Spectrum Brands Holdings, Inc. · NYSE:SPB

Spectrum Brands — CAGNY Luncheon (May 2015)

26 slides from Spectrum Brands's conference presentation, May 14, 2015

  1. Slide 1: Presentation to CAGNY Luncheon

    Hardware & Global Batteries Pet, Home Home Improvement & Appliances & Garden Presentation to CAGNY Luncheon New York – May 14, 2015 Doug Martin EVP and Chief Financial Officer Dave Prichard Vice President, Investor Relations John Beattie Vice President, Treasurer

  2. Slide 2: Forward-Looking Statements

    Forward-Looking Statements Certain matters discussed in this presentation, with the exception of historical matters, may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, regarding our

  3. Slide 3: Reconciliation of Non-GAAP Financial Measurements

    Reconciliation of Non-GAAP Financial Measurements Management believes that certain non-GAAP financial measures may be useful in certain instances to provide additional meaningful comparisons between current results and results in prior operating periods. Excluding the impact of current exchange rate

  4. Slide 4: Diverse Portfolio of Leading Brands

    Diverse Portfolio of Leading Brands Portfolio includes widely used, non-discretionary, replacement consumer brands. 4

  5. Slide 5: Superior Value to Retailers and Consumers Worldwide

    Superior Value to Retailers and Consumers Worldwide  FY14 net sales of $4,429 million and adjusted FY14 Net Sales - $4,429 million EBITDA of $724 million H&G 10%  Spectrum Value Model drive success of strong, well-recognized and extendable brand names Global Pet Supplies 14%  Top 3 global market

  6. Slide 6: Strong Financial Performance Despite a Challenged Consumer

    Strong Financial Performance Despite a Challenged Consumer  Annual net sales and adjusted EBITDA growth Net Sales Performance ($ in millions)  Solid financial performance driven by: $4,226 $4,277 $4,429 • Superior value-brand positioning $3,006 $3,111 $3,187 $2,427 • Increased distribution/market

  7. Slide 7: FY14 Net Sales by Geographic Region

    FY14 Net Sales by Geographic Region 7

  8. Slide 8: Spectrum Value Model

    Spectrum Value Model Market Positioning Value to Retailers Focus on leading brands Best retailer margin; in markets with high category mgmt; barriers to entry merchandising Product Performance Point of Sale Focus Match or exceed Win at point-of-sale, not competitor product performance Spectrum throu

  9. Slide 9: Leading Market Share and Competitive Brands

    Leading Market Share and Competitive Brands Category Market Position Select Key Brands #3 (North America) Consumer batteries #2 (Europe) #1 (Latin America) #2 (North America, Europe, Portable lighting Latin America) Electric shaving and grooming #3 (North America, Europe) #3 (North America) Electric

  10. Slide 10: Hardware & Home Improvement Overview

    Hardware & Home Improvement Overview  Eight consecutive quarters of YOY net sales and adjusted EBITDA Adjusted EBITDA Performance increases since December 17, 2012 acquisition ($ in millions) $210  Leading provider of residential locksets, builders hardware and plumbing and accessories  Diversifi

  11. Slide 11: Global Batteries & Appliances Overview

    Global Batteries & Appliances Overview  Value brands appeal to consumers Adjusted EBITDA Performance  Large/growing customers represent significant share of ($ in millions) $327 $297 $307 $308 $304 total market, helping to propel share gains $275  Global market leader in hearing aid batteries $18

  12. Slide 12: Global Pet Supplies Overview

    Global Pet Supplies Overview  Attractive industry trends Adjusted EBITDA Performance  Global market leader in aquatics category with a broad and ($ in millions) $113 $120 $113 $104 innovative product line led by the Tetra brand $98 $99 $93 $92  2014 EBITDA decline driven by Russia import restrict

  13. Slide 13: Home & Garden Overview

    Home & Garden Overview  Another record year in FY14 Adjusted EBITDA Performance ($ in millions)  Completed accretive Liquid Fence bolt-on $87 $90 $102 acquisition in FY14 $68 $78  Attractive industry trends $41 $53 $56  Unique competitive environment  Solid retail relationships FY '07 FY '08 FY

  14. Slide 14: Supporting Long-term Growth Through Synergistic Bolt-on Acquisitions

    Supporting Long-term Growth Through Synergistic Bolt-on Acquisitions KEY ACQUISITION PRIORITIES  Fragmented industry is ripe for consolidation Global  Large and rich list of targets identified for bolt-on acquisitions Pet  Primary focus in companion animals (FURminator® in FY12, IAMS/Eukanuba and

  15. Slide 15: Successful Track Record of Acquisition Integration/Delevering

    Successful Track Record of Acquisition Integration/Delevering  Track record of using strong free cash flow generation to manage capital structure and drive value  Proven integrator – Russell Hobbs, HHI, FURminator, Black Flag/TAT, Tong Lung and Liquid Fence  Significant NOLs and limited CapEx req

  16. Slide 16: Armored AutoGroup Overview

    Armored AutoGroup Overview Brand Products Summary AAG financials(a) Wipes Protectant Tire Care Wheel FY ’14 Adj. Net Sales: $443m Refrigerant kits Refrigerant blends Leak sealer FY ’14 Adj. EBITDA: $140m % margin: 32% FY ’14 AAG Illustrative Adj. ~$66m (b) Free Cash Flow : Fuel Oil Functional Appear

  17. Slide 17: Transaction Rationale

    Transaction Rationale  Attractive industry fundamentals  Adds portfolio of market-leading brands to Spectrum’s existing lineup  Improves customer mix and shelf space in complementary channels  Offers substantial international growth potential for Armored AutoGroup  Enhances scale and product di

  18. Slide 18: AAG Adds a Portfolio of Market-Leading Brands to Spectrum's Lineup

    AAG Adds a Portfolio of Market-Leading Brands to Spectrum’s Attractive Existing Lineup Category Market Position Select Key Brands #1 (North America appearance) Auto care products #3 (North America performance) #1 (North America refrigerants) #3 (North America) Consumer batteries #2 (Europe) #1 (Lati

  19. Slide 19: Expected to Improve Customer Mix and Shelf Space in Complementary Channels

    Expected to Improve Customer Mix and Shelf Space in Complementary Channels Key customers Net sales breakdown Combined (a) #1 Customer ~15% Major Home Centers ~15% Others Auto ~65% ~5%  Entry into auto centers as a category manager  Opportunity to increase AAG penetration through Spectrum’s distrib

  20. Slide 20: Potential to Increase Spectrum's Scale and Product Diversification

    Potential to Increase Spectrum’s Scale and Product Diversification Financial Scale – LTM Q2 2015 (a) (b) Product Diversification by Net Sales (c) ($ in millions) Net Sales Adj. EBITDA Combined +10% +19% AAG $4,885 9% $865 H&G $4,442 9% GBA 45% $724 Global Pet Supplies 13% HHI Standalone Combined Sta

  21. Slide 21: Robust Business with Solid Cash Flow Generation

    Robust Business with Solid Cash Flow Generation  FY15 free cash flow is expected to be approximately $400 million, or nearly $8 per share  FY14 free cash flow was a record $359 million, or nearly $7 per share  FY13 free cash flow was $254 million, or approximately $5 per share Adjusted EBITDA les

  22. Slide 22: Strong Cash Flow and Value Creation Flexibility

    Strong Cash Flow and Value Creation Flexibility 2015-2018 Operating Cash Flow = ~$2.0 Billion Uncommitted Cash Optionality ($ in billions) CapEx  Pay down debt $0.3  Acquisitions  Further increase Dividends $0.3 dividends Uncommitted Free Cash Flow $1.1  Share repurchases Share Repurchases $0.3

  23. Slide 23: IAMS/Eukanuba European Pet Food Business

    IAMS/Eukanuba European Pet Food Business  IAMS and Eukanuba European premium pet food brands for dogs and cats acquired on December 31, 2014 • IAMS: premium brand with broad consumer appeal and leadership share of the premium dry dog food market in the U.K. • Eukanuba: premium brand in the pet spec

  24. Slide 24: Salix Animal Health

    Salix Animal Health  Salix Animal Health, the world’s leading and largest vertically integrated producer and distributor of premium, natural rawhide dog chews, treats and snacks acquired on January 16, 2015  Strengthens, diversifies and expands our Pet segment’s market position in rawhide dog trea

  25. Slide 25: Fiscal 2015 Outlook

    Fiscal 2015 Outlook  Planning for 6th consecutive year of record performance  Sales growth in the mid to low-single digit range  Continued cost improvement discipline  FX headwinds worsening  Free cash flow is projected to be approximately $400 million  Focus remains on growing adjusted EBITDA

  26. Slide 26: NYSE: SPB

    Hardware & Global Batteries Pet, Home Home Improvement & Appliances & Garden NYSE: SPB www.spectrumbrands.com investorrelations@spectrumbrands.com david.prichard@spectrumbrands.com

Spectrum Brands Holdings — CAGNY Luncheon (May 2015) on 6ix