Prestige Consumer Healthcare Inc. · NYSE:PBH

Prestige Consumer Healthcare — Q2 FY2019 Earnings Presentation

26 slides from Prestige Consumer Healthcare's earnings presentation, Nov 1, 2018

1. Slide 1: Second Quarter 2019 Results

   Exhibit 99.2 Prestige Consumer HEALTHCARE Second Quarter 2019 Results November 1°, 2018 i

2. Slide 2: Forward-looking statements

   This presentation contains certain “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements regarding the Company’s expected financial performance, including revenue growth, organic revenue growth, online sales revenue, adjusted EPS,

3. Slide 3: Agenda for Today's Discussion

   0 aaa... Agenda for Today's Discussion |. Performance Highlights ll. Financial Overview Ill. FY 19 Outlook and the Road Ahead Second Quarter FY 19 Results

4. Slide 4: I. Performance Highlights

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5. Slide 5: Q2 Results: Another Solid Quarter

   Q2 Results: Another Solid Quarter Second Quarter FY 19 Results

6. Slide 6: Q2 Revenue, margin, EPS and free cash flow highlights

    Q2 Revenue of $239.4 million, up 1.6%(1) versus PY Q2 adjusted for the Household divestiture – Solid consumption growth in-line with full-year expectations – Strong growth in international segment – Revenue continues to be impacted by shipment timing of new BC/Goody’s packaging and change in reven

7. Slide 7: Strong Financial Performance in First Half FY

   Strong Financial Performance in First Half FY 19 Revenue of $493.3 million, up 0.4%" organically versus 1H FY 18; in-line with expectations Freight and warehouse costs continue to improve and have Largely returned to normalized Levels Adjusted EPS of $1.33), up 4.7% versus 18 ue, Adjusted EPS‘) and

8. Slide 8: Consistently Outpacing the Category

   Consistently Outpacing the Category(3) Professional FY 2014 – L-52 Consumption CAGR Marketing 3x 6.5% Brand Innovation 2.2% Digital Marketing Ear Wax Removers Category

9. Slide 9: Continues Brand-Building Efforts

   Continues Brand-Building Efforts  Product has begun to arrive on top customer shelves while continuing to build inventory  Revenue and Gross Margin headwinds from rollout in Q2  Marketing efforts began in October Began building inventory Products begin to arrive on Launch marketing of new product

10. Slide 10: E-Commerce Brand of Choice

    E-Commerce Brand of Choice Strong Online Sales Trajectory  Channel remains an opportunity, not a threat $32+  Ongoing channel investments – Effective digital marketing efforts 2H  Optimal consumer connection opportunities FY19E ~$20 Run-Rate ~$10 1H ~$16 FY19 “Hard to find” “Shy to buy” “Regimen”

11. Slide 11: II. Financial Overview

    Il. Financial Overview leet. Summer’ Eve

12. Slide 12: Overall financial performance as expected in the quarter

     Overall financial performance as expected in the quarter: − Q2 Revenue of $239.4 million, an organic growth increase of 1.6%(1) vs prior year − Q2 Adjusted EBITDA(2) of $80.1 million, a decrease of (7.3%) vs prior year − Q2 Adjusted EPS of $0.65(2), an increase of 6.6% vs prior year, and YTD 2019

13. Slide 13: Organic revenue growth of 1.6%

     Organic revenue growth of 1.6%(1) Q2 FY 19 Q2 FY 18 % Chg Q2 FY 19 Q2 FY 18 % Chg in Q2 Total Revenue $ 239.4 $ 258.0 (7.2%) $ 493.3 $ 514.6 (4.1%) (2) – Impacted by shipment Adjusted Gross Margin 137.5 145.2 (5.3%) 278.3 291.3 (4.5%) timing of new BC/Goody’s % Margin 57.4% 56.3% 56.4% 56.6% packa

14. Slide 14: Q2 Adjusted Free Cash Flow and net debt

     Q2 Adjusted Free Cash Flow(2) impacted by BC and Q2 FY 19 Q2 FY 18 1H FY 19 1H FY 18 Goody’s inventory build to support new product launch as well as cadence of profitability (12.3%)  Net Debt(2) at September 30 of $1,876 million; (4) $111.4 leverage ratio of 5.2x at end of Q2 $97.7  Completed $

15. Slide 15: III. FY Outlook and the Road Ahead

    Ill. FY 19 Outlook and the Road Ahead Fleet. Summers€ve Dramamine di Ep Hn MONISTAT amma

16. Slide 16: FY19 outlook

     Strong momentum across our portfolio; continue to win share versus categories and private label  Household divestiture enables sole focus on consumer healthcare business  Continue to gain market share with consumers and grow categories with retailers  Prestige’s portfolio of leading brands cont

17. Slide 17: Brand portfolio

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18. Slide 18: Non-GAAP footnotes

    (1) Organic Revenue Growth is a Non-GAAP financial measure and is reconciled to the most closely related GAAP financial measure in the attached Reconciliation Schedules and / or our earnings release in the “About Non-GAAP Financial Measures” section. (2) Adjusted Gross Margin, Adjusted A&P, Adjusted

19. Slide 19: Organic revenue reconciliation

    Three Months Ended Sept. 30, Six Months Ended Sept. 30, 2018 2017 2018 2017 (In Thousands) GAAP Total Revenues $ 239,357 $ 258,026 $ 493,337 $ 514,599 Revenue Growth (7.2%) (4.1%) Adjustments: Revenue associated with divestiture - (21,767) (19,811) (41,627) Allocated costs that remain after divestit

20. Slide 20: Adjusted gross margin reconciliation

    Three Months Ended Sept. 30, Six Months Ended Sept. 30, 2018 2017 2018 2017 (In Thousands) GAAP Total Revenues $ 239,357 $ 258,026 $ 493,337 $ 514,599 GAAP Gross Profit $ 137,472 $ 144,098 $ 278,095 $ 287,574 GAAP Gross Profit as a Percentage of GAAP Total Revenue 57.4% 55.8% 56.4% 55.9% Adjustments

21. Slide 21: Adjusted A&P reconciliation

    Three Months Ended Sept. 30, Six Months Ended Sept. 30, 2018 2017 2018 2017 (In Thousands) GAAP Advertising and Promotion Expense $ 37,042 $ 39,188 $ 74,153 $ 76,132 GAAP Advertising and Promotion Expense as a Percentage of GAAP Total Revenue 15.5% 15.2% 15.0% 14.8% Adjustments: Integration, transit

22. Slide 22: Adjusted G&A reconciliation

    Three Months Ended Sept. 30, Six Months Ended Sept. 30, 2018 2017 2018 2017 (In Thousands) GAAP General and Administrative Expense $ 24,034 $ 21,999 $ 47,975 $ 42,409 GAAP General and Administrative Expense as a Percentage of GAAP Total Revenue 10.0% 8.5% 9.7% 8.2% Adjustments: Integration, transiti

23. Slide 23: Adjusted EBITDA reconciliation

    Three Months Ended Sept. 30, Six Months Ended Sept. 30, 2018 2017 2018 2017 (In Thousands) GAAP Net Income $ 30,841 $ 30,705 $ 65,307 $ 64,464 Interest expense, net 27,070 26,836 53,010 53,177 Provision for income taxes 12,678 18,616 24,672 37,545 Depreciation and amortization 7,994 8,534 16,366 17,

24. Slide 24: Adjusted EPS reconciliation

    Three Months Ended Sept. 30, Six Months Ended Sept. 30, 2018 2017 2018 2017 Net Net Net Net Income EPS Income EPS Income EPS Income EPS (In Thousands, except per share data) GAAP Net Income $ 30,841 $ 0.59 $ 30,705 $ 0.57 $ 65,307 $ 1.24 $ 64,464 $ 1.20 Adjustments: Integration, transition and other

25. Slide 25: Adjusted free cash flow reconciliation

    Three Months Ended Sept. 30, Six Months Ended Sept. 30, 2018 2017 2018 2017 (In Thousands) GAAP Net Income $ 30,841 $ 30,705 $ 65,307 $ 64,464 Adjustments: Adjustments to reconcile net income to net cash provided by operating activities as shown in the Statement of Cash Flows 5,349 21,530 23,054 43,

26. Slide 26: 2019 projected EPS and free cash flow reconciliation

    2019 Projected Free Cash Flow 2019 Projected EPS Low High (In millions) Projected FY'19 GAAP EPS $ 2.75 $ 2.83 Projected FY'19 GAAP Net Cash provided by operating activities $ 195 Adjustments: Additions to property and equipment for cash (13) Sale of Household Cleaning Business 0.07 0.07 Projected N

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