPORATE GOVERNANCE CHARTER WHICH DESCRIBES THE MAIN ASPECTS OF THE COMPANY’S
CORPORATE GOVERNANCE, INCLUDING ITS GOVERNANCE STRUCTURE AND THE TERMS OF REFERENCE OF THE BOARD OF DIRECTORS (THE “BOARD”),
THE BOARD COMMITTEES AND THE EXECUTIVE COMMITTEE. THE CHARTER IS AVAILABLE ON THE COMPANY’S WEBSITE
(HTTPS://ONTEX.COM/INVESTORS/LEADERSHIP).
HIGHLIGHTS OF 2023 CORPORATE GOVERNANCE MATTERS
The Company remains fully committed to upholding “best-in-class” corporate governance principles, which it believes form an important catalyst for the accelerated realization of the Company’s
ongoing turnaround. The Company continues to focus, among others, on the following five corporate governance themes: leadership; governance; remuneration; environment and sustainability;
and investor engagement. Within these themes, several highlights are summarized in this Corporate Governance Statement (and in the Remuneration Report that forms part of it).
In 2023, the composition of the Company’s Executive Committee underwent a number of changes. The following senior managers joined the Company and its Executive Committee:
Mr. Paul Wood was appointed to the role of President of the North America division;
Mr. Marco Querzoli was appointed to the role of Chief Supply Chain Officer, replacing Mr. Vincent Crepy, who left the Company in May 2023; and
Chilibri BV, permanently represented by Mr. Geert Peeters, was appointed to the role of Chief Financial Officer, replacing NestVision BV, permanently represented by Mr. Peter
Vanneste, who left the Company at the end of September 2023.
Finally, Ms. Stephanie McDonald, who acted as Chief HR Officer until 1 February 2023, left the Company. She was succeeded in her role by Mr. Jonas Deroo, who took up the role of Chief
HR Officer in addition to his role of Chief Legal Officer within the Executive Committee.
The Company’s annual shareholders’ meeting of May 5, 2023 approved the Company’s revised Remuneration Policy with a 96.7% majority of votes cast. The revised Remuneration Policy
aims to strongly incentivize management to accelerate the realization of the Company’s ongoing turnaround by further strengthening the alignment of executive rewards and shareholder returns.
The key changes made to the Remuneration Policy are summarized in the Remuneration Report.
ESG continues to be a fundamental element of the Company’s strategy. Building upon previous achievements, in 2023, Ontex was awarded an exceptional 'A-' rating for its leadership in
corporate transparency and climate change performance by the Carbon Disclosure Project (CDP), a globally recognized environmental non-profit. This rating places Ontex within the top 6% of
all respondents to the Carbon Disclosure Project’s survey and underscores its commitment to environmental stewardship. Ontex received this rating, among others, as a result of reducing
Scope 1 and 2 emissions by 54% in 2023 (relative to 2020) and sourcing of 100% renewable electricity for its European operations. In addition, Ontex remains strongly committed to its
Sustainability Strategy 2030, which includes ambitious, quantified targets and a clear roadmap, which can be found in the Sustainability Statements of this report.
24 I Ontex Integrated annual report 2023
Lastly, the Company continues to invest in shareholder engagement. Building on its earlier corporate governance roadshows, the Company conducted multiple in-depth discussions with
investors and proxy advisors through a corporate governance roadshow in early 2023. In addition, throughout the year, the Company maintained a dynamic dialogue and alignment with
investors and other stakeholders.
AMBITION GOING FORWARD
The Board reconfirms the Company’s strong ambition to be an example in corporate governance matters, as it sees this as an important value driver for the business. The Board remains
committed to continuing its optimization endeavors on various levels. In 2020, it adopted a roadmap with actions towards that goal, covering such areas as Board leadership, strategic, risk and
ESG alignment, people and composition, structure and process, and Board culture. In September 2021, the Board dedicated an extensive workshop to evaluating its progress made on that
roadmap and agreed on further actions in each of these areas based on the assessment that was made. In the course of 2022, the Board focused, among others, on Board composition and
size, Board and Executive Committee succession planning and CEO and Executive Committee assessment and development. This led, among others, to the reduction of the size of the Board
from 12 to nine members. In 2023, the Board focused, among others, on succession planning of the Executive Committee. The Board also decided to launch an in-depth Board assessment
process with the assistance of an executive advisory firm.
The Company’s efforts in the area of corporate governance were recognized in December 2023 by the Belgian Corporate Governance Commission, which informed the Company that it fully
complied with the 2020 Corporate Governance Code on the basis of its annual report for financial year 2022.
In 2024, the Board will continue its proactive efforts in the aforementioned areas and will ensure that the Company continues to uphold the high standards of corporate governance that it has
set for itself.
25 I Ontex Integrated annual report 2023
1. Board and Executive Management
1.1. BOARD COMPOSITION
On December 31, 2023, the Board was composed as follows:
Name Mandate Board
Other board mandates per
December 31, 2023
Mandate
since
Mandate expires
ViaBylity BV,
permanently represented by Hans Van Bylen
Chair, Independent Director Etex, Lanxess, AkzoNobel 2020 2024
Ebrahim Attarzadeh
Non-Executive Director
PGS
2022
2026
Inge Boets BV,
permanently represented by Inge Boets
Independent Director
Econoholding NV, Econopolis NV, Econopolis
Wealth Management NV, QRF, Euroclear Holding
NB, Euroclear Investments NV, Euroclear NV, Ter
Wind Invest NV
2014 2026
Michael Bredael Non-Executive Director
Upfield Group BV, Canyon Bicycles GmbH,
Affidea
2017 2025
Isabel Hochgesand Independent Director
World Procurement Leaders, Word Cocoa
Foundation, Matilda AG
2021 2025
HVV GmbH, permanently represented by Jesper
Hojer
Non-Executive Director Everli, Tom&Co 2021 2025
MJA Consulting BV, permanently represented by
Manon Janssen
Independent Director Gimv, Puratos, Ecorys 2021 2025
Paul McNulty
Independent Director
2022
2026
Rodney Olsen
Non-Executive Director
Mary Crowley Cancer Research
2021
2025
The Board counts nine members, five (or 55.56%) of whom are independent directors.
Mr. Jonas Deroo, Chief HR and Legal Officer, is Secretary of the Board.
Further details on the changes to the composition of the Board are detailed in chapter 1.2 of this Corporate Governance Statement.
The biographical information, skills and experience of each member of the Board as at December 31, 2023 are summarized below. This includes information on other director mandates held
by these members. The Company considers that its directors possess the right competencies to guide and support Management in positioning the Company on the path to accelerated value
delivery.
26 I Ontex Integrated annual report 2023
HANS VAN
BYLEN
Chair of the
Board,
Independent
Director
On May 25, 2020,
ViaBylity BV, with Mr. Hans Van Bylen as
permanent representative, was appointed
as Independent Director and Chair of the
Board.
Mr. Van Bylen also chairs the
Company’s Remuneration and Nomination
Committee. Mr. Van Bylen, formerly CEO of
Henkel, brings Ontex his deep knowledge of
the industrial and consumer goods sector
and a wide breadth of experience spanning
the FMCG industry, retail brand space,
manufacturing and supply chain,
digitalization, sustainability and leadership
development. Mr. Van
Bylen previously
served on the boards of GfK, Ecolab, the
Consumer Goods Forum, the Alliance to
End Plastic Waste and has been president
of the German Chemical Industry
Association (VCI). Moreover, he has also
been member of the European Round Table
for Industry (ERT). In addition, Mr. Van
Bylen is also a board member at Etex,
Lanxess and AkzoNobel.
EBRAHIM
ATTARZADEH
Non-
Executive
Director
On May 5, 2022,
Mr. Ebrahim
Attarzadeh was
appointed as a Non-
Executive Director
upon the nomination of
ENA Investment
Capital LLC. Mr. Attarzadeh has more than
20 years’ experience in investment banking
and asset management. He was CEO of
Mainfirst Bank AG and CEO and Head of
Equities of Stifel Europe Bank AG until end
of 2021. Prior to that he held other positions
at Deutsche Bank and Arthur Andersen.
Currently, Mr. Attarzadeh is the Co-Founder
and Chairman of Callirius AG, a sustainable
finance company.
INGE BOETS
Independent
Director
I
nge Boets BV,
with Ms. Inge
Boets as its
permanent
representative,
was appointed as Independent Director as
of June 30, 2014. Ms. Boets also chairs the
Company’s Audit and Risk Committee. She
was a partner with Ernst & Young from 1996
through 2011, where she was the Global
Risk leader and held several other roles in
audit and advisory. Currently, Ms. Boets is
also an independent director and chair of
the audit and compliance committee at
Euroclear (Euroclear Holding NV, Euroclear
Investments NV and Euroclear NV), chair of
the board of directors at QRF City Retail,
chair of the board of directors at Econopolis
(Econoholding
NV, Econopolis NV,
Econopolis Wealth Management NV) and
independent director at Ter Wind Invest NV.
In addition, Ms.
Boets is the owner and
manager of La Scoperta BV.
MICHAEL
BREDAEL
Non-Executive
Director
On May 24, 2017,
Mr. Michael
Bredael was
appointed as
Non-Executive Director
upon the
nomination of
Groupe Bruxelles Lambert
(GBL). Mr. Bredael is an Investment Partner
at Groupe Bruxelles Lambert since 2016.
He started his career at Towers Watson as
a consultant in the United States in 2003
before joining the BNP Paribas Group in
2007. Mr. Bredael held various investment
b
anking positions at BNP Paribas,
particularly focusing on cross-border M&A
transactions. From 2014 to 2016, he was
Head of the M&A Execution Group of BNP
Paribas London. Mr. Bredael is director of
Upfield Group BV, Canyon Bicycles GmbH
and Affidea, as a representative of Groupe
Bruxelles Lambert.
27 I Ontex Integrated annual report 2023
MANON
JANSSEN
Independent
Director
On May 25, 2021,
MJA Consulting
BV, permanently
represented by
Ms. Manon Janssen, was appointed as an
Independent Director. Ms. Janssen is a C-
level executive with extensive experience in
the fields of
general management,
sustainability and professional services, in
both the private and
public sector. She
began her career at Procter & Gamble,
where she worked for 16 years in different
countries and where she was responsible
for major brands in the Paper and Health &
Beauty Care divisions. In 2000, she became
Vice President Marketing & Innovation at
Electrolux Europe and in 2005 she became
Chief Marketing Officer worldwide at Philips
Lighting. Ms. Janssen currently is the CEO
and chair of the board of management of
Ecorys, an
international research and
advisory company
addressing societal
challenges in public policy. In addition, she
advises the Dutch and Belgian governments
as well as private companies in the field of
sustainability, the
energy transition and
climate change. She is also
a director at
Gimv and Puratos.
PAUL
MCNULTY
Independent
Director
On May 5, 2022,
Mr. Paul McNulty
was appointed as
an Independent
Director upon the nomination of Veraison
SICAV – Engagement Fund
, one of the
Company’s shareholders. Mr. McNulty is
Senior Partner and Member of the
Executive Committee of Veraison Capital
AG, the asset manager responsible for the
Veraison SICAV – Engagement Fund, since
June 2020. Prior to that, he spent five years
as a senior analyst with Sterling Strategic
Value Limited (Monaco), the investment
advisor for Sterling investment funds. From
2000 until 2015, he was a senior fund
manager with Setanta Asset Management,
an active global value-oriented investment
manager. Prior to that, Mr. McNulty was a
consultant with PriceWaterhouseCoopers.
ISABEL
HOCHGESAND
Independent
Director
On May 25, 2021,
Ms. Isabel
Hochgesand was
appointed as an Independent Director.
Ms. Hochgesand is an executive with
extensive international experience in
procurement, supply chain, and marketing
of consumer goods. Ms. Hochgesand is
Chief Procurement and Hazelnut Company
Officer at Ferrero, located in Luxemburg.
Prior to that, Ms. Hochgesand was Chief
Procurement Officer at Beiersdorf AG and
held various senior roles in various
countries worldwide at Procter & Gamble,
most of her 25 years of tenure in the
personal hygiene sector. Ms. Hochgesand
was also the Managing Director for Supply
Chain for P&G in Germany, Austria and
Switzerland for all brands. Ms. Hochgesand
serves on the advisory boards
of World
Procurement Leaders, Word Cocoa
Foundation, and Matilda AG.
JESPER
HOJER
Non-Executive
Director
On May 25, 2021,
Mr. Jesper Hojer
was appointed as
a Non-Executive
Director upon the nomination of Groupe
Bruxelles Lambert (GBL). Mr. Hojer has vast
experience in the consumer goods and retail
sectors, as well as with the creation and
implementation of digital solutions in the
retail sector, and has a broad international
outlook. He was the CEO of Lidl
International, one of the largest international
chains of grocery st
ores. Currently, Mr.
Hojer is a senior advisor at McKinsey &
Company Inc., and also acts as chair of the
boards of director of Tom&Co and Everli.
28 I Ontex Integrated annual report 2023
RODNEY
OLSEN
Non-Executive
Director
On May 25, 2021,
Mr. Rodney Olsen
was appointed as
a Non-Executive Director
upon the
nomination of ENA Investment Capital LLC.
Mr.
Olsen is an experienced international
finance executive within the FMCG sector.
He is a former CFO of Kimberly Clark’s
APAC division, and prior to that he held
various senior roles at Kimberly Clark,
including CFO International, CFO Global
Finance Operations and CFO of the EMEA
region and was responsible for large
international M&A transactions. Prior to
joining Kimberly Clark, he was senior
manager audit at EY, and senior manager
SEC Reporting at the LTV Corporation.
Mr. Olsen is also a board member at Mary
Crowley Cancer Research.
29 I Ontex Integrated annual report 2023
COMPETENCY MATRIX
The following table shows the competencies that have been identified as important, given Ontex’s current context and strategic challenges, and how the Board’s current composition covers
these.
Hans Van
Bylen
Inge Boets
Michael
Bredael
Isabel
Hochgesand
Manon
Janssen
Jesper
Hojer
Rodney
Olsen
Ebrahim
Attarzadeh
Paul
McNulty
Experience
Current/past CEO ● ● ● ● ●
International experience ● ● ● ● ● ● ● ● ●
Expertise
Executive in FMCG/retail ● ● ● ● ●
Functional Executive (operations, procurement, commercial) ● ● ● ●
Financial/Audit ● ● ● ● ●
Capital Markets ● ● ●
Sustainability ● ● ● ● ●
Diversity
Gender
Male ● ● ● ● ● ●
Female ● ● ●
Regional origin
Belgium ● ● ● ●
International ● ● ● ● ●
Compliance
Independent Director ● ● ● ● ●
30 I Ontex Integrated annual report 2023
1.2. BOARD EVOLUTION IN 2023
The composition of the Board underwent no substantive changes during 2023. The annual shareholders’ meeting of May 5, 2023 confirmed the co-optation of HVV GmbH, with Jesper Hojer
as permanent representative, as Non-Executive Director for the remaining term of the mandate of JH GmbH, with Jesper Hojer as permanent representative, i.e., a period which will end
immediately after the annual shareholders’ meeting that will consider the approval of the annual accounts for the financial year ending on December 31, 2024.
1.3. BOARD RESPONSIBILITIES AND ENGAGEMENT
The individual attendance rate of the Board meetings during 2023 was as follows:
Name
Board Attendance
[1]
Attendance Rate
ViaBylity BV, permanently represented by Hans Van Bylen
8/8
100%
Ebrahim Attarzadeh
8/8
100%
Inge Boets BV, permanently represented by Inge Boets
8/8
100%
Michael Bredael
8/8
100%
Isabel Hochgesand
7/8
87.5%
HVV GmbH, permanently represented by Jesper Hojer
8/8
100%
MJA Consulting BV, permanently represented by Manon Janssen
5/8
62.5%
Paul McNulty
8/8
100%
Rodney Olsen
8/8
100%
[1] The attendance rate is based on the number of Board meetings held during the mandate of the respective Board members.
During 2023, the Board met eight times, with an attendance rate of 94.44%. The agenda of the Board meetings included, among others:
oversight of the Company’s operational and financial performance;
oversight and approval of the Company’s value creation projects and ongoing M&A processes;
oversight and approval of the repayment of the Company’s term loan and the refinancing of its revolving credit facility;
review and approval of the Company’s annual budget and review of its medium and long-term strategy and business plan;
oversight, and (where appropriate) approval, of the matters falling within the competences of the Remuneration and Nomination Committee (including certain changes in the composition
of the Executive Committee, and matters in the area of human capital management (people, organization, reward, health & safety, diversity, equity and inclusion)); and
oversight, and (where appropriate) approval, of the matters falling within the competences of the Audit and Risk Committee (including internal controls and internal audit, tax, compliance
and litigation, information security, and ESG compliance and reporting).
31 I Ontex Integrated annual report 2023
1.4. BOARD REVIEW AND ASSESSMENTS
The Board regularly organizes review and assessment processes focused on certain selected matters. In the course of 2022, the Board focused, among others, on Board composition and size,
Board and Executive Committee succession planning and CEO and Executive Committee assessment and development. This led, among others, to the reduction of the size of the Board from
12 to nine members. In 2023, the Board focused, among others, on succession planning of the Executive Committee. The Board also decided to launch an in-depth Board assessment process
with the assistance of an executive advisory firm.
1.5. BOARD COMMITTEES
Audit and Risk Committee
In accordance with Article 7:99, §2 of the Belgian Code of Companies and Associations and the 2020 Corporate Governance Code, all members of the Audit and Risk Committee are Non-
Executive Directors. While the legal requirement is to have at least one member who is independent, the Board decided that the Audit and Risk Committee should comprise of a majority of
independent members and that the mandate of Chair of the Audit and Risk Committee cannot be cumulated with the mandate of Chair of the Board. The chair and members of the Audit and
Risk Committee collectively have the required skills and expertise regarding accounting and audit matters.
On December 31, 2023, the Audit and Risk Committee was composed as follows:
Name
Position
Inge Boets BV, permanently represented by Inge Boets
Independent Director, Chair of the Audit and Risk Committee
Michael Bredael
Non-Executive Director
Rodney Olsen
Non-Executive Director
Paul McNulty
Independent Director
ViaBylity BV, permanently represented by Hans Van Bylen
Independent Director
During 2023, the Audit and Risk Committee met seven times. The attendance rate was 100%, as shown in the table below.
Name
Meetings attended
[[1]]
Attendance rate
Inge Boets BV, permanently represented by Inge Boets
7/7
100%
Michael Bredael
7/7
100%
Rodney Olsen
7/7
100%
Paul McNulty
7/7
100%
ViaBylity BV, permanently represented by Hans Van Bylen
7/7
100%
[1] The attendance rate is based on the number of Board Committee meetings held during the mandate of the respective Board members.
Jonas Deroo, Chief HR and Legal Officer, is Secretary of the Audit and Risk Committee.
The Audit and Risk Committee is entrusted with the tasks set out in Article 7:99, §4 of the Belgian Code of Companies and Associations. It decided on the agenda, frequency and topics of its
meetings. The Audit and Risk Committee reviewed the external and internal audit plans, the half-year and full-year financial statements and the external review on the half-year and full-year
financial statements, the quarterly financial information contained in the Q1 and Q3 trading updates, the key risks (including applicable internal controls, risk management and related processes),
and the ESG agenda of the Company. As part of its task to monitor and oversee the efficacy of the internal controls and risk management and risk management processes, the Audit and Risk
Committee also oversees, among other matters, information security risks.
32 I Ontex Integrated annual report 2023
With respect to its roles and responsibilities, as further described in the Company’s Corporate Governance Charter, the Board formally tasked the Audit and Risk Committee with the oversight
of the Company’s Environmental, Sustainability and Governance (“ESG”) initiatives, including to:
assess, review and prepare the decision-making of the Board on ESG actions and practices presenting new opportunities for the Company;
monitor and oversee the process for the development of ESG information and identify ways to integrate ESG information into the reporting cycle; and
measure and monitor the Company’s performance on ESG matters and their impact on society in order to take account of the multidimensional nature of corporate social responsibility.
Remuneration and Nomination Committee
In accordance with Article 7:100, §2 of the Belgian Code of Companies and Associations and the 2020 Corporate Governance Code, all members of the Remuneration and Nomination
Committee are Non-Executive Directors and the majority of the members are independent in accordance with the criteria set out in Article 7:87, §1 of the Belgian Code of Companies and
Associations. The members have the necessary expertise in the field of remuneration.
On December 31, 2023, the Remuneration and Nomination Committee was composed as follows:
Name
Position
ViaBylity BV, permanently represented by Hans Van Bylen
Independent Director, Chair of the Remuneration and Nomination Committee
Ebrahim Attarzadeh
Non-Executive Director
Isabel Hochgesand
Independent Director
HVV GmbH, permanently represented by Jesper Hojer
Non-Executive Director
MJA Consulting BV, permanently represented by Manon Janssen
Independent Director
During 2023, the Remuneration and Nomination Committee met six times. The attendance rate was 96.66%:
Name
R&N Committee
Meetings Attended
[1]
Attendance Rate
R&N Committee
ViaBylity BV, permanently represented by Hans van Bylen
6/6
100%
Isabel Hochgesand
5/6
83.33%
HVV GmbH, permanently represented by Jesper Hojer
6/6
100%
MJA Consulting BV, permanently represented by Manon Janssen
6/6
100%
Ebrahim Attarzadeh
6/6
100%
[1] The attendance rate is based on the number of Board Committee meetings held during the mandate of the respective Board members.
Jonas Deroo, Chief HR and Legal Officer, is Secretary of the Remuneration and Nomination Committee.
The Remuneration and Nomination Committee is entrusted with the tasks set out in Article 7:100, §5, of the Belgian Code of Companies and Associations. Its roles and responsibilities are
further described in the Company’s Corporate Governance Charter.
During 2023, the Remuneration and Nomination Committee’s work included the following topics:
reviewing performance and remuneration of the Executive Committee members with respect to financial year 2022;
determining 2023 targets for the short-term and long-term incentive schemes (see Remuneration Report);
33 I Ontex Integrated annual report 2023
reviewing the Company’s Remuneration Report with respect to financial year 2022;
revising the Company’s Remuneration Policy (as submitted to, and approved by, the annual shareholders’ meeting on May 5, 2023);
changes within the Executive Committee (as described in this Corporate Governance Statement);
succession and leadership assessment and development of the Executive Committee;
Board and Board member assessment and succession planning; and
review of various “People & Organization”-related matters with respect to the Group, including matters related to culture, talent development and succession planning.
1.6. EXECUTIVE MANAGEMENT
The composition of the Executive Committee on December 31, 2023 is shown in the table below:
Name
Position per December 31, 2023
Gustavo Calvo Paz
Chief Executive Officer
Chilibri BV, permanently represented by
Geert Peeters
Chief Financial Officer
Annick De Poorter
Chief Innovation and Sustainability Officer
Jonas Deroo
Chief HR and Legal Officer and Secretary General
Laurent Nielly
President Europe division
Marco Querzoli
Chief Supply Chain Officer
Paul Wood
President North-America division
Changes in 2023
In 2023, the following senior managers joined the Company and its Executive Committee:
Mr. Paul Wood was appointed to the role of President of the North America division;
Mr. Marco Querzoli was appointed to the role of Chief Supply Chain Officer, replacing Mr. Vincent Crepy, who left the Company in May 2023; and
Chilibri BV, permanently represented by Mr. Geert Peeters, was appointed to the role of Chief Financial Officer, replacing NestVision BV, permanently represented by Mr. Peter
Vanneste, who left the Company at the end of September 2023
.
Finally, Ms. Stephanie McDonald, who acted as Chief HR Officer until 1 February 2023, left the Company. She was succeeded in her role by Mr. Jonas Deroo, who took up the role of Chief
HR Officer in addition to his role of Chief Legal Officer within the Executive Committee.
34 I Ontex Integrated annual report 2023
The following table sets out the biographical information, skills and experience of the current members of the Executive Committee.
GUSTAVO
CALVO PAZ
Chief
Executive
Officer
Mr. Gustavo Calvo Paz has vast
international experience as an industry
executive with an extensive background
in operations, business turnarounds,
and
strategy within the FMCG sector.
Prior to his appointment as CEO, Mr.
Calvo Paz was a member of the Board
since May 25, 2021. He was previously
the president of Kimberly Clark’s EMEA
division, and was an executive member
of Kimberly Clark’s Global Leadership
Team. Prior to that, he held various
senior roles at Kimberly Clark.
GEERT
PEETERS
Chief
Financial
Officer
Mr. Geert Peeters brings relevant
experience in the domains of business
transformation in a retail environment
and operational and cash efficiency. The
Board appointed Geert Peeters as Chief
Financial Officer of Ontex, with effect
from December 1, 2023. Before joining
Ontex, Geert Peeters was Group CFO at
Greenyard. He built up vast experience
through finance director roles at
companies such as Metallo Group
(currently A
urubis) and management
consultancies such as
PriceWaterhouseCoopers.
LAURENT
NIELLY
President
Europe
Division
Mr. Laurent Nielly joined the Ontex
Group in July 2017 to lead the then
acquired business in Brazil and was
appointed as President of the Europe
Retail Division in January 2021. His
scope was expanded in July 2021 after
the combination of Retail and
Healthcare Divisions. Mr. Nielly brings
more than 25 years of experience
earned in Europe, the US and Latin
America and across companies such as
P&G, McKinsey & Company, PepsiCo
and Coty. He started his professional
career in finance and strategy, and
developed expertise in innovation and
commercial
excellence before taking
P&L responsibilities.
ANNICK DE
POORTER
Chief
Innovation
and
Sustainability
Officer
Ms. Annick De Poorter joined Ontex in
2003 as the R&D Manager of Feminine
Hygiene and was promoted to R&D and
Quality Director in January 2009. Before
joining the Group, she worked at
Libeltex NV in Belgium, and prior to that,
she was a Scientific Research
er at
University of Ghent, Belgium.
35 I Ontex Integrated annual report 2023
JONAS
DEROO
Chief HR and
Legal Officer
Mr. Jonas Deroo joined Ontex in April
2015 as General Counsel & Corporate
Secretary. Prior to joining Ontex, Mr.
Deroo was Associate General Counsel
at B
post. He started his career as an
attorney at the Brussels Bar.
MARCO
QUERZOLI
Chief Supply
Chain Officer
Mr. Marco Querzoli joined Ontex in
August 2023. Mr. Querzoli has
extensive expertise in supply chain and
procurement matters and has
experience leading large multinational
teams.
PAUL WOOD
President
North
America
Division
Mr. Paul Wood joined the Executive
Committee of Ontex in the role of
President North America on April 1,
2023. Mr. Wood brings vast experience
of general management and commercial
leadership having worked for several
large fast-
moving consumer goods
compan
ies including Frito Lay, Heinz,
Samsung and most recently as the Chief
Commercial O
fficer for Church &
Dwight.
Functioning of the Executive Committee
The powers of the Executive Committee include the operational management and organization of the Company. The Executive Committee is responsible for developing or updating on a yearly
basis the overall strategy and business plan of the Company, as well as its budget for the following year, and submitting it to the Board for approval. The Executive Committee also monitors
the implementation of the overall strategy and business plan of the Company, and supports the CEO in the day-to-day management of the Company and the exercise of his responsibilities.
Further, the Executive Committee prepares the Company’s financial statements, presents accurate and balanced evaluations of the Company’s financial situation to the Board and provides
the Board with the information it needs in order to properly fulfil its duties. The Executive Committee is also responsible for setting up and maintaining policies related to the risk profile of the
Company and systems to identify, assess, manage and monitor financial and other risks within the framework set by the Board and the Audit and Risk Committee.
The size and composition of the Executive Committee is determined by the Board acting on proposal of the CEO, who chairs the Executive Committee. Members of the Executive Committee
are appointed by the Board based on a proposal of the CEO and upon recommendation of the Remuneration and Nomination Committee. Members of the Executive Committee are appointed
for an indefinite period (with the exception of the CEO) and can be dismissed by the Board at any time or cease to be a member of the Executive Committee if their management agreement
with the Company terminates.
The CEO leads and chairs the Executive Committee. The CEO is vested with the day-to-day management of the Company. In addition, he exercises the special and limited powers assigned
to him by the Board or the Executive Committee. The CEO is a permanent invitee to the Board and reports to the Board on a regular basis, including on the actions taken by the Executive
Committee.
During 2023, as a general rule, the Executive Committee met on a weekly basis and discussed, among others, the following topics:
36 I Ontex Integrated annual report 2023
strategic review and implementation;
financial and operational performance;
Ontex’s organizational model and people-related matters;
Ontex’s Sustainability Strategy 2030;
internal controls and compliance; and
various operational matters.
37 I Ontex Integrated annual report 2023
1.7. DIVERSITY WITHIN THE BOARD AND EXECUTIVE COMMITTEE
Ontex promotes diversity and equal opportunities. The Company has adopted a diversity policy.
In 2023, the Board was composed of 9 directors, 3 of which were women: Ms. Inge Boets (as permanent representative of Inge Boets BV), Ms. Manon Janssen (as permanent representative
of MJA Consulting BV) and Ms. Isabel Hochgesand. The three female members of the Board together represent 33% of the Board members. The Remuneration and Nomination Committee
evaluates the composition of the Board on a yearly basis and formulates suggestions to the Board, while, among other things, taking into account the gender composition and other diversity
elements. The Company complies with the requirement that at least one-third of the members of the Board should be of the opposite gender as the gender of the majority, as set out in Article
7:86 of the Belgian Code of Companies and Associations.
On January 1
st
, 2024, Ontex’s Executive Committee counted one female member out of seven, or 14%.
6 | 67%
3 | 33%
Board - Gender
Male Female
6 | 85.71%
1 | 14.29%
Executive Committee - Gender
Male Female
38 I Ontex Integrated annual report 2023
2. Share capital, shareholders and investor engagement
2.1. SHARE CAPITAL AND CAPITAL EVOLUTION
At December 31, 2023, the share capital of the Company amounted to €823,587,466.38 and was represented by 82,347,218 shares without nominal value. Each share represents
1/82,347,218th of the capital and carries one vote. The shares are listed on Euronext Brussels. On December 31, 2023, 16,355,865 shares of the Company were registered shares and the
remainder were dematerialized shares.
As set out in more detail in the Remuneration Report, between January 1
st
, 2023 and December 31, 2025, the Company’s annual long-term incentive program is temporarily suspended for the
CEO and the other members of the Executive Committee (as well as for certain other members of the Company’s senior management). Instead, in 2023, the CEO and other members of the
Executive Committee (in addition to certain other members of the Company’s senior management) received a one-time grant of performance shares covering financial years 2023, 2024 and
2025. These performance shares do not confer any shareholder rights prior their vesting. Upon vesting, the Company shall deliver to beneficiaries either existing shares of the Company, newly
issued shares of the Company or a combination of both. A more detailed description of this incentive program is set out in the Company’s Remuneration Report and Remuneration Policy.
The Remuneration Report provides an overview of the performance shares, restricted stock units and stock options which were granted in 2020 and which vested in 2023.
On December 31, 2023, 1,199,429 of the Company’s own shares were held by the Company.
2.2. SHAREHOLDER EVOLUTION
Pursuant to the Company’s Articles of Association and Corporate Governance Charter, the applicable successive thresholds as regards the application of the Law of 2 May 2007 on the
disclosure of significant shareholdings in issuers whose shares are admitted to trading on a regulated market and other provisions (the “Law of 2 May 2007”) and the Royal Decree of 14
February 2008 on the disclosure of significant shareholdings, are set at 3%, 5%, 7.5%, 10% and any subsequent multiples of 5%.
On January 23, 2023, the Company received a transparency declaration confirming that, on December 31, 2022, Mr. Guo Guangchang and Fosun International Holdings Ltd. held 3,200,373
voting securities or voting rights in the Company, representing 3.89% of voting securities, thereby crossing upward the threshold of 3%. On January 11, 2024, the Company received a
transparency declaration confirming that, on January 9, 2024, such position had crossed downward the threshold of 3%.
On March 20, 2023, the Company received a transparency declaration confirming that, on March 15, 2023, the Groupe Bruxelles Lambert SA detained 16,454,453 Ontex voting securities or
voting rights, representing 19.98% of voting securities, unchanged versus the latest declared position dating from April 20, 2021.
On May 24, 2023, the Company received a transparency declaration confirming that, on May 19, 2023, Black Creek Investment Management Inc. detained 2,483,000 Ontex voting securities
or voting rights, representing 3.02% of voting securities, thereby crossing upward the threshold of 3%.
On August 2, 2023, the Company received a transparency declaration confirming that, on July 31, 2023, Veraison SICAV – Engagement Fund detained 2,467,800 Ontex voting securities or
voting rights, representing 2.99% of voting securities, thereby crossing downward the threshold of 3%.
We refer to our website for transparency declarations received after December 31, 2023.
39 I Ontex Integrated annual report 2023
2.3. SHAREHOLDER STRUCTURE
Based on the transparency declarations received by the Company, the shareholder structure of the Company on December 31, 2023
[1]
was as follows:
Shareholders
Shares
%
[2]
Date threshold crossed
Groupe Bruxelles Lambert SA
16,454,453
19.98%
April 20, 2021
ENA Investment Capital
12,411,999
15.07%
April 29, 2020
Mr. Guo Guangchang and Fosun International Holdings Ltd.
[3]
3,200,373
3.89%
December 31, 2022
The Pamajugo Irrevocable Trust
2,722,221
3.64%
February 29, 2016
Black Creek Investment Management Inc.
2,483,000
3.02%
May 19, 2023
[1] Updates subsequent to December 31, 2023 are described on our website (https://ontex.com/investors/shareholder-resources-center/).
[2] Percentage based on the outstanding share capital of the Company at the time of the declaration.
[3] On January 11, 2024, Mr. Guo Guangchang and Fosun International Holdings Ltd. declared that, on January 9, 2024, their position had crossed downward the threshold of 3%.
To the knowledge of the Company, no shareholders’ agreements are currently in place.
2.4. INVESTOR ENGAGEMENT & SHARE PERFORMANCE
Early 2023, the Company conducted a corporate governance roadshow, reaching out to major
investors and proxy voting agencies. Following its results publications, the Company set up
pubic conference calls to explain results and respond to financial analyst and investor
questions. During the course of the year, the Company organized several meetings with
financial analysts and investors. These were held virtually and in person in Belgium, France,
the Netherlands, Switzerland, Spain, the United Kingdom and the United States.
The Company’s share price evolved positively over the year, gaining 21.9% to reach €7.61.
This compares positively versus the BEL
®
Mid index of Euronext Brussels, which rose 10.3%,
and the sector index STOXX
®
Europe 600 Personal & Household Goods, which rose 5.7%.
On Euronext stock exchange 29.4 million shares of the Company were traded in 2023,
representing 36% of the total amount of shares issued by the Company. This compares to
64% in 2022, reflecting an overall reduction of liquidity in the equity market, especially for mid-
and small-cap companies.
1
Evolution relative to the Ontex share price
40 I Ontex Integrated annual report 2023
2.5. DEALING AND DISCLOSURE CODE
Ontex gives utmost priority to its compliance with applicable market abuse regulations. On June 3, 2014, the Board approved the Ontex Dealing and Disclosure Code (the “Dealing and
Disclosure Code”). The Dealing and Disclosure Code was subsequently amended on April 2, 2015 and most recently on June 28, 2016. The Dealing and Disclosure Code restricts transactions
in the Company’s securities by members of the Board and of the Executive Committee, and by certain senior employees of the Ontex Group during closed and prohibited periods. The Dealing
and Disclosure Code also contains rules concerning the internal approval of intended transactions, as well as the disclosure of executed transactions through a notification to the Belgian
Financial Services and Markets Authority, and disclosure of inside information. The General Counsel is the Compliance Officer for purposes of the Dealing and Disclosure Code.
3. Relevant information in the event of a takeover bid
Article 34 of the Royal Decree of November 14, 2007 on the obligations of issuers of securities which have been admitted to trading on a regulated market, requires that listed companies
disclose certain items that may have an impact in the event of a takeover bid.
3.1. CAPITAL STRUCTURE
A comprehensive overview of our capital structure at December 31, 2023 can be found in chapter 2 of this Corporate Governance Statement.
3.2. RESTRICTIONS ON TRANSFERS OF SECURITIES
The Company’s Articles of Association do not impose any restrictions on the transfer of shares in the Company. Furthermore, the Company is not aware of any such restrictions imposed by
Belgian law except in the framework of market abuse rules, and neither is the Company aware of any agreements between shareholders which may result in restrictions on the transfer of
securities and/or the exercise of voting rights.
3.3. HOLDERS OF SECURITIES WITH SPECIAL CONTROL RIGHTS
There are no holders of securities with special control rights.
3.4. EMPLOYEE SHARE PLANS WHERE THE CONTROL RIGHTS ARE NOT EXERCISED DIRECTLY BY THE EMPLOYEES
The Company’s shares to be delivered to participants upon exercise of the stock options or vesting of the RSUs or performance shares in the framework of long-term incentive schemes are
either newly issued or existing ordinary shares in the Company with all rights and benefits attached to such shares. A more detailed description of the Company’s long-term incentive plans is
set out in the Company’s Remuneration Report and Remuneration Policy.
The Company has not set up employee share plans where control rights over the shares are not exercised directly by Ontex’s managers or employees.
3.5. RESTRICTIONS ON THE EXERCISE OF VOTING RIGHTS
The Articles of Association of the Company do not contain any restrictions on the exercise of voting rights by shareholders, provided that the shareholders concerned comply with all formalities
to be admitted to the shareholders’ meeting and their voting rights are not suspended in one of the events set out in the Articles of Association or the Belgian Code of Companies and
Associations. Pursuant to Article 11 of the Company’s Articles of Association, the Board is entitled to suspend the exercise of rights attaching to shares belonging to several owners.
The Company is not aware of any restrictions imposed by Belgian law on the exercise of voting rights by the shareholders.
3.6. RULES ON APPOINTMENT AND REPLACEMENT OF BOARD MEMBERS
41 I Ontex Integrated annual report 2023
The maximum term of office of directors under Belgian law is limited to six years (renewable), but the 2020 Corporate Governance Code recommends that it be limited to four years
(Recommendation 5.6). The Company complies with this recommendation. The appointment and renewal of directors is subject to approval by the shareholders’ meeting, upon proposal by the
Board on the basis of a recommendation of the Remuneration and Nomination Committee.
3.7. RULES ON AMENDMENTS TO THE ARTICLES OF ASSOCIATION
Save for capital increases decided by the Board within the limits of the authorized capital or a change of the seat of the Company (provided such change does not trigger the application of
different rules on the use of languages by companies than those that currently apply to the Company), only an extraordinary shareholders’ meeting is authorized to amend the Company’s
Articles of Association. An extraordinary shareholders’ meeting may only deliberate on amendments to the Articles of Association if at least 50% of the share capital is represented. If the above
attendance quorum is not reached, a new extraordinary shareholders’ meeting must be convened, which will validly deliberate regardless of the portion of the share capital represented at the
shareholders’ meeting. As a rule, amendments to the Articles of Association are only adopted if approved by at least 75% of the votes cast. The Belgian Code of Companies and Associations
provides for more stringent majority requirements in specific instances, such as for modifications of the Company’s corporate object clause.
3.8. AUTHORIZED CAPITAL
On May 5, 2023, the Company’s extraordinary shareholders’ meeting renewed the authorization to the Board with respect to authorized capital under certain conditions. The Board may increase
the share capital of the Company in one or several times by a maximum of up to (i) €82,358,746.64 in the event of a (or multiple) capital increase(s) with cancellation or limitation of the
preferential subscription rights of shareholders, including in favour of one or more specified persons that are not members of the personnel of the company or its subsidiaries and (ii)
€164,717,493.28 in the event of a (or multiple) capital increase(s) without cancellation or limitation of the preferential subscription rights of shareholders.
This authorization may be renewed in accordance with the relevant legal provisions. The Board can exercise this power for a period of five years as from the date of publication in the Annexes
to the Belgian State Gazette of the amendment to the Articles of Association approved by the shareholders’ meeting on May 5, 2023.
3.9. ACQUISITION OF OWN SHARES
On May 5, 2023, the Company’s extraordinary shareholders’ meeting renewed the Board’s authorization with respect to the acquisition of own shares subject to the conditions set forth below.
The Company may, without any prior authorisation of the shareholders’ meeting, and the Board is authorised to, take as pledge and acquire, on or outside of the stock exchange, its own shares,
profit-sharing certificates and associated certificates up to a maximum of 10% of each of the outstanding shares, profit-sharing certificates and associated certificates of the Company for a
price that is not more than 5% above the highest closing price on Euronext Brussels during the last 30 trading days preceding the transaction, and not more than 10% below the lowest closing
price on Euronext Brussels during the last 30 trading days preceding the transaction, in accordance with the provisions of the Belgian Code of Companies and Associations where applicable.
This authorisation is valid for a period of five years starting on the date of the publication in the Annexes to the Belgian Official Gazette of the amendment to the Company’s articles of association
resolved upon by the Company’s extraordinary shareholders’ meeting of May 5, 2023. The authorisation may be renewed in accordance with the relevant provisions of the Belgian Code of
Companies and Associations.
42 I Ontex Integrated annual report 2023
3.10. MATERIAL AGREEMENTS TO WHICH THE COMPANY IS A PARTY CONTAINING CHANGE OF CONTROL PROVISIONS
3.10.1. Senior Facilities Agreement
The Company, and certain of its subsidiaries as guarantors, entered into a €470,000,000 senior term and revolving credit facilities agreement dated June 23, 2021 (the “Senior Facilities
Agreement”), comprising a term loan of €220,000,000 and a revolving credit facility of €250,000,000. The proceeds were used for the refinancing of existing indebtedness and for general
corporate purposes. In May 2023, the term loan of €220,000,000 was repaid in full. The Company also reached an agreement with the lending banks to extend the maturity of the revolving
credit facility to December 2025. The maximum amount available under the extended revolving credit facility is increased to €269,100,000 until June 2024 and thereafter reduces to
€242,500,000.
The Senior Facilities Agreement contains provisions that may be triggered in the event of a change of control over the Company. More specifically, the Senior Facilities Agreement provides,
among others, that any person or group of persons acting in concert acquiring, directly or indirectly, beneficial ownership of the issued capital of the Company having the right to cast more than
50% of the votes capable of being cast at a shareholders’ meeting may lead to a mandatory prepayment and cancellation under the Senior Facilities Agreement.
3.10.2.
Indenture
The Company, and certain of its subsidiaries as guarantors, entered into an indenture dated July 7, 2021 (the “Indenture”) pursuant to which the Company issued €580,000,000 3.5000%
senior notes due July 15, 2026 (the “Senior Notes”). The proceeds have been used for the refinancing of existing indebtedness and for general corporate purposes
The Indenture contains provisions that may be triggered in the event of a change of control over the Company. More specifically, the Indenture provides, among others, that any person or
group of persons acting in concert (other than certain exempt persons) acquiring, directly or indirectly, beneficial ownership of more than 50% of the total voting power capable of being cast at
a shareholders’ meeting may lead to a mandatory offer by the Company to repurchase the Senior Notes at a purchase price equal to 101% of the principal amount of the Senior Notes (together
with accrued and unpaid interest).
3.10.3.
Factoring Agreement
The Company entered into a factoring agreement dated February 21, 2018, with BNP Paribas Fortis Factor NV and KBC Commercial Finance NV (the “Factoring Agreement”). The Factoring
Agreement contains provisions that may be triggered in the event of a change of control over the Company. More specifically, the Factoring Agreement provides, among others, that in the
event the effective control of any party is transferred to others, the other party has the right to terminate the Factoring Agreement.
3.10.4.
Hedging Agreement
The Company entered into an ISDA FX hedging agreement dated March 12, 2018 with Crédit Agricole Corporate and Investment Bank (“CACIB”) (the “Hedging Agreement”). The Hedging
Agreement contains provisions that may be triggered in the event of a change of control over the Company. More specifically, the Hedging Agreement, provides, among others, that a change
control, defined as any person or group of persons acting in concert acquiring, directly or indirectly, beneficial ownership of the issued share capital of the Company, provides CACIB the right
to terminate the Hedging Agreement.
3.11. SEVERANCE PAY PURSUANT TO TERMINATION OF CONTRACT OF BOARD MEMBERS EXECUTIVE OFFICERS OR EMPLOYEES PURSUANT TO A
TAKEOVER BID
The Company has not concluded any agreement with its Board members, executive officers or employees which would result in the payment of a specific severance pay if, pursuant to a
takeover bid, the Board members, executive officers or employees resign, are dismissed or their employment agreements are terminated.
We refer to the Remuneration Report for further detail on the termination provisions of the members of the Board and the Executive Committee in general.
43 I Ontex Integrated annual report 2023
4. Conflicts of interests
In accordance with Article 7:96 of the Belgian Code of Companies and Associations, if a Board member has a direct or indirect financial interest that is contrary to the interest of the Company
in respect of a decision or transaction which is the responsibility of the Board, he/she must inform the other Board members before any decision by the Board is taken and the statutory auditor
must also be notified. The conflicted Board member cannot be present during the deliberations of the Board relating to these transactions or decisions and cannot vote.
In addition to the legal requirements, the Company, as a general matter and as set forth in its Corporate Governance Charter, also expects each Board member to arrange his or her personal
and business affairs in such a way as to avoid any (appearance of) conflict of interest of a personal, professional or financial nature with the Company, directly or through relatives (including
spouse or life companion, or other relatives (by blood or marriage) up to the second degree and foster children).
In 2023, the conflict of interest procedure, prescribed by article 7:96 of the Belgian Code of Companies and Associations, was applied on one occasion: HVV GmbH, represented by Jesper
Hojer, indicated that it had a potential conflict of interest regarding a consultancy agreement to be entered into between HVV GmbH, as consultant, and the Company. An excerpt of the
resolutions of the board of directors of the Company, dated December 18, 2023, is included below:
“First, Jesper Hojer, as permanent representative of HVV GmbH, declared a potential financial conflict of interest, within the meaning of article 7:96 BCAC, with the proposal that the Company
enters into the Consultancy Agreement with HVV GmbH, and pursuant to which HVV GmbH will provide certain advisory and consultancy services to the Company from time to time until 31
December 2025 (and as may be extended by subsequent one-year periods upon mutual agreement). Jesper Hojer, as permanent representative of HVV GmbH, noted that the expected time
commitment of HVV GmbH for the consultancy services is five hours per month, and the proposed consideration payable by the Company to HVV GmbH for the services is a fixed fee of EUR
30,000 (excl. VAT) on a yearly basis, to be invoiced in equal monthly instalments (in addition to customary reimbursement of expenses). Any additional services, outside of the fixed fee
arrangement, agreed between the Company and HVV GmbH shall be rendered by HVV GmbH at an hourly rate of EUR 750 (excl. VAT).
Finally, Jesper Hojer, as permanent representative of HVV GmbH, noted that, as per article 7:96 BCAC, he did not, and shall not, participate to any deliberations or vote of the Board on these
resolutions.
The Board acknowledges that article 7:96 BCAC is proposed to be applied insofar and to the extent applicable, and that article 4.6.4 of the Company’s Corporate Governance Charter also
requires the Board’s approval of the Consultancy Agreement. Article 7:96 BCAC requires the Board to (i) set forth the nature of the relevant decision or transaction and the financial implications
thereof for the Company, and (ii) justify its decision (in accordance with the Company’s interest).
In response thereto, reference is made to the Consultancy Agreement and the descriptions in the preceding paragraphs. The Board agreed that it is in the corporate interest of the Company to
enter into the Consultancy Agreement and, consequently, give the Company the benefit of the expertise of Jesper Hojer (through HVV GmbH) in the areas of consumer goods and retail sectors
on certain discrete projects or questions. The Board also agreed that the annual fixed fee of EUR 30,000 (excl. VAT) is an arms’ length consideration for the requested services, and the same
applies to the EUR 750 (excl. VAT) hourly rate for any additional agreed services.
(…)
After due and careful deliberation, the Board then unanimously resolved to approve the following resolutions:
(1) to approve the Consultancy Agreement;”
44 I Ontex Integrated annual report 2023
5. Related Party Transactions
During 2023, the Company did not enter into any transactions with related parties within the meaning of Article 7:97 of the Belgian Code of Companies and Associations.
6. Compliance with the 2020 Corporate Governance Code
The Company is committed to high standards of corporate governance and relies on the 2020 Corporate Governance Code as its reference code. The 2020 Corporate Governance Code is
based on a “comply or explain” approach. Belgian listed companies must comply with the 2020 Corporate Governance Code but may deviate from those provisions which are not otherwise
contained in the Belgian Code of Companies and Associations, and provided they disclose the justification for any such deviations in their corporate governance statement included in the
Annual Report in accordance with Article 3:6, §2, first paragraph, 2° of the Belgian Code of Companies and Associations.
The Board has opted for a one-tier governance structure. The Board thus is the highest decision-making body of the Company. It is authorized to perform all acts that are necessary or useful
for the realization of the object of the Company, except for those powers that are reserved by law to the shareholders’ meeting. The Board decides on the strategy of the Company and takes
all important investment and divestment decisions. The Board has delegated the operational management of the Company to the Executive Committee, which exercises such operational
management within the framework of the strategy determined by the Board.
The Company complies with all provisions of the 2020 Corporate Governance Code, except in respect of the following:
Provision 7.6 of the 2020 Corporate Governance Code provides that non-executive board members should receive part of their remuneration in the form of shares in the Company.
After due consideration, it has been decided that the remuneration of the Non-Executive Directors will continue to be paid fully in cash, because of the complex tax and social security
consequences of paying part of the remuneration in shares, both for the beneficiaries and for the Company. We are, however, of the opinion that share ownership by Non-Executive
Directors can have a positive impact on their commitment and engagement. Therefore, the Company has issued a recommendation to Non-Executive Directors to build, over their
four-year tenure, an equity stake in the Company equivalent to one time the Non-Executive Director’s fixed fee, and to maintain this equity stake during at least one year following the
end of their Board mandate.
7. Events after the end of the reporting period
The relevant events after the end of the reporting period can be found in note 7.32 of the consolidated financial statements.
45 I Ontex Integrated annual report 2023
8. RISK MANAGEMENT AND INTERNAL CONTROL FRAMEWORK
8.1. INTRODUCTION
Ontex operates a risk management and internal control framework in accordance with the Belgian Companies and Associations Code and the 2020 Corporate Governance Code. The framework
in place is aligned with the management framework developed by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Ontex is exposed to a wide variety of risks within the context of its business operations that can result in its objectives being affected or not achieved. It is a key competence of the Audit and
Risk Committee to monitor the effectiveness of Ontex’s systems for internal controls and its risk management processes, as well as the effectiveness of Ontex’s internal audit function and
processes. The Audit and Risk Committee regularly advises and reports on these matters to the Board. The practical implementation and periodical revision of these controls and processes
are managed on a day-to-day basis by the Executive Committee and all other employees with managerial responsibilities.
The risk management and control system set up within Ontex aims to achieve, among others, the following goals:
achievement of Ontex’s objectives;
achieving operational excellence;
ensuring correct and timely financial reporting;
compliance with all applicable laws and regulations;
compliance with policies and objectives set by management; and
safeguarding of company assets.
8.2. CONTROL ENVIRONMENT
8.2.1. Three lines model
Ontex applies the “three lines model” to clarify roles, responsibilities and accountabilities, and to enhance communication within the area of risk and control. Within this model, the different lines
responsible for responding to risks are:
First line: line management is the first responsible for assessing risks on a day-to-day basis and implementing controls in response to these risks.
Second line: the oversight functions such as finance and controlling, quality, compliance, sustainability, tax and legal oversee risk management as defined by the first line. The second
line actors provide guidance and direction and develop a risk management framework. Ontex’s compliance function focuses on, among others, communicating and training on Code
of Ethics and other compliance matters.
Third line: independent assurance providers, including internal and external audit functions, supervise and control the risk management processes as executed by the first and second
line.
46 I Ontex Integrated annual report 2023
8.2.2. Policies, procedures and processes
Ontex fosters an environment in which its business objectives and strategy are pursued in a controlled manner. This environment is created through the implementation of different company-
wide policies, procedures and processes such as the Ontex Values, the Ontex Code of Ethics (and its different chapters, which include policies on anti-bribery, anti-money laundering and fair
competition), the Quality Management System and the internal Delegation of Authorities ruleset. The employees are regularly informed and trained on these subject matters in order to stimulate
risk management and control at all levels and in all areas of the organization.
8.2.3. Group-wide ERP system
Most Ontex entities use the same group-wide ERP systems, which are managed centrally. These systems embed the roles and responsibilities defined at group level. Through these systems,
the main flows are standardized and key controls are enforced. The systems also allow detailed monitoring of activities and direct access to data by the Company.
8.3. RISK MANAGEMENT
Sound risk management starts with identifying and assessing the risks associated with Ontex’s business and external factors. Once the relevant risks are identified, Ontex strives to prudently
manage and minimize such risks. At the same time, Ontex acknowledges the existence of ordinary business risks and implements measures to address them, including risk escalation processes
to ensure that the appropriate decision-makers assess and resolve specifically identified risks. The processes in place aim at identifying key risks, assessing them, defining appropriate
responses, communicating them to the right levels in the organization and monitoring the effectiveness of mitigation actions.
All employees of Ontex are accountable on a continuous basis for the timely identification and qualitative assessment of the risks within their area of responsibility. In addition to the continuous
input to risk assessment, a periodic review is conducted with the Executive Committee. As an outcome of the periodic review, the identified risks are prioritized based on their inherent impact
and the vulnerability of Ontex to these risks. Additionally, the Executive Committee conducts deep-dives into certain topics, including climate change and other sustainability-related risks. These
assessments delve into the potential impacts of sustainability matters, including climate change, on our operations, supply chain, and broader business environment. Our sustainability
statements serve as critical references for sustainability risks, by providing insights into our mitigation strategies, resilience measures, and long-term sustainability goals. By incorporating
sustainability (including climate change) risks into our risk management framework, we enhance our ability to proactively identify, assess, and manage emerging threats associated with
sustainability matters. The Audit and Risk Committee has assumed responsibility for monitoring sustainability-related risks, amongst other ESG-risks.
Ontex has identified and analyzed its key corporate risks. These corporate risks are communicated to the various levels of management.
8.4. CONTROL ACTIVITIES
Control measures are in place to minimize the effects of risks on Ontex Group’s ability to achieve its objectives. These control activities are embedded in Ontex’s key processes and systems
to assure that the risk responses and Ontex’s overall objectives are carried out as designed. Control activities are conducted throughout the organization, at all levels and within all departments.
Key compliance areas are monitored for the entire Ontex Group by the Head of Compliance (at group level) and by Local Compliance Coordinators (at local level). The Compliance function
supports compliance with the Ontex Code of Ethics and the adoption of clear processes and procedures with respect to the Code of Ethics. The Compliance long-term strategy and yearly
objectives are approved by the Executive Committee and by the Audit and Risk Committee and a reporting takes place twice a year (or at any other time when a specific matter requires ad hoc
reporting) towards the Executive Committee and the Audit and Risk Committee, which in turn reports to the Board. The Head of Compliance and Internal Audit Manager meet regularly to
discuss increasing risks based on incidents in relation to the Code of Ethics and (new or existing) legal frameworks. More information about Ontex’s approach, strategy and progress towards
business ethics and compliance can be found in the Sustainability Statements of this annual report.
In addition to these control activities, an insurance program is in place for certain risk categories that cannot be absorbed without material effect on the Company’s balance sheet.
47 I Ontex Integrated annual report 2023
8.5. INFORMATION AND COMMUNICATION
Ontex recognizes the importance of timely, complete and accurate communication and information, both top-down as well as bottom-up. Ontex has therefore put several measures in place to
assure amongst others:
security of confidential information;
clear communication about roles and responsibilities; and
timely communication to all stakeholders about external and internal changes impacting their areas of responsibility.
8.6. MONITORING OF CONTROL MECHANISMS
Monitoring aims to ensure that internal control systems operate effectively.
The quality of Ontex’s risk management and internal control framework is assessed by the following actors:
Internal Audit. The tasks and responsibilities assigned to Internal Audit are defined in the Internal Audit Charter, which has been approved by the Audit and Risk Committee. The key
mission of Internal Audit as defined in the Internal Audit Charter is “to add value to the organization by applying a systematic, disciplined approach to evaluating the internal control
system and providing recommendations to improve it.”
External Audit. In the context of its review of the annual accounts, the statutory auditor focuses on the design and effectiveness of internal controls and systems relevant for the
preparation of the financial statements. The outcome of the audits, including work on internal controls, is reported to the Executive Committee and the Audit and Risk Committee (which
in turn reports to the Board) and shared with Internal Audit.
Audit and Risk Committee / Board. The Audit and Risk Committee and the Board have the ultimate responsibility with respect to internal control and risk management. For more
detailed information on the composition and functioning of the Audit and Risk Committee and the Board, see chapter 1.5. of this Corporate Governance Statement.
8.7. RISK MANAGEMENT AND INTERNAL CONTROL WITH REGARD TO THE PROCESS OF FINANCIAL REPORTING
The accurate and consistent application of accounting rules throughout Ontex is assured by means of a Finance and Accounting Manual.
On a quarterly basis, a bottom-up financial risk analysis is conducted to identify risk factors. Action plans are defined for all key risks. Specific identification procedures for financial risks are in
place to assure the completeness of financial accruals.
The accounting teams are responsible for producing the accounting figures, whereas the controlling teams check the validity of these figures. These checks include coherence tests by
comparison with historical and budget figures, as well as sample checks of transactions according to their materiality.
Specific internal control activities with respect to financial reporting are in place, including the use of a periodic closing and reporting checklist. This checklist assures clear communication of
timelines, completeness of tasks, and clear assignment of responsibilities.
Uniform reporting of financial information throughout Ontex ensures a consistent flow of information, which allows the detection of potential anomalies. Ontex’s ERP systems and management
information tools allow the central controlling team direct access to disaggregated financial and non-financial information.
48 I Ontex Integrated annual report 2023
An external financial calendar is planned in consultation with, and approved by, the Executive Committee and the Board, and this calendar is announced to the external stakeholders on the
Company’s website. The objective of this external financial reporting is to provide Ontex stakeholders with the information necessary for making sound business decisions. The financial calendar
can be consulted at https://www.ontex.com/investors/financial-calendar/.
8.8. RISK MANAGEMENT AND INTERNAL CONTROL WITH REGARD TO SUSTAINABILITY
At Ontex, we recognize the critical importance of sustainability reporting as we ensure that our operations are aligned with our environmental, social, and governance (ESG) objectives. Our
commitment to transparency and accountability necessitates robust risk management and internal control procedures throughout the sustainability reporting process.
To ensure the accuracy and integrity of our sustainability reporting, we have integrated findings from comprehensive risk assessments into our internal functions and processes. Risk
management and internal controls are applied as set out below:
Sustainability risk assessment: Our sustainability team conducts periodic risk assessments, which complements the risk management process described in section 8.3 above, to
identify and evaluate potential risks associated with our sustainability reporting process. These assessments consider factors such as regulatory changes, stakeholder expectations,
and emerging sustainability trends. More detailed information about the risk assessment framework for sustainability related risks can be found in section 5 and 6 of the Sustainability
statements.
Action plans for key risks: Based on the results of the risk assessments, action plans are developed to address key sustainability risks. These plans outline specific measures to
mitigate risks and enhance the reliability of our sustainability data and disclosures.
Internal collaboration and accountability: Collaboration between various internal functions is essential to ensure the effectiveness of our sustainability reporting process. Our
sustainability team collaborates closely with departments such as operations, finance, and compliance to integrate sustainability considerations into their respective areas of
responsibility.
Validation and verification processes: Rigorous validation and verification processes are implemented to ensure the accuracy and completeness of sustainability data. Internal controls
are in place to verify the integrity of data sources, conduct data quality checks, and reconcile discrepancies. Internal Audit plays a crucial role in validating and verifying sustainability
data by conducting audits focused on the internal controls embedded in the sustainability processes. These audits assess the effectiveness of internal controls designed to mitigate
sustainability risks, ensure compliance with relevant standards and regulations, and promote the reliability of sustainability disclosures.
Clear communication and documentation: We maintain clear communication channels and documentation procedures to facilitate transparency and accountability in our sustainability
reporting process. Standardized reporting protocols and documentation requirements are established to guide employees in fulfilling their responsibilities.
Continuous improvement and adaptation: Our approach to risk management and internal control is dynamic and responsive to evolving sustainability challenges and opportunities.
We regularly review and update our processes in light of new developments, stakeholder feedback, and best practices in sustainability reporting.
By integrating risk management and internal controls into our sustainability reporting process, we enhance the reliability and credibility of our disclosures, strengthen stakeholder trust, and
advance our commitment to sustainable business practices.
49 I Ontex Integrated annual report 2023
8.9 ONTEX MAIN RISKS
Detailed descriptions of the most significant identified risks and opportunities to Ontex are listed below, together with how the risk is managed at Ontex (including any mitigation efforts currently
in place or planned going forward as part of the risk mitigation plan).
These risks may impact the achievement of our strategic drivers as set out in the Strategic report section of this annual report. They are ordered by type of risk and are not set out in priority
order.
8.9.1 Contextual risks
8.9.1.1 Political instability
Ontex operates on a global scale, and, as a result, is subject to risks associated with such global operations. Existing or future instability in some of the countries in which we operate may
constrain the way we do business (e.g. as a result of ambiguous legislation, unpredictability of courts or governmental bodies, or administrative hurdles). Geopolitical tensions can deteriorate
trade relations and disrupt the global economic activity, which can directly and indirectly translate into Ontex’s operations or general business.
Risk management
Various stakeholders at Ontex are occupied with monitoring the macroeconomic and geopolitical situation in the regions Ontex is active in. During periodic business review meetings, an
assessment of the various macroeconomic and geopolitical situations that are relevant for Ontex takes place and remedial actions are discussed.
In certain cases, our global presence may allow us to remediate local country risk to a certain extent by leveraging our other operations (e.g. producing from another location).
To manage the risk of our operations in Russia , a dedicated operating model was put in place which is aimed at safeguarding compliance with the evolving applicable regulations on economic
sanctions. This model includes an investment stop as well as a stop on exports from Russia to other Ontex entities.
8.9.1.2 Competition
Across its footprint, Ontex is active in landscapes with intense competition from branded product manufacturers and retailer brand manufacturers. Action and reaction from the different players
in the competitive environment may trigger market shifts and reactions, and affect Ontex’s market share and margins. Furthermore, our customers frequently (re-)tender their business, which
may allow Ontex to generate additional contracts but also entails the risk of contracts being lost to competitors. Ontex is also exposed to the risk that alternative products, solutions or business
models meeting evolving customer needs would replace Ontex’s product portfolio, which could jeopardize Ontex’s position in the markets in which it operates.
Risk management
Our ambition is to be the number one partner of choice for retail and healthcare brands. This ambition must be supported by excellence in service and quality levels. We consistently strive to
improve our cost and price competitiveness, refining our customer segmentation and driving customer centricity. Through innovation, we drive the product portfolio further aiming at continued
support of customer and consumer needs. With proactive market research, we follow up and anticipate market trends and follow competitive moves.
One of our fundamental strengths lies in the diversity of our customer base. We serve clients across a wide spectrum of industries and geographies, selling products to over 80 countries
globally. This diversified portfolio acts as a buffer against fluctuations in any single market or sector, mitigating the impact of competitive dynamics in specific regions or industries. Furthermore,
we balance our customer portfolio by not being overly dependent on a handful of clients. Our top 10 customers collectively account for approximately 35% of our total core business. This
balanced distribution ensures that our revenue streams are not overly reliant on any single client relationship.
50 I Ontex Integrated annual report 2023
8.9.1.3 Laws and regulations
Unforeseen or non-identified changes to legislation or misinterpretation of existing legislation could lead to litigation or fines or increase the cost of doing business. Changes to regulations can
trigger additional costs or exclusion of market segments in case of non-compliance.
Risk management
Changes to our strategy and product portfolio are increasingly exposing us to more regulated markets and product segments. Various domains in the organization are screening the regulatory
landscape on a continuous basis through participation in industry fora, conferences, etc. and are responsible for creating the required awareness within the organization around such regulatory
changes.
Compliance with existing regulations are enforced via our code of ethics. The code of ethics captures our values with respect to anti-competition, bribery, conflict of interests, professional
conduct, human rights, sanctioned countries. Employees are periodically receiving trainings on the topics included in our code of ethics. On top of that, our suppliers are required to sign a code
of conduct including labor, ethics and health and safety standards. Breaches to our code of ethics can be reported via various channels within the organization or through our (anonymous)
online ‘Speak Up!’ Web platform.
8.9.2 Operational risks
8.9.2.1 Pricing strategy
As our raw material costs are often linked to indices, the cost of goods sold is highly dependent on the volatile evolution of those indices. Additionally, Ontex needs to manage the potential
impact of inflation on other elements such as transport, labor, energy.... Ontex is faced with managing contracted prices which may or may not have adjustment mechanisms. Furthermore,
customers may expect lower prices when inflation declines, adding another layer of complexity to Ontex’s pricing strategies and market dynamics. At the same time, Ontex aims to preserve its
margins by, among others, implementing continuous cost savings and operational improvements across its operations, but also by working on innovation and product mix to deliver expected
value to its customers.
Risk management
Ontex is organized around a “fast-escalation” process regarding cost inflation and pricing towards customers. This process involves pricing discussions both internally and towards suppliers
and customers, with the aim of introducing flexible pricing mechanisms towards its customers. Ontex’s prices and margins are monitored centrally based upon continuous input collected from
our sales and controlling teams and shelf-price tracking, among other measures.
In the course of 2024, we will continue to finetune our approach to decrease the time lag between raw material or other cost changes and our own price changes, and to improve our execution
success ratio by revising our approaches to pricing. Additionally, we have planned to review our approach toward institutional healthcare customers with the aim of being more agile in case of
heavy fluctuations in input costs.
51 I Ontex Integrated annual report 2023
8.9.2.2 Information security and privacy
We are increasingly reliant on IT systems and data management to run our business. There is a risk of disruption of our IT systems and that sensitive data may be compromised by leakage of
information (from within our organization or by third parties), malicious cyber-attacks or technology failures. A disruption of our IT systems could affect our sales, production and cash flows,
ultimately impacting our results. Unauthorized access and misuse of sensitive information could interrupt our business and/or lead to loss of our assets, impact our competitive position or
investor confidence. It could also have a negative impact on our reputation.
Risk management
During 2023, we remained committed to further strengthening our information security and privacy measures, recognizing and understanding the growing reliance on IT systems and the
potential risks posed by cyber threats and data breaches. Our cyber teams responded adeptly to the evolving threat landscape, enhancing the capabilities of the Cyber Security Operations
Centre (CSOC) and deploying advanced AI-based solutions for threat prevention and detection.
Our firm commitment to information security is demonstrated by various security related certifications and accreditations, including ISO27001, Cyber Essentials, Cyber Essentials Plus, Data
Security Protection certification (DSPT), and PCI-DSS certification. Regular external auditing and IT penetration tests are aimed at ensuring the effectiveness of our security measures.
We place a strong emphasis on empowering our employees with comprehensive information security training. Our global training programs, integrating both traditional and AI-based tools, aims
to increase employee awareness and readiness in effectively mitigating cyber risks.
We are focused on the key areas outlined in our long-term information security and privacy roadmap, including enhanced technology protection within plants and improved continuity through
a global backup and recovery solution. We also remain vigilant for emerging threats, such as those presented by both AI and the changing geopolitical landscape.
Looking ahead to 2024 and beyond, Ontex has developed a roadmap that focuses on several areas, including significant cultural enhancement programs, supply chain security improvements,
and the continued advancement of its security posture through strategic initiatives in AI technologies. We also underscore the importance of completing our ISO27001:2022 certification across
all countries in which this has not yet been done.
Continuous assessment and enhancement of our security measures remain central to our strategy as we adapt to evolving market dynamics and security threats.
From a governance perspective, our information security and privacy roadmap is endorsed by the Executive Committee. As part of its monitoring of internal control and risk management
processes, the Audit and Risk Committee receives periodical updates on information security and privacy risks, processes and action plans. This includes an annual comprehensive update to
the Audit and Risk Committee, complemented with “ad hoc” updates as the need arises. The Audit and Risk Committee reports on these matters to the Board.
8.9.2.3 Product innovation
We face competition from manufacturers in production innovation. Rapid time-to-market is key to our competitiveness. Failure to timely generate innovative products or inadequate choice of
new production methods, technology or structural redesign of our raw material components could lead to a loss of market share. It could also lead to irrecoverable research and development
costs or lack of responsiveness to customer demands.
Risk management
Innovation is one of the key strategic pillars at Ontex. We strive to develop and deliver the right product and packaging innovation at the right time, inspired by customer and consumer needs,
with sustainability in mind. Our innovative products stem from thorough research into market trends, customer and consumer insights, the expertise of our engineers, and above all, the creative
52 I Ontex Integrated annual report 2023
contributions of our talented team. We also collaborate with partner organizations including leading universities, laboratories, institutes, start-ups and research organizations to make sure that
we are at the forefront of change.
Innovation is co-driven by our own engineering department, which tailors machines to our needs in collaboration with external companies.. This has led to over 200 innovations which were
launched over the past years. We refer for more information to the strategic section of this annual report.
8.9.2.4 Product design & quality
Our reputation as a business partner relies heavily on our ability to supply quality products. In the event of quality issues, potential ramifications include adverse effects on consumer health,
loss of market share, financial costs, reduced turnover, and jeopardizing Ontex’s reputation.
Risk management
Risk assessments are performed for all Ontex products and are aimed at identifying and controlling risks that might affect product performance and product safety. Ontex’s quality system
provides tools and capabilities within the organization to evaluate and control those risks. Ontex’s organization and sites work proactively by utilizing continuously inputs from customers and
the market in general to improve products and processes to foresee or remedy issues that could potentially impact consumer satisfaction.
In an effective Quality Management System that represents how we systematically manage to be compliant, efficient, successful and profitable, we capture the requirements of our customers
and of the various regulations applicable to us. It is an end-to-end approach looking at each of Ontex’s key processes. Controls and measurements steer the process efficiency.
We continue to work proactively on fast assimilation, deployment and implementation of the customers’ requirements into the Ontex Management System. We continue our journey to define
processes to be documented and centralize them into one single system: Ontex DNA. This helps to improve communication and know-how within our organization.
Collaboration with defined Single Persons of Contact (SPOC) have an important contribution to the implementation and help all Ontex people in each department to contribute to the continuous
improvement process of the Quality Management System by providing training and guidance.
8.9.2.5 Sourcing: Raw material price volatility and availability
We are dependent upon the availability of raw materials for the manufacturing of our products. On average, the main raw materials and packaging costs account for between 75% and 80% of
our cost of sales. Our raw materials are subject to price volatility due to a number of factors that are beyond our control, including, but not limited to, the availability of supply, general economic
conditions, commodity price fluctuations and market demand.
Scarcity of supply of raw materials or transport scarcity could lead to (temporary) unavailability of resources and could affect the continuity of our supply chain. The likelihood of these events
occurring is increasing due to climate changes, more stringent regulatory requirements or due to political instability.
Risk management
The continuity of our supply chain is safeguarded in numerous ways, including the following:
for most of our resources, multiple sources are available and validated;
we have strategic alliances with our key suppliers, resulting in long-term contracts with priority access for contractual volumes;
53 I Ontex Integrated annual report 2023
flexibility of our volume allocations is built into our contracts;
alternative materials have been validated for usage in case of shortages;
geographical diversification of our suppliers and sources offsetting local / regional volatility;
possibility of financial hedging of our key strategic materials; and
natural hedging via suppliers, decoupling from indices where possible.
In the course of 2024, we will continue our focus to safeguard our production through more flexible specifications of our raw materials, a fast-track qualification process of new sources and
materials and by continuing the development of our strategic alliances. We will also consider further expansion of the categories which are in scope for financial hedging and explore further
opportunities to decouple pricing from indices.
8.9.3 Governance risks
8.9.3.1 Sustainability risk
Ontex risks not being able to respond timely to the climate and environmental expectations and requirements from consumers, governments and other stakeholders. Ontex requires certain
sensitive raw materials such as paper pulp and plastics to manufacture its products and Ontex produces disposable finished products of which the environmental impact cannot be ignored.
Ontex risks losing market share if stakeholder expectations cannot be met at a competitive price. Furthermore, new regulations might increase the cost of doing business or could lead to
regulatory fines or taxes.
Risk management
Ontex’s Sustainability Strategy and related (science-based) goals are framing the path we plan to take to address sustainability-related risks. Via the bi-annual materiality assessment, we
identify, assess and set up actions to managing sustainability-related risks. The two key risks for Ontex are climate change and products and packaging contributing to pollution.
We currently do not have substantial financial impacts of climate change on our operations (scope 1-2 emissions), due to the relatively low energy usage in our plants and the climate program
in place. Looking to the value chain emissions (scope 3), there might be financial impacts due to legislation. To understand these impacts, we have renewed our climate scenario assessment
in 2023.
We manage sustainability-related risks via different means, including:
Creating transparency: sustainability data monitoring in our plants and supply chain to understand where negative environmental and social impacts (can) take place, and
communicating about such impacts internally and externally.
Preventive actions: environmental and social management systems in the plants, environmental and social risk assessments in our supply chain, investing in energy-efficiency,
renewable on-site solar energy, carbon reductions integrated in bonus scheme, continuous monitoring of our customers’ requirements, including sustainability in our product designs,
etc.
Mitigation actions: our sustainability-related policies and procedures describe how we deal with (potential) negative impacts. In addition, Ontex’s Sustainability Strategy lays out clear
targets to reduce our climate impact and work towards circular solutions, such as e.g. recycled content in packaging and offering reusable products.
54 I Ontex Integrated annual report 2023
The sustainability topic continues to be high on the agenda of our strategy determination and budget discussions. The following focus areas will continue in the course of 2024:
Progressing towards our 2030 sustainability goals, focusing at reaching our science-based targets and reducing the environmental footprint of our products whilst adding value for
the consumer.
Assessing the sustainability requirements affecting Ontex and setting up implementation roadmaps in order to make sure we comply with upcoming regulations such as CSRD, EU
Taxonomy, CSDDD, HREDD, EPR schemes, plastic taxes, etc.
Communicating sustainability performance to consumers via ecolabels and claims, to customers using carbon and plastic footprint assessments, and to investors by improving our
responses to investor questionnaires and through the continuous dialogue that we maintain with investors.
Enhancing transparency via climate scenario assessments and continuous progress on supply chain due diligence.
Strengthening integrated governance, tools & processes to ensure prevention and management of the risks.
Ensuring our infrastructure enables alignment with our 2030 sustainability goals, facilitated by co-operation and partnerships to reach our climate neutral and circular solutions goals.
As noted in section 8.3 (Risk management), the Executive Committee conducts deep-dives into certain sustainability-related topics, including climate change. These assessments delve into
the potential impacts of sustainability matters, including climate change, on our operations, supply chain, and broader business environment. Our sustainability statements serve as critical
references for sustainability (including climate change) risks, by providing insights into our mitigation strategies, resilience measures, and long-term sustainability goals. By incorporating
sustainability (including climate change) risks into our risk management framework, we enhance our ability to proactively identify, assess, and manage emerging threats associated with
sustainability matters. The Audit and Risk Committee has assumed responsibility for monitoring sustainability-related risks, amongst other ESG-risks.
More information on the different sustainability (including climate change) related risks and opportunities and the outcome of the scenario assessment can be found in the Sustainability
Statements of this report.
8.9.3.2 Human capital, talent management, retention, health & safety
A skilled and motivated workforce, coupled with an agile organization, is imperative for the continued success of our business. The failure to identify, attract, develop and retain talents to satisfy
current and future needs of the business may affect our ability to compete. The health and safety of our workforce is paramount to maintaining effective operations, in compliance with applicable
laws, to remain an attractive employer and to avoid reputational risks. A failure to recruit and retain talent adequately, or to maintain high standards of health and safety, may result in a decline
in business performance. With the increased ratio of homework, people can become disconnected, leading to underperformance or mental fatigue. Protecting and motivating our employees is
crucial to safeguard their expertise and motivation.
Risk management
Ontex and its HR function are committed to creating and maintaining a healthy and safe work environment, in addition to delivering professional human resources services. This translates into
initiatives in various domains:
Various global and local initiatives to safeguard and improve mental and physical health, safety and wellbeing;
Initiatives to better connect employees and top management cross-functionally and inform employees of the company’s strategy and priorities;
Local initiatives to create a fun working atmosphere to improve the connection and community;
55 I Ontex Integrated annual report 2023
Initiatives to promote a frequent feedback culture including some local recognition initiatives;
Initiatives to attract new talent and develop existing talent; and
Throughout 2023 and 2024, various initiatives were and will continue to be launched to drive our PRIDE values. We have also launched Culture Pulse Surveys, which are a new way
for employees to share thoughts and shape the future of our workplace culture through quarterly surveys.
The Executive Committee closely follows up on Ontex’s efforts in the areas of human capital, talent management, retention and health and safety, which are regular topics on the agenda In
addition, the Remuneration and Nomination Committee (which reports to the Board) is regularly updated on Ontex’s efforts in these areas, both at the executive level and for the wider
organization.
We refer to the ‘Own workforce’ section in the Sustainability Statements for more information.
8.9.3.3 Divestitures
As part of the revised strategy that we announced in December 2021, we continue to pursue our strategic options to divest our businesses in Brazil and in Turkey and related export markets.
We are also working towards completion of the divestments of Algeria and Pakistan. Each divestment process brings challenges in terms of, among others, complexity and workload for the
people involved in the divestment process, employee engagement in the entities to be divested, a fairly negotiated price for the entities to be divested, risks to achieve completion of the
divestments (e.g. obtaining the requisite merger clearances and satisfying other conditions precedent), as well as post-completion risk (e.g. risks of claims from acquirers or other third parties).
Risk management
For the ongoing divestments, a dedicated project team is in place which steers the various steps of the process. We are working together with reputable, international accounting and law firms
and banks, which are guiding Ontex throughout this process with a view to bringing the required expertise to successfully conclude the divestments. Ontex is committed to finding suitable
partners to acquire the businesses that it seeks to divest and will take the time that is needed to achieve this goal. All entities planned to be divested will continue to be treated as part of Ontex
until the divestment is concluded.
The Board is competent for the monitoring and approval of matters related to Ontex’s divestments, and for mergers and acquisitions (M&A) more broadly. The Board receives periodic updates
on Ontex’s efforts and key developments in the different divestment projects.
8.9.4 Legal and Financial risks
8.9.4.1 Intellectual property
Although we are monitoring changes in intellectual property rights and related legal developments, we may inadvertently infringe intellectual property rights owned by third parties or applicable
legislation. Also, there is a risk that Ontex fails to register or defend its intellectual property rights in a timely manner. As a potential consequence thereof, Ontex may face legal claims, be
obliged to pay royalties or face other consequences that may erode its profit margins or have other negative implications for its business or reputation.
Risk management
Going hand-in-hand with innovation as one of the strategic pillars of Ontex, intellectual property is an important enabler to the Company’s ability to develop and deliver the right product and
packaging innovation at the right time. We complete regular third-party intellectual property rights screening and legal analyses. We also continue to grow our leading IP portfolio in the retail
segment of the personal hygiene field.
56 I Ontex Integrated annual report 2023
8.9.4.2 Liquidity & Leverage
Prior to financial year 2023, while indebtedness remained largely stable, Ontex was faced with declining results. This resulted in negative impacts on Ontex’s leverage ratio and liquidity position,
both of which needed to be monitored closely on a continuous basis (also in view of related impacts on Ontex’s cost of capital, payment conditions with suppliers, shareholder reputation, etc.).
Since financial year 2023, Ontex has been able to restore its profit margin and thereby reduced its liquidity and leverage concerns. This being said, both liquidity and leverage remain a risk
area and require continued focus of Ontex.
Risk management
Detailed reporting and forecasting for our liquidity and leverage are in place. Net sales, adjusted EBITDA, working capital and free cash flow are part of the incentive metrics across the
organization. Those metrics are monitored by various layers in the organization through disciplined reporting and steering to assess any negative deviation from plan/forecasts and secure that
intended improvement actions are being realized.
A monthly cash forecast is in place and additional initiatives to stimulate co-ownership of the business on working capital are underway. Furthermore, the proceeds of discontinued operations
will be used to continue to lower the indebtedness and leverage.
57 I Ontex Integrated annual report 2023
9. REMUNERATION REPORT
9.1 INTRODUCTION
Revised Remuneration Policy
In 2023, the Company applied the Remuneration Policy (2023 version) that was approved by the annual shareholders’ meeting of May 5, 2023. The shareholders’ meeting approved the
Remuneration Policy with a 96.7% majority of votes cast, which the Company saw as a strong endorsement of the principles set forth therein. This revised Remuneration Policy had retroactive
effect as of January 1
st
, 2023. The revised Remuneration Policy aims to strongly incentivize management to accelerate the realization of the Company’s ongoing turnaround by further
strengthening the alignment of executive rewards and shareholder returns. The key changes made to the Remuneration Policy can be summarized as follows:
The weighing between the annual bonus amount (short-term incentive or “STI”) and the long-term incentive (“LTI”) of the members of the Executive Committee was rebalanced. This
rebalancing is an exceptional, one-off measure for the financial years 2023 until 2025. During this period, a larger portion of the remuneration is attributed to the LTI and the STI annual
bonus amount is reduced by half.
A single, exceptional LTI grant (still consisting solely of performance share units) was made in May 2023 that covers the financial years 2023, 2024 and 2025, and which has a single
KPI, being the Company’s share price.
For the STI, the financial KPI “Cash Flow” was replaced by “Cash Conversion Cycle” to further optimize the alignment of the STI with the underlying financial performance of the
Company. Moreover, the ESG KPIs (which were previously included in the LTI) were moved to the STI to stimulate short-term attention to these KPIs. By also introducing a “personal
leadership multiplier” with respect to the annual bonus, the new policy incentivizes strong individual performance and leadership excellence, and reinforces the focus on talent
development and people impact of executives.
For more details, we refer to the Remuneration Policy (2023 version) as included on the Company’s website https://ontex.com/agm-shareholder-information/ (direct link).
Changes to composition of Executive Committee
In 2023, the following senior managers joined the Company and its Executive Committee:
Mr. Paul Wood was appointed to the role of President of the North America division;
Mr. Marco Querzoli was appointed to the role of Chief Supply Chain Officer; and
Chilibri BV, permanently represented by Mr. Geert Peeters, was appointed to the role of Chief Financial Officer.
Mr. Marco Querzoli replaced Mr. Vincent Crepy, who left the Company in May 2023. Chilibri BV, permanently represented by Mr. Geert Peeters, replaced NestVision BV, permanently
represented by Mr. Peter Vanneste, who left the Company at the end of September 2023.
Finally, Ms. Stephanie McDonald, who acted as Chief HR Officer until 1 February 2023, left the Company. She was succeeded in her role by Mr. Jonas Deroo, who took up the role of Chief
HR Officer in addition to his role of Chief Legal Officer within the Executive Committee.
58 I Ontex Integrated annual report 2023
Performance highlights and remuneration outcomes
For financial year 2023, the following financial and non-financial performance results are of relevance for the 2023 STI, as detailed further in this Remuneration Report:
Net sales for the Total Group, excluding the divested activities in Mexico, was €2,223.2 million.
Adjusted EBITDA for the Total Group, excluding the divested activities in Mexico, was €204.6 million.
Working capital needs increased, with higher receivables as a result of higher sales and lower factoring activity, while payables decreased with lower raw material prices. Inventories
also reduced with lower raw material prices, but not sufficiently to compensate for the working capital increase. The resulting Cash Conversion Cycle (defined further in this report)
was 55.20 days.
Scope 1 & 2 CO2 emissions were reduced by –6.8% (vs. a target of -3.8%), mainly as a result of a further switch towards renewable electricity. Scope 3 CO2 emissions were reduced
by -5% (vs. a target of -2.6%), thanks to a positive trend among suppliers who lowered their CO2 intensity as well as the impact of the Company’s commercial strategy.
Accidents Rate (percentage reduction in labor accidents) was reduced by -6.9%.
These financial and non-financial KPIs, together with the personal leadership multiplier (see further in this Remuneration Report), resulted in pay-outs under the STI that are above target: an
average of 109% of target for the members of the Executive Committee. The details of the STI bonus calculation can be found in the section on the 2023 remuneration of the members of the
Executive Committee (see further).
2022 Remuneration Report
The Company’s Remuneration Report regarding financial year 2022 was approved by 89.6% of the votes cast at the annual shareholders’ meeting of May 5, 2023. The Board views this as an
endorsement of the Company’s transparency on remuneration matters. The Board remains open to further feedback from the Company’s shareholders and other stakeholders regarding the
subject matter of this report.
9.2 2023 REMUNERATION OF THE DIRECTORS
All members of the Board are Non-Executive Directors. During financial year 2023, each Director received an annual fixed fee, as well as attendance fees which are a function of the number
of Board and committee meetings attended by such Director (except for certain ad hoc Board and Board Committee meetings for which no separate attendance fee was paid). Directors do not
receive any other variable compensation, nor any fringe benefits or pension contribution payments.
During 2023, eight Board of Director Meetings (compared to 21 in 2022), seven Audit and Risk Committee Meetings (compared to six in 2022) and six Remuneration and Nomination Committee
Meetings (compared to 12 in 2022) took place. As a result of this reduced number of meetings and the reduction of the Board from 12 to nine members as from January 2023, the aggregate
remuneration of the Directors in 2023 was 30% lower than in 2022.
The composition of the Board underwent no substantial changes during 2023. The annual shareholders’ meeting of May 5, 2023 confirmed the co-optation of HVV GmbH, with Jesper Hojer as
permanent representative, as Non-Executive Director for the remaining term of the mandate of JH GmbH, with Jesper Hojer as permanent representative, i.e., a period which will end immediately
after the annual shareholders’ meeting that will consider the approval of the annual accounts for the financial year ending on December 31, 2024.
The remuneration paid to the Directors during financial year 2023 is shown in the table below.
59 I Ontex Integrated annual report 2023
Name Mandate
Fixed fee
(EUR)
# Board
meetings
attended
Board
attendance
fee (EUR)
# R&N
Committee
meetings
attended
R&N
Committee
attendance
fee (EUR)
# A&R
Committee
meetings
attended
A&R
Committee
attendance
fee (EUR)
Total
fees for
2023
(EUR)
ViaBylity BV, permanently
represented by Hans Van Bylen
Chairman of the Board of
Directors, Chairman of the
Remuneration and Nomination
Committee, Independent Director
310,000
[1]
8/8 5,000 6/6 5,000 7/7 2,500 392,500
Ebrahim Attarzadeh
Non-Executive Director
60,000
8/8
2,500
6/6
2,500
N/A
N/A
92,500
Inge Boets BV, permanently
represented by Inge Boets
Chairwoman of the Audit and Risk
Committee, Independent Director
70,000 8/8 2,500 N/A N/A 7/7 5,000 125,000
Michael Bredael
Non-Executive Director
60,000
8/8
2,500
N/A
N/A
7/7
2,500
97,500
Isabel Hochgesand
Independent Director
60,000
7/8
2,500
5/6
2,500
N/A
N/A
88,750
HVV GmbH, permanently
represented by Jesper Hojer
Non-Executive Director 60,000 8/8 2,500 6/6 2,500 N/A N/A 92,500
MJA Consulting BV, permanently
represented by Manon Janssen
Independent Director 60,000 5/8 2,500 6/6 2,500 N/A N/A 85,000
Paul McNulty
Independent Director
60,000
8/8
2,500
N/A
N/A
7/7
2,500
97,500
Rodney Olsen
Non-Executive Director
60,000
8/8
2,500
N/A
N/A
7/7
2,500
97,500
[1] The fixed fee for ViaBylity BV, permanently represented by Hans Van Bylen, includes the annual transformation fee of EUR 50,000 per financial year provided in the Company’s Remuneration Policy.
Such fee expires at the Company’s annual shareholders’ meeting that will resolve on the approval of the annual accounts for the financial year ending on December 31, 2023.
60 I Ontex Integrated annual report 2023
9.3 2023 REMUNERATION OF THE MEMBERS OF THE EXECUTIVE COMMITTEE
9.3.1. Introduction
As described in the introduction to this Remuneration Report, the composition of the Executive Committee underwent several changes during 2023.
The remuneration of the members of the Executive Committee who left the Company during 2023 has been included in this Remuneration Report until the respective end dates of their mandates
(including, for Ms. Stephanie McDonald, the termination payments that were due and paid by the Company to her).
9.3.2. Total Remuneration Summary
The total remuneration paid to the CEO and the other members of the Executive Committee in respect of financial year 2023 is summarized in the table below (all amounts in EUR):
Members of the Executive Committee
Fixed remuneration Variable remuneration
Extra-ordinary
items
Pension
expense
Total
remuneration
Base salary Other benefits
One-year
variable
Multi-year
variable
[1]
Gustavo Calvo Paz (CEO)
900,000
87,234
594,000
0
0
187,920
1,769,154
Other Members of the Executive Committee
2,841,802 228,077 568,715 103,980 1,800,281 490,137 6,032,993
[1] The multi-year variable remuneration reflects the long-term incentive plan grants that have vested during the financial year 2023. Further detail is included further in this report.
The relative share of the different remuneration components in the total remuneration is shown below.
CEO Other members of the Executive Committee
Fixed remuneration as % of total remuneration 66% 59%
Variable remuneration as % of total remuneration
34%
11%
Extraordinary remuneration as % of total remuneration
0%
30%
61 I Ontex Integrated annual report 2023
Fixed Remuneration
A. Base Remuneration
In line with the Company’s Remuneration Policy, the base remuneration of the CEO and the other members of the Executive Committee is aligned with a benchmark representing the median
compensation for a European peer group of personal and household goods companies. The base remuneration of certain members of the Executive Committee who took on additional
responsibilities during 2023 was adapted accordingly. For the other members of the Executive Committee, the base remuneration remained unchanged, in line with the Company’s Remuneration
Policy to keep the base remuneration fixed for three years (except in the event of a substantial change in responsibility, a significant change in general economic circumstances or misalignment
with the median of the peer group).
B. Other Benefits
Other benefits of the members of the Executive Committee include, among others, the cost of medical, life and disability insurances and the use of a company car.
Variable Remuneration
A. One-year Variable (STI)
The 2023 bonus for the CEO and the other members of the Executive Committee has been determined on the basis of a set of financial and non-financial KPIs. For the Sales and EBITDA
financial KPIs, the threshold performance is set at 75% of target, with up to 100% of the target bonus earned in case of on-target performance and a maximum of 200% of the target bonus
payable for a performance reaching 125% of target or more. For the Cash Conversion Cycle financial KPI, the threshold performance is set at 70% of target, with up to 100% of the target bonus
earned in case of on-target performance and a maximum of 200% of the target bonus payable for a performance reaching 130% of target or more. For the non-financial KPIs, the threshold,
target and maximum are set annually by the Board, at its discretion and upon recommendation of the Remuneration and Nomination Committee, depending on the nature of the relevant KPI.
In addition, a “personal leadership multiplier” is applied in function of the individual leadership performance and people impact of the relevant member of the Executive Committee, as explained
in the Company’s Remuneration Policy.
For 2023, the respective weight of the financial and non-financial KPIs was as follows:
CEO and Group Executives
80% Group Financial
Performance
20% ESG
Performance
Division Presidents
40% Group Financial
Performance
50% Division Financial
Performance
10% ESG
Performance
62 I Ontex Integrated annual report 2023
For 2023, the specific financial and non-financial KPIs, and their respective weight, were as follows:
In addition to the CEO, the Group Executives are the Chief Financial Officer, Chief Supply Chain Officer, Chief R&D and Sustainability Officer and Chief HR and Legal Officer. The Division
Presidents are the President of the Europe Division and the President of the North America Division.
(i) KPIs, Weight and Targets for Group and Division Financial Performance for 2023
The KPIs for the 2023 Group Financial Performance and 2023 Division Financial Performance were “Sales”, “EBITDA” and “Cash Conversion Cycle”. These KPIs for 2023 were measured as
follows:
“Sales”: total revenue (at Group level for Group Financial Performance and at division level for Division Financial Performance).
“EBITDA”: the adjusted EBITDA (at Group level as per the Company’s financial results in its Annual Report for Group Financial Performance and at division level for Division Financial
Performance).
“Cash Conversion Cycle” (“CCC”): days sales outstanding + days inventory outstanding – days payable outstanding (at Group level for Group Financial Performance and at division
level for Division Financial Performance). This KPI was measured on a quarterly basis and averaged over 12 months.
24%
32%
24%
5%
5%
10%
2023 KPIs for CEO and Group Executives
Sales (Group) EBITDA (Group)
Cash Conversion Cycle (Group) CO2 Emissions (Scope 1&2) (Group)
CO2 Emissions (Scope 3) (Group) Accidents Rate (Group)
40%
15%
20%
15%
2,5%
2,5%
5%
2023 KPIs for Division Presidents
Group Financial Performance KPIs Sales (Division)
EBITDA (Division) Cash Conversion Cycle (Division)
CO2 Emissions (Scope 1 & 2) (Group) CO2 Emissions (Scope 3) (Group)
Accidents Rate (Group)
63 I Ontex Integrated annual report 2023
At Group level, the target KPIs and actuals for 2023 were as follows:
Group performance (2023) Net Sales (million EUR) EBITDA (million EUR) CCC (# of days)
Target
2,181.4
171.2
43.7
Actuals
2,223.2
204.6
55.2
Based on the target KPIs and actuals for the 2023 Group Financial Performance and 2023 Division Financial Performance, the average pay-out ratio compared to target for the members of the
Executive Committee was 108% for Net Sales, 178% for EBITDA and 0% for CCC.
(ii) KPIs, Weight and Targets for Non-Financial Performance for 2023
The KPIs for the 2023 Non-Financial Performance were “CO2 Emissions (Scope 1 & 2)”, “CO2 Emissions (Scope 3)” and “Accidents Rate”. These KPIs for 2023 were measured as follows:
“CO2 Emissions (Scope 1 & 2)”: percentage reduction in Scope 1 & 2 CO2 emissions.
“CO2 Emissions (Scope 3)”: percentage reduction in Scope 3 CO2 emissions.
“Accidents Rate”: percentage reduction of labor accidents.
For 2023, the targets for the Non-Financial Performance KPIs were as follows:
“CO2 Emissions (Scope 1 & 2)”: reduction by 3.8%.
“CO2 Emissions (Scope 3)”: reduction by 2.6%.
“Accidents Rate”: reduction by 25%.
Group Performance (2023) CO
2
Emissions (Scope 1 & 2) CO
2
Emissions (Scope 3) Accidents Rate
Target
-3.8%
-2.6%
-25%
Actuals
-6.8%
-5%
-6.9%
(iii) KPIs, Weight and Targets for Personal Leadership Multiplier for 2023
For 2023, the personal leadership performance assessment led to an outcome on a five-point scale, with a multiplier effect on the annual bonus amount as follows:
Leadership Performance
Multiplier Effect
1 (did not meet expectations)
x 0.80 (- 20%)
2 (partially met expectations)
x 0.90 (- 10%)
3 (fully met expectations)
x 1.00 (=)
4 (often exceeded expectations)
x 1.10 (+ 10%)
5 (consistently exceeded expectations)
x 1.20 (+ 20%)
64 I Ontex Integrated annual report 2023
Based on the abovementioned financial and non-financial KPIs and personal leadership multiplier, the CEO received an aggregate bonus of €594,000 for financial year 2023. The aggregate
bonus amount paid to the other members of the Executive Committee for financial year 2023 amounted to €568,715.
The annual bonus of each member of the Executive Committee is subject to a claw-back (without time limitation) in case the Company’s financial results would have to be materially restated
as a result of the fraud, wilful misconduct or gross negligence of such member.
B. Multi-year Variable (LTI)
Long-term Incentive vesting in 2023
The table below shows the performance shares, restricted stock units (“RSUs”) and stock options which were granted in 2020 and which vested in 2023. The value of the performance shares
is calculated by multiplying the number of performance shares vested by the share price at noon on the date of the vesting. The value of the restricted stock units is calculated on the basis of
the closing share price of the Ontex share on the trading day preceding the vesting of such restricted stock units. The value of the stock options is calculated on the basis of the closing share
price of the Ontex share on the trading day preceding the vesting of such stock options and the grant price, if positive. All the vested options remain under their grant price of € 13.9.
Name Grant Date
Vesting
Date
Share Price
at vest
Payout %
at vest
Performance Stock Units Restricted Stock Units Stock Options
Number
vested
Value at
vest
Number
vested
Value at
vest
Number
vested
Value at
vest
De Poorter,
Annick
28-May-20 30-May-23
7.25
34.8%
1,936.00
14,026
5,566
40,326
24,717
-
Deroo, Jonas 28-May-20 30-May-23
7.25
34.8%
276.00
2,000
799
5,789
-
-
Nielly, Laurent 28-May-20 30-May-23
7.25
34.8%
1,490.00
10,795
4,285
31,045
19,031
-
For the performance shares under the 2020 Performance Share Plan, the target for the Adjusted Basic EPS target was set at 1.23 and the achieved Adjusted Basic EPS, tested as at December
31, 2022, was negative.
Extra-Ordinary Items and Pension Expenses
Extra-Ordinary Items
65 I Ontex Integrated annual report 2023
The amount reported under extra-ordinary items (€1,800,281) includes certain relocation and other allowances paid to certain members of the Executive Committee, certain sign-on bonuses
for new members of the Executive Committee, and other items. Finally, this amount also includes the termination and non-compete indemnities which have been paid to Ms. Stephanie
McDonald, who acted as Chief HR Officer until her departure from the Company on April 30, 2023.
Ms. McDonald received a termination indemnity of €673,132, composed of 12 months of fixed fee, one year of pension contribution, a housing and utility allowance and a tax equalization
payment. The termination indemnity reflects the contractual exit provisions agreed with Ms. Stephanie McDonald when she joined the company as Chief HR Officer, in compliance with the
Company’s Remuneration Policy.
Pension Expenses
The pension expenses include the contributions paid by the Company in 2023 to a defined contribution pension plan for the benefit of the CEO and the members of the Executive Committee,
for a total amount of €678,057. More details on the pension expenses to the CEO and the other members of the Executive Committee are summarized in section 9.3.2 (Total Remuneration
Summary).
66 I Ontex Integrated annual report 2023
9.3.3. Share-based Remuneration
VCP LTIP grant
As provided in the Company’s 2023 Remuneration Policy, between January 1
st
, 2023 and December 31, 2025, the Company’s annual long-term incentive program is temporarily suspended
for the CEO and the other members of the Executive Committee (as well as for certain other members of the Company’s senior management). Instead, in 2023, the CEO and other members
of the Executive Committee received a one-time grant of performance shares covering financial years 2023, 2024 and 2025 under the Company’s 2023-2025 “Value Creation Projects” Long-
Term Incentive Plan (the “VCP LTIP”)). The grant price for the performance shares under the VCP LTIP was €6.8931 (i.e. the 30 days volume-weighted average price of the Company’s shares
on Euronext Brussels as of March 27, 2023).
The performance shares issued by the Company under the VCP LTIP vest subject to a performance test and continued engagement over the three-year vesting period. The vesting of the
performance shares is subject to a single performance KPI, being the share price of the Company. The calculation of the share price for such performance testing shall occur once, after the
end of the three-year period, and shall be calculated as the 30-calendar day volume-weighted average price (VWAP) of a share in the Company after the public announcement by the Company
of the full-year annual results for the financial year that ends on 31 December 2025.
It is required that a threshold performance is reached before any vesting will occur. As of that threshold, the vesting increases on a scale that reaches 100% for an on-target performance and
a maximum of 112% for a stretch level of performance. The target and thresholds for the VCP LTIP are as follows:
0% 0%
5%
10%
15%
20%
30%
50%
70%
80%
100%
102%
105%
107%
110%
112%
0%
20%
40%
60%
80%
100%
120%
5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
% of target grant of PSUs vesting
30-calendar day VWAP after FY 2025 annual results announcement (EUR)
VCP LTIP Vesting Curve
67 I Ontex Integrated annual report 2023
At vesting of the performance shares under the VCP LTIP, the Company shall deliver to beneficiaries either existing shares of the Company, newly issued shares of the Company or a
combination of both. As the default option, the Board has foreseen that the shares to be delivered upon vesting under the VCP LTIP will be newly issued shares. The Board may however elect
to deliver (in full or in part) existing shares instead of newly issued shares. To deliver newly issued shares, the Board may make use of the authorized capital, which allows the Board, within
the limits set by Belgian law and the authorization granted by the shareholders’ meeting, to increase the Company’s capital without further shareholder approval.
The table below provides the details of the VCP LTIP grant for the CEO and the other members of the Executive Committee.
Executive Committee Member Position Number of PSUs awarded and accepted Award date Vesting date
Calvo Paz, Gustavo Chief Executive Officer 1,005,668 27/03/2023 08/05/2026
De Poorter, Annick Chief Innovation and Sustainability Officer 293,854 27/03/2023 08/05/2026
Deroo, Jonas
Chief HR and Legal Officer & Secretary General
299,430
27/03/2023
08/05/2026
Peeters, Geert
Chief Financial Officer
292,466
01/12/2023
08/05/2026
Querzoli, Marco
Chief Supply Chain Officer
348,174
11/09/2023
08/05/2026
Nielly, Laurent President Europe division 327,762 27/03/2023 08/05/2026
Wood, Paul
President North America division
375,595
27/03/2023
08/05/2026
68 I Ontex Integrated annual report 2023
Overview of share-based remuneration for the CEO and other members of the Executive Committee
The tables below set out the opening and closing balances, as well as movements during the year 2023, in share-based remuneration for the CEO and the other members (or former members)
of the Executive Committee.
Since 2021, members of the Executive Committee are required to hold on to at least 50% of the long-term incentive instruments when they vest until they have acquired a shareholding
representing two times (for the CEO) or equal to (for other members of the Executive Committee) their annual base remuneration. Furthermore, once this threshold has been crossed, members
of the Executive Committee will be required to maintain such minimum shareholding throughout their executive tenure.
The KPIs for the Performance Shares (PSUs) grants of 2021 and 2022, which are subject to a three year vesting period, are Adjusted Basic EPS (50%), Relative TSR (30%), CO2 Emissions
(10%) and Labor Accident Frequency (10%). Vesting for each of the KPIs is between 0 and 200%.
Beneficiary Plan Type
Main Conditions of the Stock Option Plan
Information for the reported financial year
Grant Date
Vesting
Date
Exercis
e
Period
Strik
e
Price
Opening Balance During the Year Closing Balance
Veste
d
Unveste
d
Number
awarde
d
Value
awarde
d
Numbe
r
Vested
Value
Veste
d
Number
exercise
d
Value
Exercise
d
Number
Forfeite
d
Value
Forfeite
d
Veste
d
Unvested
De Poorter,
Annick
SOP 2016 12-May-16 13-May-19 8 years 28.44 8,522
8,522
SOP 2017 11-May-17 12-May-20 8 years 33.11 9,316
9,316
SOP 2018 29-May-18 30-May-21 8 years 23.56 17,931
17,931
SOP 2019 13-Jun-19 14-Jun-22 8 years 14.00 16,125
16,125
SOP 2020 28-May-20 31-May-23 8 years 13.90 0 24,717
24,717
24,717
Deroo, Jonas
SOP 2016 12-May-16 13-May-19 8 years 28.44 2,204
2,204
SOP 2017 11-May-17 12-May-20 8 years 33.11 1,995
1,995
SOP 2018 29-May-18 31-May-21 8 years 23.56 3,376
3,376
Nielly,
Laurent
SOP 2017 11-May-17 12-May-20 8 years 33.11 13,734
13,734
SOP 2018 29-May-18 30-May-21 8 years 23.56 19,212
19,212
SOP 2019 13-Jun-19 14-Jun-22 8 years 14.00 18,878
18,878
SOP 2020 28-May-20 31-May-23 8 years 13.90 0 19,031
19,031
19,031
“Value awarded” is obtained by multiplying the number of options awarded by the value of the option at grant.
“Value vested” is obtained by multiplying the number of options vested by the difference between the exercise price and the share price at vesting, if positive.
“Value exercised” is obtained by multiplying the number of options exercised by the difference between the exercise price and the share price at exercise, if positive.
“Value forfeited” is obtained by multiplying the number of options forfeited by the difference between the exercise price and the share price at the time of forfeiture, if positive.
69 I Ontex Integrated annual report 2023
Beneficiary Plan Type
Main RSU Conditions Information for the reported financial year
Grant Date Vesting Date
Opening
Balance
During the Year Closing Balance
Unvested
Number
Awarded
Value
Awarded
Number
Vested
Value Vested
Number
Forfeited
Value
Forfeited
Unvested
De Poorter, Annick
RSU
2020
28-May-20 31-May-23 5,566
5,566 40,326
0
Deroo, Jonas
RSU
2020
28-May-20 31-May-23 799
799 5,789
0
Nielly, Laurent
RSU
2020
28-May-20 31-May-23 4,285
4,285 31,045
0
“Value awarded” is obtained by multiplying the number of RSUs awarded by the closing share price on the date preceding the grant.
“Value vested” is obtained by multiplying the number of RSUs vested by the share price at 12PM on the date of the vesting.
“Value forfeited” is obtained by multiplying the number of RSUs forfeited by the closing share price on the date of forfeiture.
70 I Ontex Integrated annual report 2023
Beneficiary Plan Type
Main PSU Conditions Information for the reported financial year
Performance
period
Grant Date Vesting Date
Opening
Balance
During the Year
Closing
Balance
Unvested
Number
Awarded
Value
Awarded
Number
Vested
Value Vested
Number
Forfeited
Value
Forfeited
Unvested
Calvo Paz, Gustavo PS 2023 2023-2025 8-May-23 8-May-26
1,005,668 6,561,984
1,005,668
Crepy, Vincent PS 2021 2021-2023 27-May-21 28-May-24 22,202
8,019 63,591 14,183
PS 2022 2022-2024 10-Mar-22 10-Mar-25 35,047
22,393 177,576 12,654
De Poorter, Annick PS 2020 2020-2022 28-May-20 30-May-23 5,566
1,936 14,026 3,630 25,846 0
PS 2021 2021-2023 27-May-21 28-May-24 21,293
21,293
PS 2022 2022-2024 10-Mar-22 10-Mar-25 33,613
33,613
PS 2023 2023-2025 8-May-23 8-May-26
293,854 1,917,397
293,854
Deroo, Jonas PS 2020 2020-2022 28-May-20 30-May-23 799
276 2,000 523 3,724 0
PS 2021 2021-2023 27-May-21 28-May-24 15,138
15,138
PS 2022 2022-2024 10-Mar-22 10-Mar-25 23,896
23,896
PS 2023 2023-2025 8-May-23 8-May-26
299,430 1,953,781
299,430
McDonald, Stephanie PS 2022 2022-2024 10-Mar-22 10-Mar-25 33,454
24,163 187,867 9,291
Nielly, Laurent PS 2020 2020-2022 28-May-20 30-May-23 4,285
1,490 10,795 2,795 19,900 0
PS 2021 2021-2023 27-May-21 28-May-24 22,353
22,353
PS 2022 2022-2024 10-Mar-22 10-Mar-25 35,286
35,286
PS 2023 2023-2025 8-May-23 8-May-26
327,762 2,138,647
327,762
Peeters, Geert PS 2023 2023-2025 1-Dec-23 8-May-26
292,466 1,908,341
292,466
Querzoli, Marco PS 2023 2023-2025 11-Sep-23 8-May-26
348,174 2,271,835
348,174
Vanneste, Peter PS 2021 2021-2023 27-May-21 28-May-24 78,670
17,485 119,160 61,185
PS 2022 2022-2024 10-Mar-22 10-Mar-25 51,774
25,888 176,427 25,886
PS 2023 2023-2025 8-May-23 8-May-26
509,205 3,322,563
509,205 3,470,232 0
Wood, Paul PS 2023 2023-2025 8-May-23 8-May-26
375,595 2,450,757
375,595
“Value awarded” is obtained by multiplying the number of performance shares awarded by the closing share price on the date preceding the grant.
“Value vested” is obtained by multiplying the number of performance shares vested by the share price at 12PM on the date of the vesting.
“Value forfeited” is obtained by multiplying the number of performance shares forfeited by the closing share price on the date of forfeiture.
71 I Ontex Integrated annual report 2023
9.4. REMUNERATION AND PERFORMANCE EVOLUTION OVER THE LAST 5 YEARS
The table below sets out the evolution of the remuneration of the Directors, the CEO and the other members of the Executive Committee, the average remuneration of the other employees, as
well as the Revenue and Adjusted EBITDA performance of the Company (on a consolidated basis) at reported currencies.
(all amounts in EUR) 2019 2020 2021 2022 2023
Remuneration Directors
796,000
1,384,408
1,356,500
1,663,417
1,173,750
Year-on-year
change
[1]
-9% 74% -2% 23% -29%
Remuneration CEO
2,570,254
6,779,690
1,588,121
3,945,342
1,769,154
Year-on-year
change
[2]
56% 164% -77% 148% -55%
Remuneration other Executives
9,057,625
7,827,523
6,635,885
5,289,606
6,032,993
Year-on-year
change
[3]
20% -14% -15% -20% +14%
Reported Revenue (Year-on-Year variance)
0%
-9%
-3%
+22%
+10%
Reported Adjusted EBITDA (Year-on-Year variance)
5%
-4%
-27%
-21%
+65%
Reported Cash Conversion Cycle
-
-
New KPI
Average Employee Remuneration
39,750
38,944
34,884
39,986
26,646
Year-on-year
change
[4]
21% -2% -10% 14% -33%
[1] The decrease in the remuneration of the Directors is explained by the reduced size of the Board (from 12 to nine members) and the decrease in the number of Board and Committee meetings compared to 2022.
[2] The year-on-year change reported from 2022 to 2023 is -55%, which is explained by the 2022 severance payment to the previous CEO.
[3] The year-on-year increase is explained, among others, by the severance payment for Ms McDonald paid out in 2023.
[4] The year-on-year decrease is explained by the inclusion of all hourly-paid employees in the Company’s record-keeping system. On a like-for-like basis compared to the average employee remuneration reported in the Company’s Remuneration
Report for financial year 2022, the average employee remuneration for financial year 2023 would be €32,467 (an 18.2% decrease compared to financial year 2022). The like-for-like decrease compared to financial year 2022 is explained, among
others, by the divestment of the Company’s Mexican business that was completed in May 2023.
Remuneration in the table above includes the total remuneration as defined in sections 9.2 (2023 Remuneration of the Directors) and 9.3.2 (Total Remuneration Summary). In addition to the
financial KPIs, the variable remuneration of members of the Executive Committee is set based on non-financial KPIs and a personal leadership multiplier (see section 9.3.2.). Revenue and
Adjusted EBITDA are as per financial communications. The average employee remuneration represents the total remuneration paid to all employees of Ontex in 2023, divided by the average
total number of employees during 2023.
The 2023 ratio of the total remuneration of the CEO versus the total remuneration of the lowest remunerated employee (located in Pakistan) is 762. For the calculation of this ratio, the
remuneration includes fixed remuneration, variable remuneration as well as employee benefits on a full-time equivalent (FTE) basis. It excludes employer contributions for social security and
extra-ordinary payments, because of their non-recurring nature.
72 I Ontex Integrated annual report 2023
9.5. 2024 REMUNERATION OUTLOOK
In 2024, the Company will continue to apply the Remuneration Policy that was approved by the annual shareholders’ meeting of May 5, 2023. This revised Remuneration Policy aims to strongly
incentivize management to accelerate the realization of the Company’s ongoing turnaround by further strengthening the alignment of executive rewards and shareholder returns. For 2024, this
means, among other things, the following for the members of the Executive Committee:
In terms of long-term variable remuneration (LTI), a single, exceptional LTI plan (consisting solely of performance share units) was issued in May 2023 that covers the financial years
2023, 2024 and 2025, and which has a single KPI, being the Company’s share price. No LTI grants are expected to be issued to the members of the Executive Committee during
financial years 2024 or 2025.
In terms of short-term variable remuneration (STI) for 2024, the financial and non-financial KPIs, their respective weight and targets, and the multiplier effect of the “personal leadership
multiplier” have been set by the Board, upon recommendation of the Remuneration and Nomination Committee. The Board has set the different targets and pay-out curves in alignment
with the Company’s strategic and operational priorities for 2024, as follows:
o Targets for Financial Performance – As the targets for Financial Performance for the 2024 STI are commercially sensitive, these will not be disclosed upfront. They will
however be disclosed in next year’s remuneration report, along with actual results for financial year 2024.
o Targets for Non-Financial Performance – The targets for Non-Financial Performance for the 2024 STI will be as follows:
“CO2 Emissions (Scope 1 & 2)”: reduction by 0% (as a result of a switch to non-renewable electricity at Ontex’s plants in Noginsk and Sydney, the effort to maintain
the same level of CO2 Emissions (Scope 1 & 2) in 2024 as in 2023 requires a 10% reduction in the remainder of Ontex’s operations).
“CO2 Emissions (Scope 3)”: reduction by 2.6% (same as for financial year 2023).
“Accidents Rate”: reduction by 30% (compared to 25% for financial year 2023).
73 I Ontex Integrated annual report 2023
o Personal Leadership Multiplier – Finally, the personal leadership multiplier for the 2024 STI will again be on a five-point scale, and the multiplier effect on the annual bonus
amount shall be as follows:
Leadership Performance Multiplier Effect
1 (did not meet expectations)
x 0.50 (- 50%)
2 (partially met expectations) x 0.80 (- 20%)
3 (fully met expectations)
x 1.00 (=)
4 (often exceeded expectations)
x 1.10 (+ 10%)
5 (consistently exceeded expectations) x 1.20 (+ 20%)
Financial
statements
Strategic report Corporate Governance, Risk & Remuneration Financial statements Sustainability/Non-Financial Statements
75 I Ontex Integrated annual report 2023
Consolidated financial statements
FOR THE FINANCIAL YEARS ENDED DECEMBER 31, 2023 AND 2022
Statement of the Board of Directors 77
Independent Auditors’ Report 78
1. General information 84
1.1. Corporate Information 84
1.2. Business Activities 84
1.3. History of the Group 84
1.4. Legal status 85
2. Consolidated statement of financial position as at December 31 86
3. Consolidated income statement for the years ended December 31 88
4. Consolidated statement of comprehensive income for the years ended December 31 90
5. Consolidated statement of changes in equity for the years ended December 31 91
6. Consolidated statement of cash flows for the years ended December 31 93
7. Notes to the consolidated financial statements 95
7.1. Summary of significant accounting policies 95
7.2. Alternative performance measures 109
7.3. Capital management 113
7.4. Critical accounting estimates and judgments 114
7.5. Financial instruments and financial risk management 119
7.6. Operating segments 127
7.7. List of consolidated companies 129
7.8. Disposal group held for sale and discontinued operations 132
7.9. Goodwill and intangible assets 136
7.10. Property, plant and equipment 139
7.11. Leases 141
7.12. Inventories 143
7.13. Trade receivables, prepaid expenses and other receivables 143
7.14. Cash and cash equivalents 146
7.15. Share capital 146
76 I Ontex Integrated annual report 2023
7.16. Earnings per share 147
7.17. Interest-bearing debts 149
7.18. Employee benefit liabilities 151
7.19. Deferred taxes and current taxes 158
7.20. Current and non-current liabilities 159
7.21. Provisions 160
7.22. Employee benefit expenses 161
7.23. Other operating income/(expenses), net 161
7.24. EBITDA adjustments 162
7.25. Expenses by nature 163
7.26. Net finance cost 164
7.27. Income tax expense 165
7.28. Share-based payments 166
7.29. Contingencies 169
7.30. Commitments 169
7.31. Related party transactions 170
7.32. Events after the end of the reporting period 172
7.33. Audit fees 172
8. Summary statutory financial statements 173
8.1. Statutory balance Sheet after appropriation 173
8.2. Statutory income statement 174
8.3. Extract from Ontex Group NV separate (non-consolidated) financial statements prepared in accordance with Belgian GAAP 174
77 I Ontex Integrated annual report 2023
• the annual review presents a fair overview of the development and the results of the business and the position of Ontex Group NV and of the entities included in the consolidation, as well
as a description of the principal risks and uncertainties facing them pursuant Article 12, paragraph 2 of the Royal Decree of November 14, 2007
The amounts in this document are represented in millions of euros (€ million), unless noted otherwise.
Due to rounding, numbers presented throughout these consolidated financial Statements may not add up precisely to the totals provided and percentages may not precisely reflect the absolute
figures.
78 I Ontex Integrated annual report 2023
INDEPENDENT AUDITORS’ REPORT
STATUTORY AUDITOR'S REPORT TO THE GENERAL SHAREHOLDERS’ MEETING OF ONTEX GROUP NV ON THE CONSOLIDATED ACCOUNTS FOR THE YEAR ENDED 31
DECEMBER 2023
We present to you our statutory auditor’s report in the context of our statutory audit of the consolidated accounts of Ontex Group NV (the “Company”) and its subsidiaries (jointly “the Group”).
This report includes our report on the consolidated accounts, as well as the other legal and regulatory requirements. This forms part of an integrated whole and is indivisible.
We have been appointed as statutory auditor by the general meeting d.d. 5 May 2023, following the proposal formulated by the board of directors and following the recommendation by the
audit committee. Our mandate will expire on the date of the general meeting which will deliberate on the annual accounts for the year ended 31 December 2023. We have performed the
statutory audit of the Group’s consolidated accounts for 10 consecutive years.
Report on the consolidated accounts
Unqualified opinion
We have performed the statutory audit of the Group’s consolidated accounts, which comprise the consolidated statement of financial position as at 31 December 2023, the consolidated income
statement, consolidated statement of comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes
to the consolidated financial statements, including a summary of significant accounting policies and other explanatory information, and which is characterised by a consolidated statement of
financial position total of EUR 2,361.7 million and a profit for the year of EUR 34,8 million.
In our opinion, the consolidated accounts give a true and fair view of the Group’s net equity and consolidated financial position as at 31 December 2023, and of its consolidated financial
performance and its consolidated cash flows for the year then ended, in accordance with International Financial Reporting Standards as adopted by the European Union and with the legal and
regulatory requirements applicable in Belgium.
Basis for unqualified opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs) as applicable in Belgium. Furthermore, we have applied the International Standards on Auditing as
approved by the IAASB which are applicable to the year-end and which are not yet approved at the national level. Our responsibilities under those standards are further described in the
“Statutory auditor’s responsibilities for the audit of the consolidated accounts” section of our report. We have fulfilled our ethical responsibilities in accordance with the ethical requirements that
are relevant to our audit of the consolidated accounts in Belgium, including the requirements related to independence.
We have obtained from the board of directors and Company officials the explanations and information necessary for performing our audit.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated accounts of the current period. These matters were
addressed in the context of our audit of the consolidated accounts as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
79 I Ontex Integrated annual report 2023
(1) Disposal Group held for sale and discontinued operations
Description of the key audit matter
Following its strategic review announced at the end of 2021 and formalized beginning of 2022, Ontex Group announced it would pursue divestment opportunities for the activities located in
“Emerging Markets”. Ontex entered into a binding agreement in July 2022 to sell its Mexican activities and closed the sale in May 2023. In August and September 2023 Ontex entered into
binding agreements for the sale of its Algerian and Pakistan activities and is making progress in the divestment of its remaining Emerging Markets businesses, as discussions with potential
acquirers continue. Based on these considerations, management determined the criteria of IFRS 5 were met and the activities should be presented as discontinued operations on 31 December
2023.
In accordance with IFRS 5 the group classified all assets and all liabilities related to these activities as Assets classified as held for sale and Liabilities related to assets classified as held for
sale which amount to respectively EUR 296.1 million and EUR 136.6 million per 31 December 2023. In the consolidated income statement, the profit for the period of the activities located in
Emerging Markets was presented in one line as “Profit for the period from discontinued operations” and amounts to EUR 7.9 million.
We consider this matter to be of most significance because of the size of the operations that have been sold in 2023 or are expected to be sold within the next year, the complexity of the
planned transactions and judgements made by management in the valuation of the related assets and liabilities at the lower of carrying amount and fair value less costs to sell.
The assets classified as held for sale and the related liabilities, the key lines of the results and cash flows related to discontinued operations are detailed in noted 7.8 of the financial statements.
How our audit addressed the key audit matter
We read minutes of the Board of Directors and sales agreements of the divested entities and entities for which binding agreements were signed. We discussed with management the divestment
process and agreements reached with (potential) buyers to evaluate the appropriateness of the accounting treatment, valuation, and disclosure in line with IFRS 5.
We performed procedures to verify completeness and accuracy of the assets, liabilities, results and cash flows presented as discontinued operations, including measurement in accordance
with IFRS 5. Our procedures included but were not restricted to:
• Reconciling the reclassified assets, liabilities and results to the group reporting forms of the activities that are held for sale;
• Reconciling the loss on the sale of the Mexican business to the underlying calculation, share sales agreement, final settlement agreement, bank statements and calculation of the
deferred consideration;
• Validating assumptions taken on carved out assets, liabilities and net results of legal companies active in both continuing and discontinuing activities at Ontex Group based on audit
evidence obtained;
• Reviewing and challenging management’s preliminary estimate of the disposal loss of entities not yet sold at year-end;
• Evaluating the adequacy of the disclosure (Note 7.4.9 and 7.8) of the assets held for sale and discontinued operations in the consolidated accounts;
Our results
We agree with management’s position that the IFRS 5 criteria were met as of 31 December 2023. We found the methodologies and the assumptions applied in respect of the reclassified
assets, liabilities and results of the discontinued operations and the preliminary estimate of the disposal loss to be in line with our expectations and the agreements and negotiations with
(potential) buyers. We consider the disclosure on the discontinued operations as appropriate.
80 I Ontex Integrated annual report 2023
(2) Impairment of goodwill
Description of the key audit matter
Ontex carries a significant value of goodwill on the balance sheet amounting to EUR 796 million at 31 December 2023 as detailed in disclosure 7.9. Under the International Financial Reporting
Standards as endorsed by the EU (“IFRS’s”), the Company is required to test the amount of goodwill for impairment at least annually.
We consider this matter to be of most significance because of the complexity of the assessment process and significant judgments in respect of assumptions about the future results of the
business and the discount rates applied to future cash flow forecasts. The most important assumptions relate to the discount rate, growth rates of revenue and operating margin.
How our audit addressed the key audit matter
We challenged whether the goodwill impairment test was performed at the lowest CGU level at which the goodwill is monitored. We challenged the cash flow projections used in the impairment
tests and the process through which they were prepared. We found that the projected cash flows for 2024 were consistent with the Board’s approved budgets and the strategic plan as presented
to the Board, which were subject to timely oversight and challenge by the Directors. We have critically assessed the historical accuracy of management’s estimates and evaluation of business
plans by comparing the prior year’s forecast with the Group’s actual performance. For the cash flows after 2024 we critically assessed and challenged the assumptions related to the long-term
growth rates, by comparing them to industry forecasts and historical growth rates.
We compared the weighted average cost of capital (“WACC”) to the cost of capital and debt of the Group and comparable organisations, as well as considering territory specific factors. We
tested the calculation method used and the accuracy thereof. We compared operating margin, working capital- and CAPEX percentage with past actuals. We challenged the adequacy of
management’s sensitivity analysis of the headroom. For all CGUs we calculated the degree to which these assumptions would need to move before an impairment conclusion was triggered.
We discussed the likelihood of such a movement with management. We included valuation specialists in our team to assist us with these procedures. We also evaluated the adequacy of the
disclosures (Note 7.9 and Note 7.4.4) in the financial statements.
Our results
From our sensitivity analysis, we found the likelihood of changes resulting in impairment losses to be unlikely.
(3) Valuation of deferred taxes and valuation allowance on deferred tax assets related to tax losses carried forward
Description of the key audit matter
Ontex has recognised a deferred tax asset of EUR 11.7 million at 31 December 2023, which is for an important part related to tax losses or tax incentives carried forward . At the same time, a
deferred tax asset position of EUR 139.3 million was not recognised, as disclosed in Note 7.19.1.
The valuation of the deferred tax positions at Ontex involved significant judgement, more specifically in the determination of the recognition of deferred tax assets related to tax losses carried
forward. The estimation of the future taxable basis is highly judgemental as well as the assessment of the impact of tax laws and regulations, tax planning action and strategies, rulings and
transfer pricing. Because of all the aforementioned reasons, we found this key audit matter to be of most significance for our audit.
How our audit addressed the key audit matter
We challenged the assumptions made to assess the recoverability of deferred tax assets related to tax losses carried forward and the timing of the reversal of deferred tax positions. During our
procedures, we used amongst others budgets, forecasts and tax laws and in addition we assessed the historical accuracy of management’s assumptions. An important management judgement
was the period over which taxable profits can be reliably estimated and consequently, no deferred tax assets are recognised for tax losses used in any period beyond. We verified that the
deferred tax position was calculated at the enacted tax rate for the year in which the deferred tax position is expected to reverse.
81 I Ontex Integrated annual report 2023
We also assessed the adequacy and completeness of the Company’s disclosure included in Note 7.4.2, 7.19.1 and 7.27 in respect of deferred taxes.
Our results
We found management’s judgements in respect of the Group’s deferred tax positions to be consistent and in line with our expectations.
Responsibilities of the board of directors for the preparation of the consolidated accounts
The board of directors is responsible for the preparation of consolidated accounts that give a true and fair view in accordance with International Financial Reporting Standards as adopted by
the European Union and with the legal and regulatory requirements applicable in Belgium, and for such internal control as the board of directors determines is necessary to enable the preparation
of consolidated accounts that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated accounts, the board of directors is responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the board of directors either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.
Statutory auditor’s responsibilities for the audit of the consolidated accounts
Our objectives are to obtain reasonable assurance about whether the consolidated accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these consolidated accounts.
In performing our audit, we comply with the legal, regulatory and normative framework applicable to the audit of the consolidated accounts in Belgium. A statutory audit does not provide any
assurance as to the Group’s future viability nor as to the efficiency or effectiveness of the board of directors’ current or future business management at Group level. Our responsibilities in
respect of the use of the going concern basis of accounting by the board of directors are described below.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
● Identify and assess the risks of material misstatement of the consolidated accounts, whether due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control;
● Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Group’s internal control;
● Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the board of directors;
● Conclude on the appropriateness of the board of directors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to
draw attention in our statutory auditor’s report to the related disclosures in the consolidated accounts or, if such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our statutory auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern;
● Evaluate the overall presentation, structure and content of the consolidated accounts, including the disclosures, and whether the consolidated accounts represent the underlying
transactions and events in a manner that achieves fair presentation;
82 I Ontex Integrated annual report 2023
● Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial
statements. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion.
We communicate with the audit committee regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
We also provide the audit committee with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and
other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the audit committee, we determine those matters that were of most significance in the audit of the consolidated accounts of the current period and are
therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter.
Other legal and regulatory requirements
Responsibilities of the board of directors
The board of directors is responsible for the preparation and the content of the directors’ report on the consolidated accounts, the separate report on non-financial information and the other
information included in the annual report on the consolidated accounts.
Statutory auditor’s responsibilities
In the context of our engagement and in accordance with the Belgian standard which is complementary to the International Standards on Auditing (ISAs) as applicable in Belgium, our
responsibility is to verify, in all material respects, the directors’ report on the consolidated accounts, the separate report on non-financial information and the other information included in the
annual report on the consolidated accounts and to report on these matters.
Aspects related to the directors’ report on the consolidated accounts and to the other information included in the annual report on the consolidated accounts
In our opinion, after having performed specific procedures in relation to the directors’ report on the consolidated accounts, this directors’ report is consistent with the consolidated accounts for
the year under audit and is prepared in accordance with article 3:32 of the Companies' and Associations' Code.
In the context of our audit of the consolidated accounts, we are also responsible for considering, in particular based on the knowledge acquired resulting from the audit, whether the directors’
report on the consolidated accounts and the other information included in the annual report on the consolidated accounts, is materially misstated or contains information which is inadequately
disclosed or otherwise misleading. In light of the procedures we have performed, there are no material misstatements we have to report to you.
The non-financial information required by virtue of article 3:32, §2 of the Companies’ and Associations’ Code is included in the directors’ report on the consolidated accounts. The Company
has prepared the non-financial information, based on the Global Reporting Initiative (GRI) Standards, the United Nations Sustainable Development Goals (SDG) and EU Taxonomy. However,
in accordance with article 3:80, §1, 5° of the Companies’ and Associations’ Code, we do not express an opinion as to whether the non-financial information has been prepared in accordance
with the Global Reporting Initiative (GRI) Standards, the United Nations Sustainable Development Goals (SDG) and EU Taxonomy as disclosed in the directors’ report on the consolidated
accounts.
83 I Ontex Integrated annual report 2023
Statement related to independence
● Our registered audit firm and our network did not provide services which are incompatible with the statutory audit of the consolidated accounts, and our registered audit firm remained
independent of the Group in the course of our mandate.
● The fees for additional services which are compatible with the statutory audit of the consolidated accounts referred to in article 3:65 of the Companies' and Associations' Code are
correctly disclosed and itemized in the notes to the consolidated accounts.
European Uniform Electronic Format (“ESEF”)
We have also verified, in accordance with the draft standard on the verification of the compliance of the financial statements with the European Uniform Electronic Format (hereinafter
“ESEF”), the compliance of the ESEF format with the regulatory technical standards established by the European Delegate Regulation No. 2019/815 of 17 December 2018 (hereinafter:
“Delegated Regulation”).
The board of directors is responsible for the preparation, in accordance with ESEF requirements, of the consolidated financial statements in the form of an electronic file in ESEF format
(hereinafter “digital consolidated financial statements”) included in the annual financial report.
Our responsibility is to obtain sufficient appropriate evidence to conclude that the format and marking language of the digital consolidated financial statements complies in all material
respects with the ESEF requirements under the Delegated Regulation.
Based on our procedures performed, we believe that the format of and marking of information in the digital consolidated financial statements included in the annual financial report of Ontex
Group NV per 31 December 2023 complies in all material respects with the ESEF requirements under the Delegated Regulation.
Other statements
This report is consistent with the additional report to the audit committee referred to in article 11 of the Regulation (EU) N° 537/2014.
Ghent, 28 March 2024
The statutory auditor
PwC Bedrijfsrevisoren BV/PwC Reviseurs d ‘Entreprises SRL
Represented by
Lien Winne*
Bedrijfsrevisor
*Acting on behalf of Lien Winne BV
84 I Ontex Integrated annual report 2023
1. GENERAL INFORMATION
1.3. HISTORY OF THE GROUP
Ontex was founded in 1979 by Paul Van Malderen and initially produced mattress protectors for the Belgian institutional market. During the 1980s and the first half of the 1990s, the Company
expanded its product range into its current core product categories and grew the business internationally both organically and through acquisitions.
After opening a production facility in the Czech Republic and acquiring businesses in Belgium, Germany and Spain, Ontex was listed on Euronext Brussels in 1998. Following the listing, Ontex
experienced rapid growth over several years, primarily through bolt-on acquisitions in France, Germany and Turkey.
Ontex was acquired by funds advised by Candover in 2003 and subsequently de-listed from Euronext Brussels. Ontex acquired a diaper production unit of Paul Hartmann in Germany in 2004
and opened a production facility in China in 2006. In 2008, we opened a production facility in Algeria. In 2010, Ontex acquired iD Medica, which sells incontinence products in Germany.
In 2010, Ontex was acquired by funds managed by GSCP and TPG. In 2011, Ontex opened two additional production facilities, one in Australia and one in Russia, and acquired Lille Healthcare,
a company operating in the adult incontinence market in France. In 2013, Ontex acquired Serenity, a company operating in the adult incontinence market in Italy, and opened a production
facility in Pakistan.
In June 2014, Ontex Group NV successfully listed its shares on the Euronext Brussels exchange and trades under the ticker ‘ONTEX’.
In February 2016, Ontex acquired Grupo Mabe, a leading Mexican manufacturer of disposable personal hygiene products.
In March 2017, Ontex acquired the personal hygiene business of Hypermarcas (renamed to “Ontex Brazil”).
In July 2017 Ontex opened a production plant in Ethiopia for the manufacturing of baby diapers that are specifically meeting the needs of African families.
In February 2019, Ontex opened a production plant in Radomsko, Poland to support its Central European business.
In July 2020, Ontex acquired the US feminine hygiene assets from Albaad Massuot Yitzhak Ltd. in Rockingham County to further develop the North American business.
In December 2021, Ontex announced its reviewed strategy to focus on its partner and healthcare brands business, which is concentrated in Europe and North America, and thereby is pursuing
alternative strategic solutions for its mainly own brand focused businesses in the Emerging Markets of Central and South America, as well as the Middle East and Africa. This strategy was
formalized and reflected in the Company’s financial statements beginning of 2022.
85 I Ontex Integrated annual report 2023
In July 2022, Ontex entered into a binding agreement to sell its Mexican and related export activities to Softys S.A., marking a milestone in the transformation of Ontex. The transaction was
completed in May 2023.
In August 2023, Ontex announced that it had reached an agreement for the sale of its business activities in Algeria to Hygianis SPA. In September 2023, Ontex announced that it had reached
an agreement with ASAIA Holding FZ for the divestment of its business activities in Pakistan. Both transactions are expected to be completed in the first half of 2024.
1.4. LEGAL STATUS
registered office at Korte Keppestraat 21, 9320 Erembodegem (Aalst), Belgium
86 I Ontex Integrated annual report 2023
2. CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31
ASSETS
Note December 31, 2023 December 31, 2022
in € million
Non-current Assets
Goodwill
9
Intangible assets
9
Property, plant and equipment
10
Right-of-use assets
11
Deferred tax assets
19
Non-current receivables
8
Current Assets
Inventories
12
Trade receivables
13
Prepaid expenses and other receivables
13
Current tax assets
19
Derivative financial assets
5.1
Other financial assets
(0.0 )
Cash and cash equivalents
14
Assets classified as held for sale
8
TOTAL ASSETS
87 I Ontex Integrated annual report 2023
EQUITY AND LIABILITIES
Note December 31, 2023 December 31, 2022
in € million
Equity attributable to owners of the company
Share capital & premium
15
Treasury shares
(32.3 )
(34.2 )
Cumulative translation reserves*
(246.8 )
(254.1 )
Retained earnings and other reserves*
(26.8 )
(61.2 )
TOTAL EQUITY
Non-current liabilities
Employee benefit liabilities
18
Interest-bearing debts
17
Deferred tax liabilities
19
Other payables
Current liabilities
Interest-bearing debts
17
Derivative financial liabilities
5.1
Trade payables
20
Accrued expenses and other payables
20
Employee benefit liabilities
18
Current tax liabilities
19
Provisions
21
Liabilities related to assets classified as held for sale
8
TOTAL LIABILITIES
TOTAL EQUITY AND LIABILITIES
*The impact of hyperinflation for both non-monetary and monetary items is presented in cumulative translation reserves as of 2023. The figures per December 2022 have been restated, having a reclassification impact
of €30.8m between retained earnings and cumulative translation reserves
The accompanying notes are an integral part of the audited consolidated financial statements.
88 I Ontex Integrated annual report 2023
3. CONSOLIDATED INCOME STATEMENT FOR THE YEARS ENDED DECEMBER 31
Note
Full Year
in € million
2023
2022
Revenue
6
Cost of sales
25
(1,327.3 )
(1,294.7 )
Gross Profit
Distribution expenses
25
(190.5 )
(191.3 )
Sales and marketing expenses
25
(81.5 )
(82.1 )
General administrative expenses
25
(85.6 )
(75.6 )
Other operating income/(expenses), net
23-25
(6.6 )
Income and expenses related to changes to Group structure
24
(10.3 )
(11.2 )
Income and expenses related to impairments and major litigations
24
(4.6 )
(91.8 )
Operating profit/(loss)
(69.4 )
Finance income
26
Finance costs
26
(57.6 )
(49.3 )
Net exchange differences relating to financing activities
26
(2.4 )
Net finance cost
(45.1 )
(50.9 )
Profit/(loss) before income tax
(120.3 )
Income tax expense
27
(16.3 )
(28.4 )
Profit/(loss) for the period from continuing operations
(148.7 )
Profit/(loss) for the period from discontinued operations
8
(121.6 )
Profit/(loss) for the period
(270.3 )
Profit/(loss) attributable to:
Owners of the parent
(270.3 )
Profit/(loss) for the period
(270.3 )
89 I Ontex Integrated annual report 2023
Earnings per share:
Full Year
in €
Note
2023
2022
For continuing operations
Basic earnings per share
16
(1.83 )
Diluted earnings per share
16
(1.83 )
For continuing and discontinued operations
Basic earnings per share
16
(3.34 )
Diluted earnings per share
16
(3.34 )
Weighted average number of ordinary shares outstanding during the period
The accompanying notes are an integral part of the audited consolidated financial statements.
90 I Ontex Integrated annual report 2023
4. CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31
Note
Full Year
in € million
2023
2022*
Profit/(loss) for the period
(270.3 )
Other comprehensive income/(loss) for the period, after tax:
Remeasurements of defined benefit plans
(1.9 )
Deferred tax on items that will not be reclassified subsequently to income statement
(1.6 )
Items that will not be reclassified subsequently to income statement, net of tax
(1.4 )
Exchange differences on translating foreign operations
Fair value remeasurements - Cash flow hedge
5.1
(3.0 )
Deferred tax on items that will be reclassified subsequently to income statement
(0.2 )
Items that will be reclassified subsequently to income statement, net of tax
Other comprehensive income/(loss) for the period, net of tax
Total comprehensive income/(loss) for the period
(206.2 )
Total comprehensive income/(loss) attributable to:
Owners of the parent
(206.2 )
Total comprehensive income/(loss) for the period
(206.2 )
*The impact of hyperinflation both for non-monetary and monetary items is presented in cumulative translation reserves as of 2023. The figures per December 2022 have been restated, having a reclassification impact
of €30.8m between retained earnings and cumulative translation reserves
The accompanying notes are an integral part of the audited consolidated financial statements.
91 I Ontex Integrated annual report 2023
5. CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31
Attributable to equity holders of the Company
Other reserves
in € million
Number of
shares
Share
capital
Share
Premium
Treasury
shares
Cumulative
translation
reserves
Retained
earnings
Defined
benefit
plans
Cash flow
hedge
Share-
based
payments
Other
Total
Equity
Balance at December 31, 2022
(34.2 )
(254.1 )
(361.6 )
(2.3 )
Transactions with owners at the level of Ontex Group NV:
Share-based payments
-
-
-
-
-
-
-
(1.0 )
Settlement of share-based payments
-
-
-
-
-
-
-
(0.8 )
(1.2 )
Total transactions with owners
-
-
-
-
0.0
0.0
(1.7 )
(1.1 )
Comprehensive income:
Profit/(loss) for the period
-
Other comprehensive income/(loss)
-
-
-
-
(0.0 )
(1.4 )
(0.2 )
Balance at December 31, 2023
(32.3 )
(246.8 )
(322.8 )
(2.5 )
92 I Ontex Integrated annual report 2023
Attributable to equity holders of the Company
Other reserves
in € million
Number of
shares
Share
capital
Share
Premium
Treasury
shares
Cumulative
translation
reserves *
Retained
earnings*
Defined
benefit
plans
Cash flow
hedge
Share-
based
payments
Other
Total
Equity
Balance at December 31, 2021
(36.3 )
(333.1 )
(91.3 )
(0.8 )
(0.2 )
Restatement Opening Balance (Hyperinflation non-
monetary adjustments)
- - - - 17.0 - - - - - 17.0
Restated Balance at December 31, 2021
(36.3 )
(316.2 )
(91.3 )
(0.8 )
(0.2 )
Transactions with owners at the level of Ontex Group
NV:
Share-based payments
-
-
-
-
-
0.0
(0.0 )
-
-
Settlement of share-based payments
-
-
-
-
-
-
-
(0.8 )
(0.9 )
Treasury Shares
-
Total transactions with owners
-
(0.0 )
(0.9 )
Comprehensive income:
Profit/(loss) for the period
-
(270.3 )
-
-
-
-
(270.3 )
Other comprehensive income/(loss)
-
(0.0 )
(2.1 )
Balance at December 31, 2022
(34.2 )
(254.1 )
(361.6 )
(2.3 )
*The impact of hyperinflation for both non-monetary and monetary items is presented in cumulative translation reserves as of 2023. The figures per December 2022 have been restated, having a reclassification impact
of €30.8m between retained earnings and cumulative translation reserves
The accompanying notes are an integral part of the audited consolidated financial statements.
The shareholding of Ontex Group NV based on the declarations, received in the period up to December 31, 2023, is as follows:
Shareholder
December 31, 2023
%
1
Groupe Bruxelles Lambert SA
16,454,453
19.98%
ENA Investment Capital
12,411,999
15.07%
Guangchang Guo and Fosun International Holdings Ltd.²
3,200,373
3.89%
The Pamajugo Irrevocable Trust
2,722,221
3.64%
Black Creek Investment Management Inc.
2,483,000
3.02%
1
At the time of the transparency declaration
²On January 11, 2024, the Company received a transparency declaration confirming that, on January 9, 2024, Guangchang Guo and Fosun International Holdings Ltd. held 2,399,214 voting securities or voting rights
in the Company, representing 2.91% of voting securities, thereby crossing downward the threshold of 3%
The accompanying notes are an integral part of the audited consolidated financial statements.
93 I Ontex Integrated annual report 2023
6. CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31
The amounts below include both continuing and discontinued operations. For details regarding the discontinued operations, see note 7.8.
Full Year
in € million
Note
2023
2022
CASH FLOWS FROM OPERATING ACTIVITIES
Profit/(loss) for the period
(270.3 )
Adjustments for:
Income tax expense
Depreciation and amortization
Impairment losses and items relating to investing activities
Provisions (including employee benefit liabilities)
(20.1 )
Change in fair value of financial instruments
Net finance cost
Changes in working capital:
Inventories
(11.3 )
Trade and other receivables and prepaid expenses
(52.9 )
(46.9 )
Trade and other payables and accrued expenses
Current Employee benefit liabilities
Cash from operating activities before taxes
Income taxes paid
(20.8 )
(24.9 )
NET CASH GENERATED FROM OPERATING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, plant and equipment and intangible assets
(96.5 )
(62.4 )
Proceeds from disposal of property, plant and equipment and intangible assets
Proceeds from divestments, net of cash disposed and transaction costs
8
NET CASH GENERATED FROM / (USED IN) INVESTING ACTIVITIES
(57.7 )
94 I Ontex Integrated annual report 2023
Full Year
in € million
Note
2023
2022
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings
17
Repayment of borrowings
17
(385.8 )
(81.7 )
Interests paid
(50.8 )
(46.1 )
Interests received
Cost of refinancing & other costs of financing
(3.3 )
(7.2 )
Realized foreign exchange (losses)/gains on financing activities
(3.7 )
Derivative financial assets
(3.2 )
(7.0 )
NET CASH GENERATED FROM / (USED IN) FINANCING ACTIVITIES
(309.8 )
(9.5 )
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS
(30.3 )
(38.9 )
Effects of exchange rate changes on cash and cash equivalents
(10.2 )
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD
Of which presented as part of Assets classified as held for sale
8
The accompanying notes are an integral part of the audited consolidated financial statements.
95 I Ontex Integrated annual report 2023
7. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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Sustainability/
Non-Financial
Statements
Strategic report Corporate Governance, Risk & Remuneration Financial statements Sustainability/Non-Financial Statements
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Sustainability/Non-Financial Statements
1. General information
2. ESG Governance
3. Sustainability Strategy
4. Stakeholder engagement
5. Double materiality assessment
6. Climate change
7. Resource use and circular economy
8. Voluntary environmental disclosures
9. Own workforce
10. Workers in the value chain
11. Consumers safety
12. Methodological notes
13. EU Taxonomy reporting
14. Independent limited assurance report on a selection of sustainability KPI’s
15. GRI content index
177 I Ontex Integrated annual report 2023
1. GENERAL INFORMATION
1.1. BASIS FOR PREPARATION
The main reporting frameworks used to prepare the Integrated Annual Report are:
Global Reporting Initiative (GRI): the GRI standards are the main reference for Ontex’s sustainability reporting. Both 2016 and 2021 GRI Standards were used for this report. We report
in accordance with the GRI Standards for the period 1 January 2023 to 31 December 2023. The Board of Directors is responsible for reviewing and approving the reported information,
including our material topics.
United Nations Sustainable Development Goals (SDGs): Ontex has identified the 6 Sustainable Development Goals on which it can have the most impact, through its operations or
across the value chain, in line with the materiality analysis.
EU Taxonomy: a taxonomy statement is added in this report as defined by the EU Taxonomy in the delegated act of April 2021.
Reporting period & frequency
The reporting period runs from 1 January 2023 to 31 December 2023. The annual publication of sustainability information happens at the same time as our financial reporting.
The publication date of this report is 2nd of April 2024.
Scope
Unless stated otherwise, the environmental and social reporting scope are consistent with the financial reporting scope, as described in the “List of companies included in the consolidation
scope” in the financial statements.
Unless stated otherwise, past years are not restated for sustainability indicators. The reporting scope includes all material aspects, as identified in Ontex’s double materiality analysis. Some
additional disclosures, for example regarding water data or forestry information, have been included at the request of specific groups of stakeholders, despite not being topics that are material
for Ontex.
As our impacts reach across the borders of our company, the sustainability statements include both upstream and downstream reporting as referred to in the materiality assessment and related
disclosures described in this document. When metrics include upstream or downstream data, explanatory notes are provided to explain potential assumptions or estimates used in the relevant
sections.
A large part of our sustainability efforts is linked to the choice of raw materials and innovation. Information corresponding to intellectual property, know-how or the results of innovation may be
omitted from the report, due to the sensitive nature of the information.
Uncertainty
Any forward-looking information stated in the sustainability statements should be treated with care and considered as uncertain information.
Contact
For questions about the reported sustainability information, please reach out to Elise Barbé at Elise.barbe@ontexglobal.com or corporate.communications@ontexglobal.com
178 I Ontex Integrated annual report 2023
2. ESG GOVERNANCE AT ONTEX
2.1. ESG OVERSIGHT
Sustainability has long been integrated throughout Ontex’s functions and at all levels of operations.
Our Sustainability Strategy 2030 outlines our ambitions and commitments, creating a common agenda that is unified across all Ontex units, as we collectively progress together towards 2030.
It provides a roadmap for everyone within Ontex. Each part of our business has the freedom to set its own goals and targets to contribute to this strategy. This gives room for locally tailored
and contextually relevant implementation. Our Sustainability Strategy 2030 is deployed throughout the Group and implemented in the different departments.
The Board of Directors
o The Board oversees
and approves the Ontex
sustainable
development
commitments &
monitors progress
through the Audit & Risk
Committee.
The Executive
Committee (EC)
o Determines strategy
and approves targets
o It monitors the
implementation of the
sustainability strategy
2030
oThe sustainability
responsible, Annick De
Poorter (Executive Vice-
President R&D, Quality
& Sustainability),
ensures the integration
of sustainability into the
management agenda.
The Group
sustainability team
o Defines and deploys
the Ontex sustainability
strategy 2030
o Monitors progress and
presents the result to
the EC & Board
o The team works closely
together with other
departments to embed
sustainability in the
organization
o Report on a monthly
base to the EC.
Steering committees
o Climate steering
committee: Oversees
the performance against
our climate targets,
scope 1-2-3 and steers
the development,
challenges and
approves the climate
roadmaps.
o Innovation council:
Follows up on our
circular ambitions,
roadmaps, projects
.
Sustainability roles
within other parts of
the business
• Implement and/or
contribute to one or
more objectives of the
sustainability strategy
2030
179 I Ontex Integrated annual report 2023
2.2. INTEGRATION OF ESG IN THE INCENTIVE SCHEMES
At Ontex, we recognize the profound impact that Environmental, Social, and Governance (ESG) factors have on our business, stakeholders, and the global community as a whole. As part of
our ongoing commitment to sustainability and responsible business practices, we have integrated ESG considerations into our Short-Term incentive plan. We consciously chose to add it to the
Short-Term incentive plan compared to the Long-Term incentive plan to further emphasize the urgency of integrating sustainability in our business practices.
To measure our ESG performance, we have identified two key indicators: Emissions (Scope 1-2-3) and the Accident Frequency Rate.
More information on the incentive schemes can be found in the Remuneration Report .
2.3. SUMMARY OF THE DIFFERENT COMPONENTS OF ONTEX’S SUSTAINABILITY GOVERNANCE
Our standards and policies form the basis for turning our strategy into action and making our vision a reality. Many of our internal standards and policies are based upon international frameworks.
Table 1: Summary of the different components of Ontex sustainability governance
Climate action Circular solutions Building trust Sustainable supply chain
Policies, commitments,
guidelines or statements
Code of ethics: >
Human rights policy: >
Speak Up policy/line: >
Diversity policy: >
Quality policy: >
Supplier code of conduct: >
Ethical sourcing policy: >
Modern slavery statement: >
Sustainable sourcing policy for renewable raw
materials: >
Animal testing statement: >
Ontex Global Supplier and Vendor Handbook >
Ontex Regulatory Compliance Requirements >
Sustainability policy: >
Management systems &
certifications
ISO50001: >
ISO14001: >
SMETA
ISO45001
SMETA
External charters or initiatives
Greenhouse Gas Protocol
LCA based on ISO14040
Environmental Product
Declarations
EDANA Stewardship Program
FSC
1
: >
PEFC: >
GOTS: >>
REDcert
2
: >
The UN Universal Declaration of Human Rights
International Labour Organization (ILO) Conventions, and Declaration on Fundamental
Principles and Rights at Work
UN Guiding Principles on Business and Human Rights
OECD Due Diligence Guidance for Responsible Business Conduct
OECD Guidelines for Multinational Enterprises
Sustainable Development Goals (SDGs)
1
PEFC (PEFC/07-32-261)/FSC® (FSC-C081844)
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Management systems
Definitions
Environmental and social responsibility at Ontex is driven forward by an integrated sustainability management system. This system is built of policies, procedures and processes helping to
ensure that sustainability is embedded into all aspects of Ontex activities.
Our approach
The guiding principles of the Ontex sustainability management system are outlined in the Ontex Sustainability Policy. The policy underlines the importance of compliance with obligations, an
integrated approach to sustainability, and a special focus on continuous improvements. The main environmental and social responsibility standards underpinning the Ontex sustainability
management system are issued by the International Organization for Standardization (ISO), namely:
ISO 14001 – Environmental Management System
ISO 50001 – Energy Management System
ISO 45001 – Occupational Health and Safety Management System
Other voluntary and obligatory requirements feed into this system, e.g., BSCI and SMETA social compliance schemes, legal and regulatory obligations, third-party certifications, UN SDGs and
other sustainability frameworks and standards.
The sustainability management system is aligned with quality and information security systems. A cross-functional team ensures a single coherent base for all the management standards
Ontex has adopted. The foundations are set up at the Group level and cascaded to sites: a set-up allowing us to share the best practices and reach the optimal synergy.
The pinnacle of the integrated management system is an annual management review at all Ontex sites and across the Group. It serves as a point of reflection on performance results of the
past year (including an analysis of complaints received) and serves to highlight risks, opportunities and resources needed for further improvement
ESG-related policies and guidelines
Our ESG-related policies are the cornerstone of our governance framework, reflecting our dedication to sustainable and responsible business practices. These policies guide our daily operations
and underscore our firm commitment to environmental stewardship, social responsibility, and ethical governance. Through the comprehensive implementation of these policies, we aim to create
long-term value for our stakeholders while contributing positively to the communities and environments in which we operate. The overview below provides insight into the various ESG-related
policies and guidelines.
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Policy Content
Sustainability policy
This policy sets the overall framework for integrating sustainability into all Ontex’s activities. It outlines three main commitments:
compliance with mandatory and voluntary compliance obligations, adherence to an integrated approach in sustainability, incorporation
of stakeholder interests and potential risks, as well as our focus on continuous improvement and transparency.
Scope: All employees
Ontex Code of Ethics
Ontex’s Code of Ethics (COE) is the foundation of who we are and how we do business. It covers the topics of Caring for People,
Integrity in the Marketplace, Ethics in our Business Activities and Safeguarding Company Assets.
Trainings, constant messaging from management, clear delegation of authority policies and support systems via clear mechanisms for
reporting potential violations provide a strong compliance system guarded by a Compliance function with a presence in every market
via local compliance coordinators.
Our COE is available at the Company’s intranet site, delivered via handouts or posters around our sites and at our external website for
employees, customers, suppliers and investors alike.
Scope: All employees & non-employees
Human rights policy
Our human rights policy, published on our website, sets out our commitment to respecting human rights and acting with due diligence
to avoid any infringement of human rights or any adverse impact on, or abuses of, such rights.
Scope: The policy emphasizes our commitments to our stakeholders, namely our employees and business partners, the communities
and environments in which we operate, and children.
Supplier Code of Conduct
The Supplier Code of Conduct sets out the expectations Ontex has of its suppliers regarding business ethics, human rights, safety &
health, environment, and speak-up channels.
Scope: All suppliers and vendors providing materials, including raw materials, packaging, and outsourced goods, that may reach our
consumers. This includes raw material and packaging suppliers.
Ontex Global Supplier and Vendor Handbook
This guideline outlines general requirements for product safety, supplier quality, and sustainability, with the primary objective of securing
a consistent supply of high-quality products and promoting sustainable practices.
Scope: All suppliers and vendors offering us materials which can end up in the hands of our consumers are in scope of this handbook
(raw materials and packaging, traded and outsourced goods suppliers, etc.).
Sustainability sourcing policy for renewable
raw materials
With this policy we aim to set out a general framework for these requirements. It is complemented by the existing Supplier Code of
Conduct and ethical sourcing requirements.
Scope: This policy applies to all Ontex suppliers of wood, cotton, and other materials of renewable origin considered as ‘direct materials’.
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Policy Content
Ethical sourcing requirements
This document aims to further elaborate on the social audit requirements for our suppliers which are mentioned in our Supplier Code
of Conduct and is focused on the scope of the social audits, accepted audit schemes and results.
Scope: The ethical sourcing requirements stipulated in this document apply to all Ontex raw material and packaging suppliers .
Ontex supplier regulatory compliance
requirements
This document lists all applicable regulations and safety standards for our products.
Scope: All suppliers and vendors providing materials, including raw materials, packaging, and outsourced goods, that may reach our
consumers. Raw material and packaging suppliers.
Ontex supplier quality requirements
The purpose of this manual is to inform Ontex suppliers of our core expectations regarding the supplier quality management system
(QMS), design requirements, and manufacturing process controls required for the purpose of doing business with Ontex.
Scope: All suppliers providing Ontex with raw materials, packaging, finished goods and trading goods purchased by and delivered to
Ontex by the supplier or by any of its affiliates or subcontractors.
Modern Slavery Statement
The purpose of the Modern Slavery Statement in Australia and the Modern Slavery Statement in the UK is to publicly express Ontex's
commitment to ensuring that there is no modern slavery and human trafficking within its own operations and supply chain. This
commitment is in accordance with the Australian Modern Slavery Act 2018 and the UK Modern Slavery Act 2015.
Scope: All suppliers providing Ontex with raw materials, packaging, finished goods and trading goods purchased by and delivered to
Ontex by the supplier or by any of its affiliates or subcontractors.
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Animal testing
At Ontex we do not test our products on animals, unless this is specifically required by law and/or regulatory agencies. We also aim to limit animal testing as much as possible in our supply
chain. For this reason, we have expanded our Conformity Declaration to determine whether any raw materials are still tested on animals and promote the use of fully validated alternative test
methods when available. When such alternatives are not available or accepted, animal tests should only be conducted to the extent necessary. Our standards state that only animal testing
facilities that comply with legal, ethical and professional standards for animal care and treatment can be used.
In 2023 12 animal tests were performed due to composition changes in tampons. As tampons are categorized as medical devices in the US, the Food and Drug Administration requires animal
testing to evaluate biocompatibility of medical devices prior to placing the product on the market.
Overview of animal tests commissioned by Ontex
2021 2022 2023
Animal tests commissioned by Ontex 0 6 12
Anti-bribery and anti-corruption commitments and policy on gifts and hospitality
The Ontex Code of Ethics includes specific sections on anti-bribery and anti-corruption. Mandatory training throughout the Ontex community include face-to-face trainings in high-risk
countries. Further, contact with authorities and other government officials is limited to specific individuals who are mandated to involve the Legal or Compliance group in seeking counsel
before any engagement is made and reducing risk. Finally, our agreements with agents, distributors and other service providers include sections on anti-bribery and anti-corruption.
Ontex has a comprehensive definition of what constitutes a bribe which includes any inducement or reward for action which is illegal, unethical, a breach of trust or improper in any way and
that it can take the form of money, gifts, products, loans, fees, hospitality, services, discounts, the award of a contract or any other advantage or benefit.
Complementing our guidance to address risks on anti-bribery and corruption is our policy on Gifts and Hospitality which sets authorized maximum monetary values for meals, events and gifts.
Anti-competitive behavior commitments
Ontex ensures compliance with antitrust laws everywhere we do business via mandatory training on our Code of Ethics which contains a detailed section on Integrity in the Marketplace and
Fair Competition. Ad hoc face-to-face trainings are also given to the sales organization offering an open forum with employees that allows for proper understanding, ensuring compliance. Our
participation in trade associations is very limited. In those instances when we do participate, specific rules of engagement apply which include the involvement of the Legal and/or Compliance
group.
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Grievance mechanism
Definition
Grievances, as defined by the Global Reporting Initiative (GRI), is perceived injustice evoking an individual’s or a group’s sense of entitlement, which may be based on law, contract, explicit or
implicit promises, customary practice, or general notions of fairness of aggrieved communities. At Ontex this definition is applied to concerns, problems, complaints or another feedback related
to our business, including environmental, social and governance topics. Typically, raised grievances relate to perceived violation of our values, policies and other sustainability obligations
adopted by our company and included in our Code of Ethics.
Grievance mechanisms are processes established for dealing with grievances. At Ontex there are various channels to address grievances depending on the stakeholder group which raises
them. Typically, there are four main stakeholder groups:
1. Internal stakeholders – Ontex employees
2. Clients, customers and consumers
3. Authorities, agencies, certification and accreditation bodies
4. Other external stakeholders, e.g. members of the general public
Approach
Individuals are invited to report potential breaches of our Code of Ethics to managers, people of trust or using technology-driven mechanisms that allow for anonymous complaints to be sent,
be duly registered and tracked up to a resolution. Each complaint is treated in a confidential basis and benefits from multi-functional resources to properly investigate and address potential
breaches (in-house resources and, if needed, partnering with third parties such as outside counsel and other specialists).
Goals and performance
A total of 125 grievances via the speak-up line were received during 2023 (versus 98 received in 2022); 70 of these were Code of Ethics-related while the rest were comments, questions or
complaints not related to our Code of Ethics. After following the investigation process, 30 of these were substantiated or partially substantiated and 40 unsubstantiated.
The most common Code-violations were related to the professional conduct expected in the workplace and we continue reinforcing the message of ensuring our Code of Ethics is observed.
43 ESG-related grievances linked to environmental & social topics were raised in 2023. For each of these grievances an action plan is developed.
Communication and training on the Ontex Code of Ethics
Trainings are given using technology (web-based) but also are imparted on an ad hoc basis, focusing on the different departments in order to address specific risks each internal stakeholder
may represent, General Managers and the Sales Organization are given face-to-face trainings which allow for discussion of the integrity in the marketplace and fair competition sections of our
Code of Ethics; individuals participating in any particular project that may include interactions with third parties (e.g. government officials or a divestiture) also receive ad hoc and individual
trainings, complemented by written hand-outs and other materials.
Finally, communications in the form of ‘Compliance Capsules’ and messaging on compliance are frequently circulated.
185 I Ontex Integrated annual report 2023
ESG RATINGS
We aim to achieving strong ratings in sustainability indices. In this section of our annual report, we give an overview of Ontex's Environmental, Social, and Governance (ESG) ratings. At Ontex,
we believe that transparency is not just a principle, but a practice that drives us towards excellence and accountability. Positive ratings help us to create a long-term relationship with our
stakeholders that is based on trust. In addition, these scorings also impact our priorities, as it helps us to better understand our stakeholders’ key concerns.
Our main indices:
Ontex obtained an A- score on the 2023 Climate Change questionnaire, reaffirming our
dedication in corporate transparency and performance on climate change for our 2023
contributions. We were among 23,000 companies evaluated by global environmental
non-profit Carbon Disclosure Project (CDP), and have been ranked in the top 6% of
evaluated companies.
We’re delighted to be recognized by CDP as a 2023 Supplier Engagement Leader, for
raising the level of climate action across our value chain
We got a B score on the CDP Forest questionnaire. This is the same as the previous
year.
Ontex is rated C by ISS ESG, just below the prime score.
We have been awarded a bronze medal in recognition of our sustainability achievement.
In 2023, we received a rating of AA (on a scale of AAA-CCC) in the MSCI ESG Ratings
assessment, same as last year.
We received a rating of 47/100 on Vigeo Eiris – Moody’s ESG index. This is slightly better
than last year.
Ontex is rated “Medium ESG Risk” by Sustainalytics, same as last year. We have a
‘medium’ exposure and ‘high’ management score.
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3. SUSTAINABILITY STRATEGY
At Ontex, we are committed to driving sustainable business practices that benefit our stakeholders and contribute to a healthier planet. This section outlines our sustainability strategy, focusing
on key aspects that shape our operations, product offerings, and relationships with stakeholders, and in line with the UN Sustainable Development Goals.
Ontex is steadfast in its commitment to sustainability, with goals in 4 key areas. Each of these areas is elaborated upon in detail further in this document.
CLIMATE ACTION:
-80% Scope 1-2 carbon emissions by 2030 (vs 2020)
100% renewable electricity by 2030
-25% Scope 3 emissions by 2030 (vs 2020)
In 2022, these goals were approved by the Science Based Targets Initiative (SBTi). On top of this, as part of our journey towards net-zero, we aim to offset any remaining scope 1-2
emissions as of 2030.
CIRCULAR SOLUTIONS
100% sustainable packaging by 2025
2
Advance sustainable products
Pilot end-of-life solutions
Zero production waste to landfill by 2025
BUILDING TRUST
Zero occupational accidents
Achieve gender parity in leadership
SUSTAINABLE SUPPLY CHAIN
Improving the sustainability performance of our supply chain
Ensure sustainable origin of our renewable materials
Product safety & transparency – 100% Chemical Footprint by 2030
In 2023, we conducted a comprehensive double materiality assessment. As a result, we are in the process of updating our Sustainability Strategy and goals to align with the findings of the
assessment. The updated strategy will be published in 2024. It is important to note that these developments are not incorporated into the current annual report, as the update was initiated after
the reporting period.
2
With sustainable packaging we mean that the packaging should be recycled, recyclable or containing renewable material
187 I Ontex Integrated annual report 2023
4. STAKEHOLDER ENGAGEMENT
4.1. HOW WE ENGAGE WITH OUR KEY STAKEHOLDERS
We are a publicly listed company. Many parties have an interest in the way in which we conduct our business and that is why stakeholder engagement touches everything that we do. As Ontex
teams are part of the communities in which they work, most of our efforts focus on local aspects, those that are close to our plants and offices, and the communities for which we provide
essential personal hygiene solutions. The relationships that we establish and nurture with stakeholders have a direct impact on our success. All of our sites are required to identify their respective
stakeholders and establish the best ways of engaging with them. In each and every part of our business, our stakeholders are essential to listen and engage with to ensure a sustainable
business.
Table 2: Stakeholder engagement
Stakeholder group
How we engage
Key topics of concern
Our response
Customers
Monitoring product sales
Contact through our sales team
Regular customer visits
Joint business planning
Surveys and research
Product quality/safety
Product composition
Carbon footprint
Smart, innovative solutions
Eco-labeling
Sourcing
Innovation
Working conditions
Human rights
Consumer insights
Single-use plastics
Evolving regulations
Sustainable manufacture/production
Offering more eco-labeled products
Ensuring safe and healthy working conditions
Responsible and documented sourcing
Sustainable innovation
Ethical operations
Training for our institutional customers
Strengthen product stewardship
Consumers
Consumer panels and focus groups
Social media networks
Monitoring product sales
Surveys and research
Product quality and safety
Environmental impact of our
products
Product labeling
Innovation
Service
Ensuring consumer health and safety
Reducing the environmental impact of our products
Offering more eco-labeled products
Sustainable innovation
Customized products addressing local needs
Employees
Recruitment
Personal development reviews
Surveys
Union/worker representative meetings
Internal and external audits
Internal communication via intranet, staff updates, newsletter
Community and employee well-being projects
‘Speak up’ line
Social media and website
Health and safety
Working conditions and
remuneration
Equal opportunities
Business ethics
Leadership
Personal development
Ensuring safe and healthy working conditions
Ensuring business ethics
Supporting diversity and equal opportunities
Training and education
Graduate program
Internal mobility
Talent development
Leadership competency model
Personal growth plan
Third-party social audits
188 I Ontex Integrated annual report 2023
Stakeholder group
How we engage
Key topics of concern
Our response
Investors
Ongoing dialogue with investors/analysts
Investor presentations/meetings
Annual General Meeting
Quarterly earnings reports and webcasts
Press releases
ESG indices and information requests
Governance
Business ethics
Risk management
Environment/carbon footprint
Clear and transparent governance framework and sustainability
strategy
Business ethics
Responding to ESG indices to enhance transparency
Publishing a yearly integrated report including ESG data
Suppliers
Visits and meetings
Supplier conferences
Procurement
Supplier tracker
Raw material sourcing
Business ethics/human rights
Management systems
Quality
Innovation
Material safety
Evolving regulations
Purchase all agriculture and forestry material from certified
suppliers
Supplier audits
Supplier Code of Conduct
Requirements and documentation on material safety and quality
Communities and
non-governmental
organizations
On-going dialogue
Partnerships on common issues
Memberships of business and industry associations
Charitable activities
Information requests from academics and students
Corporate website
Human rights
Environment
End-of-life waste
Consumer health and safety
Local community involvement
Medical face mask production
to meet urgent need
Affordable personal hygiene solutions
Ensuring consumer health and safety
Research
Chemicals/quality protocols/policies
Donations
4.2. MEMBERSHIPS & ASSOCIATIONS
Industry associations: EDANA, Group’Hygiène, BAHP, Aphma UK, INDA
Sustainable supply chain: FSC, PEFC, GOTS, OCS, SMETA, REDcert
2
Sustainability networks: The Shift
Climate action: Belgian Alliance for Climate Action (BACA)
189 I Ontex Integrated annual report 2023
5. DOUBLE MATERIALITY ASSESSMENT
A double materiality assessment is the process for prioritizing sustainability topics. It forms the base for our sustainability strategy & reporting. In 2023, following the entering into force of the
Corporate Sustainability Reporting Directive, we updated our materiality matrix to provide more detailed information based on the double materiality framework. Our previous materiality
assessment dates from 2021.
New in this approach is that we identified and assessed the most significant sustainability issues for Ontex from a two-fold perspective:
Impacts on the company value (“financial materiality”) which are geared towards the sustainability issues that affect our financial profitability and our capacity to create value for
shareholders and investors.
Impacts on society and the environment (“impact materiality”) stemming from activity by Ontex.
We have followed a five-step process to conduct the double materiality assessment. Dive deeper into each step by exploring the Methodological notes for comprehensive insights.
STEP 1
IDENTIFICATION OF
MATERIAL TOPICS
• Through documentary
research we built a list of
potential material topics.
STEP 2:
SCORING TOGETHER WITH
OUR STAKEHODLERS
• Through an online
questionnaire and in-depth
interviews our internal &
external stakeholders shared
their perception of the
potential material issues, and
scored each topic.
STEP 3:
VALUE CHAIN MAPPING
• Potential material topics are
mapped across the value
chain to understand where
the impact occurs.
STEP 4:
LEADERSHIP
ENGAGEMENT
• The scoring done by
stakeholders is discussed
and finetuned by our
company leaders & Board of
Directors to align with and
embed in the business
strategy.
STEP 5: OVERSIGHT &
VALIDATION
• The materiality matrix has
been validated by our Board
of Directors, after a positive
recommendation of our Audit
& Risk Committee in
December 2023.
190 I Ontex Integrated annual report 2023
MATERIALITY MATRIX
The topics identified were placed on a matrix (see below), with their position being determined by their relative financial impact on Ontex and Ontex’s impact on the environment and society.
Classification of material issues
The topics above the line are considered material to Ontex. This means that we will prioritize these as material topics and embed them in our business strategy.
Topics below the line have a limited impact. These include matters related to regulatory requirements and emerging issues which must be addressed from a compliance, supervision and
ongoing management perspective.
For topics just below the threshold, we will continue to track these for our own sites but will not reach further in the value chain. Hence for ‘water’, ‘training & education’, ‘transparency’ and
‘diversity, equity and inclusion’ we carry out voluntary reporting which is detailed in this report.
191 I Ontex Integrated annual report 2023
MATERIALITY MATRIX IN DETAIL
The below table shows per material issue the impact on society and the environment, the impact on our company value, the related Sustainable Development Goal (SDG) and the main relevant
KPIs. In addition, for each material issue we identified where in the value chain the issue occurs. More information is available in the Methodology chapter.
Table 3: Detailed scoring materiality topics and related SDGs & KPIs
Key material issues - embed in our
business strategy
Impact on society and
the environment
Impact on
company value
SDGs
Chapter in the
statements
Main KPIs
Consumer safety and end-user
information
3, 12 11 Consumer complaints
Carbon emissions
13 6
Scope 1-2-3 emissions (in tCO
2
)
% renewable electricity
Sustainable products and packaging
12 7 % bags with recycled content
Responsible employer
3, 5, 16 9
% female managers
Accident frequency rate
Human rights value chain
8 10
% supplier code of conducts signed
% suppliers located in risk countries
% suppliers with a third-party social audit report
Business ethics and compliance
16 2.3
100% of employees trained in Code of Ethics
100% of Speak-
Up cases properly closed with proper
sanctions
Addressing societal issues and local
development
3 9
Amount of products sold
Amount of donations
Below the material threshold -
monitoring and compliance
Impact on society and
the environment
Impact on
company value
SDGs
Chapter in the
statements
Main KPIs
Water
6, 14 8 m³ water used in our operations
Transparency
16 2.4 CDP score
Training and education
4 9 Training hours per employee
Diversity, equity and inclusion
5, 10 9 % female managers
Nature and biodiversity
15 8
% controlled or certified wood-based material
% organic cotton
Advocacy
17 4.2 Membership industry associations
Production waste management
12, 15 7 % waste sent to landfill
192 I Ontex Integrated annual report 2023
Main differences versus our previous materiality assessment
In the latest double materiality assessment, we have observed several changes compared to the assessment carried out in 2021.
First, the topic of nature and biodiversity has been reassessed and is now considered below the threshold of materiality, meaning it will no longer be treated as a material topic for Ontex. This
decision is based on a comprehensive evaluation of our impact on nature and biodiversity, primarily occurring within our value chain. In-depth interviews with our suppliers have revealed that
the perceived impact on nature and biodiversity is lower than previously assessed, leading to its reclassification.
Similarly, water usage has also been re-evaluated and has dropped below the materiality threshold. In our direct operations, water does not play a critical role in the product process, being
utilized mainly in the HVAC system and for sanitary purposes. The significant impacts related to water are identified at the raw material production stage. Following thorough discussions with
our suppliers, this topic was scored with a lower impact than in the previous assessment.
Moreover, to streamline our focus and avoid overlaps, some topics have been consolidated in this year's materiality assessment. Notably, energy usage, transport and logistics, along with
climate change and eco-efficiency, have been grouped under a single, encompassing category: 'carbon emissions'. This reorganization aims to provide a clearer and more focused view on our
efforts to reduce carbon emissions, reflecting our strategic approach to tackling climate-related issues in a holistic manner.
193 I Ontex Integrated annual report 2023
6. CLIMATE CHANGE
6.1. GOVERNANCE
In addition to the ESG governance at Ontex explained earlier in this report (see above) climate governance is organized around different governing bodies designed to align our operations with
the ambitious objectives outlined in our Sustainability Strategy 2030. The dedicated governance for climate topics will enable Ontex to contribute to a more sustainable future and position Ontex
for long-term success in a rapidly evolving business landscape.
Our dedicated workgroups are instrumental in driving the implementation of sustainability initiatives. These workgroups are strategically organized to contribute to one or more objectives by
focusing on specific area to ensure a comprehensive and targeted approach to achieving our goals. The workgroups are divided into four different streams:
Energy, focusing on Ontex operations (scope 1-2);
Logistics and transportation;
Supplier engagement;
Sustainable product design.
The Climate Steering Committee, which includes members of the Executive Committee and the coordinators of the workgroups, plays a crucial role in guiding the development of climate
strategies, tackling challenges, and endorsing detailed climate roadmaps. This proactive strategy ensures that our climate initiatives are ambitious, achievable, and impactful.
The Executive Committee takes a leadership role in determining the overall climate strategy and approving targets and reinforces the integration of climate aspects into our core business
strategies.
The Audit & Risk Committee plays a pivotal role in overseeing and guiding the company's approach to climate-related risks and opportunities. Its mandate includes ensuring that Ontex
identifies, assesses, and manages environmental challenges and prospects to support sustainable growth.
The Board of Directors, in alignment with its oversight responsibilities, actively approves and monitors our sustainable development commitments.
Our commitment to reduce carbon emissions extends to remuneration practices, where climate considerations are factored in, emphasizing the integration of sustainability into our core strategy.
Specifically, reductions in scope 1, 2, and 3 emissions are integrated into the Short-Term Incentive Plan, representing 10% of the plan's criteria.
6.2. POLICIES
Ontex is addressing climate concerns through integration across its policies. This commitment ensures that climate considerations are embedded into our organizational practices and policies,
reflecting our dedication to sustainability (with reference to Our Sustainability policy). In its sustainability policy, Ontex specifically address the use of renewable energy and the focus on energy
efficiency through an integrated management system approach which aims at addressing, amongst others, climate-related risks through mitigation and adaptation.
194 I Ontex Integrated annual report 2023
6.3. IDENTIFYING THE RISKS RELATED TO CLIMATE CHANGE
Ontex is firmly committed to reducing greenhouse gas (GHG) emissions and actively contributes to the global fight against climate change. Recognizing the potential impact of climate-related
risks on our business, we categorize these risks into several key areas:
Physical Risks: The fluctuation in climate patterns poses a significant threat to our operations. Acute events such as heatwaves and flooding, as well as chronic changes in climate patterns,
have the potential to disrupt our supply chain. Ontex is dedicated to assessing and mitigating these physical risks to ensure the resilience of our operations.
Transitional Risks: Our business is susceptible to changes in legislation related to climate issues. As regulatory landscapes evolve, Ontex remains vigilant in adapting to new requirements to
minimize any adverse effects on our operations. We recognize the importance of staying ahead of regulatory changes to ensure compliance and sustainability.
Reputation Risks: Ontex acknowledges the importance of maintaining a positive reputation in the context of climate action. Non-compliance with environmental standards, ineffective
communication, or a misalignment with public perceptions can pose reputational risks. We are committed to transparent communication, compliance with regulations, and proactive measures
to address climate change issues.
Market Risks: The increasing awareness among our customers about climate change and the evolving behaviors of consumers related to environmental concerns can impact demand for our
products. We strive to anticipate and respond to changing market dynamics, aligning our offerings with the evolving expectations of environmentally conscious consumers.
By actively managing and addressing these risks, Ontex aims to reduce its carbon footprint and foster resilience, compliance, and sustainability across its operations in the face of climate-
related challenges. A more detailed explanation of these risks, together with their associated financial impact and response mechanisms is presented in our CDP Climate disclosure.
Deep dive I: Physical and transitional climate risks
In the face of climate change impacts, businesses are becoming more susceptible to various physical and transition risks. To address these challenges and identify potential avenues for
growth and innovation, companies are increasingly conducting climate risk assessments. This essential tool enables businesses to identify and comprehend the risks associated with climate
change. Through a thorough assessment, companies can enhance their preparedness, proactively mitigate the effects of climate change, and capitalize on opportunities for growth and
innovation.
Ontex conducted a deep analysis of physical risks such as operational disruptions due to extreme weather and transition risks including carbon taxes and upcoming EU regulations.
Opportunities like public funding and tax incentives were also explored. The risks analysis focused on two scenarios: RCP 2.6 (stringent) for transition risks and RCP 8.5 (business-as-usual)
for physical risks. The analysis highlighted that the vulnerability of Ontex is mostly related to physical risks located in the supply chain due to the increasing likelihood and/or magnitude of
various physical climate risks that would influence the market price. Climate events might also in the future impact on production efficiency.
Ontex also analyzed the potential effect of the implementation of a carbon tax that could be imposed to incentivize operational decarbonization. As a consequence, companies would need
to accelerate decarbonization, e.g., through new machinery and technology, which incurs additional costs. These additional costs are identified as a relevant transition risk for Ontex. The
analysis aimed to quantify the impact of carbon pricing and the potential financial impact for Ontex over the next 30 years for different CO
2
emissions and carbon prices based on different
climate scenarios.
The analysis showed that an early investment to decarbonize might be more onerous in the initial years due to costs associated with reduction of carbon intensity. Nevertheless, in the long
run, it would create additional value for Ontex, in comparison to a disorderly transition scenario as it would be costlier to delay the reduction in carbon intensity.
195 I Ontex Integrated annual report 2023
6.4. STRATEGY AND ACTION PLANS
Ontex commits to reduce absolute scope 1 and 2 GHG emissions by 80% by 2030 from a 2020 base year. Ontex also commits to increase annual sourcing of renewable electricity from 75%
in 2020 to 100% by 2030. Ontex further commits to reduce absolute scope 3 GHG emissions from purchased goods and services, upstream transportation and distribution, and end-of-life
treatment of sold products by 25% by 2030 from a 2020 base year. These targets are aligned with the overarching goal of limiting global warming to 1.5°C in line with the Paris Agreement and
independently validated by the Science Based Target initiative (SBTi).
Figure 1: Ontex climate goals
In alignment with our climate objectives and the source of our GHG emissions, Ontex has formulated a comprehensive transition plan aimed at achieving our climate goals by 2030. The Ontex
transition encompasses the entire supply chain, with a specific focus on raw material sourcing, transportation logistics, the manufacturing process, and the end-of-life phase of our products for
consumers. This transition plan strategically addresses the four key blocks within the supply chain that collectively contribute to over 75% of Ontex's carbon footprint.
Raw materials: Our largest emissions source stems from the sourcing of raw materials. To achieve our climate goals, it is imperative that we shift towards more sustainable and environmentally-
friendly solutions. Our commitment involves a concerted effort to innovate and reduce the climate impact originating from our products.
Transportation: With regard to optimizing the transportation of our products to customers, we are actively engaged in load optimization initiatives and exploring solutions to minimize the distance
between suppliers, production facilities, and our business partners.
Operations: A pivotal aspect of our transition plan involves transitioning all our plants to 100% renewable energy by 2030. This shift is instrumental in mitigating our scope 2 emissions. To
achieve this objective, we are proactively installing additional solar power systems at our European and North American facilities. This strategic move aims to diminish dependence on non-
renewable energy sources and ensure a renewable energy supply for all our manufacturing sites. Our focus lies on advancing the procurement of renewable energy to decarbonize our scope
2 emission. Upon achieving our goal, the remaining emissions from scope 1 will emerge as the only emissions left.
Product end-of-life: In our commitment to environmental sustainability, Ontex is actively incorporating innovative approaches to address not only the emissions associated with
production but also those linked to the end of life of our products. Through a dedicated eco-design approach, we take account of the entire life cycle of our products during the design
phase. This holistic perspective enables us to reduce environmental impact from production to disposal, emphasizing the importance of responsible and sustainable design practices.
Moreover, Ontex aspires to establish selective and strategic partnerships, positioning itself as a key participant in pilot recycling and composting initiatives. Our circular ambitions extend beyond
our immediate operations, aiming to be an integral part of a broader movement toward a circular economy. We aspire to become the preferred partner for brands envisioning a future where
personal hygiene products avoid landfills altogether. Instead, our goal is to encourage reuse wherever possible, promote, and facilitate waste treatment initiatives, ultimately contributing to the
elimination of plastic waste and fostering a sustainable and circular approach to product end-of-life scenarios.
NET ZERO OPERATIONS
• Our goal is to reduce emissions
across our operations (scope 1–2)
by 80% by 2030 compared to
2020. From 2030, we offset any
remaining emissions.
100% RENEWABLE ELECTRICITY
• All electricity we use comes from
renewable sources.
-25% SCOPE 3 EMISSIONS
We aim to reduce our scope 3
emissions through product design,
supplier engagement and
optimized logistics.
196 I Ontex Integrated annual report 2023
Figure 2: Ontex Climate transition plan
• Reduce emissions from our main product categories
• Collaborate with suppliers to reduce the carbon intensity from raw materials
• Co-development & joined business development throughout the value chain
• Encourage an ecological mindset in product and packaging design
• Integrate reusable products in product portfolio
RAW MATERIALS
• Continue load optimization
• Reduce the distance between value chain suppliers to producing plants and
final customers
• Limit transport and opt for energy efficient trucks
• Accelerate multimodal transport
• Investigate the use of alternative fuel trucks
TRANSPORT
• Reduce our scope 1-2 emissions with 80% by 2030
• 100% renewable energy by 2030
• Pilot alternative renewable thermal solutions
• Compensate the remaining emission
OPERATIONS
• 100% sustainable packaging
• Explore and accelerate circular end of life solutions
• Build and develop sustainable partnerships
PRODUCT END-OF-LIFE
197 I Ontex Integrated annual report 2023
6.5. OUTCOMES
Energy efficiency and renewable energy
Ontex's ongoing efforts to enhance energy efficiency are demonstrated through different initiatives such as the installation of advanced equipment aimed at optimizing energy usage. Additionally,
the implementation of an energy recovery system has not only reduced gas usage but also maximized efficiency by utilizing the recovered energy to heat water. These strategic initiatives
underscore Ontex's commitment to operational excellence and environmentally conscious practices, aligning seamlessly with our dedication to sustainable resource management.
Table 4: Energy consumption and mix
Energy consumption and mix
3
2021
2022
2023
(1) Fuel consumption from coal and coal products (MWh)
0
0
0
(2) Fuel consumption from crude oil and petroleum products (MWh)
14,198
20,145
22,533
(3) Fuel consumption from natural gas (MWh)
23,969
29,537
28,454
(4) Fuel consumption from other fossil sources (MWh)
906
2,911
535
(5) Consumption of purchased or acquired electricity, heat, steam, and cooling from fossil sources (MWh)
71,056
21,145
18,982
(6) Total fossil energy consumption (MWh) (calculated as the sum of lines 1 to 5)
110,129
73,738
70,400
Share of fossil sources in total energy consumption (%)
31
21
20
(7) Consumption from nuclear sources (MWh)
0
0
0
Share of consumption from nuclear sources in total energy consumption (%)
0
0
0
8) Fuel consumption for renewable sources, including biomass (also comprising industrial and municipal waste of
biologic origin, biogas, renewable hydrogen, etc.) (MWh)
124
128
124
(9) Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources (MWh)
242,238
270,214
273,512
10) Consumption of self-generated non-fuel renewable energy (MWh)
2,267
11,260
16,950
(11) Total renewable energy consumption (MWh) (calculated as the sum of lines 8 to 10)
244,505
279,068
290,462
Share of renewable sources in total energy consumption (%)
69
79
80
Total energy consumption (MWh) (calculated as the sum of lines 6, and 11)
354,634
352,806
360,988
Table 5: Energy intensity per net revenue
Energy intensity per net revenue
2022
2023
% 2023 / 2022
Total energy consumption (MWh/Monetary unit)
236
179
-24%
Over the past year, Ontex has consistently achieved a reduction in energy intensity, and the company is committed to maintaining and extending this positive trend. To further enhance its
sustainability initiatives, Ontex is exploring the electrification of specific equipment currently reliant on fossil fuels. With a clear objective of reducing energy usage per unit produced, Ontex
remains dedicated to optimizing its operations through a combination of efficiency and sustainability strategies.
3
Data from 2021 and 2022 have been restated in light of the recent divestment of Ontex Mexican business activities located in Puebla and are aligning with the scope of GHG emissions report
(excluding the plant located in Noginsk, RU due to the geopolitical situation)
198 I Ontex Integrated annual report 2023
In 2023, Ontex slightly reduced the share of electricity coming from renewable sources due to the divestment of one of its Mexican plants. In 2023, 90% of the electricity we consumed was
coming from renewable sources, of which 6% comes from on-site production.
Scopes 1, 2, 3 and total GHG emissions
In 2023, Ontex reduced its scope 1-2 emissions by 54% compared to base year 2020. The reduction is a direct result of Ontex's commitment to a consistent strategy aimed at sourcing 100%
renewable electricity. And with electricity being the most significant source of energy in our plants, transitioning towards renewable electricity plays a pivotal role in achieving our targets.
Additionally, Ontex successfully decreased its Scope 3 emissions by 4% compared to the base year 2020. Our scope 3 emissions are mainly impacted by the carbon emissions coming from
our raw materials. To address this issue, sustainable innovation is key to value creation at Ontex. We strive to offer products with reduced carbon footprints, aiming for a future where our
customers seamlessly integrate sustainable features into their product portfolios. To facilitate this transition, in 2023 we have further developed our product scorecard, empowering both internal
and external stakeholders to make informed choices regarding the environmental impact of their products.
Moreover, we are intensifying our collaboration with suppliers on multiple fronts. Firstly, we are working closely with them to introduce raw materials that offer superior performance with lower
carbon intensity. This strategic initiative is geared towards ultimately reducing the carbon footprint of our products. Secondly, we are enhancing transparency regarding the primary raw
materials we procure. By providing clear visibility into our material sourcing, we enable a more precise evaluation of our environmental impact, fostering accountability and driving collective
efforts towards a more sustainable future.
In light of the recent divestment of its Mexican business activities located in Puebla, Ontex has undertaken a recalibration of its baselines for scope 1-2-3 to ensure uniform reporting standards,
maintaining consistency across scopes. This strategic divestment not only impacted the scope of our operations but also yielded a positive outcome on emissions, contributing to a notable
reduction. Additionally Ontex excluded from the scope the plant located in Russia due to the geopolitical context.
In 2023 we were rewarded with a CDP- score. Additionally, we’re delighted to have earned a place on CDP’s 2023 Supplier Engagement Leaderboard, in recognition of our efforts to measure
and reduce climate risk within our supply chain.
199 I Ontex Integrated annual report 2023
Table 6: Scopes 1, 2, 3 and total GHG emissions
Progress reporting Targets
2020 2022 2023
% 2022 /
2023
% base
year (2020)
/ 2023
Annual %
target / Base
year (2020)
2030 target
Scope 1-2 GHG emissions (tCO
2
eq)
Total scope 1-2 emissions location-based (tCO2eq) 107,516 106,965 107,832 Not applicable
Total scope 1-2 emissions market-based (tCO2eq) 45,391 24,110 21,042 -13% -54% 3,60% -80%
Scope 1 GHG emissions (tCO
2
eq)
Gross scope 1 GHG emissions (tCO2eq) 9,307 12,707 12,167
Percentage of scope 1 GHG emissions from regulated emissions trading schemes (%) 0 0 0
Scope 2 GHG emissions (tCO
2
eq) -13% -54% 3,60% -80%
Gross location-based scope 2 GHG emissions (tCO
2
eq) 98,209 94,258 95,665
Gross market-based scope 2 GHG emissions (tCO
2
eq) 36,084 11,403 8,875
Scope 3 GHG emissions (tCO
2
eq)
1 Purchased goods and services (tCO
2
eq) 1,264,613 1,374,887 1,244,154
-5% -4% -3% -25%
2 Capital goods (tCO
2
eq) 89,350 52,994 81,367
3 Fuel and energy-related activities (not included in scope 1 or scope 2 (tCO
2
eq) 8,045 8,402 8,420
4 Upstream transportation and distribution (tCO
2
eq) 217,597 243,704 233,582
5 Waste generated in operations (tCO
2
eq) 18,410 16,985 16,251
6 Business traveling (tCO
2
eq) 432 407 833
7 Employee commuting (tCO
2
eq) Not applicable
8 Upstream leased assets (tCO
2
eq) Not applicable
9 Downstream transportation (tCO
2
eq) 57,398 55,398 52,582
10 Processing of sold products (tCO
2
eq) Not applicable
11 Use of sold products (tCO
2
eq) Not applicable
12 End-of-life treatment of sold products (tCO
2
eq) 939,490 898,631 863,833
13 Downstream leased assets (tCO
2
eq) Not applicable
14 Franchises (tCO
2
eq) Not applicable
15 Investments (tCO
2
eq) Not applicable
Total GHG emissions in scope 3 (tCO
2
eq) 2,595,335 2,651,408 2,501,023
Total GHG emissions (tCO2eq)
Total GHG emissions (location-based) (tCO
2
eq) 2,702,851 2,758,373 2,608,855 Not applicable
Total GHG emissions (market-based) (tCO
2
eq) 2,640,726 2,675,518 2,522,065 Not applicable
200 I Ontex Integrated annual report 2023
Table 7: GHG intensity per net revenue
GHG intensity per net revenue 2020 2023 % 2023 / 2020
Total GHG emissions (location-based) per net revenue (tCO2eq/Monetary unit) 1,425 1,115 -22%
Total GHG emissions (market-based) per net revenue (tCO2eq/Monetary unit) 1,392 1,077 -23%
Removals and GHG mitigation projects financed through carbon credits
Greenhouse gas removals and storage in own operations or in the upstream and downstream value chain are not applicable to Ontex.
At Ontex we are conscious of our emissions, and we are working towards reducing further the carbon footprint of our manufacturing sites and aiming to achieve carbon neutrality for our
production sites by 2030. Ontex finances through carbon credits, greenhouse gas mitigation projects following a three-steps approach: calculate, reduce energy consumption and offset our
remaining carbon emissions. In 2023, we have purchased credits to finance the transition from thermal power plants to wind power in the Indian state Karnataka more information via this link,
representing 10% of our absolute scope 1-2 emissions.
201 I Ontex Integrated annual report 2023
7. RESOURCE USE AND CIRCULAR ECONOMY
7.1. GOVERNANCE
Transitioning from a linear to a circular model necessitates a holistic approach. Consequently, Ontex has established a dedicated forum, in the form of an innovation council, to address resource
use and circular economy topics. The governance structure is centered around three key elements: fostering collaboration throughout the system to share and inspire innovative ideas (innovation
intelligence), facilitating the execution of innovations to transition from conception to commercialization (Innovation execution), and maintaining a dynamic strategy that remains relevant
(Innovation strategy).
In our sustainable journey, innovation holds significant importance. The governance structure plays a pivotal role in reducing scope 3 emissions, with raw materials being identified as the
primary contributor.
Innovation
Strategy
Innovation
Intelligence
Innovation
Execution
202 I Ontex Integrated annual report 2023
7.2. CHALLENGES
By 2030, the global population is expected to reach nearly 8.5 billion, with nearly half a billion moving into the middle class. This means that more and more people will have a chance at a
better life. Increasing individual prosperity will heighten the demand for already constrained natural resources. Global awareness about plastic pollution and its impact on our ecosystems
continues to grow. Several major global coalitions have been announced to tackle the issue. Businesses are experiencing growing pressure from consumers to reduce single use plastics. Used
personal hygiene products make up a considerable part of household waste and end up in incineration or landfill facilities. To address the waste issue, governments are increasing pressure to
move away from single use products via the ‘polluter pays’ principle, or extended producer responsibility (EPR) schemes. How we make and use our products directly affects our carbon footprint
and our impact on the environment.
7.3. STRATEGY
Ontex is dedicated to contributing to a more circular world through a multi-faceted approach. By setting a target to achieve 100% sustainable packaging by 2025, we are actively working
towards reducing our environmental footprint. Additionally, we are integrating alternative solutions into our products to replace fossil fuel-based materials, demonstrating our commitment to
innovation and sustainability. Moreover, our product design emphasizes compatibility with end-of-life solutions, ensuring that we maximize the value derived from our products throughout their
lifecycle.
Figure 3: Ontex Circular goals 2030
100% SUSTAINABLE
PACKAGING BY 2025
• 100% recyclable packaging
• > 30% recycled or renewable
content in our plastic
packaging
• 100% recycled content for
all our cardboard boxes
SUSTAINABLE PRODUCTS
• Replace fossil fuel-based
materials
• Reduce carbon footprint
• Optimize design for
recycling or bio-degradation
END-OF-LIFE SOLUTIONS
• Find, pilot and implement
solutions for the sanitary
waste stream via
partnerships
ZERO WASTE TO LANDFILL
• We aim to have a recycling
index of 100% by 2025
203 I Ontex Integrated annual report 2023
7.4. OUTCOME
Sustainable products
Being primarily active on the retailer brand and institutional channel, the pace of transition towards sustainable products and packaging solutions is largely dictated by our customers. However,
we want to be their key partner to provide solutions, share knowledge and tools, and work collaboratively on reducing our impact on the environment.
Over 75% of our raw material fall under one of three categories: fluff, super absorbent polymer (SAP), and non-wovens.
Figure 4: Commodity supplied in 2023 (in % of total weight)
The pursuit of circularity for our products is a shared commitment among all members of our organization, regardless of the nature of the products we offer. We aim to integrate circular principles
into every aspect of our product development and life cycle management to contribute meaningfully to a more sustainable and circular future. Over the past five years, we have consistently
reduced the weight of our products as part of our sustainability initiatives. Notably, we have achieved a 10% reduction in the weight of our diapers and incontinence products. This progress
underscores our dedication to continuous improvement in resource efficiency and environmental impact. Furthermore, we actively promote eco-labeling initiatives, empowering market actors
to participate in and contribute to a circular economy.
204 I Ontex Integrated annual report 2023
Sustainable packaging
In line with our commitment to sustainability, Ontex is actively working to enhance the environmental profile of our packaging. One key initiative involves increasing the share of recycled content
in our plastic packaging. By aiming for a minimum of 30% recycled or renewable content in our plastic packaging by the end of 2025, we aspire to contribute to a more circular and eco-friendly
packaging system. To realize this objective, we have innovatively developed a paper bag solution as an alternative to our plastic bags and we promote the incorporation of recycled content in
our packaging.
We have not only integrated recycled content into our plastic packaging but have also significantly reduced our overall plastic consumption. Through targeted initiatives aimed at reducing the
thickness of bags across all product categories throughout Europe, we have achieved substantial reductions in our use of plastic. In 2023, these efforts culminated in a remarkable reduction of
6% compared to 2022, and an even more impressive 11% reduction when compared to 2020. These achievements underscore Ontex's dedication to diverting from virgin plastics and highlight
our proactive approach to minimizing our environmental footprint.
Looking to the horizon, our commitment to circularity propels continuous improvements in the sustainability of our packaging solutions. We are ready to introduce paper bags for additional
categories such as feminine care and incontinence in the forthcoming year. At the same time, we are poised to significantly strengthen the incorporation of recycled content within our packaging
materials. Anticipating the rising demand for environmentally-friendly packaging options, we will substantially expand our capacity to offer packaging with recycled content.
Our dedication to product innovation includes optimizing our materials for sustainability. This commitment is reflected in launching new products featuring biobased and natural materials. We
prioritize supporting our customers in making informed choices by monitoring our product's footprint from initial design stages to material selection, and extend this responsibility to include
considerations for end-of-life scenarios. This innovation drive is a collaborative cooperation throughout our value chain, as we work closely with suppliers to choose the best raw materials and
empower our customers to embrace sustainability with us.
Resource inflows
2021
2022
2023
% 2023/2022
Sustainable products
Recyclable content in products (%)
0
0
0
0 pp
Renewable content in our products (%)
48
47
46
-1pp
Average product weight intensity (g/PC)
29.18
28.3
28.3
0
Sustainable packaging
Renewable content in our packaging (%)
64
64
64
0 pp
Recycled content in our plastic packaging (%)
7
13
20
+7 pp
Recycled content in our paper and cardboard packaging (%)
96
96
97
+1 pp
205 I Ontex Integrated annual report 2023
Resource outflows
Products and materials
Our packaging, whether in the form of plastic bags or cardboard boxes, is designed for recyclability. However, the success of recycling is contingent upon the effectiveness of local waste
collection schemes in the respective countries where the packaging is utilized.
For products manufactured by Ontex, Ontex is exploring solutions for the sanitary waste stream. In 2023 we further cooperated with Woosh to enable a circular diaper loop.
Table 8: Recyclability of products & packaging
2021
2022
2023
% 2023/2022
Recyclability of products (%)
0
0
0
0 pp
Recyclability of product packaging (%)
100
100
100
0 pp
The table below illustrates the progression of our products featuring eco- or health labels over the past three years, highlighting a significant 16 percentage point growth in 2023 compared to
2022. This growth is primarily attributed to the successful implementation of our FSC (Forest Stewardship Council) and PEFC (Programme for the Endorsement of Forest Certification) strategies,
emphasizing our commitment towards transparency in our supply chain and our consumers.
Table 9: Eco-/health labels on our products (% turnover)
2021 2022 2023 % 2023/ 2022
Eco-/health labels on our products (% turnover)
48
49
65
+16pp
Production waste generated
Ontex recognizes the limitations of landfilling in providing a sustainable solution for waste management. Therefore, as part of our commitment to environmental responsibility, one of our key
objectives is to achieve zero waste to landfill by 2030. In our pursuit of operational excellence, we are actively working to minimize the amount of waste generated in our operations (mainly
plastic waste, cardboard or textile).
In 2023, out of all our production plants, 7% of our production waste was sent to landfill and came from 6 plants. For these plants action plans are in place to divert the waste from landfill by
2025.
206 I Ontex Integrated annual report 2023
Table 10: Production waste generated
2021 2022 2023 % 2023/ 2022
TOTAL PRODUCTION WASTE
4
(t) 41,358 34,878 35,784 3%
Hazardous waste diverted from disposal (t) 102 84 110 31%
Hazardous waste diverted from disposal due to preparation for reuse (t) 0 0 0 0%
Hazardous waste diverted from disposal due to recycling (t) 102 83 110 33%
Hazardous waste diverted from disposal due to other recovery operations (t) 0 1 0 -100%
Non-hazardous waste diverted from disposal (t) 35,622 28,901 30,289 5%
Non-hazardous waste diverted from disposal due to preparation for reuse (t) 1,237 870 899 3%
Non-hazardous waste diverted from disposal due to recycling (t) 34,385 26,751 29,389 10%
Non-hazardous waste diverted from disposal due to other recovery operations (t) 0 1,280 0 -100%
Hazardous waste directed to disposal (t) 316 251 205 -18%
Hazardous waste directed to disposal by incineration (t) 287 212 188 -11%
Hazardous waste directed to disposal by landfilling (t) 15 0 0 0%
Hazardous waste directed to disposal by other disposal operations (t) 14 39 17 -56%
Non-hazardous waste directed to disposal (t) 5,318 5,642 5,180 -8%
Non-hazardous waste directed to disposal by incineration (t) 3,372 2,645 2,440 -8%
Non-hazardous waste directed to disposal by landfilling (t) 1,946 2,790 2,506 -10%
Non-hazardous waste directed to disposal by other disposal operations (t) 0 207 234 13%
Non-recycled waste (t) 0%
TOTAL AMOUNT OF HAZARDOUS WASTE (t) 418 335 315 -4%
TOTAL AMOUNT OF RADIOACTIVE WASTE (t) 0 0 0 0%
WASTE DIVERTED FROM DISPOSAL (t) 35,724 28,985 30,399 5%
WASTE DIRECTED TO DISPOSAL (t) 5,634 5,893 5,385 -9%
RECYCLING INDEX (%) 95 91 92 +1pp
4
Data from 2021 and 2022 have been restated in light of the recent divestment of Ontex Mexican business activities located in Puebla. All production plants are integrated.
207 I Ontex Integrated annual report 2023
8. VOLUNTARY ENVIRONMENTAL DISCLOSURES
In the pursuit of transparency, Ontex is committed to disclosing information that, while not identified as material for the company or its supply chain, holds significant interest for stakeholders
due to its global importance. These topics, though not directly impacting our operations in a material sense, are recognized as pressing concerns from a worldwide perspective. Ontex
acknowledges the heightened interest and concern surrounding these global issues and, in the interest of fostering open communication and engagement, willingly provides relevant information
on these matters.
This proactive approach to reporting aligns with our commitment to addressing the broader socio-economic and environmental context in which Ontex operates. By recognizing and responding
to stakeholder concerns that extend beyond immediate material impacts, we aim to contribute to a more informed and collaborative dialogue. Our commitment to transparency encompasses a
broad spectrum of issues, reflecting our awareness of the interconnectedness of global challenges and our dedication to responsible and open corporate practices.
8.1. POLLUTION - MICROPLASTICS
Superabsorbent polymer (SAP) is included under the definition
5
of microplastic polymer. SAPs are essential components of absorbent hygienic products (AHPs) and are not released during
the use or end-of-use phase. Indeed, modern AHPs are multi-layer structures which are glued or fused together. SAPs are contained deep within the inner core of the AHPs, which is further
surrounded by wraps, liners, or nonwovens. Moreover, SAP loses its microplastic properties during usage (by swelling). Hygiene products produced by Ontex such as feminine hygiene,
incontinence products and baby diapers, are regarded in the legislation as ‘complex articles’ that are composed of different raw materials. Most of these raw materials are articles themselves
according to the definition of the REACH standard and other raw materials are ‘preparations’. Although we know that hygiene producers (downstream users) are not required to submit a
registration for the product itself and that most of the raw materials are exempted from registration according to the REACH requirements, we have nonetheless taken the following actions:
Identified which raw materials are used in our products from which suppliers
Identified the product-group (substances/preparations /articles)
Identified which quantities are ordered of every raw material
Identified which raw materials are imported from outside the EU
Conformity declaration with explicit questions related to REACH and approved by an external toxicologist
Confirmation of the absence of any SVHCs in concentrations above 0.1%
Whether any chemical substances are present for intentional release
Actively monitoring the proposed actions from EDANA / European Union
Based on all available information, no SVHC (substances of very high concern) are present in any of our raw materials or finished products in a concentration higher than 0.1% (w/w) which are
mentioned in:
5
As defined by Regulation (EU) 2023/2055 on substances of concern that are generated or used during production
208 I Ontex Integrated annual report 2023
REACH Candidate List – https://echa.europa.eu/candidate-list-table
REACH Authorisation List – https://echa.europa.eu/authorisation-list
REACH Restricted Substances - https://echa.europa.eu/substances-restricted-under-reach
Endocrine disruptor assessment list – https://echa.europa.eu/ed-assessment
CLP Annex VI, part 3 – https://echa.europa.eu/information-on-chemicals/annex-vi-to-clp
8.2. WATER AND MARINE RESOURCES
Ontex utilizes water primarily for sanitary purposes, fire control, and air-conditioning systems at its production sites. It is important to note that no water is added during the manufacturing of
our products, leading us to consider water withdrawal as a non-material topic for Ontex. Nevertheless, we actively monitor water withdrawal figures, providing a breakdown per water source,
in alignment with our commitment to transparency.
While the discharge of water is kept to minimal amounts in compliance with local environmental permits and legislation, Ontex does not set specific goals for water reduction, given its non-
material status. However, we diligently monitor the volume of water consumption across our facilities. Our commitment to monitoring water usage reflects our dedication to responsible resource
management and environmental stewardship, even in areas not deemed material to the company.
Table 11: Water consumption and intensity ratio
2021
2022
2023
%2023 / 2022
Ground water (m³)
59.3
68.5
85.8
25%
Surface water (m³)
3.4
4.1
5.0
22%
Urban water (m³)
102.6
88.4
59.3
-33%
Rainwater (m³)
0.9
0.6
0.2
-67%
Deep well water (m³)
11.9
12.6
13.7
9%
Total water consumption (m³)
178.1
174.2
163.9
-6%
Water intensity ratio (m³/1000 finished goods)
0.01
0.01
0.01
0%
209 I Ontex Integrated annual report 2023
8.3. BIODIVERSITY AND ECOSYSTEMS
Governance
Governance related to biodiversity and ecosystem impacts follows the same base as the governance of ESG explained in Chapter 2. This topic finds its way to the Board of Directors via the
Audit & Risk committee and the Chief Innovation & Sustainability Officer brings it up on the agenda of the Executive Committee (EC). The EC approves the targets for sustainable origin of
renewable raw materials and makes sure they are firmly incorporated into our business, especially procurement strategies.
Risks and opportunities
At Ontex we purchase several raw material commodities which require extra diligence as they can be associated with a higher risk of biodiversity loss and harm to ecosystems.
When it comes to risks associated with these materials, the main ones we foresee are reputational (e.g. negative media coverage) and markets-related (e.g. availability of certified sustainable
materials). However, with the further enhancement of regulatory mechanisms, non-compliance with international and national laws (e.g. EU Deforestation Regulation) might also pose a risk.
Furthermore, the increased severity of extreme weather events affecting the supply chain is also a potential risk.
On the positive side, however, there are opportunities which such materials unlock for us. An excellent market opportunity is linked to an increased availability of products with reduced
environmental impact: as part of our circular program, we work on innovations which allow us to replace traditional fossil –fuel-based materials with more sustainable alternative materials of
renewable origin.
For now, the risk of biodiversity and ecosystems impacts associated with sourcing of other raw material commodities is being tackled by a cascaded requirement to possess a documented
environmental management system (like ISO 14001:2015 or similar) and tier 1 supplier evaluation through the EcoVadis platform.
Policies and strategy
The Sustainable Sourcing Policy for Renewable Raw Materials is the base policy guiding our suppliers and procurement specialists in ensuring that wood, cotton and other materials of
renewable origin are sourced sustainably and in a traceable manner. Adherence to both of these principles relies on credible third-party certification schemes of choice specified in the policy.
The policy also outlines the requirement for full transparency in supply chain disclosure to order to enable Ontex internal due diligence process.
Ensuring the sustainable origin of our renewable materials is a higher-level goal included in the sustainable supply chain pillar of our Sustainability Strategy 2030.
pulp, airlaid, tissue, viscose,
silicone paper, paper and
cardboard packaging and
auxiliary components
COTTON-BASED MATERIALS
WOOD-BASED MATERIALS
OTHER MATERIALS OF
RENEWABLE ORIGIN
cotton fibers, yarns, cotton-
based and enhanced non-
wovens
biobased, biocircular and
biomass-balanced plastics
(non-wovens, SAP, etc.)
210 I Ontex Integrated annual report 2023
Outcome
Implementation of the policy requires concrete action to conduct the internal due diligence process. This process consists of three main blocks: gathering of information from our suppliers via
sourcing questionnaires, assessing and classifying potential risks on the basis of provided information, and mitigating or avoiding the non-negligible risks. Through the sourcing questionnaires
we obtain the data related to scientific names of species used, their geographical origin (country and where applicable also sub-national region), applicable certifications and systems for
traceability. For sensitive materials such as materials of renewable origin, we also aim to obtain disclosure of the supply chain, or to the minimum, explanation of its set-up.
In the sourcing classification we use a wide variety of available public sources, including but not limited to: country rankings on corruption, biodiversity, timber legality, list of sanctions and
conflicts, protection status of species, maps, databases, statistical data, as well as news and scientific articles.
As a result of this process, we have determined that in 2023 Picea Abies, Pinus sylvestris, and Betula Pendula are the three most popular species for manufacturing our wood-based raw
materials and packaging. The overall majority of species used by our suppliers are classified as ‘of least concern’ by the International Union for Conservation of Nature (IUCN), and even though
some species are listed in other IUCN protection categories, they are not protected in the actual country of our sourcing, derived from plantations and not a native forest, or used to control
infection. This aspect is always double-checked across the supply chain to ensure the conservation status is well respected.
The timber is derived predominantly from Europe and the United States. Some countries with an elevated risk profile, like Brazil, Argentina, Uruguay are also declared as wood origin locations
and we do require extra information from our suppliers to prove the legal sustainable origin. Especially in this instance, the additional disclosure along with regions and municipalities becomes
a key to search for NGO reports or other news about illegal logging or wood trade. So far, all our suppliers with timber originating from higher-risk countries have managed to provide sufficient
evidence of the sustainable origin and supply chain.
As for cotton, the fibers used come from Turkey, Tajikistan and Kyrgyzstan. Additional countries of sourcing of cotton in non-wovens and yarns are USA, Turkey, India and Israel. The cotton
species commonly used are Gossypium hirsutum and Gossypium barbadense. The cotton supply chain is especially sensitive to risks related to human right violations and environmentally
harmful cultivation practices. Together with our suppliers we rely on different mitigation strategies.
This coming year 2024 will mark the EU Deforestation Regulation entering into force alongside the GOTS standard version 7.0. Together with the ongoing work on the CSDDD-aligned due
diligence process, we will continue the work on further adjustment of our due diligence mechanisms to ensure sustainable origin of our raw materials in respect of human rights and environment
across the full value chain.
The main metrics used to monitor our achievement towards 100% sustainable origin of our renewable materials are two-fold: from one side, a share of our wood-based raw materials coming
from certified or controlled sources; and a share of organic from another.
In 2023, 95% of our wood-based raw materials came from certified or controlled sources, falling just 5% short of our 100% target. Continuing suspension of the FSC certification in Russia and
a switch from international to Russian wood pulp suppliers to secure production continuity at our Russian site in Noginsk caused this temporary deviation. However, the share of certified versus
controlled material has experienced a solid increase from 78% in 2022 to 91% in 2023 mostly due to the divestment of Puebla site in Mexico. Linked to this, the share of products with an eco-
or health-label has also jumped from 48% in 2022 to 65% in 2023 due to this divestment but more importantly, due to our efforts in actively promoting certifications to our clients.
In 2023, 93% of our cotton-based raw materials came from organic sources - still leaving a gap of 7% from our 100% target. This gap got wider in the course of 2023 vs. 2022 mainly due to
pricing pressures and the material choices of our US customers. However, in 2024 we plan to further promote more sustainable cotton material choices overseas.
211 I Ontex Integrated annual report 2023
Table 12: Biodiversity & ecosystems
Biodiversity and ecosystems
2021
2022
2023
%2023 / 2022
Share of fluff coming certified sources (FSC/PEFC) (%)
83
78
91
+13 pp
Share of fluff coming from controlled sources (%) 17 18 4 -14 pp
Share of cotton from organic sources (%)
96
94
93
-1 pp
212 I Ontex Integrated annual report 2023
9. OUR WORKFORCE
ONTEX AS A RESPONSIBLE EMPLOYER
Our people are the cornerstone of our success, embodying a wide range of skills, backgrounds, and experiences that enrich our corporate culture and drive execution in all domains, whether
it is operations, R&D, commercial or our supporting functions. As an employer we are committed to maintain a work environment which is safe, enjoyable and enabling everyone to bring their
best self to work. To achieve this we remain dedicated to advancing employee health, safety and well-being, developing our people, and creating conditions for diversity, equity and inclusion
to thrive.
Governance
Governance related to own workforce and Ontex being a responsible employer follows the same base as the governance of ESG explained in Chapter 2 of this document. This topic finds its
way to the Board of Directors via the Remuneration Committee and the Chief Legal and HR Officer brings it up on the agenda of the Executive Committee (EC).
Additionally, to advance our Diversity, Equity and Inclusion aspirations we enlisted support of Annick De Poorter and Paul Wood (both members of the Executive Committee) as Executive
Sponsors for DEI, assembled a DEI Council at the group level and appointed a local DEI Champion in every major location. The role of the Executive Sponsors is to advocate for DEI internally
and externally and ensure the right support and resources for the DEI initiatives. DEI Council is a group of 15 Ontex employees diverse by gender, cultural background, age, work location, job
function and position level, which proposes and leads specific initiatives at the group level. The role of the DEI Champions is to ensure local adoption of the group-wide initiatives as well as to
determine and drive local priorities and actions.
Policies and strategy
In 2023 the priorities of the Ontex HR team have been centered around:
simplifying organizational structure;
driving accountability and teamwork through culture and leadership;
closing critical capability gaps;
updating our rewards systems; and
simplifying ways of working and making them more efficient.
Outcome
At the beginning of the year we implemented a number of changes to streamline our organization, starting from the very top. As a result, the number of the members of the EC and direct reports
to the CEO was reduced to 7 – each with very clear roles and accountabilities. We have also carried out some structural changes to the functional teams to ensure that our organizational
design fully supports our strategy.
Rooted in our belief that “culture eats strategy for breakfast”, we invested a lot of effort into re-activating our P.R.I.D.E. values, because they are the expression of our company’s soul and a
way to nurture our sense of belonging to one Ontex team. We started with refreshing the values to align them with the current context and expectations and to make sure that they are easy to
213 I Ontex Integrated annual report 2023
understand and follow. We then worked on gaining the commitment of the Ontex leadership to become true role models of our values. To support leaders in this journey we launched a campaign
to rejuvenate our values across the organization. We also introduced a new company-wide recognition program which celebrates individuals and teams at all levels of our organization and who
champion our P.R.I.D.E. values in their day-to-day work. Finally, last November we launched a first Pulse Survey on Culture and Leadership, to allow us to assess our progress and to give all
our employees a platform to share their feedback and suggestions, We commit to repeat the survey on a quarterly basis throughout 2024 to maintain a forum for open feedback for our
employees and gathering insights to guide us when setting priorities or defining actions.
Another way in which we strengthened our culture is through our focus on Diversity, Equity and Inclusion. Pursuant our objectives to raise awareness of DEI issues, create a truly inclusive
culture, ensure equity and increase the share of women in leadership we implemented a number of actions in 2023, For example, for the first time ever we leveraged the network of the local
DEI Champions in a coordinated effort to engage and educate our employees on the various DEI issues and demonstrate our solidarity with the most vulnerable groups. We started with
activities organized across many locations for the International Women’s Day and continued on other occasions, such as Pride month, Equal Pay Day and the International Day of Persons with
Disabilities. To further drive awareness, we created DEI pages on our intranet and ontex.com and begun filling them with relevant content. We also encouraged creation of the first Employee
Resources Groups (ERGs), such as “Working Parents” group in France, “M/V/X in Operations” group in our Buggenhout plant, which is open to employees of all genders, “Out-of-place” group
for immigrants in our headquarters in Aalst and several groups in Brazil - "50+" group, “EllasOn” (women), RaciALL (ethnic & racial), Abraça (people with disabilities) Colore (LGBTQIAPN+).
And finally, to support our ambition to achieve gender parity in leadership, we took extra effort to achieve better balance in the shortlists for our leadership positions. As a result, we were able
to increase the ratio of women in management positions by 5%.
214 I Ontex Integrated annual report 2023
The actions initiated at the group level were complemented by the local initiatives. To give a few examples, our colleagues in Brazil leveraged their ERGs to lead a newly created quarterly
committee with local management to validate strategy, action plans and investments and ensure continuous focus on DEI. In addition, they reviewed parental policy to make it more inclusive
for all LGBTQ+ parents. The team in Radomsko, Poland opened up training opportunities for women to develop into technical professions such as production line operator. As a result, last
year 15 women took on the role of operator or team leader in the production area. A multifunctional room, which can also be used for breastfeeding, was created in Rouiba, Algeria. The local
DEI Champions in Spain conducted a DEI survey among all employees, which became the basis for the DEI action planning and execution in this location. To assess the effectiveness of the
DEI program, which was put in place over the past few years and the overall progress on DEI topics, a similar survey was also conducted in Italy. In addition to that the Italian team created a
“manifesto” in which they committed to inclusive behaviors towards all internal and external stakeholders. In Aalst, Belgium a number of panel discussions with Ontex employees and guest
speakers were organized throughout the year to raise awareness around DEI issues. And in Istanbul, Turkey, a panel discussion with employees and management which was organized at
the beginning of the year gave input to the annual DEI plan, which among other activities included providing employees with unique experience to gain better awareness of challenges which
people with disabilities face in life and at work.
Next to the organizational changes and our work on culture and DEI, we also focused on ensuring that we have the right capabilities to succeed in execution of our strategy. Following the
divestment of our Mexico business and the plant in Puebla, which resulted in a reduction of our workforce by more than 1360 FTEs, we needed to strengthen our capabilities in North America
and further grow capacity of some of our European plants, where FTEs grew vs last year by about 230. In addition to onboarding and training the newcomers, we also organized LinkedIn
learning challenges throughout the year to encourage our employees to use training resources available to them and educate them on the topics which are important to Ontex, such as Individual
Productivity, Personal Growth and DEI. As it was already mentioned, we also redesigned our short- and long-term incentive plans to better align them with our culture and enable them to
support the delivery of the company’s KPIs and the advancement of our ESG objectives. More information on the incentive schemes can be found in the Remuneration Report.
In terms of core processes, we worked on further improving our performance management by stimulating frequent and 360 degrees feedback moments and by driving an even stronger focus
and accountability among our employees in achieving their objectives. We also streamlined our data management what enabled us to have better insights into our workforce and allowed us
this year to report the majority of the workforce data from a single Human Capital Management system, internally called Ontex 4 You.
215 I Ontex Integrated annual report 2023
OUR WORKFORCE PROFILE
In this section of our annual report, we are pleased to present the workforce profile of Ontex, reflecting our company's commitment to diversity, talent development, and international reach. The
following table provides a detailed overview of our employee demographics, including age, gender & geographical distribution as well as the degree of interactions with our social partners and
training we provided. Information about the definitions & scope can be found it the Methodology report.
Table 13: Our workforce profile
Unit
Progress reporting
2021 2022 2023
WORKFORCE
Ontex employees
Total number of active employees FTE (Full-time equivalent) 9,039 8,824 7,698
Non-employees
Total number of non-employee workers FTE (Full-time equivalent) - 1,185 940
Employees in management
Total number of active employees in management FTE (Full-time equivalent) 76 76 64
Employees by category
Blue collar FTE (Full-time equivalent) 5,813 5,736 5156
White collar
FTE (Full-time equivalent)
3,150
3,088
2542
Employees by contract type
Limited duration (temporary)
% of Employees
5
3
3
Unlimited duration (permanent) % of Employees 95 97 97
Employees by gender
Percentage of men in total employees % of Employees 71 70 66
Percentage of women in total Employees
% of Employees
29
30
34
Employees by age
<30 years
% of Employees
20
19
16
30-50 years % of Employees 62 62 63
>50 years
% of Employees
17
19
21
216 I Ontex Integrated annual report 2023
Inclusive diversity
Percentage of women in management % of Employees 26 20 25
Percentage of persons with disabilities % of Employees 1 2 2
Number of different nationalities Count of different Nationalities 75 78 75
Hires & terminations
Total number of hires FTE (Full-time equivalent) 1,505 2,063 1515
Total number of terminations
FTE (Full-time equivalent)
2,134
1,662
1209
Turnover rate (%)
Number of employee terminations in the current year/Number of Actives
employees at the beginning of the current year (January)
24 16
16
Involuntary turnover rate (%)
Number of employee with involuntary terminations in the current year/Number of
Actives employees at the beginning of the current year (January 2023)
- -
5
Voluntary turnover rate (%)
Number of employee with voluntary terminations in the current year/Number of
Actives employees at the beginning of the current year (January 2023)
- -
10
Retirement rate (%)
Number of employees retired in the current year/Number of Actives employees at
the beginning of the current year (January 2023)
- -
1
Absenteeism rate % of total of unplanned hours of absence / total amount of hours available in 2022 4 3 4
SOCIAL DIALOGUE
Employees covered by collective bargaining
agreements
% of employees 61 57 73
Employees that are represented by a health & safety
committee
% of employees 85 90 88
TALENT DEVELOPMENT
Percentage of employees trained % of employees trained/total number of employees 83 83 76
Total number of training hours Number of training hours 187,974 137,483 127,261
Average number of training hours per employee Training hours/total number of employees 21 16 17
OCCUPATIONAL HEALTH & SAFETY
Challenges, risks & opportunities
Employee safety impacts the employees, their families and our operations. Employee wellbeing is key to both employee retention and recruitment.
We have identified five major operational risks:
217 I Ontex Integrated annual report 2023
Fire: the business is classified as high fire risk and generally requires special authorizations and permits from the authorities that go into detail about the risk assessment in order to verify
whether all the countermeasures taken are effective and enable damage to people and assets to be limited should the event occur.
Explosive atmosphere: due to the production process, explosion risk zones are generated due to the presence of dust in the confined environment. Inspection and maintenance of critical areas
(specifically on mills & filters).
Noise: although the continuous upgrading of production lines allows constant attention to be paid to this risk, production lines produce noise due to the presence of mechanical moving parts.
Manual Handling of Load and Ergonomics: continuous improvement of handling tools is in place and in addition end of line automation project is reducing the risk. Safety practices are
implemented in order to develop right behavior.
Residual energies, mechanical and cutting risks that could lead to an irreversible (life-altering) injury such as amputation of body parts.
Analyzing the root cause of occupational accidents , however, it must be underlined that many of them are linked to unsafe behavior (non-compliance with procedures, non-use of PPE, lack
of H&S Leadership...) which remains a priority for the Group.
Our approach
The safety of our people is a priority for Ontex, as specified in our Sustainability Strategy 2030. We aim for continuous improvement in occupational health and safety, with the ultimate goal of
zero occupational accidents. Ontex is responsible for the occupational health and safety of its employees and others who can be affected by its activities. This responsibility includes promoting
and protecting their physical and mental health. Occupational Health & Safety is intended to enable our organization to provide safe and healthy workplaces, prevent work related injury and ill
health. As part of our ambition of zero occupational accidents, we track all occupational accidents & near misses. Main injuries are cut wounds, superficial injuries (e.g., bruises) and open
wounds caused by use of manual tools (e.g., drills, grinders,...). The worst-case injuries that could happen, if these are not managed well, are amputations of body parts, resulting from the fact
that we work with rotating elements at our production lines.
Establishing and promoting a Global Safety Culture is the most meaningful way to ensure health and safety for all our employees worldwide. Our efforts to create a safety culture where all
employees work together and care for one another are based on:
Increase H&S Leadership at all levels of the Organization and role modelling, leading by example.
Behaviors, including raising awareness that unsafe behavior is a risk and a Behavior Based Safety protocol.
Risk assessment process, essential to understand and mitigate (potential) risks, including change management procedure and ‘Log out Tag out Try out’ approach.
Standards, enabling us to embed a solid Health & Safety Management System.
Health & Safety employee qualification. Each employee, in relation to the job performed, has to be aware of the risks to which he/she is exposed, the procedures to be put in place in order to
reduce the risks and of the importance of using all the PPE.
218 I Ontex Integrated annual report 2023
Table 14: Occupational health & safety
Unit
Progress reporting
Targets
2020
2021
2022
2023
2025
2030
HEALTH & SAFETY
Occupational accidents
Frequency rate Ratio 5.45 2.96 3.78 3.52 1.50 0.00
Severity rate Ratio 0.18 0.10 0.10 0.13 0.05 0.00
Fatal accidents Number 0 0 0 0 0 0
Ontex has consistently prioritized occupational safety. In 2023 this resulted in a reduction of our frequency rate by 35,41% compared to 2020 and 6,88% compared to 2022, but there was an
increase of severity rate that means that there were more severe events.
Improvements in occupational health and safety indicators result from the safety culture approach implemented to protect everyone working at Ontex.
219 I Ontex Integrated annual report 2023
9.1. LOCAL COMMUNITY INITIATIVES
Our approach
We want to give something back to the community in which we operate as part of our way of doing business. The projects or organizations we support focus on social and/or environmental
issues. Social issues are related to children, women, elderly, and victims of emergencies such as the war in Ukraine. The prioritized environmental issues are related to the protection of natural
resources, climate change and education on these topics.
As a matter of policy, Ontex does not make donations to political parties or organizations.
Our performance
In line with Ontex's commitment to supporting vulnerable communities, our donations focus on providing essential products to those in need, particularly in the realms of baby care, feminine
hygiene, and incontinence management. We believe in the importance of ensuring access to these basic necessities for all individuals. One notable collaboration has been with the Pink Box
Foundation, where Ontex Radomsko has partnered to supply free menstrual hygiene products to high school students in Radomsko and neighboring areas, addressing a critical need and
supporting young individuals in their educational journey. Additionally, we're proud to have contributed to LEAD Girls in the US, an inspiring organization dedicated to empowering individuals
near our Stokesdale, North Carolina plant. This donation exemplifies our dedication to fostering the well-being of the communities where we operate, embodying Ontex's values of compassion
and social responsibility. These two examples - the collaboration with the Pink Box Foundation and the contribution to LEAD Girls in the US - are just a glimpse of our broader efforts to positively
contribute to society.
In 2023, we donated over €600,000 of in-kind donations to vulnerable groups. Handover pictures of several 2023 donations can be found at https://ontex.com/sustainability/building-trust/ontex-
donations-and-donation-policy/
Table 15: Donations
Unit
Progress reporting
2021 2022
2023
Local community initiatives
Donations € 1,150,000 1,760,000
€649.041
220 I Ontex Integrated annual report 2023
10. WORKERS IN THE VALUE CHAIN
In this section, we delve into the journey of our products through the Ontex value chain, a comprehensive process that extends from the sourcing of raw materials to the responsible management
of end-of-life waste. Our value chain is designed to reflect our commitment to sustainability, quality, and innovation at every step. It consists of five stages: raw materials, design & manufacture,
warehouse & distribution, markets & consumption, and end-of-life. This section provides an overview of the various stages that define our operational journey, from the sourcing of raw materials
to the final stages of product life.
Figure 5: Our value chain
The supplier base of Ontex is comprised of more than 500 suppliers located in more than 70 countries. However, the majority are located in Europe (60%), and Latin America (29%). Raw
material suppliers account for a little more than 70% of Ontex’s spend.
221 I Ontex Integrated annual report 2023
GOVERNANCE
Our sustainable approach is guided by the sustainable sourcing policy and Supplier Code of Conduct, which are integral to identifying and mitigating supply chain risks. Aligned with these
policies, we expect our suppliers to uphold business integrity, champion sustainable procurement principles, adhere to local laws, prioritize health and safety, minimize climate and environmental
impact, and uphold international human rights laws, including eradicating child and forced labor and eliminating discrimination within their operations and from their suppliers.
Together with these policies, we have additional specific requirements, such as our ethical sourcing requirements, implemented through a risk-based approach. Ontex's sustainable value chain
governance is structured around various bodies, all working to align our operations with the responsible sourcing objectives outlined in our Sustainability Strategy 2030. The responsible sourcing
group specialists conduct thorough risk assessments throughout the Ontex value chain to identify actual and potential impacts on human rights and environments. These risk-based assessments
are a crucial step in comprehending and mitigating risks.
We engage with our suppliers through various touchpoints to identify, evaluate, prevent, and manage potential risks related to sustainable sourcing practices.
Potential raw material suppliers of Ontex complete a self-assessment questionnaire including sustainability-related questions (covering environment, social and governance issues).
Each Ontex supplier is required to sign the Ontex Supplier Code of Conduct. It is an annex to purchasing contracts and includes a reference to Ontex’s ethical sourcing policy. Additional
requirements are outlined in the sustainable sourcing policy for renewable raw materials. The latter establishes also the requirement to disclose certain information on origin and species to
facilitate the due diligence process.
Since 2022, Ontex has initiated the process of inviting its raw material suppliers to participate with EcoVadis, a third-party-verified sustainability assessment provider. This assessment is
intended to enhance our understanding of environmental, social, and governance risks within our supply chain, serving as a catalyst for uncovering opportunities and promoting continuous
improvements in our operations. In 2023, within Ontex's supplier portfolio, 58 suppliers were selected for the EcoVadis sustainability assessment based on risk country context, sector, and
commodity location criteria. Among these, 37% successfully completed the assessment, with 82% achieving a score of 45 or higher, indicating active engagement in sustainability practices.
Mitigation actions were proposed and implemented for suppliers with high-risk scores.
In addition, we request suppliers located in high-risk countries to provide us with a valid third-party social audit report. In 2023, 15% of our raw material (10,80%) and packaging (4,53%)
suppliers which are managed by the Group were located in a risk-country, of which approximately 39% of them provided us with a valid third-party social audit report. No agreements with raw
material suppliers were terminated on the grounds of sustainability-related non-compliance in 2023.
222 I Ontex Integrated annual report 2023
ESG SUPPLY CHAIN RISKS
At Ontex, we recognize that our supply chain plays a critical role in achieving our sustainability goals. As we strive to make a positive impact, it is essential to address ESG risks within our
supply chain. This chapter outlines the key risks we face and our approach to mitigating them.
Environmental risks
Climate change and carbon footprint: Our supply chain contributes to greenhouse gas emissions through transportation, energy use, and raw material production. We must monitor and reduce
our carbon footprint by collaborating with suppliers to adopt cleaner energy sources and optimize logistics. More information about how we manage this risk can be found in the Climate chapter
of this report.
Resource scarcity: Ensuring sustainable access to water, energy, and raw materials is crucial. We assess suppliers' resource management practices and encourage efficient resource use.
Deforestation: We recognize the impact of deforestation on ecosystems and biodiversity. Our sustainable sourcing policy emphasizes responsible forest management and discourages suppliers
from contributing to deforestation.
Social risks
Labor rights and working conditions: Ensuring fair wages, safe working conditions, and respect for human rights are paramount. We conduct regular third-party social audits to assess compliance
with labor standards and engage in capacity-building programs.
Child labor and forced labor: We have a zero-tolerance policy for child labor and forced labor. Suppliers must adhere to international labor conventions, and we actively monitor compliance.
Health and safety: Worker safety is non-negotiable. We collaborate with suppliers to enhance occupational health and safety practices, reducing accidents and promoting employee well-being.
Governance risks
Ethical business practices: We expect suppliers to uphold ethical standards, including anti-corruption measures. Our Supplier Code of Conduct sets clear guidelines, and we encourage
transparency and accountability.
Supply chain transparency: Transparency is essential for identifying risks. We engage with suppliers to map our supply chain, assess vulnerabilities, and address any gaps.
Supplier resilience: Disruptions (such as natural disasters or geopolitical events) can affect our supply chain. We work closely with suppliers to build resilience and contingency plans.
223 I Ontex Integrated annual report 2023
SUPPLIER DUE DILIGENCE STRATEGY
Ontex is firmly dedicated to upholding global standards, with a particular focus on the United Nations Guiding Principles on Business and Human Rights. We acknowledge the responsibility of
companies to conduct thorough human rights and environmental due diligence, ensuring that our operations consistently align with human rights norms and remain free from any involvement
in rights violations. Our commitment involves a comprehensive assessment of both existing and potential human rights risks, the implementation of effective measures to mitigate these risks,
and proactive efforts to address any abuses that may arise. Furthermore, we maintain transparency regarding our due diligence endeavors, in line with the principles emphasized by these
global standards. The following table outlines the key elements of our due diligence program.
At Ontex, we are committed to responsible business practices and upholding global standards. Our supplier due diligence strategy ensures alignment with industry norms and emphasizes
transparency. Below are the key phases of our approach:
Table 16: Supplier due diligence strategy
Processes for engaging with value chain workers about impacts
Ontex emphasizes stakeholder engagement as a core element of our due diligence process, seamlessly integrated into our business activities. Recognizing our role in a broader ecosystem,
we actively communicate with diverse stakeholders, including those in our supply chains and local communities. This commitment involves open and direct communication, from informal
dialogue to strategic partnerships.
STEP 1
EMBED RESPONSIBLE
BUSINESS CONDUCT INTO
POLICIES AND MANAGEMENT
SYSTEMS
• In 2023, Ontex incorporated the
role of Group Responsible Sourcing
Specialist.
• As the first step in 2023, Ontex is
defining its approach to due
diligence principles, defining scope,
targets, and strategically define
how to adapt internal policies and
management systems. The
company is collaborating with
cross-functional teams and external
experts to ensure alignment with
industry standards.
STEP 2
IDENTIFY AND ASSESS
ADVERSE IMPACTS
• In the second step of our
methodology, in the risk-based
approach we are adopting a
Human Rights-Based Approach
(HRBA) to identify human rights
and environmental adverse impacts
within our direct suppliers. The
most significant identified risks will
undergo deeper due diligence.
STEP 3
CEASE, PREVENT, AND
MITIGATE
• In response to risk assessment
insights, strategic control action
plans will be crafted and
implemented to proactively
address, prevent and mitigate
potential adverse impacts.
STEP 4
REPORTING AND TRANSPARENT
COMMUNICATION
• As part of our future steps, our
objective is to develop and
implement a real-time data sharing
and collaboration mechanism or
tool, serving as a comprehensive
system management tool.
224 I Ontex Integrated annual report 2023
Outcome
In 2023, as part of Ontex’s sustainable strategy under the Sustainable Supply Chain pillar, we have taken the following actions to foster a resilient and transparent supply chain:
We actively engage in an ongoing dialogue with our business partners, providing training through webinars to raise awareness about risks and encourage them to take joint action to mitigate
these risks.
Potential raw material suppliers of Ontex are required to complete a self-assessment questionnaire that includes sustainability-related questions, covering environmental, social, and governance
issues.
Ontex introduced a comprehensive Vendor and Supplier Handbook, complementing the Supplier Code of Conduct and Ethical Sourcing Policy.
Ontex’s procurement strategy centers on sourcing from suppliers with certified products, aligning with recognized standards like FSC, PEFC, GOTS, OCS, and REDcert.
In tandem, we are working in a management system aligning with BSCI social audit standards and request valid third-party social audit reports from suppliers in high-risk countries.
Ontex collaborates with its raw material suppliers by utilizing EcoVadis, a third-party verified sustainability assessment provider. This assessment helps us to better understand environmental,
social, and governance risks embedded in our supply chain. Additionally, it serves as a catalyst for uncovering opportunities and fostering continuous improvements.
In cases where Ontex receives indications of adverse impacts on human rights or the environment from its activities (via the complaints procedure or other channels), the company investigates
and, if necessary, takes corrective action.
In 2023, Ontex implemented the findings from the revised supplier management approach in 2022, leading to the establishment of a Supplier Compliance Cell. The goal of the latter is to further
develop our supply chain due diligence approach, identifying, preventing, and mitigating potential negative human rights and environmental impacts in our value chain.
Our efforts to identify and manage suppliers with a risk profile through EcoVadis have resulted in an increased invitation for more suppliers to join the platform. We strive to maintain clear
communication with our suppliers, explaining Ontex’s sustainable requirements. This is the reason why the percentage of suppliers who have signed the code of conduct has improved. The
rise in suppliers from high-risk countries is attributed to refining criteria based on external resources focused on protecting human rights. We have maintained the screening of new suppliers
using social criteria at 100%. This steadfast commitment is achieved by carefully managing our social screening parameters, demonstrating our ongoing dedication to social responsibility and
ethical sourcing practices across our supplier engagement.
225 I Ontex Integrated annual report 2023
Table 17: Supply chain due diligence
Sustainable supply chain Unit 2021 2022 2023 %2023 / 2022
Supply chain due diligence
% of high-risk suppliers' direct spend covered by sustainability
assessments via EcoVadis
% - 37 50 +13 pp
Human rights
100% Supplier Code of Conduct signed by 2030
6
%
93
96
100
+ 4 pp
Percentage of new suppliers that were screened using social criteria
% 100 100 100 + 0 pp
Suppliers located in risk countries
7
%
15
28
61
+33 pp
Percentage of risk suppliers covered by a valid social audit report
%
32
42
39
-3 pp
Note: In accordance with our Supplier Due Diligence Strategy, the concentration on high-risk suppliers is exclusively confined to those engaged in the supply of raw materials. Any resultant
management action plans are directly linked to suppliers identified within this high-risk profile.
6
The scope covers suppliers of raw materials, excluding those who provide packaging, outsourcing, and trading goods
7
The methodology for risk-based assessment has been recently updated, and the results have significantly improved.
226 I Ontex Integrated annual report 2023
11. CONSUMER SAFETY
11.1. GOVERNANCE
Over the past year, a supplier compliance cell has been established led by the sustainability and product stewardship department. This cell will ensure a new level of transparency throughout
the supply chain, focusing on technical communication with suppliers related to exposure-based risk assessment, regulatory compliance, exercise due diligence in the supply chain, and raw
material safety. Additionally, the supplier compliance cell is accountable for end-to-end supplier approval and monitoring, including supplier audits. The cell closely cooperates with the
sustainability, procurement, quality and R&D departments. Supplier monitoring of product quality occurs through a monthly global Q-score which is calculated based on raw material complaints
and non-conform deliveries. This can lead to individual supplier review meetings, corrective actions, searching for alternative suppliers and potentially, supplier audits.
11.2. PRODUCT SAFETY RISKS
Ontex adheres to safety regulations for consumer articles and medical devices, addressing risks associated with product safety. A product safety policy has been drafted to clarify how Ontex
guarantees compliance with legal regulations and considers non-legal requirements aligned with public safety perceptions.
Ontex has implemented robust processes to remediate negative impacts and mitigate risks by actively monitoring hygiene conditions, conducting random scientific tests and addressing
customer complaints. Channels for raising concerns include post-market analysis and systematic reviews, contributing to continuous product improvement. All plants have a fully implemented
BRC Consumer Products and IFS-certified management system implemented alongside the ISO 9001 and / or 13485 Quality Management System standards.
Ontex actively engages with consumers through transparency initiatives, such as providing detailed information on product composition and conducting chemical screenings. The company
emphasizes collaboration with suppliers and references safety benchmarks like Oekotex 100®, Asthma Allergy Nordic®, and the Dermatest Five Star Seal®, all of which help consumers make
safe and active choices in relation to skin health and address consumer concerns.
11.3. STRATEGY
Ontex aligns its strategy with material impacts, risks, and opportunities. Product safety has been raised as a key priority due to the double materiality assessment. The risk-based approach
adopted for supplier compliance and product safety contributes to the overall business model.
Ontex aims to ensure regulatory compliance through the establishment of robust partnerships with suppliers, placing a significant emphasis on transparent communication regarding product
composition, safety, quality, and environmental as well as social aspects. A pragmatic risk-based approach has been implemented, aligned with sustainability and quality strategies, to ascertain
that suppliers conform to requisite standards. This collaborative effort is designed to foster responsible business practices, fortify regulatory adherence, and enhance transparency across the
entirety of the supply chain.
Consumer articles must comply with the safety regulations stipulated in the legally binding European General Product Safety Regulation, the US Consumer Product Safety Act and the US
Consumer Product Safety Improvement Act to mitigate any potential risks to human health. In addition to these legal mandates, it is imperative to consider non-legal requirements, particularly
those arising from the safety perceptions prevalent in public opinion.
For medical devices manufactured by Ontex, compliance with prevailing medical device regulations across diverse markets is essential, along with adherence to associated safety requirements.
227 I Ontex Integrated annual report 2023
Ontex actively scrutinizes the supply chain for harmful substances and setting targets related to managing risks and opportunities. The effectiveness of these actions is monitored through
programs like the EDANA Stewardship Programme and compliance with medical device regulations.
Product composition / Chemical exposure
As a converter, we do not make any chemical changes to the incoming raw materials. Given the importance of enhancing transparency, it is crucial to gather detailed information about the
composition and compliance of raw materials, including adherence to regulations such as REACH, the Biocidal Product Regulation and Californian Proposition 65. This information enables us
to conduct a comprehensive exposure-based risk assessment in cooperation with an external toxicologist, considering both intentionally added substances and the potential presence of non-
intentionally added substances.
Over the past year, particular emphasis has been placed on scrutinizing the supply chain for any potential presence of per- and polyfluoroalkyl substances (PFAS), substances classified as
carcinogenic, mutagenic, or toxic to reproduction (CMR), and microplastics.
At Ontex, our emphasis is on aligning with the Oekotex 100 ® standard class I (baby textile). This standard guarantees that our products adhere to rigorous safety benchmarks, making them
safe for infants and all other users of absorbent hygiene products. The primary goal is to restrict harmful substances, safeguarding the health of consumers. The stringent criteria of this standard
encompass a wide range of strict chemical regulations and extend further to consider factors such as chemical residues, colorfastness, and pH levels.
Requests for chemical test data from suppliers and random testing on products are carried out based on the EDANA Stewardship Programme Codex
TM
.
In addition to conducting chemical screening of raw materials, we actively solicit test data from our suppliers to ascertain the biocompatibility of materials for their designated purposes. A pivotal
standard guiding these assessments is the ISO 10993 series, which pertains to the biological evaluation of medical devices, emphasizing crucial aspects such as cytotoxicity, sensitization, and
irritation. Furthermore, a comprehensive monitoring program has been instituted for the systematic testing of medical devices. Despite the intricate nature of our products and the extensive
supply chain involved, we have successfully compiled a comprehensive list of ingredients for all tampons, pads, and liners manufactured for the United States. This compilation meets the
necessary requirements stipulated by the varied menstrual product labeling laws currently being introduced across multiple states. We aim to have the full ingredient list available for every
single product produced by Ontex to enable exposure-based risk assessment whenever needed.
Microbiological
Although there is no evidence of adverse events associated with the presence of microbes on dry absorbing hygiene products, Ontex actively monitors production hygiene conditions through
random microbiological tests. These tests adhere to the Austrian Food Book – Commodities – Hygiene products and follow the European Pharmacopeia for microbiological testing of non-sterile
products.
The dry nature of these products, with a low water activity, inherently inhibits microbial growth, creating an unfavorable environment for microorganisms. Manufacturing processes incorporate
strict measures to prevent contamination, ensuring a low bioburden. While complete absence of microbial presence cannot be guaranteed, Ontex asserts product safety based on comprehensive
evidence and rigorous quality assurance practices.
Skin health
Absorbing hygiene products aim to address skin health concerns. Diaper rash, often caused by skin irritation from moisture, can result from various factors, including contact with proteins in
stool, changes in skin pH, and secondary bacterial or yeast infections. Feminine hygiene products consider warmth and wetness as potential causes of irritation during menstruation. Ontex
continuously explores methods to enhance product performance, reduce fluctuations, and increase comfort for the end-consumer.
228 I Ontex Integrated annual report 2023
Post-market analysis and customer complaints are interconnected aspects of product monitoring, offering insights into a product's performance after release. Both involve systematic reviews
to identify issues and trends, contributing to continuous improvement. Customer complaints serve as real-time indicators of problems experienced by end-users, guiding corrective actions.
Regulatory compliance (medical device regulation) also mandates post-market analysis to ensure ongoing adherence to safety standards. Ultimately, addressing complaints and conducting
post-market analyses contribute to customer satisfaction, loyalty, and the overall enhancement of product quality.
Improved product quality of disposable diapers has resulted in a strong decrease in the frequency of diaper dermatitis in recent years and has played a significant role in the improvement of
skin conditions.
Compliance with product regulations
In keeping pace with dynamic regulatory landscapes, we actively engage in industry dialogues facilitated by prominent associations such as EDANA, BAHP, Group’Hygiène, and AHPMA UK.
This proactive involvement allows us to align our practices with evolving regulatory requirements, ensuring that our hygiene products meet the highest standards of safety and compliance.
Over the past year, we also strengthened our internal governance structure to deal with regulatory compliance. Software tools were added to keep track of the latest country-specific regulatory
changes affecting any of our product categories.
Supplier compliance
Our commitment to product safety is intrinsically linked to our rigorous supplier compliance program, through which we establish and maintain solid criteria for materials sourcing and production
processes. Our comprehensive approach includes regular audits and a robust verification process to ensure that every supplier adheres to our high standards for quality, safety, and
sustainability. This integrated strategy guarantees that from the initial sourcing of raw materials to the final product in the hands of consumers, every step of our supply chain contributes to the
delivery of safe, reliable, and high-quality products, hence reinforce our commitment to safeguarding the health and well-being of our customers worldwide.
11.4. OUTCOME
Ontex sets targets related to managing negative impacts by conducting exposure-based risk assessments and advancing positive impacts through adherence to safety benchmarks. Targets
also focus on managing risks and opportunities, ensuring alignment with evolving regulatory requirements.
Some targets are linked to trace chemicals. As previously described, Ontex wants its raw materials to be compliant with the requirements of Oekotex 100 and the EDANA Stewardship
Programme.
From a quality point of view, the overall Ontex customer and consumer quality complaint level in parts per million (ppm) for 2023 reduced by 7% compared with 2022.
In 2023, the Ontex supplier audit team carried out 53 audits. Additionally, Ontex actively supports the voluntary QAP (Quality and Audit Programme) from EDANA (European Diaper and
Nonwoven Association), which is becoming more and more popular within the industry globally.
The cost of non-quality in 2023 has reduced by 12.2% compared with 2022. Irritation complaints for Europe – EMEAA count for 4% of the total number of complaints.
229 I Ontex Integrated annual report 2023
12. METHODOLOGICAL NOTES
12.1. DOUBLE MATERIALITY PROCESS & SCORING IN DETAIL
We followed a five-step process to conduct the double materiality assessment.
Step 1: Identification of material topics
The first step when analyzing materiality is to identify a broad universe of sustainability issues that could potentially be significant for Ontex. This is essential to minimize the risk of overlooking
any emerging issues and to guarantee a thorough and credible analysis.
We therefore used our 2021 materiality analysis as a starting point. The issues considered for that analysis have been updated through desk research that considered the nature of our company,
value chain, stakeholders and the impacted audiences. The following sources were used for that analysis:
• Benchmark: materiality matrices of our key customers & competitors
• Non-financial or sustainability reporting standards: GRI, CDP & CSRD
• Different sustainability-related studies: IPCC Sixth Assessment Report, Global Risk Report WEF, LCA AHP published by Defra, IPBES Global Assessment Report on Biodiversity
and Ecosystem Services, etc.
• Outcome of our 2023 Climate Scenario Assessment
After identifying the long list of potential material topics, we asked key internal stakeholders to score these topics. Topics with the lowest impact were not given further consideration.
230 I Ontex Integrated annual report 2023
Table 18: Overview potential material topics and definitions
Material topics Definition
Sustainable products &
packaging
Addressing impacts and dependencies on ecosystem services while implementing the Reduce, Reuse, Recycle model to manage resources efficiently.
Minimizing resource outflows and end-of-life waste while optimizing resource inflows for sustainable operations.
Production waste
management
Effectively handling and minimizing waste generated throughout the production process.
Carbon emissions
Managing climate change impacts and risks through adaptation, mitigation via CO2 scope 1-2-3 emissions reduction, optimizing energy consumption, and
transitioning to sustainable energy sources.
Nature & biodiversity
Managing biodiversity impacts, risk and opportunities by measuring impact drivers of biodiversity loss (climate change, pollution, land use, direct
exploitation, alien species), including impacts on ecosystems, animal welfare (animal well-being and policie
s), species state, and forestry and cotton
practices.
Water
Addressing habitat degradation and the intensity of pressure on marine resources, implementing measures for water conservation, minimizing water
consumption, responsibly managing water discharges in water bodies and oceans, and optimizing water use through
sustainable water withdrawals,
ensuring the preservation of aquatic ecosystems and promoting responsible water stewardship.
Addressing societal issues &
local development
Addressing societal issues and promoting local development by addressing health and ensuring access to affordable products, which in turn can have a
significant local impact.
Consumer safety and end-
users information
Addressing consumer safety and providing comprehensive information for consumers and/or end-users, ensuring their personal safety and promoting
social inclusion. Additionally, addressing consumer behavior by empowering individuals to make informed choices.
Diversity, Equity & Inclusion
Addressing diversity, equity, and inclusion entails promoting gender equality and ensuring equal pay for work of equal value, fostering employment and
inclusion of persons with disabilities, implementing measures to combat violence and harassment in the workplace.
Human rights (in own
workforce/value chain)
Addressing human rights within its own workforce and value chain involves prioritizing H&S risk prevention and management, addressing incidents
promptly, eradicating child labour, eliminating forced labour and modern slavery, upholding freedom of associati
on and collective bargaining rights, fostering
social dialogue, ensuring adequate wages, respecting other work-related rights, and promoting working hours and work-life balance for employees.
Training & Education Training and education involves prioritizing talent development to enhance skills, knowledge, and capabilities within individuals and organizations.
Business ethics & compliance
Addressing business ethics and compliance encompasses fostering and disclosing a strong corporate culture that values integrity, managing relationships
with suppliers ethically, including fair payment practices, protecting whistle-blowers, combating briber
y and corruption, and upholding high standards of
ethics and compliance throughout the organization.
Advocacy
Advocacy involves engaging in efforts to address deforestation through promotion & support of appropriate directives, navigating lobbying and political
relations to advance environmental causes. It also includes promoting eco-design directives and sustaina
ble practices in packaging to reduce waste and
foster a circular economy.
Transparency
Transparency entails making appropriate disclosures to foster trust between the company and its stakeholders and engaging in responsible marketing
practices to provide accurate information.
231 I Ontex Integrated annual report 2023
Step 2: Scoring together with our stakeholders
We asked internal and external stakeholders to share their perception of the potential material issues. The following stakeholders were included: investment funds, shareholders, consultants,
non-governmental organizations, academics, industry associations, raw material suppliers, Ontex employees, customers, consumers and end-of-life operators.
To score and prioritize the potential material topics we used a two-fold approach:
1. Online survey: We asked our identified stakeholders to assess and weigh for each of the material topics their impact on the environment & society and their impact on Ontex’s
value. The outcome of this survey was a first assessment of the magnitude of the impacts, risks & opportunities, ranging from ‘extremely negative’ to ‘extremely positive’.
2. Interviews: To assess the scale, scope, likelihood, remediability and actual or potential impacts & likelihood & magnitude of financial impacts we asked internal experts to score the
topics. To the extent we did not have access to the necessary competence internally, we asked external experts within our value chain.
Outcome: A first draft materiality matrix.
Scoring methodology
Impact materiality
Impact materiality was scored on three dimensions:
Scope
(How widespread is our impact?)
Remediability
(How hard is it to counteract or
correct harm done?)
Scale
(How significant is our impact?)
5
Global/total
5
Not remediable/reversible
5
Huge
4 Widespread (value chain)
4 Very servere or long-term
4 High
3 Medium
3 Difficult or medium-term
3 Medium
2 Concentrated to Ontex
2 With effort (time & cost)
2 Low
1 Limited or no
1 Easily remediable or short-term
1 No impact
232 I Ontex Integrated annual report 2023
Financial materiality
Financial materiality was scored on 2 dimensions, which are aligned with the scoring used for the Enterprise Risk Management exercise (see Risk section of this report).
Likelihood Rating Guidance
5 Frequent
The likelihood of this event occurring is very high.
It's a common occurrence, and it's expected to happen regularly.
4 Probable
This event is likely to occur.
It has happened before and is expected to happen again in similar circumstances.
3 Possible
There is a moderate chance that this event may occur.
It's not rare, but it's not a common or expected scenario.
2 Unlikely
The chance of this event occurring is very small.
It may have happened rarely in the past, but it's not expected to occur in the foreseeable future.
1 Rare
This event is highly unlikely to occur, almost impossible.
Historical data and expert analysis suggest that the probability of this event happening is extremely low.
Impact /
Magnitude
Rating EBITDA Stakeholders Reputation
5 Destructive >20% EBITDA
Serious impact on top
stakeholders
International attention or multiple national attention
4 Critical
15-20%
EBITDA
Formal complaint from one or
more top stakeholders
Attention within sector on global level
3 Serious 9-15% EBITDA
Formal complaint from one or
more stakeholders
Attention within sectior on country level
2 Minimal 2-9% EBITDA Informal complaint stakeholders Limited media attention (eg via questions website)
1 Neglegible <2% EBITDA
No consequences for
stakeholders
No public attention
233 I Ontex Integrated annual report 2023
Step 3: Value chain mapping
Ontex’s key impacts across the value chain are mapped against the potential material topics as defined in step 2.
Table 19: Material topics in our value chain
Material topics Farmers
Suppliers raw
materials
Inbound
logistics
Ontex
Outbound
logistics
Customers Consumers
Sustainable products & packaging
Production waste management
Carbon emissions
Nature & biodiversity
Water
Addressing societal issues & local
development
Consumer safety and end-users
information
Diversity, Equity & Inclusion
Human rights (in own workforce/value
chain)
Training & Education
Business ethics & compliance
Advocacy
Transparency
Estimated impact
High
Medium
Low
234 I Ontex Integrated annual report 2023
Step 4: Leadership engagement to finetune the outcome of the materiality scoring
At this stage, we presented and cross-checked the results we obtained in step 2 & 3 with our Executive Management Team & organized a workshop with 2 Board members on the topic.
The aim for both sessions was the same: Getting insights from our company leaders and enabling a deeper understanding of the outputs and impacts on the business, ultimately resulting in a
more comprehensive and valuable assessment with actionable results.
Based upon the feedback received during both sessions, the initial scoring from step 2 has been slightly adapted and a final materiality matrix produced.
Step 5: Oversight and validation of the materiality process
The materiality matrix has been validated by our Board of Directors, after a positive recommendation of our Audit & Risk Committee in December 2023.
12.2. ENERGY CONSUMPTION
Ontex energy consumption is reported for different types of energy used. The data are collected at the plant level and consolidated at the Ontex group level. Electricity is the largest energy
source we use. Hence, our focus of switching to renewable electricity in our Sustainability Strategy.
The definition of renewable energy as given in the Greenhouse Gas Protocol scope 2 Guidance has guided us in defining the scope of this indicator. The following energy sources are considered
in scope for this indicator:
Wind energy, solar energy, energy from biomass (including bio- and other naturally produced gas), hydropower (including marine hydro) and geothermal energy.
All on-site electricity production is solar energy.
The electricity intensity ratio is calculated as the electricity consumption divided by the amount of finished goods (per 1000 pieces). It explains how electricity intensive our products are.
Note that there are differences among the different product categories which are not disclosed in the annual report which may lead to variations over time.
Scope 1-2 GHG emissions
Ontex reports its absolute scopes 1 and 2 emissions according to Greenhouse Gas Protocol methodology. The emissions reported are covering manufacturing sites of Ontex, excluding the
plant in Puebla (Mexico) due to divestment in 2023 and the plant located in Noginsk (Russia) due to the geopolitical context. Excluded from the scope of the calculations are the sales offices
that are not related to manufacturing plants. This exclusion falls under the cut-off criteria as they will represent less than 1% of the total impact on climate change. The disclosed data, scope 1
and scope 2 emissions are expressed in tons CO2-equivalents (tCO2e).
The scopes 1 and 2 emissions are calculated based on primary data collected on-site and converted to GHG emissions using different sources of emission factors based on relevance: Bilan
carbon, UK Government GHG Conversion Factors for Company Reporting, IEA & supplier specific emissions factors for electricity.
235 I Ontex Integrated annual report 2023
The scope 2 emissions are disclosed according to two methodologies: market-based
9
and the location based
10
.
Greenhouse Gas emissions intensity is calculated using the total from scope 1 and scope 2 (in tCO2e) market-based emissions divided by the total revenues of Ontex (in euros).
GHG emissions intensity (tCO2/€) = (Scope 1 + scope 2)/Total revenues
PwC has provided ISAE 3000 limited assurance on selected environmental data of 2023.The PwC limited assurance report, including the scope of the indicators included in the assurance, can
be found on section 9 of the sustainability statements.
Scope 3 GHG emissions
Ontex reports scope 3 emissions according to the according to Greenhouse Gas Protocol methodology and using the operation control approach
11
. The scope 3 emissions are covering the
following categories: purchased goods and services, upstream distribution, capital goods, business travel, fuel and energy related activities
12
, waste in operation , downstream transportation
and the end-of-life treatment of sold products .
The following scope 3 categories were identified as not relevant and therefore excluded from the scope:
Upstream leased assets, downstream leased assets, franchises and investments: Ontex does not operate in these activities;
Use of sold products, processing of sold products: there is no impact related to the use phase of our products.
The conversion from primary data to ton CO2-equivalent is done using supplier specific emission factors or when not available emission factors published by Ecoinvent, the GLEC
13
, DEFRA
(GHG Conversion Factors for Company Reporting) or the ADEME (Base Empreinte®).
Assumptions and limitations: The use of allocation have been minimized as much as possible but when allocation could not be avoided physical allocations where preferred (e.g. end-of-life) to
economic factors (e.g. purchased goods and services, capital goods). For consistency and comparison over the year, default emissions factors are not updated on a yearly basis.
Note: the emissions reported are covering manufacturing sites and activities of Ontex, excluding the plant in Puebla (Mexico) due to divestment in 2023 and the plant located in Noginsk (Russia)
due to the geopolitical context
9 “A market-based method reflects emissions from electricity that companies have purposefully chosen”, GHG Protocol Scope 2 Guidance
10 “A location-based method reflects the average emissions intensity of grids on which energy consumption occurs”, GHG Protocol Scope 2 Guidance
11 “Under the operational control approach, a company accounts for 100 percent of the GHG emissions over which it has operational control. It does not account for GHG emissions from operations in which it owns an interest but does not have
operational control”, Corporate Value Chain (Scope 3) Accounting and Reporting Standard
12 Not included in scope 1 or scope 2
13
Smart Freight Centre. Global Logistics Emissions Council Framework for Logistics Emissions Accounting and Reporting. (2019). ISBN 978-90-82-68790-3.
236 I Ontex Integrated annual report 2023
12.3. WASTE GENERATED
Production waste is defined as the total volume of generated waste expressed in ton per year. The distinction between hazardous and non-hazardous waste is made based on the local
regulation for the region where the reporting entity is located. For EU sites, Hazardous Industrial Waste (HIW) is defined according to Appendix III of the Waste Framework Directive
(2008/98/EC). For non-EU countries, classification follows the local legislation.
The recycling index is the ratio of the waste recovered by third parties (including waste recovered as energy through incineration) to the total waste.
The intensity ratio for waste is the ratio between the total quantity of waste produced (in kg) and the total amount of pieces produced over the reporting period.
Significant spills are accidental release of a hazardous substance that can affect human health, land, vegetation, waterbodies, and groundwater which are included in our financial statements.
Ontex monitors waste production and recovery through waste treatment practices such as recycling, reuse, and waste-to-energy. Our plants seek to maximize the recovery rate for their waste
through on-site sorting and staff training. The latter is part of ISO14001 which the majority of our plants are certified too. To maximize the recovery rate, our plants enter into agreements with
waste contractors that can recover the various types of waste generated and support us in reaching our goal of zero waste to landfill by 2025. Waste with treatment codes R12 and R13 are
assumed to be recycled.
The waste generated are covering all manufacturing sites of Ontex, excluding the plant in Puebla (Mexico) due to divestment in 2023.
12.4. SOCIAL STATEMENTS
We extract workforce data (except Absenteeism) from our core HR system, called Ontex 4 You, and include data from all our locations which were operational by the end of 2023. All the
workforce data is expressed in FTE’s as of 31/12/2023. Absenteeism, social dialogue and talent development data is a compilation of the data collected from different local sources. The data
in this table can vary from the data mentioned in the statutory report due to different calculations methodologies.
Definitions
Ontex employees. An employee is a person who has a valid employment contract with Ontex. We take into account only active employees as of 31/12/2023 for the FTE calculation.
Active employee. An employee is considered active if a person has a valid employment contract with Ontex and regularly attends work. If an employee is away from work for a period shorter
than 2 months, this person is still considered active.
Non-employees. Workers who are not employees are those who perform work for the organization but are not in an employment relationship with the organization. Types of workers who are
not employees include agency workers, apprentices, contractors, home workers, interns, self-employed persons, sub-contractors, and volunteers.
FTE (Full-time equivalent). FTE refers to the total hours worked by a full-time employee on a regular basis. This concept is used for converting the work executed by part time employees as
compared to full time employees.
Only active employees as of 31/12/2023 are taken into account for the calculation of the FTE. In example, an employee who worked until December 30th will be counted as 0 FTE in the Annual
Report, or an employee who returned to a full-time regime on December 31
st
will be counted as 1 FTE.
237 I Ontex Integrated annual report 2023
Employees in management. We consider everyone with the internal position levels of Band 1, Band 2 and the Executive Management Committee (jointly referred to as Banded) as Employees
in management. The position level is an internal classification, which allows us to weigh the relative contribution of every position in the company based on the description of the role and
responsibilities. There are 10 levels for non-banded roles, from Level J to Level A (Level A being the highest) and 4 for Banded, ranging from BAND 1 to BAND 4 (Band 4 being the highest).
Employees by category. White-collar workers are normally office workers while blue collar employees are working in our plants as part of the production, warehouse, and maintenance.
Inclusive diversity. We use various metrics in the Inclusive diversity category to show different dimensions of our workforce diversity. The metrics include the % of female in management (see
the definition of the Employees in management above), the % of people with disabilities in relation to the total workforce and the number of different nationalities.
Turnover rate (%). Calculated as the sum of terminations over the total number of active employees at the beginning of the period (January 2023). Only Ontex permanent employees are taken
into account in the calculation of turnover (externals are to be excluded). For the calculation we include voluntary and involuntary, and retirements.
Involuntary turnover rate (%). Number of employees with involuntary terminations in the current year/Number of Actives employees at the beginning of the current year (January 2023).
Voluntary turnover rate (%). Number of employees with voluntary terminations in the current year/Number of Actives employees at the beginning of the current year (January 2023).
Retirement rate (%). Number of employees with involuntary terminations in the current year/Number of Actives employees at the beginning of the current year (January 2023).
Absenteeism. It is the term generally used to refer to unscheduled employee absences from the workplace. Only active Ontex employees are taken into account in the calculation of absenteeism
(externals and employees on leave are to be excluded).
The absenteeism rate is calculated as the relation between unplanned absences and available hours.
Unplanned absences are the sum of all the hours of absence of active Ontex employees in a given period. Part-time absences (e.g., delays, leaving work earlier than the work shift), planned
absences (e.g., holidays, parental leave) and long-term absence are NOT to be included in the unplanned absences.
Available hours are the expected (theoretical) quantity of hours to be worked in the period excluding holidays and vacations.
Training. Any activity that results in the acquisition of knowledge, skills, and attitudes of an employee. This excludes sensibilization campaigns, or any activity that has as main purpose to
inform.
Percentage of employees trained. All employees that have completed at least 1 training. This allows us to understand the population reached by our initiatives.
Total number of training hours. Sum of training hours completed by all employees.
Average number of training hours per employee. Sum of training hours over the total number of employees. This metric allows us to understand the number of hours provided to each
employee.
238 I Ontex Integrated annual report 2023
12.5. OCCUPATIONAL HEALTH & SAFETY
An occupational accident is defined as a work-related unexpected and undesirable event resulting in damage or harm, namely injury or illness. Accidents on the way to or from home are not
considered as work-related unless the worker was travelling for Ontex at the time of the accident (commuting accident).
All sites where Ontex has operational control are included in the scope of the occupational safety reporting. Contractors (including temporary workers) are excluded from the reporting. However,
any event that deals with safety is investigated within our plants, whether it involves Ontex personnel or contractors.
The Lost Work Day Case is an occupational accident which results in a person being unfit for work on any day after the day of occurrence of the occupational injury.
To measure the progress, we use two indicators: the Lost Work Day Case frequency rate & severity rate.
Definitions
Lost Work Day Case - Frequency rate
The Lost Work Day Case frequency rate expresses the number of Lost Work Day Case per million worked hours. We use the abbreviation ‘Fr’ for this indicator. Our ambition to have zero
occupational accidents is measured through this formula: number Lost Work Day Case x 1.000.000 / total worked hours.
Lost Work Day Case - Severity rate
This indicator expresses the number of total lost days per thousand worked hours. We use the abbreviation ‘Sr’ for this indicator which is measured through this formula: number lost calendar
days x 1.000 / total worked hours.
12.6. LOCAL COMMUNITY INITIATIVE
Local societal actions refer to volunteer activities developed by a site or at the corporate level and/or monetary or product donations. These actions or donations have a positive societal impact
on at least one of the United Nations Sustainable Development Goals.
12.7. WORKERS IN THE VALUE CHAIN
Ontex’s methodology for the identification of countries considered at risk has been redefined, based on external sources of information such as the Fragile States Index, Global Freedom Status,
Amnesty International, Global Rights Index, and Human Rights Watch. To enhance accuracy and ensure consistency in the information, raw data has been extracted from a different source
than last reporting.
239 I Ontex Integrated annual report 2023
13. EU TAXONOMY REPORTING
CORE BUSINESS ACTIVITIES – TAXONOMY – NON-ELIGIBLE
The Taxonomy Regulation is a key component of the European Commission's action plan to redirect capital flows towards a more sustainable economy. It represents an important step towards
achieving carbon neutrality by 2050 in line with EU goals as the Taxonomy is a classification system for environmentally sustainable economic activities.
Article 8(2) of Regulation (EU) 2020/852 requires non-financial undertakings to disclose information on the proportion of the turnover, capital expenditure and operating expenditure (‘key
performance indicators’) of their activities related to assets or processes associated with environmentally sustainable economic activities (‘Taxonomy-aligned activities’), and the proportion of
their capital expenditure and their operating expenditure related to assets.
As indicated in the Delegated Regulation of (EU) 2021/2178, non-financial undertakings shall disclose the proportion of Taxonomy-eligible and alignment of economic activities in their total
turnover, capital and operational expenditure and the qualitative information for reporting year 2023, including comparative figures for eligibility
We have examined the Taxonomy-eligible economic activities applying the NACE codes on our activities as a producer for personal hygiene products for the reporting period 2023. Our view is
that our core economic activities related to producing and selling personal hygiene products are not covered by the Delegated Regulations and consequently are not currently considered for
Taxonomy purposes.
ACCOUNTING POLICIES
We determine the Taxonomy KPIs in accordance with the legal requirements and describe our accounting policy in this regard as follows:
Turnover KPI - Definition
The proportion of Taxonomy-eligible economic activities in our total turnover (i.e. consolidated revenue as presented in the consolidated income statement of the Group) has been calculated
as the part of the revenue derived from products and services associated with Taxonomy-eligible economic activities (numerator) divided by the consolidated revenue (denominator). The
denominator of the turnover KPI is based on our consolidated revenue in accordance with IAS 1.82(a). For further details on our accounting policies regarding our consolidated revenue, see
paragraph 7.1.12 of the consolidated financial statements 2023.
With regard to the numerator, we have not identified any Taxonomy-eligible activities as explained above.
Reconciliation
Our consolidated revenue can be reconciled with our consolidated financial statements, i.e. the consolidated income statement in the consolidated financial statements 2023.
Capex KPI - Definition
The Capex KPI is defined as Taxonomy-eligible Capital Expenditures (‘Capex’) (numerator) divided by our total Capex (denominator). With regard to the numerator, we refer to our explanations
below.
Total Capex is defined as purchases of property, plant and equipment (IAS 16) and intangible assets (IAS 38) during the financial year. For further details on our accounting policies regarding
our Capex, see paragraphs 7.1.6 and 7.1.7 of the consolidated financial statements 2023.
240 I Ontex Integrated annual report 2023
Our total Capex can be reconciled to the line item “Purchases of property, plant and equipment and intangible assets” in the consolidated statement of cash flows.
Opex KPI
The Opex KPI is defined as Taxonomy-eligible Operating Expenditure (‘Opex’) (numerator) divided by our total Opex (denominator). With regard to the numerator, we refer to our explanations
below.
Total Opex consists of direct non-capitalised expenses incurred to meet the ongoing operational costs of running a business. This includes, among others, expenses relating to non-capitalised
research and development, short-term and low-value leases, maintenance and repair, and any other direct expenditures relating to the day-to-day servicing of fixed assets (i.e. property, plant
and equipment and intangible assets).
Direct costs for training and other human resources adaptation needs are excluded from the denominator and the numerator. This is because Annex I to Art. 8 Delegated Act lists these costs
only for the numerator which does not allow a mathematically meaningful calculation of the Opex KPI.
EXPLANATION OF THE FIGURES
The amounts used for the calculation of the turnover, Capex and Opex ratios are based on the reported data in the consolidated financial statements. As none of our revenue-generating
activities are currently described in the Delegated Regulations, our EU Taxonomy-eligible turnover for 2023 is zero. For the same reason, we do not report any Capex related to assets or
processes associated with taxonomy-aligned economic activities or Capex that is part of a plan to expand taxonomy-aligned economic activities. Consequently, we only report Capex and Opex
resulting from innovations and the acquisition of products classified as taxonomy-eligible economic activities (and are not directly related to our turnover-generating activities). As these activities
are not tied directly to our core revenue-generating activities, our current Taxonomy-eligible Capex and Opex ratios are by year-end 2023 approximately 8% and 3% respectively.
241 I Ontex Integrated annual report 2023
Table 20: Proportion of Taxonomy-eligible economic activities in total turnover (%)
Substantial contribution criteria
DNSH criteria ('Does not
significantly harm')
Economic Activities
Code(s)
T
urnover
Proportion of turnover
Climate change mitigation
Climate change adaptation
Water and marine resources
Circular economy
Pollution
Biodiversity and ecosystems
Climate change mitigation
Climate change adaptation
Water and marine resources
Circular economy
Pollution
Biodiversity and ecosystems
Minimum safeguards
Taxonomy-
aligned
proportion
of
turnover,
year 2022
Category
enabling
activity
Category
transitional
activity
Mio€
%
%
%
%
%
%
%
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable
activities (Taxonomy-aligned)
Turnover of environmentally sustainable
activities (Taxonomy-aligned) (A.1)
0
0%
0%
0%
0%
0%
0%
0%
0%
Of which enabling
0
0%
0%
0%
0%
0%
0%
0%
E
Of which transitional
0
0%
0%
0%
0%
0%
0%
0%
T
A.2. Taxonomy-eligible but not
environmentally sustainable activities
(not Taxonomy-aligned activities)
0%
Turnover of taxonomy-eligible but not
environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2)
0
0%
0%
0%
0%
0%
0%
0%
Total (A.1 + A.2)
-
0%
0%
0%
0%
0%
0%
0%
0%
B. TAXONOMY NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible
activities (B)
2,341.5 m€
100%
100%
TOTAL (A+B)
2,341.5 m€
100%
100%
242 I Ontex Integrated annual report 2023
Table 21: Proportion of CapEx from products or services associated with Taxonomy-aligned economic activities in 2023
Substantial contribution criteria
DNSH criteria ('Does not
significantly harm')
Economic Activities
Code(s)
CapEx
(€M)
Proportion of CapEx
Climate change mitigation
Climate change adaptation
Water and marine resources
Circular economy
Pollution
Biodiversity and ecosystems
Climate change mitigation
Climate change adaptation
Water and marine resources
Circular economy
Pollution
Biodiversity and ecosystems
Minimum safeguards
Taxonomy-
aligned
proportion
of CapEx,
year 2022
Category
enabling
activity
Category
transitional
activity
mio€
%
%
%
%
%
%
%
Y/
N
Y/
N
Y/
N
Y/
N
Y/
N
Y/
N
Y/
N
%
E
T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable
activities (Taxonomy-aligned)
CapEx of environmentally sustainable
activities (Taxonomy-aligned) (A.1)
0 m€
0%
0
%
0%
0%
0%
0%
0%
0%
Of which enabling
0
0%
0
%
0%
0%
0%
0%
0%
E
Of which transitional
0
0%
0
%
0%
0%
0%
0%
0%
T
A.2. Taxonomy-eligible but not
environmentally sustainable activities
(not Taxonomy-aligned activities)
Installation, maintenance, repair of energy
efficiency equipment
CCM 7.3
7.5 m€
8%
N
N/
EL
N/
EL
N/
EL
N/
EL
N/E
L
NA
Collection and transport of non-hazardous
and hazardous waste
CE 2.3
0.2 m€
0%
N/
EL
N/
EL
N/
EL
N
N/
EL
N/E
L
NA
Total (A.1 + A.2)
7.7 m€
8%
NA
B. TAXONOMY NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy-non-eligible
activities (B)
88.8
m€
92%
100%
TOTAL (A+B)
96.5
m€
100
%
100%
243 I Ontex Integrated annual report 2023
Table 22: Proportion of OpEx from products or services associated with Taxonomy-aligned economic activities
Substantial contribution criteria
DNSH criteria ('Does not
significantly harm')
Economic Activities (1)
Code(s)
OpEx
Proportion of OpEx
Climate change mitigation
Climate change adaptation
Water and marine resources
Circular economy
Pollution
Biodiversity and ecosystems
Climate change mitigation
Climate change adaptation
Water and marine resources
Circular economy
Pollution
Biodiversity and ecosystems
Minimum safeguards
Taxonomy
-aligned
proportion
of OpEx,
year 2022
Category
enabling
activity
Category
transitional
activity
Mio€
%
%
%
%
%
%
%
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally
sustainable activities
(Taxonomy-aligned)
OpEx of environmentally
sustainable activities
(Taxonomy-aligned) (A.1)
0 m€
0%
0%
0%
0%
0%
0%
0%
0%
0%
Of which enabling
0
0%
0%
0%
0%
0%
0%
0%
E
Of which transitional
0
0%
0%
0%
0%
0%
0%
0%
T
A.2. Taxonomy-eligible but not
environmentally sustainable
activities (not Taxonomy-
aligned activities)
Electricity generation using
concentrated solar power
technology
CCM 4.2
1.3 m€
1%
N
N/E
L
N/EL
N/EL
N/EL
N/EL
NA
Close to market research,
development and innovation
CCM 9.1
3 m€
2.3%
N
N/E
L
N/EL
N/EL
N/EL
N/EL
NA
Total (A.1 + A.2)
4.3 m€
3.3%
0%
B. TAXONOMY NON-ELIGIBLE ACTIVITIES
OpEx of Taxonomy-non-eligible
activities (B)
126.1 m€
96,7
%
100%
TOTAL (A+B)
130.4 m€
100%
100%
244 I Ontex Integrated annual report 2023
14. INDEPENDENT LIMITED ASSURANCE REPORT ON A SELECTION OF SUSTAINABILITY KPIS IN THE
INTEGRATED ANNUAL REPORT 2023 OF ONTEX GROUP NV
To the Board of Directors of Ontex Group NV
This report has been prepared in accordance with the terms of our engagement contract dated 1 February 2024 (the “Agreement”), whereby we have been engaged to issue an independent
limited assurance report in connection with a selection of sustainability KPIs included in the Integrated Annual Report as of and for the year ended 31 December 2023 of Ontex Group NV (the
“Report”), as listed in the Appendix of this assurance report..
THE DIRECTORS’ RESPONSIBILITY
The Directors of Ontex Group NV (“the Company”) are responsible for the preparation and presentation of the selection of sustainability KPIs for the year 2023 included in the Report, as listed
in the Appendix of this assurance report (the “Subject Matter Information”), in accordance with the criteria disclosed in the Report (the “Criteria”).
This responsibility includes the selection and application of appropriate methods for the preparation of the Subject Matter Information, for ensuring the reliability of the underlying information
and for the use of assumptions and estimates for individual sustainability disclosures which are reasonable in the circumstances. Furthermore, the responsibility of the Directors includes the
design, implementation and maintenance of systems and processes relevant for the preparation of the Subject Matter Information that is free from material misstatement, whether due to fraud
or error.
AUDITOR’S RESPONSIBILITY
Our responsibility is to express an independent conclusion about the Subject Matter Information based on the procedures we have performed and the evidence we have obtained.
We conducted our work in accordance with the International Standard on Assurance Engagements 3000 (Revised) “Assurance Engagements other than Audits or Reviews of Historical Financial
Information” (ISAE 3000), issued by the International Auditing and Assurance Standards Board. This standard requires that we comply with ethical requirements and that we plan and perform
the engagement to obtain limited assurance as to whether any matters have come to our attention that cause us to believe that the Subject Matter Information has not been prepared, in all
material respects, in accordance with the Criteria.
The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement. Consequently, the level of
assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable engagement been performed. The selection
of such procedures depends on our professional judgement, including the assessment of the risks of material misstatement of the Subject Matter Information in accordance with the Criteria.
The scope of our work comprised the following procedures:
• assessing and testing the design and functioning of the systems and processes used for data-gathering, collation, consolidation and validation, including the methods used for
calculating and estimating the Subject Matter Information as of and for the year ended 31 December 2023 presented in the Report;
• conducting interviews with responsible officers;
• reviewing, on a limited test basis, relevant internal and external documentation;
245 I Ontex Integrated annual report 2023
• performing an analytical review of the data and trends in the information submitted for consolidation;
• considering the disclosure and presentation of the Subject Matter Information.
The scope of our work is limited to assurance over the Subject Matter Information. Our assurance does not extend to information in respect of earlier periods or to any other information included
in the Report..
OUR INDEPENDENCE AND QUALITY CONTROL
We have complied with the independence and other ethical requirements in the International Ethics Standards Board for Accountants’ (IESBA) International Code of Ethics for Professional
Accountants (IESBA Code) together with the legal Belgian requirements in respect of the auditor independence, particularly in accordance with the rules set down in articles 12, 13, 14, 16, 20,
28 and 29 of the Belgian Act of 7 December 2016 organising the audit profession and its public oversight of registered auditors, and with Art. 3:62, 3:63 and 3:64 and 3:65 of the Companies’
and Associations’ Code.
Our firm applies International Standard on Quality Management n°1, Quality Management for Firms that Perform Audits and Reviews of Financial Statements, and Other Assurance Related
Services Engagements, and accordingly, maintains a comprehensive system of quality management including documented policies and procedures regarding compliance with ethical
requirements, professional standards and applicable legal and regulatory requirements..
OUR CONCLUSION
Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention that causes us to believe that the Subject Matter Information within your
Integrated Annual Report as of and for the year ended 31 December 2023 has not been prepared, in all material respects, in accordance with the Criteria.
OTHER ESG RELATED INFORMATION
The other information comprises all of the ESG related information in the Report other than the Subject Matter Information and our assurance report. The directors are responsible for the other
ESG related information. As explained above, our assurance conclusion does not extend to the other ESG related information and, accordingly, we do not express any form of assurance
thereon. In connection with our assurance of the Subject Matter Information, our responsibility is to read the other ESG related information and, in doing so, consider whether the other ESG
related information is materially inconsistent with the Subject Matter Information or our knowledge obtained during the assurance engagement, or otherwise appears to contain a material
misstatement of fact. If we identify an apparent material inconsistency or material misstatement of fact, we are required to perform procedures to conclude whether there is a material
misstatement of the Subject Matter Information or a material misstatement of the other information, and to take appropriate actions in the circumstances.
246 I Ontex Integrated annual report 2023
OTHER MATTER - RESTRICTION ON USE AND DISTRIBUTION OF OUR REPORT
Our report is intended solely for the use of the Company, to whom it is addressed, in connection with their Report as of and for the year ended 31 December 2023 and should not be used for
any other purpose. We do not accept or assume and deny any liability or duty of care to any other party to whom this report may be shown or into whose hands it may come.
Ghent, 28 March 2024
The statutory auditor
PwC Bedrijfsrevisoren BV/PwC Reviseurs d'Entreprises SRL
Represented by
Lien Winne*
Bedrijfsrevisor/Réviseur d'entreprises
*Acting on behalf of Lien Winne BV
247 I Ontex Integrated annual report 2023
APPENDIX – SUBJECT MATTER INFORMATION
In the “Sustainability/ Non-financial statements” chapter “6.1 Consolidation environmental figures”:
On page 199:
total scope 1 & 2 emissions market-based [tons CO2-equivalent]
total scope 1 & 2 emissions location-based [tons CO2-equivalent]
total greenhouse gas emissions in scope 3 [tons CO2-equivalent]
On page 206:
total production waste [ton]
recycling index [%]
Waste diverted from disposal [ton]
Waste directed to disposal [ton]
248 I Ontex Integrated annual report 2023
15. GRI CONTENT INDEX
Statement of use
Ontex has reported in accordance with the GRI Standards for the period 1 January 2023 – 31 December 2023.
GRI 1 used
GRI 1: Foundation 2021
Applicable GRI Sector Standard(s)
None
GRI Standard/
other source
Disclosure Location
Omission
Require-
ment(s)
omitted
Reason
Explanation
GENERAL DISCLOSURES
GRI 2: General
Disclosures 2021
2-1 Organizational details Strategic report ‘Ontex. Here for you.’
2-2 Entities included in the organization’s sustainability
reporting
Sustainability statements 1. General information
2-3 Reporting period, frequency and contact point
Sustainability statements 1.General information
2-4 Restatements of information
Sustainability statements 1.General information
2-5 External assurance
Sustainability statements 14. Independent Limited Assurance Report
2-6 Activities, value chain and other business
relationships
Strategic report ‘Our categories’
Sustainability statements 10. Our value chain
2-7 Employees
Sustainability statements 9. Own workforce
2-8 Workers who are not employees
Sustainability statements 9. Own workforce
2-9 Governance structure and composition
Corporate Governance Statement ‘Board and Executive Management’
Sustainability statements 2. Governance ESG
2-10 Nomination and selection of the highest
governance body
Corporate Governance Charter (link).
2-11 Chair of the highest governance body
Corporate Governance Statement ‘Board Composition’
2-12 Role of the highest governance body in overseeing
the management of impacts
Sustainability statements 2. Governance ESG
2-13 Delegation of responsibility for managing impacts
Corporate Governance Charter (link) (section 6.4 (Relationship with the Board
of Directors).
2-14 Role of the highest governance body in
sustainability reporting
Sustainability statements 2. Governance ESG
2-15 Conflicts of interest
Corporate Governance Statement (under “Conflicts of interest”)
Corporate Governance Charter (link) (section 4.6.2 (Conflicts of interest)).
2-16 Communication of critical concerns
Sustainability statements 2.3.2 Grievance mechanisms
2-17 Collective knowledge of the highest governance
body
Corporate Governance Statement (under “Competency matrix”)
2-18 Evaluation of the performance of the highest
governance body
Corporate Governance Statement (under “Board review and assessments”)
and Remuneration Report
249 I Ontex Integrated annual report 2023
GRI Standard/
other source
Disclosure Location
Omission
Require-
ment(s)
omitted
Reason
Explanation
GENERAL DISCLOSURES
GRI 2: General
Disclosures 2021
2-19 Remuneration policies
Remuneration Policy (link)
2-20 Process to determine remuneration
Remuneration Policy (link)
2-21 Annual total compensation ratio
Remuneration Report 9.4 Remuneration & performance evolution
2-22 Statement on sustainable development strategy
Sustainability statements 3. Sustainability Strategy 2030
2-23 Policy commitments
Sustainability statements 2.ESG Governance
2-24 Embedding policy commitments
Sustainability statements 2. ESG Governance
2-25 Processes to remediate negative impacts
Sustainability statements 2. ESG Governance
2-26 Mechanisms for seeking advice and raising
concerns
Sustainability statements 2. ESG Governance
2-27 Compliance with laws and regulations
Financial statements 7.21 Provisions & 7.29 Contingencies
2-28 Membership associations
Sustainability statements 4. Stakeholder engagement
2-29 Approach to stakeholder engagement
Sustainability statements 4. Stakeholder engagement
2-30 Collective bargaining agreements
Sustainability statements 9. Own workforce
MATERIAL TOPICS
GRI 3: Material
Topics 2021
3-1 Process to determine material topics
Sustainability statements 5. Double materiality assessment
3-2 List of material topics
Sustainability statements 5. Double materiality assessment
INDIRECT ECONOMIC IMPACTS
GRI 3: Material
Topics 2021
3-3 Management of material topics
Sustainability statements 9. Own workforce - Local community initiatives
GRI 203: Indirect
Economic
Impacts 2016
203-1 Infrastructure investments and services supported
Sustainability statements 9. Own workforce - Local community initiatives
203-2 Significant indirect economic impacts
Sustainability statements 9. Own workforce - Local community initiatives
ANTI-CORRUPTION
GRI 3: Material
Topics 2021
3-3 Management of material topics Sustainability statements 2. Governance ESG
GRI 205: Anti-
corruption 2016
205-1 Operations assessed for risks related to corruption
205-1 & 205-3
Information
unavailable/
incomplete
205-2 Communication and training about anti-corruption
policies and procedures
Sustainability statements 2. Governance ESG
205-3 Confirmed incidents of corruption and actions
taken
-
250 I Ontex Integrated annual report 2023
GRI Standard/
other source
Disclosure Location
Omission
Require-
ment(s)
omitted
Reason
Explanation
ANTI-COMPETITIVE BEHAVIOR
GRI 3: Material
Topics 2021
3-3 Management of material topics
Sustainability statements 2. Governance ESG
GRI 206: Anti-
competitive
Behavior 2016
206-1 Legal actions for anti-competitive behavior, anti-
trust, and monopoly practices
Financial statements 7.21 Provisions
MATERIALS
GRI 3: Material
Topics 2021
3-3 Management of material topics
Sustainability statements 7. Resource use & circular economy
GRI 301: Materials
2016
301-1 Materials used by weight or volume
Sustainability statements 7. Resource use & circular economy
301-2 Recycled input materials used
Sustainability statements 7. Resource use & circular economy
301-3 Reclaimed products and their packaging materials
-
301-3
Not
applicable
due to nature
of the
products.
ENERGY
GRI 3: Material
Topics 2021
3-3 Management of material topics
Sustainability statements E2 Climate data 2.3 Our approach
GRI 302: Energy
2016
302-1 Energy consumption within the organization
Sustainability statements 6.1 Consolidation environmental statements
302-2 Energy consumption outside of the organization
Sustainability statements 6.1 Consolidation environmental statements
302-3 Energy intensity
Sustainability statements 6.1 Consolidation environmental statements
302-4 Reduction of energy consumption
Sustainability statements 6.1 Consolidation environmental statements
302-5 Reductions in energy requirements of products
and services
Sustainability statements 6.1 Consolidation environmental statements
251 I Ontex Integrated annual report 2023
GRI Standard/
other source
Disclosure Location
Omission
Require-
ment(s)
omitted
Reason
Explanation
EMISSIONS
GRI 3: Material
Topics 2021
3-3 Management of material topics
Sustainability statements 6. Climate change
GRI 305:
Emissions 2016
305-1 Direct (Scope 1) GHG emissions
Sustainability statements 6. Climate change
305-2 Energy indirect (Scope 2) GHG emissions
Sustainability statements 6. Climate change
305-3 Other indirect (Scope 3) GHG emissions
Sustainability statements 6. Climate change
305-4 GHG emissions intensity
Sustainability statements 6. Climate change
305-5 Reduction of GHG emissions
Sustainability statements 6. Climate change
305-6 Emissions of ozone-depleting substances (ODS)
-
305-6
Information
unavailable/
incomplete
305-7 Nitrogen oxides (NOx), sulfur oxides (SOx), and
other significant air emissions
-
305-7
Information
unavailable/
incomplete
WASTE
GRI 3: Material
Topics 2021
3-3 Management of material topics
Sustainability statements 7. Resource use & circular economy
GRI 306: Waste
2020
306-1 Waste generation and significant waste-related
impacts
Sustainability statements 7. Resource use & circular economy
306-2 Management of significant waste-related impacts
Sustainability statements 7. Resource use & circular economy
306-3 Waste generated
Sustainability statements 7. Resource use & circular economy
306-4 Waste diverted from disposal
Sustainability statements 7. Resource use & circular economy
306-5 Waste directed to disposal
Sustainability statements 7. Resource use & circular economy
SUPPLIER ENVIRONMENTAL ASSESSMENT
GRI 3: Material
Topics 2021
3-3 Management of material topics
Sustainability statements 10. Workers in the value chain
GRI 308: Supplier
Environmental
Assessment 2016
308-
1 New suppliers that were screened using
environmental criteria
Sustainability statements 10. Workers in the value chain
308-2 Negative environmental impacts in the supply
chain and actions taken
Sustainability statements 10. Workers in the value chain
252 I Ontex Integrated annual report 2023
GRI Standard/
other source
Disclosure Location
Omission
Require-
ment(s)
omitted
Reason
Explanation
EMPLOYMENT
GRI 3: Material
Topics 2021
3-3 Management of material topics
Sustainability statements 9. Our workforce
GRI 401:
Employment 2016
401-1 New employee hires and employee turnover
Sustainability statements 9. Our workforce
401-2 Benefits provided to full-time employees that are
not provided to temporary or part-time employees
-
401-2
Information
unavailable/
incomplete
401-3 Parental leave
-
401-3
Information
unavailable/
incomplete
OCCUPATIONAL HEALTH AND SAFETY
GRI 3: Material
Topics 2021
3-3 Management of material topics
Sustainability statements 9. Our workforce
GRI 403:
Occupational
Health and Safety
2018
403-1
Occupational health and safety management
system
Sustainability statements 9. Our workforce
403-
2 Hazard identification, risk assessment, and
incident investigation
Sustainability statements 9. Our workforce
403-3 Occupational health services
-
403-3
Information
unavailable/
incomplete
403-4 Worker participation, consultation, and
communication on occupational health and safety
Sustainability statements 9. Our workforce
403-5 Worker training on occupational health and safety - 403-5 Information
unavailable/
incomplete
403-6 Promotion of worker health
-
403-6
Information
unavailable/
incomplete
403-7 Prevention and mitigation of occupational health
and safety impacts directly linked by business
relationships
Sustainability statements 9. Our workforce
403-8 Workers covered by an occupational health and
safety management system
Sustainability statements 9. Our workforce
403-9 Work-related injuries
Sustainability statements 9. Our workforce
403-10 Work-related ill health - 403-10 Information
unavailable/
incomplete
253 I Ontex Integrated annual report 2023
GRI Standard/
other source
Disclosure Location
Omission
Require-
ment(s)
omitted
Reason
Explanation
TRAINING AND EDUCATION
GRI 3: Material
Topics 2021
3-3 Management of material topics
Sustainability statements 9. Our workforce
GRI 404: Training
and Education
2016
404-1 Average hours of training per year per employee
Sustainability statements 9. Our workforce
404-2 Programs for upgrading employee skills and
transition assistance programs
-
404-2
Information
unavailable/
incomplete
404-3 Percentage of employees receiving regular
performance and career development reviews
Sustainability statements 9. Our workforce
DIVERSITY AND EQUAL OPPORTUNITY
GRI 3: Material
Topics 2021
3-3 Management of material topics
Sustainability statements 9. Our workforce
GRI 405: Diversity
and Equal
Opportunity 2016
405-1 Diversity of governance bodies and employees
Sustainability statements 7.1 Consolidation social statements
Corporate governance statements 1. Board and Executive Management –
Competency matrix
405-2 Ratio of basic salary and remuneration of women
to men
-
Information
unavailable/
incomplete
SUPPLIER SOCIAL ASSESSMENT
GRI 3: Material
Topics 2021
3-3 Management of material topics
Sustainability statements 10. Workers in the value chain
GRI 414: Supplier
Social
Assessment 2016
414-1 New suppliers that were screened using social
criteria
Sustainability statements 10. Workers in the value chain
414-2 Negative social impacts in the supply chain and
actions taken
Sustainability statements 10. Workers in the value chain
CUSTOMER HEALTH AND SAFETY
GRI 3: Material
Topics 2021
3-3 Management of material topics
Sustainability statements 11. Consumer safety
GRI 416:
Customer Health
and Safety 2016
416-1 Assessment of the health and safety impacts of
product and service categories
Sustainability statements 11. Consumer safety
416-2 Incidents of non-compliance concerning the health
and safety impacts of products and services
Sustainability statements 11. Consumer safety
254 I Ontex Integrated annual report 2023
Glossary
Description
Adjusted Profit
(or Adjusted Basic Earnings)
Adjusted Profit is defined as profit for the period including EBITDA adjustments and the tax effect of these adjustments, attributable to the owners of the parent.
Adjusted Basic Earnings per
share
Adjusted Basic Earnings per share are defined as Adjusted Basic Earnings divided by the weighted average number of ordinary shares.
Adjusted EBITDA
Adjusted EBITDA is defined as EBITDA plus EBITDA adjustments.
Adjusted EBITDA margin
Adjusted EBITDA margin is adjusted EBITDA divided by revenue.
Free Cash Flow before financing
Free Cash Flow before financing is defined as net cash generated from operating activities (as presented in the consolidated cash flow statement, i.e. including income taxes
paid) less capital expenditures (Capex, defined as purchases of property, plant and equipment and intangible assets), less repayment of lease liabilities and including cash
(used in)/from disposal.
Free Cash Flow (after financing)
Free cash flow (after financing) is defined as free cash flow before financing, less financing cash flows, i.e. Interests paid and received, and other financing cash flows (Cost
of refinancing & other costs of financing, realized foreign exchange (losses)/gains on financing activities and Derivative financial assets).
EBITDA
EBITDA is defined as earnings before net finance cost, income taxes, depreciations and amortizations.
Like-for-like (LFL) revenue
Like-for-like revenue is defined as revenue at constant currency excluding change in scope of consolidation or M&A and
hyperinflation impacts.
LTM adjusted EBITDA
LTM adjusted EBITDA is defined as adjusted EBITDA generated in the last twelve months (LTM). For the period ending on December 31, this corresponds to the adjusted
EBITDA of the year.
Net Financial Debt
Net financial debt is calculated by adding short-term and long-term debt and deducting cash and cash equivalents.
Net financial debt/LTM adjusted
EBITDA ratio (leverage)
Net financial debt divided by Adjusted EBITDA for the last twelve months (LTM) adjusted for the scope at the end of the period.
EBITDA adjustments
EBITDA adjustments are made for Income and expenses that are considered by management not to relate to transactions, projects and adjustments to the value of assets
and liabilities taking place in the ordinary course of activities of the Group. These income and expenses are presented separately, due to their size or nature, so as to allow
users of the consolidated
financial statements of the Company to get a better understanding of the normalized performance of the Company, and relate to:
• acquisition-related expenses;
• changes to the measurement of contingent considerations in the context of business combinations;
• changes to the Group structure, business restructuring costs, including costs related to the liquidation of subsidiaries
and the closure, opening or relocations of factories;
• impairment of assets and major litigations.
In the consolidated income statement these EBITDA adjustments are composed of the following items:
• income/(expenses) related to changes to Group structure; and
• income/(expenses) related to impairments and major litigations.
Working Capital
Working capital is calculated by adding current inventories, trade receivables and prepaid expenses and other receivables
and deducting trade payables and accrued expenses and other payables.
255 I Ontex Integrated annual report 2023
About this Report
EACH YEAR ONTEX PUBLISHES AN INTEGRATED REPORT COVERING THE ECONOMIC, ENVIRONMENTAL AND SOCIAL ISSUES THAT MATTER MOST TO US
AND OUR STAKEHOLDERS. OUR LATEST REPORT WAS PUBLISHED ON APRIL 2, 2024.
THIS REPORT CONTAINS FINANCIAL AND NON-FINANCIAL INFORMATION FOR THE PERIOD JANUARY 1, 2023 TO DECEMBER 31, 2023, UNLESS OTHERWISE
SPECIFIED. IT ENCOMPASSES OUR OPERATIONS IN 20 COUNTRIES ON FIVE CONTINENTS AS WELL AS OUR HEADQUARTERS IN AALST, BELGIUM, WHICH
TOGETHER EMPLOY ~7,500 PEOPLE. SOME MANUFACTURING SITES AND OFFICES DO NOT REPORT ALL SOCIAL OR ENVIRONMENTAL DATA, AND IN
THESE CASES THE TYPE OF DATA THEY REPORT MAY DIFFER FROM SITE TO SITE. SEE THE NOTES IN SUSTAINABILITY STATEMENTS CHAPTER OF THIS
REPORT.
We have used the Global Reporting Initiative (GRI) Standards (Core option) with reference to the Sustainable Development Goals (SDGs) to guide us in preparing this report. GRI is the
international standard for sustainability reporting. The SDGs define global sustainable development priorities and aspirations for 2030 and seek to mobilize global efforts around a common set
of goals and targets.
Disclaimer: This report 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, Ontex’s 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 report regarding trends or current activities should not be taken as a report that such trends or activities will continue in the future.
This report represents the directors’ report prepared in accordance with article 3:32 §1 of the Belgian Company Code. In most of the tables of this report, amounts are shown in € million for
reasons of transparency. This may give rise to rounding differences in the tables presented in the report. This report has been prepared in English and translated into Dutch. In the case of
discrepancies between the two versions, the Dutch version will prevail.
The Group prepares and discloses its financial statements in the European Single Electronic Format (ESEF) in Dutch and English. In addition, the Group makes available its financial statements
in Dutch and English in pdf format. The Dutch financial statements prepared by the Group in the ESEF format are the only official ESEF version of the financial statements that exempt the
Group from the obligations contained in the European Transparency Directive. The financial statements made available in pdf format on the Group's website, as well as financial statements
prepared in ESEF format in a language other than Dutch, are therefore considered unofficial versions and translations. The official ESEF version prevails over all unofficial and translated
versions. The official ESEF version of the Group's financial statements is filed on the Group's website ontex.com.
The Ontex leadership team has validated this report.
256 I Ontex Integrated annual report 2023
Financial Calendar 2024
Date
Q1 2024
May 3, 2024
Annual General Meeting of Shareholders
May 3, 2024
Q2 & H1 2024
July 31, 2024
Q3 2024
October 24, 2024
Q4 & FY 2024
February 12, 2025
CONTACT DETAILS
Investors
Geoffroy Raskin +32 53 333 730
investor.relations@ontexglobal.com
Press
Maarten Verbanck + 32 53 33 36 20
corporate.communications@ontexglobal.com
Sustainability
Elise Barbé +32 53 333 756
elise.barbe@ontexglobal.com
Send us your feedback: https://ontex.com/contact or corporate.communications@ontexglobal.com
Here for you.
Ontex Group NV
Korte Keppestraat 21 - 9320 Aalst - Belgium
https://ontex.com