Spectrum Brands Holdings, Inc. · NYSE:SPB
Spectrum Brands — Investor Presentation (2010)
23 slides from Spectrum Brands's investor presentation, 2010
Slide 1: 1
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Slide 2: John Heil, President, Global Pet Supplies
John Heil President, Global Pet Supplies 2
Slide 3: Global Pet Supplies Overview
Global Pet Supplies Overview 3
Slide 4: Global Pet Supplies Overview
Global Pet Supplies Overview Attractive Global Industry Dynamics Proven and Experienced Management Team Impressive Portfolio of Brands and Products Strong Relationships with Key Global Retailers Platform to Capitalize on Future Acquisitions and Geographic Expansions Compelling Growth Opp
Slide 5: Attractive Global Industry with Large Addressed Market
Attractive Global Industry with Large Addressed Market Global pet food and supplies industry estimated at $70 billion in 2010 Consistent annual growth of over 5 – 6% since 2001 UPG addresses a $19.8 billion market segment that has attractive growth characteristics, high fragmentation, low seas
Slide 6: Global Pet Supplies Enjoys Attractive Industry Trends
Global Pet Supplies Enjoys Attractive Industry Trends Increased pet ownership Demographics fuel continued growth Humanization of pets Increase in avg. amount spent per pet Pet owners’ relative insensitivity to economic cycles Highly fragmented market, creating opportunities for a large p
Slide 7: Completion of Consolidation Will Open Opportunity to Re-Focus on Growth
Completion of Consolidation Will Open Opportunity to Re-Focus on Growth United Pet Group: Formed in 1998 and immediately executed an acquisition/integration strategy from 1999 – 2006 Focus in FY09-10: consolidate facility footprint to reduce costs Opportunity for FY11-12: finalize the consolid
Slide 8: Pet Business is Diverse Across Categories and Geographies
Pet Business is Diverse Across Categories and Geographies Global leading manufacturer and marketer of premium branded pet supplies and specialty food treats $19.8 billion targeted market segment focused on 2 primary product segments – Aquatics – Companion Animal Strong global footprint – opera
Slide 9: Long Standing Global Customer Relationships
Long Standing Global Customer Relationships Length of Category Manager/ Top 10 customers Retailer Relationship Advisor Roles represent approx. Aquatics 56% of total sales 20 Years Small Animal / Domestic Bird (as of LTM 4-4-10) Dog Containment Aquatics > 10 Years Dog & Cat Health and Beauty Aids R
Slide 10: A Global Leader in the Pet Supply Business
A Global Leader in the Pet Supply Business ~5,000 SKUs sold in 90 markets Aquatics • Quality leader in water life • Excellent brand heritage • Premium positioning • Introduced >140 new products during FY’09 including indoor & outdoor equipment, food and indoor care Companion Animal • A leader
Slide 11: Impressive Portfolio of Leading Brands
Impressive Portfolio of Leading Brands Aquatics Companion Animal Product Product Brand Categories Brand Categories 7 1 5 3 3 4 2 6 2 3 3 11
Slide 12: Pet Performance Growing
Pet Performance Growing Commentary Maintained sales through bankruptcy and soft economy, while retaining all key customers. Adjusted EBITDA performance ($ in millions) Executed reduction in selling and marketing expenses, while retaining all key employees. $100 $98-$99 Successfully executed ne
Slide 13: Global Pet Supplies Has Identified Drivers of Growth
Global Pet Supplies Has Identified Drivers of Growth Organic Growth Opportunities: – New product introductions – Further market penetration including international expansion – Capitalize on niche market opportunities Acquisitive Growth – Target bolt-on acquisitions, primarily in Companion Animal
Slide 14: Solid Pet New Product Pipeline
Solid Pet New Product Pipeline Aquatics New Products Product innovation is critical given Product Type 2008 2009 2010 the retailers need for continuous flow of products/complete Indoor Equipment 14 14 45 product lines Outdoor Equipment 4 4 21 Indoor Food 38 11 28 Aquatics Indoor Care 21 22 36 Ou
Slide 15: New Product Launch - Aquatics
New Product Launch - Aquatics Tetra Smart Filter LED Bubble Curtain Red 2010 Pond Program Tetra Bulk Food Tetra Characin 100g Tetra KilliMin 500ml TetraMin Flakes Select-A-Food SticksMini & 10L Bucket ext. TetraMin 52g 15
Slide 16: New Product Launch - Companion Animal
New Product Launch - Companion Animal Jerky Chewz Chicken Chips Mega Meat Soft & Chewy Bones 16
Slide 17: Only True Global Platform in Industry
Only True Global Platform in Industry Dedicated sales, marketing and operations teams in 3 primary geographies: North America, Europe, Pacific Rim – Represents 90% of the total pet supply market 5000 SKUs sold in 90 markets Competitors lack similar infrastructure Ideal to execute a global ro
Slide 18: Global Platform Facilitates Global Expansion in Companion Animal
Global Platform Facilitates Global Expansion in Companion Animal Global infrastructure and retail relationships provide opportunity to drive Companion Animal expansion in Europe and Asia Roll out strategy for Europe and Japan currently being implemented Target volume only represents 3-4% marke
Slide 19: Global Expansion Opportunity
Global Expansion Opportunity In FY09 we introduced the 8-in-1 brand throughout Europe, Japan and ROW – Opportunistically launched successful U.S. products – Strategically building brand equity for 8-in-1 as the umbrella brand for the Companion Animal range – Position the brand as the professional
Slide 20: Fragmented Industry Provides Consolidation Opportunities
Fragmented Industry Provides Consolidation Opportunities Fragmented Industry is ripe for consolidation Central Acquisition targets identified Garden & Pet 9% – Large & rich list of opportunities Hartz 5% UPG – Primary focus will be in Companion Animal 5% Doskocil Mfg Potential acquisition cate
Slide 21: Pet Business Cost Reduction: Facility/Organization Integration
Pet Business Cost Reduction: Facility/Organization Integration UPG is a collection of ten small bolt-on acquisitions and Tetra. We have begun the process of consolidating small legacy facilities into more efficient combo factories and a streamlined organization. 2009 Start 2012 Completion Faciliti
Slide 22: In Summary…
In Summary… Attractive Global Industry Dynamics Proven and Experienced Management Team Impressive Portfolio of Brands and Products Strong Relationships with Key Global Retailers Platform to Capitalize on Future Acquisitions and Geographic Expansions Compelling Growth Opportunities Trac
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