Wd-40 Company · NASDAQ:WDFC
Wd-40 — Q1 2025 Earnings Presentation
32 slides from Wd-40's earnings presentation, Jan 10, 2025
Slide 1: Q1 FY25 Earnings Results
Q1 FY25 Earnings Results JANUARY 10, 2025
Slide 2: Forward-Looking Statements
Forward-Looking Statements Historical financial and operating data in this presentation reflect the consolidated results of WD-40 Company and its subsidiaries (collectively, the “Company”). The Company markets maintenance products (“MP”) under the WD-40®, 3-IN-ONE® and GT85® brand names. The WD-40 b
Slide 3: Q1 FY25 Results
Q1 FY25 Results 3
Slide 4: Q1 FY25 Results
Q1 FY25 Results ($M except EPS, gross margin and % change) Financial Results Q1 FY25 Q1 FY24 % Change As reported Net Sales $153.5 $140.4 9% Gross Margin 54.8% 53.8% +100 bps Operating Income $25.1 $24.2 4% Net Income $18.9 $17.5 8% EPS (Diluted) $1.39 $1.28 9% • Net sales, adjusted for estimated tr
Slide 5: Americas Segment
Americas Segment Americas – Q1 FY24 vs. Q1 FY25 • Total reported segment sales 8% • Segment = 45% of global net sales • WD-40® Multi-Use Product sales 9% • WD-40 Specialist ® sales 16% • Sales adjusted for currency 10% • Maintenance product (MP) sales: • U.S. MP sales ▲ 8% • Latin America MP
Slide 6: EIMEA Segment
EIMEA Segment EIMEA – Q1 FY24 vs. Q1 FY25 • Total reported segment sales 18% • Segment = 38% of global net sales • WD-40® Multi-Use Product sales 21% • WD-40 Specialist ® sales 17% • Sales adjusted for currency 14% • Maintenance product (MP) sales: • EIMEA MP sales 19% • Gross margin 57.8%
Slide 7: Asia-Pacific Segment
Asia-Pacific Segment Asia-Pacific – Q1 FY24 vs. Q1 FY25 • Total reported Asia-Pacific sales 4% • Segment = 17% of global net sales • WD-40® Multi-Use Product sales 6% • WD-40 Specialist ® sales 2% • Sales adjusted for currency 6% • Maintenance product (MP) sales: • Australia MP sales 5% •
Slide 8: Growth Aspirations
COMPANY Growth Aspirations LC a ee err
Slide 9: Strong Historical Growth with Clear Runway Ahead
Strong Historical Growth with Clear Runway Ahead Maintenance Products 10-year Net Sales CAGR 558 476 511 6.7% 432 EIMEA 381 369 359 339 323 305 6.9% APAC 6.1% Americas 1) FY24 maintenance product net sales presented as reported; all prior years presented on a constant currency basis using FY24 forei
Slide 10: Long-Term Growth Targets for Maintenance Products
Long-Term Growth Targets for Maintenance Products Non-GAAP Constant Currency Long-Term Growth Ambition By Segment Americas EIMEA APAC Total Company 50% 36% 14% CAGR Target of global net sales* of global net sales* of global net sales* mid-to-high CAGR Target CAGR Target CAGR Target single digits 5-8
Slide 11: Our Four-by-Four Strategic Framework
Our Four-by-Four Strategic Framework Four Must-Win Battles 01 02 03 04 Lead Geographic Accelerate Drive WD-40 Turbo-Charge Expansion Premiumization Specialist Growth Digital Commerce Four Strategic Enablers 01 Ensure a People-First Mindset 02 Build an Enduring Business For the Future 03 Achieve Oper
Slide 12: Must-Win Battles – Q1
Must-Win Battles – Q1 Must-Win Battles YTD Results 01 02 03 04 Lead Geographic Accelerate Drive WD-40 Turbo-Charge Expansion Premiumization Specialist Growth Digital Commerce • WD-40 Multi-Use • WD-40 Smart Straw • WD-40 Specialist 14% • E-commerce sales Product 10% and EZ Reach • Americas 16%
Slide 13: Lead Geographic Expansion: Growth Opportunity – WD-40 Multi-Use Product
Lead Geographic Expansion: Growth Opportunity – WD-40 Multi-Use Product $1.65B Benchmarked Sales Opportunity ~$1.2B Growth Opportunity 28% $453M of our benchmarked FY24 MUP net sales opportunity 1. Based on Industrial Value Added (IVA) / Purchase Price Parity (PPP) third-party benchmarking. WD-40 Co
Slide 14: Global Performance: Getting More Cans in More Hands
Global Performance: Spotlighting Market Performance Getting More Cans in More Hands *In 2024 WD-40 Company began selling direct in Brazil.
Slide 15: Growth Opportunity – WD-40 Specialist
Growth Opportunity – WD-40 Specialist® $605M Benchmarked Sales Opportunity ~$531M Growth Opportunity 12% $74M of our benchmarked FY24 Net Sales opportunity 1. Based on Industrial Value Added (IVA) / Purchase Price Parity (PPP) third-party benchmarking. WD-40 Company’s estimated IVA/PPP figure is cal
Slide 16: Build an Enduring Business for the Future
Build an Enduring Business for the Future Simplifying portfolio innovation with sustainability 16 1. Please see our 2024 ESG Report for more information on our environmental impact plan.
Slide 17: Few Things. Many Places. Bigger Impact.
Few Things. Many Places. Bigger Impact. ~ Unlocking Efficiencies Through Leveraging Global Synergies ~
Slide 18: Business Model
. pe ft % ‘ ab : WD:40 = ~~ COMPANY x ff a =e \ 7 (ly — tl Business Model 18 Sf
Slide 19: Our Business Model Enables Long-term Value Creation
Our Business Model Enables Long-term Value Creation Generate Mid-to-High-Single GDP+ Digit Revenue Growth 50→55% Achieve Gross Margin Target ROIC 25%+ 35→30% Manage Cost Of Doing Business1 Annual dividends targeted at >50% 20→25% Drive Adjusted EBITDA Margin of earnings Low Capital Invest in Brands
Slide 20: Gross Margin Detail – Q1 FY25
Gross Margin Detail – Q1 FY25 Gross margin improved by 100 basis points over prior Gross Margin Trend year period primarily due to the following impacts: Gross Margin Drivers Change vs. Prior Year As reported (basis points) Sales mix and other misc. mix impacts +140 Lower costs of specialty chemical
Slide 21: FY 2025 Guidance
4el4* FY 2025 Guidance
Slide 22: Non-GAAP FY24 Results – Pro Forma
Non-GAAP FY24 Results – Pro Forma Pro forma, excluding the full fiscal year financial impact of the homecare and cleaning products classified as assets held for sale. ($M except EPS, gross margin and % change) Financial Results FY24 FY23 % Change Net Sales $566.7 $511.5 11% Gross Margin 53.9% 51.7%
Slide 23: Non-GAAP Q1 FY25 Results – Pro Forma
Non-GAAP Q1 FY25 Results – Pro Forma Pro forma, excluding first fiscal quarter financial impact of the homecare and cleaning products classified as assets held for sale. ($M except EPS, gross margin and % change) Financial Results Q1 FY25 Q1 FY24 % Change Net Sales $147.9 $134.1 11% Gross Margin 55.
Slide 24: Fiscal Year 2025 Guidance - Pro Forma
Fiscal Year 2025 Guidance - Pro Forma Pro forma, excluding the full fiscal year financial impact of certain of the homecare and cleaning products classified as assets held for sale. Sales Growth Between 6% and 11% (Adjusted for estimated translation impact of foreign currency) Over 2024 pro forma re
Slide 25: Appendix
Appendix 25
Slide 26: What Makes Up the Cost of a Can?
What Makes Up the Cost of a Can? Approximate Cost Breakdown Of A Typical Can Of WD-40® Multi-Use Product Manufactured in the United States FY24 Corrugate Petroleum-Based Specialty Plastic Manufacturing Fees Tin-Plate Can Data as of August 2024. Represents average input costs over 7-month period of a
Slide 27: Sales Impact – Consolidated Net Sales Changes
Sales Impact – Consolidated Net Sales Changes Changes from Prior Year Fiscal Period ($ in millions) Price, Volume and FX Impact Q1 FY25 Increase in average selling price(1) $1.2 Increase in sales volume(1) $10.4 Currency impact on current period $1.5 Increase in net sales $13.1 1. Management’s estim
Slide 28: Non-GAAP Reconciliation
Non-GAAP Reconciliation This presentation contains certain non-GAAP (generally accepted accounting principles in the United States of America) measures, that management believes provide our stockholders with additional insights into WD-40 Company’s results of operations and how it runs its business.
Slide 29: Non-GAAP Reconciliation
Non-GAAP Reconciliation In order to show the impact of changes in foreign currency exchange rates on our results of operations, we have included constant currency disclosures, where necessary, in this presentation. Constant currency disclosures represent the translation of our current fiscal year re
Slide 30: Non-GAAP Reconciliation: FY24
Non-GAAP Reconciliation: FY24 This presentation contains certain non-GAAP (generally accepted accounting principles in the United States of America) measures, that management believes provide our stockholders with additional insights into WD-40 Company’s results of operations and how it runs its bus
Slide 31: Non-GAAP Reconciliation: Q1 FY25
Non-GAAP Reconciliation: Q1 FY25 This presentation contains certain non-GAAP (generally accepted accounting principles in the United States of America) measures, that management believes provide our stockholders with additional insights into WD-40 Company’s results of operations and how it runs its
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