Prestige Consumer Healthcare Inc. · NYSE:PBH

Prestige Consumer Healthcare — Prestige Brands Holdings — Q2 FY2015 Earnings Presentation

25 slides from Prestige Consumer Healthcare's earnings presentation, Nov 6, 2014

  1. Slide 1: Review of Second Quarter F'15 Results

    P R E S T I G E B R A N D S S e c o n d Q u a r t e r F ’ 1 5 R e s u l t s 1 Review of Second Quarter F’15 Results Matt Mannelly, CEO & President Ron Lombardi, CFO November 6, 2014

  2. Slide 2: Safe Harbor Disclosure

    P R E S T I G E B R A N D S S e c o n d Q u a r t e r F ’ 1 5 R e s u l t s 2 This presentation contains certain “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements about the Company’s product introductions, investments in brand

  3. Slide 3: Agenda for Today's Discussion

    P R E S T I G E B R A N D S S e c o n d Q u a r t e r F ’ 1 5 R e s u l t s 3 Agenda for Today’s Discussion I. Second Quarter FY2015: Performance Highlights II. Second Quarter FY2015: Financial Overview III. FY2015 Outlook and the Road Ahead

  4. Slide 4: I. Second Quarter FY2015: Performance Highlights

    P R E S T I G E B R A N D S S e c o n d Q u a r t e r F ’ 1 5 R e s u l t s 4 I. Second Quarter FY2015: Performance Highlights

  5. Slide 5: Q2 Performance Highlights: Strong Performance in a Challenging Retail Environment

    P R E S T I G E B R A N D S S e c o n d Q u a r t e r F ’ 1 5 R e s u l t s 5 Q2 Performance Highlights: Strong Performance in A Challenging Retail Environment  Q2 consolidated Total Revenue of $181.3 million, up 8.6% versus the prior year corresponding quarter − 1.0% growth excluding the impact of

  6. Slide 6: Building Prestige's Portfolio: A Platform for Value Creation

    P R E S T I G E B R A N D S S e c o n d Q u a r t e r F ’ 1 5 R e s u l t s 6 Building Prestige’s Portfolio: A Platform for Value Creation Focus on Brand Building Create a Diversified OTC Portfolio Leverage Our Financial Model to Build the Portfolio  Focus on long-term growth of Core OTC brands  I

  7. Slide 7: Goody's Headache Relief Shot: Victory on the Track and at Retail

    P R E S T I G E B R A N D S S e c o n d Q u a r t e r F ’ 1 5 R e s u l t s 7 Goody’s Headache Relief Shot 500 Victory on the Track and at Retail Dale Will Drive the Goody’s Car #88 in Texas next year and promote “speed” Consumption +2x Category Growth in L-12 Weeks Our Marketing Model at Work: Spor

  8. Slide 8: Our Marketing Model at Work: New Flavors & Launch Tour

    P R E S T I G E B R A N D S S e c o n d Q u a r t e r F ’ 1 5 R e s u l t s 8 Our Marketing Model at Work: New Flavors & Launch Tour Sweeten Consumption  Consumer research drives new flavor selections and zeros in on taste preferences of key target audience to grow franchise  Watermelon, Blue Rasp

  9. Slide 9: Our Marketing Model at Work: Doctor's Digital Commerce Journey

    P R E S T I G E B R A N D S S e c o n d Q u a r t e r F ’ 1 5 R e s u l t s 9 Our Marketing Model at Work: Doctor’s Digital Commerce Journey Source: IRI MULO + C-Store, L12-week period ending October 5, 2014. Note: Data reflects retail dollar sales. Digital E-Commerce Drives Brand Growth +6.6% in Q2

  10. Slide 10: Our Marketing Model at Work: Partnering With Retailers on Portfolio Promotions

    P R E S T I G E B R A N D S S e c o n d Q u a r t e r F ’ 1 5 R e s u l t s 1 0 Our Marketing Model at Work: Partnering With Retailers on Portfolio Promotions Trade activation programs leverage scale within categories by partnering core brands with loyalty brands to increase consumer shopping basket

  11. Slide 11: Consumption Growth Accelerating, Brand Building Leading to Share Gains

    P R E S T I G E B R A N D S S e c o n d Q u a r t e r F ’ 1 5 R e s u l t s 1 1 (1.8%) 1.0% 2.5% 4.9% Source: Latest 12-week IRI multi-outlet retail dollar sales growth for relevant quarter. Data reflects retail dollar sales percentage growth versus prior period. (1) Excludes PediaCare, Little Remed

  12. Slide 12: Consumption Consistently Outpacing Shipments as Retailers Reduce Inventory

    P R E S T I G E B R A N D S S e c o n d Q u a r t e r F ’ 1 5 R e s u l t s 1 2 Consumption Consistently Outpacing Shipments as Retailers Reduce Inventory Notes: (1) Core OTC Brands; Excludes PediaCare, Little Remedies, Beano and Insight Pharmaceuticals. (2) Company estimate. 6.8% 3.4% 6.2% 3.2% Q3

  13. Slide 13: Integration of Insight Pharmaceuticals on Track

    P R E S T I G E B R A N D S S e c o n d Q u a r t e r F ’ 1 5 R e s u l t s 1 3 Integration of Insight Pharmaceuticals on Track Regulatory / Quality Assurance Systems / Back-Office Supply Chain Sales & Distribution  IT systems and processes transferred  Personnel and offices transitioned Brand Bui

  14. Slide 14: The Combined Prestige Portfolio

    P R E S T I G E B R A N D S S e c o n d Q u a r t e r F ’ 1 5 R e s u l t s 1 4 The Combined Prestige Portfolio Analgesics GI Women’s Health Cough & Cold Oral Care Sleep Aids Skin Care Household Cleaning Eye & Ear Care Care Pharmaceuticals New Brand New Brand New Brand New Brand New Brand New Brand

  15. Slide 15: Portfolio Anchored in Multiple Category Platforms of Scale

    P R E S T I G E B R A N D S S e c o n d Q u a r t e r F ’ 1 5 R e s u l t s 1 5 Portfolio Anchored in Multiple Category Platforms of Scale $175 0% 20% 40% 60% 80% 100% $175 $200 $100 $140 $90 $70 ~$10 Women’s Health Cough Cold Analgesics Derm. Eye & Ear Oral Care Sleep Aids Other Insight Other Insig

  16. Slide 16: Acquisitions Have Strengthened Our OTC Platform

    P R E S T I G E B R A N D S S e c o n d Q u a r t e r F ’ 1 5 R e s u l t s 1 6 Acquisitions Have Strengthened Our OTC Platform Category Breadth(1) International Expansion(1) Brand Scale (Top 4 Brands)(2) Channel Diversity FY2010 FY2015 Food, Drug, Mass Food, Drug, Mass, Convenience, Club and Dollar

  17. Slide 17: The Power of the Platform: Expanding Set of M&A Candidates

    P R E S T I G E B R A N D S S e c o n d Q u a r t e r F ’ 1 5 R e s u l t s 1 7 The Power of the Platform: Expanding Set of M&A Candidates Category Breadth International Expansion Brand Scale Channel Diversity Expanded M&A Pool Across Categories, Geographies, Channels and Consumer Choices

  18. Slide 18: II. Second Quarter FY2015: Financial Overview

    P R E S T I G E B R A N D S S e c o n d Q u a r t e r F ’ 1 5 R e s u l t s 1 8 II. Second Quarter FY2015: Financial Overview

  19. Slide 19: Selected Observations on Second Quarter Performance

    P R E S T I G E B R A N D S S e c o n d Q u a r t e r F ’ 1 5 R e s u l t s 1 9 Selected Observations on Second Quarter Performance  Solid overall financial performance in the quarter consistent with expectations − Total Revenue growth of 8.6% based on increasingly diversified portfolio and impact

  20. Slide 20: FY'15 Second Quarter and YTD Consolidated Financial Summary

    P R E S T I G E B R A N D S S e c o n d Q u a r t e r F ’ 1 5 R e s u l t s 2 0 Three Months Ended Six Months Ended Sep '14 Sep '13 % Chg Sep '14 Sep '13 % Chg Total Revenue 181.3$ 166.9$ 8.6% 327.0$ 309.5$ 5.7% Adj. Gross Margin(1) 103.3 94.2 9.7% 185.3 177.3 4.5% % Margin 57.0% 56.4% 56.7% 57.3% A

  21. Slide 21: Net Income and E.P.S. Reconciliation

    P R E S T I G E B R A N D S S e c o n d Q u a r t e r F ’ 1 5 R e s u l t s 2 1 3 Months Ended 3 Months Ended 6 Months Ended 6 Months Ended Q2 FY'15 Q2 FY'14 Q2 FY'15 Q2 FY'14 Net Income EPS Net Income EPS Net Income EPS Net Income EPS As Reported 16.5$ 0.31$ 32.8$ 0.63$ 33.2$ 0.63$ 53.5$ 1.03$ Adju

  22. Slide 22: Strong Free Cash Flow Generation

    P R E S T I G E B R A N D S S e c o n d Q u a r t e r F ’ 1 5 R e s u l t s 2 2 Q2 FY'15 Q2 FY'14 YTD FY'15 YTD FY'14 Net Income - As Reported 16.5$ 32.8$ 33.2$ 53.5$ Depreciation & Amortization 3.9 3.3 6.8 6.6 Other Non-Cash Operating Items 8.0 0.4 18.0 9.6 Working Capital (1.0) (3.7) (1.0) (14.1)

  23. Slide 23: III. FY2015 Outlook and the Road Ahead

    P R E S T I G E B R A N D S S e c o n d Q u a r t e r F ’ 1 5 R e s u l t s 2 3 III. FY2015 Outlook and the Road Ahead

  24. Slide 24: Strategic Approach Continues to Create Shareholder Value

    P R E S T I G E B R A N D S S e c o n d Q u a r t e r F ’ 1 5 R e s u l t s 2 4 Strategic Approach Continues to Create Shareholder Value − Improved Core OTC consumption trends leading to market share gains − Challenging retail environment continues to impact retailer inventory − Power of the portfol

  25. Slide 25: P R E S T I G E B R A N D S S e c o n d Q u a r t e r F ’ 1 5 R e s u l t s 2 5

    P R E S T I G E B R A N D S S e c o n d Q u a r t e r F ’ 1 5 R e s u l t s 2 5

Prestige Brands Holdings — Q2 FY2015 Earnings Presentation on 6ix