Helen Of Troy Limited · NASDAQ:HELE
Helen Of Troy — Investor Presentation (August 2021)
32 slides from Helen Of Troy's investor presentation, Aug 10, 2021
Slide 1: Investor Presentation August 2021
Invest in Leadership Brands Double Down on International Selective & Strategic M&A Consumer Centric Unify, Include & Elevate the Best People Accelerate Shared Service Excellence Maximize Operating Efficiency Optimize Capital Deployment Investor Presentation August 2021 Exhibit 99.1
Slide 2: Forward Looking Statements and Reconciliation of Non-GAAP Financial Measures
Forward Looking Statements and Reconciliation of Non-GAAP Financial Measures Forward-Looking Statements: Certain written and oral statements made by the Company and subsidiaries of the Company may constitute “forward-looking statements” as defined under the Private Securities Litigation Reform Act o
Slide 3: Evolution of Transformation Strategy
Phase II: FY20-FY24Phase I: FY15-FY19 3 Evolution of Transformation Strategy Invest in Leadership Brands Double Down on International Selective & Strategic M&A Consumer Centric Unify, Include & Elevate the Best People Accelerate Shared Service Excellence Maximize Operating Efficiency Optimize Capita
Slide 4: Phase I Generated Excellent Results and Phase II Continuing Strong
$114 $166 $154 $197 $205 $174 $254 $215 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 4 $1,308 $1,335 $1,383 $1,398 $1,479 $1,564 $1,707 $2,099 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Revenue ($ in Millions) $4.50 $5.50 $5.78 $6.49 $7.24 $8.06 $9.30 $11.65 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Free Cash
Slide 5: Strong Portfolio of Leadership Brands
5 Strong Portfolio of Leadership Brands Higher Margin Asset Efficient Differentiated Market Leader Growth Adjacencies FY21 Phase II Transformation Beginning of Phase I Transformation FY2014 Leadership Brand Progression ˜44% ˜56% ˜19% ˜81% Leadership Brands Leadership Brands Phase I (FY14 - FY19) Pha
Slide 6: Digital Investments Have Fueled Exponential Online Sales Mix Growth
Digital Investments Have Fueled Exponential Online Sales Mix Growth 0% 5% 10% 15% 20% 25% 30% 6% 9% 9% 12% 16% 19% 24% 26% FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Online Channel Net Sales as a % of Total Company Net Sales Transformation Phase I Transformation Phase II +32 % Vs FY20 6
Slide 7: Value Creation Flywheel
Value Creation Flywheel 7 Working Capital Improvement Margin Expansion Organic Revenue GrowthLow Capex Accretive and Low Risk Capital Deployment Leadership Brand Innovation and Investment High Quality Global Shared ServicesDebt and Tax Efficiency
Slide 8: Strong Shareholder Return; Opportunity to Create Even More Value in Phase II
Strong Shareholder Return; Opportunity to Create Even More Value in Phase II 8 $0 $50 $100 $150 $200 $250 $300 $350 $400 2/14 2/15 2/16 2/17 2/18 2/19 2/20 2/21 5/21 COMPARISON OF 87 MONTH CUMULATIVE TOTAL RETURN* Among Helen Of Troy Limited, the NASDAQ Composite Index, the Dow Jones - U.S. Personal
Slide 9: FY22 First Quarter
FY22 First Quarter 4% 37.5% 22.9% 28.6% Online Net Sales Growth Consolidated Net Sales Growth Leadership Brands Growth Adjusted Diluted EPS Growth # Online sales represented ̃ 22% of total net sales for the three months ended May 31, 2021 Represents 79% of total net sales 9 * Same period year ago re
Slide 10: Consolidated Net Sales: Our Diversified Portfolio Continues to Perform
Consolidated Net Sales Three Months Ended May 31, 2021 Consolidated Q1 FY22: $541.2MM Organic +27.3% YOY* * YOY compares to three months ended May 31, 2020. * Organic business refers to our net sales revenue associated with product lines or brands after the first twelve months from the date the prod
Slide 11: Meaningful Mitigation Underway to Partially Offset FY22 Headwinds
Meaningful Mitigation Underway to Partially Offset FY22 Headwinds 11 T a il w in d s Headwinds Mitigation Measures • Improved product mix • Price increases • Forward buying of inventory to delay cost impacts • Utilizing previously negotiated shipping contracts at rates below current market prices •
Slide 12: Fiscal 2022 Outlook: EPA Matter Overshadows Underlying Growth
Fiscal 2022 Outlook: EPA Matter Overshadows Underlying Growth 12 * Core excludes the Personal Care business in Fiscal Years 2021 and 2022. The Company’s consolidated and Core net sales and EPS outlook reflect the following: • the assumption that the severity of the cough/cold/flu season will be in l
Slide 13: EPA Packaging Compliance Update
U.S. Environmental Protection Agency (“EPA”) Packaging Compliance Update 13 We have now largely resolved the packaging compliance issues raised by the EPA regarding claims on certain of our air and water filtration products and a limited subset of humidifier products within the Health & Home segment
Slide 14: Diversified Portfolio and Post-COVID Trends Expected to Help in FY22: Health & Home
Diversified Portfolio and Post-COVID Trends Expected to Help in FY22 Health & Home 14 • Coronavirus expected to continue through much of FY22 • Resolution of inventory and supply constraints we experienced in 1H FY21 • Higher COVID-driven installed base expected to drive more high margin filter sale
Slide 15: Diversified Portfolio and Post-COVID Trends Expected to Help in FY22: Housewares
Diversified Portfolio and Post-COVID Trends Expected to Help in FY22 15 • FY22 is expected to benefit from normalization of foot traffic following FY21 store closures and stay at home • FY22 is expected to have a more normalized back-to-school season vs FY21 as students return to the classroom • COV
Slide 16: Diversified Portfolio and Post-COVID Trends Expected to Help in FY22: Beauty
Diversified Portfolio and Post-COVID Trends Expected to Help in FY22 16 Beauty • FY22 is expected to benefit from normalization of foot traffic following FY21 store closures and stay at home • Resolution of inventory and supply constraints we experienced in 1H FY21 • Rise of do-it-yourself at home b
Slide 17: Integrating ESG into our Businesses
Integrating ESG into our Businesses 17 June 2021: First Ever ESG Report Published We believe that a strong and transparent ESG plan will provide lasting long-term benefits and continuous improvement to our key stakeholders as we respond to their interests and evolving needs. Working closely with key
Slide 18: Appendix
Helen of Troy Appendix
Slide 19: Glossary of Terms
Glossary of Terms Acquisition-related Expenses – Expenses associated with the definitive agreement to acquire Drybar Products LLC Adjusted Diluted Earnings per Share (EPS) – Non-GAAP Adjusted Income divided by diluted shares outstanding Adjusted Income – GAAP net income excluding Toys “R” Us bankrup
Slide 20: Glossary of Terms
Glossary of Terms Peer Group – Derived from the Company’s compensation peer group for FY22, which includes Church & Dwight Co. Inc., The Clorox Company, Coty Inc., Edgewell Personal Care Company, Energizer Holdings, Inc., La-Z-Boy Incorporated, Lifetime Brands Inc., Newell Brands, Inc., Nu Skin Ente
Slide 21: Reconciliation of Non-GAAP Financial Measures - GAAP Operating Income to Adjusted Operating Income
Reconciliation of Non-GAAP Financial Measures - GAAP Operating Income to Adjusted Operating Income (Non-GAAP) (Unaudited) (in thousands) Fiscal Years Ended the Last Day of February, 2021 2020 2019 2018 2017 2016 2015 2014 Operating income as reported (GAAP) $ 281,488 13.4 % $ 178,251 10.4 % $ 199,37
Slide 22: Reconciliation of Non-GAAP Financial Measures - GAAP Diluted EPS to Adjusted Diluted EPS
Reconciliation of Non-GAAP Financial Measures - GAAP Diluted Earnings Per Share (“EPS”) to Adjusted Diluted EPS (Non-GAAP) (Unaudited) Fiscal Years Ended the Last Day of February, 2021 2020 2019 2018 2017 2016 2015 2014 Diluted EPS as reported (GAAP) $ 10.08 $ 6.02 $ 6.62 $ 4.73 $ 5.17 $ 3.23 $ 4.36
Slide 23: Reconciliation of Non-GAAP Financial Measures - Free Cash Flow
Reconciliation of Non-GAAP Financial Measures - GAAP Net Cash Provided by Operating Activities to Free Cash Flow and Free Cash Flow Per Diluted Share (Non- GAAP) (Unaudited) (in thousands, except per share data) Fiscal Years Ended the Last Day of February, 2021 2020 2019 2018 2017 2016 2015 2014 Net
Slide 24: Consolidated Core and Non-Core Net Sales and Adjusted Diluted EPS
Consolidated Core and Non-Core Net Sales and Adjusted Diluted EPS (Non-GAAP) (Unaudited) (in thousands, except per share data) Fiscal Years Ended Last Day of February, $ Change % Change 2021 2020 2019 2018 2017 21/20 20/19 19/18 18/17 21/20 20/19 19/18 18/17 Sales revenue, net Core $ 2,020,453 $ 1,6
Slide 25: Reconciliation of Non-GAAP Financial Measures - Core and Non-Core Diluted EPS
Reconciliation of Non-GAAP Financial Measures - GAAP Core and Non-Core Diluted EPS to Core and Non-Core Adjusted Diluted EPS (Non-GAAP) (Unaudited) Fiscal Years Ended Last Day of February, Core Business: 2021 2020 2019 2018 2017 Diluted EPS, as reported $ 9.76 $ 7.16 $ 5.89 $ 4.72 $ 4.88 Acquisition
Slide 26: Consolidated Core and Non-Core Net Sales
Consolidated Core and Non-Core Net Sales (Unaudited) (in thousands) Quarterly Period Ended Fiscal Year 2021: May August November February Fiscal Year Total Sales revenue, net Core $ 399,519 $ 509,710 $ 617,766 $ 493,458 $ 2,020,453 Non-Core 21,316 21,142 19,971 15,917 78,346 Total $ 420,835 $ 530,85
Slide 27: Core and Non-Core Adjusted Diluted EPS (Non-GAAP)
Quarterly Period Ended Fiscal Year 2021: May August November February Fiscal Year Total Adjusted Diluted EPS (non-GAAP) Core $ 2.43 $ 3.56 $ 3.61 $ 1.42 $ 11.03 Non-Core 0.10 0.21 0.15 0.15 0.62 Total $ 2.53 $ 3.77 $ 3.76 $ 1.57 $ 11.65 Quarterly Period Ended Fiscal Year 2020: May August November Fe
Slide 28: Reconciliation of Core and Non-Core Diluted EPS for Fiscal Year 2021
Reconciliation of Non-GAAP Financial Measures - GAAP Core and Non-Core Diluted EPS to Core and Non-Core Adjusted Diluted EPS (Non-GAAP) (Unaudited) for Fiscal Year 2021 Quarterly Period Ended Core Business: May August November February Fiscal Year 2021 Diluted EPS, as reported $ 2.27 $ 3.22 $ 3.19 $
Slide 29: Reconciliation of Core and Non-Core Diluted EPS for Fiscal Year 2020
Reconciliation of Non-GAAP Financial Measures - GAAP Core and Non-Core Diluted EPS to Core and Non-Core Adjusted Diluted EPS (Non-GAAP) (Unaudited) for Fiscal Year 2020 Quarterly Period Ended Core Business: May August November February Fiscal Year 2020 Diluted EPS, as reported $ 1.52 $ 1.71 $ 2.62 $
Slide 30: Reconciliation of GAAP Net Income and Diluted EPS to Adjusted Income
Reconciliation of Non-GAAP Financial Measures - GAAP Net Income and Diluted EPS to Adjusted Income and Adjusted Diluted EPS (Non-GAAP) (Unaudited) (in thousands, except per share data) Three Months Ended May 31, 2021 Income Diluted EPS Before Tax Tax Net of Tax Before Tax Tax Net of Tax As reported
Slide 31: Fiscal 2022 Outlook for Net Sales Revenue
Fiscal 2022 Outlook for Net Sales Revenue (Unaudited) (in thousands) Core Business: Net sales revenue $ 2,020,453 $ 1,900,000 — $ 1,950,000 (6.0)% — (3.5)% Non-Core Business: Net sales revenue $ 78,346 $ 31,000 — $ 33,000 (60.4)% — (57.9)% Consolidated: Fiscal 2021 Outlook for Fiscal 2022 Net sales
Slide 32: Reconciliation of Fiscal 2022 Outlook for GAAP Diluted EPS to Adjusted Diluted EPS
Reconciliation of Fiscal 2022 Outlook for GAAP Diluted EPS to Adjusted Diluted EPS (Non-GAAP) (Unaudited) Core Business: Three Months Ended May 31, 2021 Outlook for the Balance of the Fiscal Year (Nine Months) Outlook Fiscal 2022 Diluted EPS, as reported (GAAP) $ 2.15 $ 4.45 — $ 5.13 $ 6.60 — $ 7.28