Helen Of Troy Limited · NASDAQ:HELE
Helen Of Troy — 23rd Annual ICR Conference (January 2021)
22 slides from Helen Of Troy's conference presentation, Jan 12, 2021
Slide 1: ICR Conference
Invest in Leadership Brands Optimize Double Capital Down on Deployment International Maximize Selective ICR Conference Operating Efficiency & Strategic M&A January 2021 Accelerate Consumer Shared Service Centric Excellence Unify, Include & Elevate the Best People
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: foreign sources of supply and foreign manufacturing, and associated operational risks including, but not limited to, long Certain written and oral statements made by the Company and subsidiaries
Slide 3: Evolution of Transformation Strategy
Evolution of Transformation Strategy Phase I: FY15-FY19 Phase II: FY20-FY24 Invest in Leadership Brands Optimize Double Capital Down on Deployment International Maximize Selective Operating & Strategic Efficiency M&A Accelerate Consumer Shared Service Centric Excellence Unify, Include & Elevate the
Slide 4: Phase I Generated Excellent Results and Phase II Off to a Strong Start
Phase I Generated Excellent Results and Phase II Off to a Strong Start Revenue ($ in Millions) Adjusted Operating Income ($ in Millions) $269 $1,707 $239 $1,564 $224 $210 $1,479 $194 $1,398 $183 $188 $1,383 $1,308 $1,335 Adjusted Operating 14.0% 14.1% 14.0% 15.0% 15.1% 15.3% 15.8% YOY Growth 1.5% 2.
Slide 5: Strong Portfolio of Leadership Brands
Strong Portfolio of Leadership Brands Leadership Brand Net Sales Growth # 27.3% 9 Mo. FY21 vs 9 Mo. FY20 9.4% * FY20 vs FY19 11.1% Phase I (FY14 - FY19 CAGR) Leadership Brand Progression ˜20% ˜44% ˜56% ˜80% Differentiated Market Leader Leadership Leadership Brands Brands Higher Margin Growth Adjacen
Slide 6: Value Creation Flywheel
Value Creation Flywheel Accretive and Low Risk Capital Deployment Leadership Brand Innovation and Investment Low Capex Organic Revenue Growth Working Capital Improvement Margin Expansion Debt and Tax Efficiency High Quality Global Shared Services 6
Slide 7: FY21 Third Quarter: Exceptional Results
FY21 Third Quarter: Exceptional Results FY21 Three Months Ended November 30, 2020 vs Same Period Year Ago* Consolidated Net Sales Growth 34.3% Leadership Brands Growth Represents ˜80% of total net sales 33.9% Adjusted Diluted EPS Growth 20.5% Online Net Sales Growth Now represents ˜24% of total net
Slide 8: FY21 Year to Date: Outstanding Performance
FY21 Year to Date: Outstanding Performance FY21 Nine Months Ended November 30, 2020 vs Same Period Year Ago* Consolidated Net Sales Growth 25.6% Leadership Brands Growth Represents ˜81% of total net sales 27.3% Adjusted Diluted EPS Growth 35.4% Online Net Sales Growth Now represents ˜25% of total ne
Slide 9: Our Diversified Portfolio is Performing
Our Diversified Portfolio is Performing Consolidated Net Sales Nine Months Ended November 30, 2020 Housewares YTD FY21 Net Sales: $564.9M Organic +13.9% YOY* Health & Home YTD FY21 Net Sales: $661.6M Consolidated FY21: Organic +32.5% YOY* $1.589B Organic +23.1% YOY* Beauty YTD FY21 Net Sales: $363.0
Slide 10: Digital Transformation Investments Have Helped Quadruple Online Sales
Digital Transformation Investments Have Helped Quadruple Online Sales Online Channel Net Sales as a % of Total Company Net Sales 30% 25% 25% 20% 24% 15% 19% +33 % Vs 9 Mos. 10% 16% FY20 12% 9 Mos. 9% 9% 5% FY21 6% 0% FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 YTD PHASE I PHASE II 10
Slide 11: Strong Shareholder Return; Opportunity to Create Even More Value in Phase II
Strong Shareholder Return; Opportunity to Create Even More Value in Phase II 11
Slide 12: We Remain Confident in Our Average Annual Organic Sales and EPS Targets
We Remain Confident in Our Average Annual Organic Sales and EPS Targets Over the Course of Fiscal Years 2022 Through 2024 Revenue ($ in Millions) FY21 Outlook $2,075 to $2,100 21.5% to 23.0% Phase II Financial Targets Average Annual Organic Sales Growth 2.5% to 3.5% Average Annual $1,707 EPS Growth
Slide 13: Diversified Portfolio and Post-COVID Trends Expected to Help in FY22
Diversified Portfolio and Post-COVID Trends Expected to Help in FY22 • Coronavirus expected to continue through 1H FY22 • Resolution of inventory and supply constraints we experienced in 1H FY21 • Higher COVID-driven installed base expected to drive more high margin filter sales for air and water pu
Slide 14: Helen of Troy's Leadership Brand Portfolio is Well-Positioned to Succeed
Helen of Troy’s Leadership Brand Portfolio is Well-Positioned to Succeed Higher installed base Shift from cities to suburbs "Safety of Home" opportunity Consumer Centric innovation Sustainability trend DTC and eCommerce Beauty remains timeless 14
Slide 15: Value Creation Flywheel
Value Creation Flywheel Accretive and Low Risk Capital Deployment Leadership Brand Innovation and Investment Low Capex Organic Revenue Growth Working Capital Improvement Margin Expansion Debt and Tax Efficiency High Quality Global Shared Services 15
Slide 16: Appendix
Helen of Troy Appendix
Slide 17: Glossary of Terms
Glossary of Terms Acquisition-related Expenses – Expenses associated with the definitive agreement to Leadership Brand Net Sales (LB) – Consists of revenue from the OXO, Honeywell, Braun, acquire Drybar Products LLC PUR, Hydro Flask, Vicks, Hot Tools and Drybar brands Adjusted Diluted Earnings per S
Slide 18: 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 2020 2019 2018 2017 2016 2015 2014 Operating income as reported (GAAP) $ 178,251 10.4 % $ 199,379 12.7 % $ 169,062 11.4
Slide 19: 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 2020 2019 2018 2017 2016 2015 2014 Diluted EPS as reported (GAAP) $ 6.02 $ 6.62 $ 4.73 $ 5.17 $ 3.23 $ 4.36 $ 2.66 Tax re
Slide 20: Reconciliation of Non-GAAP Financial Measures - Operating Activities to 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 2020 2019 2018 2017 2016 2015 2014 Net cash
Slide 21: Reconciliation of Non-GAAP Financial Measures - GAAP Net Income and Diluted EPS to Adjusted
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 November 30, 2020 Income Diluted EPS Before Tax Tax Net of Tax Before Tax Tax Net of Tax As repo
Slide 22: Reconciliation of Non-GAAP Financial Measures - GAAP Net Income and Diluted EPS to Adjusted
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) Nine Months Ended November 30, 2020 Income Diluted EPS Before Tax Tax Net of Tax Before Tax Tax Net of Tax As repor
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