Helen Of Troy Limited · NASDAQ:HELE
Helen Of Troy — Investor Presentation (April 2022)
37 slides from Helen Of Troy's investor presentation, Apr 29, 2022
Slide 1: Investor Presentation April 2022
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 April 2022
Slide 2: Forward-Looking Statements and Non-GAAP Measures
costs and complexities of compliance with such laws, the risks associated with increased focus and expectations on climate change and other environmental, social and governance matters, the risks associated with significant changes in or the Company’s compliance with regulations, interpretations or
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 $63 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 4 $1,308 $1,335 $1,383 $1,398 $1,479 $1,564 $1,707 $2,099 $2,223 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Revenue ($ in Millions) $4.50 $5.50 $5.78 $6.49 $7.24 $8.06 $9.30 $11.65 $12.36 FY14 FY15 FY16 FY17 F
Slide 5: Strong Portfolio of Leadership Brands
5 Higher Margin Asset Efficient Differentiated Market Leader Growth Adjacencies FY22 Phase II Transformation Beginning of Phase I Transformation FY2014 Leadership Brand Progression ˜44% ˜56% ˜19% ˜81% Leadership Brands Leadership Brands Phase I (FY14 - FY19) Phase II to Date (FY20 - FY22) 11.1% 13.3
Slide 6: Fiscal 2022 Highlights
Fiscal 2022 Highlights* Core Sales in Millions $2,020 $2,189 +8.4% vs. FY21 Key Fiscal Year Takeaways: • Core sales growth of 8.4% year over year, even including the adverse impact of the EPA matter • Core adjusted diluted EPS growth of 10.4% year over year, reflecting our diversified portfolio and
Slide 7: Accelerated Core Growth in Phase II
FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22* FY23E* $4.50 $4.80 $5.92 $6.51 $7.27 $8.72 $11.03 $12.18 $13.38 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22* FY23E* $1,184 $1,231 $1,281 $1,370 $1,461 $1,615 $2,020 $2,189 $2,450 7 Accelerated Core Growth in Phase II Core Net Sales ($ in millions) Phase I Phase I
Slide 8: EPA Packaging Compliance Update
In fiscal 2023 we expect a net favorable impact to net sales of approximately $10 million and adjusted diluted EPS of approximately $0.10 related to the EPA matter. In fiscal 2022 we incurred an unfavorable impact of the EPA matter on sales volume of $60 million and $0.06 in adjusted diluted EPS. Wh
Slide 9: On a Two-Year Stack, The Results are Compelling
On a Two-Year Stack, The Results are Compelling* Fiscal Year Ending February 28, 2022 % Change FY22/FY20 39.7% 35.5% 33.1% 30.4% Core Adjusted Diluted EPS (non-GAAP) Online channel net sales revenue Leadership Brand net sales revenue Core business net sales revenue 9 Health & Wellness** Home & Outdo
Slide 10: 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% 24% FY14 FY20 FY21 Online Channel Net Sales as a % of Total Company Net Sales Transformation Phase I Transformation Phase II +32 % Vs FY20 10 FY22 -1.3%* Vs FY21 FY19FY15 FY16 F
Slide 11: Value Creation Flywheel
Value Creation Flywheel 11 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 12: Proven Ability to Deploy Capital and Invest in Attractive Assets
Proven Ability to Deploy Capital and Invest in Attractive Assets • FY22 Net sales of $2.2B: built from acquisition and organic growth • Bolting On: success adding new categories, geographies and channels • Tucking In: o Acquire new brands and adjacencies for additional growth o Trademark license opp
Slide 13: Curlsmith Transaction Highlights
Curlsmith Transaction Highlights * • The total purchase consideration, net of cash acquired, was $150.0 million in cash, subject to certain customary closing adjustments • Aligns with acquisition strategy by tucking in an early stage, fast growing and disruptive innovator • Adds another highly profi
Slide 14: Highly Experienced Global Leadership Team
Highly Experienced Global Leadership Team 2. Conservative Approach to Debt Julien Mininberg Chief Executive Officer Jay Caron Chief of Global Operations Harish Ramani Chief Information Officer Lisa Kidd Chief People Officer Tessa Judge Chief Legal Officer Larry Witt President ofHome & Outdoor Nicola
Slide 15: Fiscal 2023 Outlook
Fiscal 2023 Outlook 15 Consolidated Expected Consolidated Growth/(Decline) Expected Core Growth/(Decline) Health & Wellness net sales Adjusted diluted EPS (non-GAAP) Beauty net sales Home & Outdoor net sales 3.0% to 5.4% 4.5% to 7.0% Net sales revenue 6.8% to 8.8% 19.0% to 21.0%* (1.0)% to 1.0% (1.7
Slide 16: Q1 Fiscal 2023 Outlook
Q1 Fiscal 2023 Outlook 16 Consolidated Expected Consolidated Adjusted diluted EPS (non-GAAP) $2.05 - $1.85 Net sales revenue $480 million - $460 million Historically, we have provided our Outlook on an annual basis, however due to the current dynamic market conditions and unique factors effecting th
Slide 17: Integrating ESG into our Businesses
Signatory to the New Plastics Economy, an initiative to transition away from single use and unnecessary plastic; implementing changes to incorporate responsible packaging elements throughout the Company Integrating ESG into our Businesses June 2021: First Ever ESG Report Published We believe that a
Slide 18: Appendix
Helen of Troy Appendix
Slide 19: Glossary of Terms
Glossary of Terms 19 Acquisition-related Expenses – Expenses associated with the definitive agreement to acquire Drybar Products LLC and Osprey Packs, Inc Adjusted Diluted Earnings per Share (EPS) – Non-GAAP Adjusted Income divided by diluted shares outstanding Adjusted EBITDA is defined as earnings
Slide 20: Glossary of Terms
Glossary of Terms Leadership Brand Net Sales (LB) – Consists of revenue from the OXO, Hydro Flask, Osprey, Vicks, Braun, Honeywell, PUR, Hot Tools and Drybar brands Leverage Ratio – Total current and long-term debt plus outstanding letters of credit, divided by EBITDA plus non-cash charges and certa
Slide 21: 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 Last Day of February, 2022 2021 2020 2019 2018 2017 2016 2015 2014 Operating income as reported (GAAP) $272,550 12.3 % $281,488 13.4 % $178,251
Slide 22: GAAP Diluted EPS to Non-GAAP
Reconciliation of Non-GAAP Financial Measures - GAAP Diluted Earnings Per Share (“EPS”) to Adjusted Diluted EPS (Non-GAAP) (Unaudited) Fiscal Years Ended Last Day of February, 2022 2021 2020 2019 2018 2017 2016 2015 2014 Diluted EPS as reported (GAAP) $ 9.17 $ 10.08 $ 6.02 $ 6.62 $ 4.73 $ 5.17 $ 3.2
Slide 23: Operating Cash Flow to Free Cash Flow
Reconciliation of Non-GAAP Financial Measures - GAAP Net Cash Provided by Operating Activities to Free Cash Flow (Non-GAAP) (Unaudited) (in thousands) Fiscal Years Ended Last Day of February, 2022 2021 2020 2019 2018 2017 2016 2015 2014 Net cash provided by operating activities (GAAP) $ 140,823 $ 31
Slide 24: Consolidated Core and Non-Core Net Sales
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 2022 2021 2020 2019 2018 2017 22/21 21/20 20/19 19/18 18/17 22/21 21/20 20/19 19/18 18/17 Sales revenue, net Core
Slide 25: Net Sales Revenue, Diluted EPS Period Over Period Growth
Net Sales Revenue, Diluted EPS and Adjusted Diluted EPS (Non-GAAP) Period Over Period Growth (Decline) (Unaudited) (in thousands, except per share data) Three Months Ended Last Day of February, % Change 2022 2021 2020 FY22/FY21 FY22/FY20 Consolidated net sales revenue $ 582,020 $ 509,375 $ 442,365 1
Slide 26: Core and Non-Core Diluted EPS Reconciliation
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: 2022 2021 2020 2019 2018 2017 Diluted EPS, as reported $ 9.00 $ 9.76 $ 7.16 $ 5.89 $ 4.72 $ 4.88
Slide 27: Consolidated Core and Non-Core Net Sales Quarterly
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 28: Core and Non-Core Quarterly Diluted EPS
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 29: Core and Non-Core Diluted EPS Reconciliation Fiscal 2022
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 2022 Quarterly Period Ended Core Business: May August November February Fiscal Year 2022 Diluted EPS, as reported $ 2.15 $ 2.11 $ 3.10 $
Slide 30: Core and Non-Core Diluted EPS Reconciliation Fiscal 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 31: Core and Non-Core Diluted EPS Reconciliation Fiscal 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 32: 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 February 28, 2022 Income Diluted EPS Before Tax Tax Net of Tax Before Tax Tax Net of Tax As repo
Slide 33: Net Income and Diluted EPS to Adjusted Income Fiscal 2022
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) Fiscal Year Ended February 28, 2022 Income Diluted EPS Before Tax Tax Net of Tax Before Tax Tax Net of Tax As repor
Slide 34: Net Income and Diluted EPS to Adjusted Income Fiscal 2020
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 February 29, 2020 Income Diluted EPS Before Tax Tax Net of Tax Before Tax Tax Net of Tax As repo
Slide 35: Fiscal 2023 Outlook for Net Sales Revenue
Fiscal 2023 Outlook for Net Sales Revenue (Unaudited) (in thousands) Core Business: Net sales revenue $ 2,189,239 $ 2,375,000 — $ 2,420,000 Net sales revenue growth 8.5% — 10.5% Consolidated: Fiscal 2022 Outlook Fiscal 2023 Net sales revenue $ 2,223,355 $ 2,375,000 — $ 2,420,000 Net sales revenue gr
Slide 36: Fiscal 2023 Outlook for GAAP Diluted EPS to Non-GAAP
Reconciliation of Non-GAAP Financial Measures - Fiscal 2023 Outlook for GAAP Diluted EPS to Adjusted Diluted EPS (Non-GAAP) (Unaudited) Core Business: Fiscal Year Ended February 28, 2022 Outlook Fiscal 2023 Diluted EPS, as reported (GAAP) $ 9.00 $ 9.92 — $ 10.38 Acquisition-related expenses, net of
Slide 37: Fiscal 2023 First Quarter Outlook for GAAP Diluted EPS to Non-GAAP
Reconciliation of Non-GAAP Financial Measures - Fiscal 2023 First Quarter Outlook for GAAP Diluted EPS to Adjusted Diluted EPS (Non- GAAP) (Unaudited) 37 Consolidated: Outlook Q1 Fiscal 2023 Diluted EPS, as reported (GAAP) $ 0.93 — $ 1.21 Acquisition-related expenses, net of tax 0.05 — 0.03 EPA comp