Spectrum Brands Holdings, Inc. · NYSE:SPB
Spectrum Brands — Investor Presentation (February 2016)
35 slides from Spectrum Brands's investor presentation, Feb 24, 2016
Slide 1: Presentation to Dallas Investors
Global Batteries & Appliances Presentation to Pet, Home & Garden Dallas Investors February 24, 2016 Hardware & Home Improvement Dave Prichard Vice President, Investor Relations Global Auto Care
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
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
Slide 4: The Brands You Trust Under One Roof
THE BRANDS: Y OU TRUS) UNDER ONE Cun nwa GEORGE FOREMAN (BLACK+DECKER) REMINGION| Kwikset a eiuwe VS BS i | Kn a, Tetrd Wie, PfisTER GD
Slide 5: Spectrum Brands Overview
Spectrum Brands Overview A global consumer products company with annualized sales of over $5 billion, offering an expanding portfolio focused on: • non-discretionary consumer products used in households daily • market-leading brands in categories with barriers to entry • delivering superior value to
Slide 6: Spectrum Brands Highlights
Spectrum Brands Highlights FY15 net sales of $4,690 million and adjusted FY15 Net Sales - $4,690 million EBITDA of $801 million H&G GAC (b) 3% 10% Top 3 global market positions in most product categories Global Pet Supplies GBA Global footprint with presence on 6 continents and 16% 45% product
Slide 7: Strong Financial Performance Despite a Challenged Consumer
Strong Financial Performance Despite a Challenged Consumer Net Sales Performance Adjusted EBITDA / Margin Performance ($ in millions) ($ in millions) $801 $4,690 $4,429 $724 $4,226 $4,277 $668 $677 $3,111 $3,187 $457 $432 17.1% 16.4% 15.8% 15.8% 14.3% 13.9% (b) (c) (a) (b) (b) FY 10 (a) FY 11 FY 12
Slide 8: Solid Cash Flow Generation
Solid Cash Flow Generation FY16 free cash flow is expected to be between $505-$515 million, or approximately $8.50 per share FY15 adjusted free cash flow was $454 million, or nearly $8 per share FY14 free cash flow was $359 million, or $6.75 per share FY13 adjusted free cash flow was $254 mi
Slide 9: Strong Future Cash Flow and Value Creation Flexibility
Strong Future Cash Flow and Value Creation Flexibility 2016-2018 Operating Cash Flow = ~$2.1 Billion Uncommitted Cash Optionality ($ in billions) Pay down debt Share Repurchases $0.3 Acquisitions Share repurchases Dividends $0.3 Further increase dividends Uncommitted Free Cash Flow $1.2 Cape
Slide 10: FY15 Net Sales by Geographic Region
FY15 Net Sales by Geographic Region 10
Slide 11: Leading Market Share and Strong, Attractive Brands
Leading Market Share and Strong, Attractive Brands Estimated Market Position Category Selected Key Brands (as of December 2015) #1 (North America appearance) Auto Care Products #1 (North America refrigerants) #2 (North America fuel & oil additives) #3 (North America) Consumer batteries #2 (Europe) #
Slide 12: Spectrum Brands Vision
Spectrum Brands Vision Platform For Lasting Customer & Consumer Relations VISION Be the preferred strategic ... an expanding portfolio of partner to our customers innovative and superior value with ... consumer products. Superior Value Innovation Sales Growth Efficiency from with from Global Regiona
Slide 13: Spectrum First 3x3 Growth Accelerators
Spectrum First 3x3 Growth Accelerators Evolution of Value Model to Advance to the Top Tier Convert interest to sale Bring consumer Total cost to store reduction Above market Alignment & sales growth creativity Performance, Trust, competence quality & costs & speed Superior & Retention & efficient se
Slide 14: Global Shared Services, ERP and Centers of Excellence
Global Shared Services, ERP and Centers of Excellence Commercial / Customer Cost & Focus Efficiency Shared Services Divisions Regions SAP Centers of Excellence 14
Slide 15: Supporting Long-term Growth Through Synergistic Bolt-on Acquisitions
Supporting Long-term Growth Through Synergistic Bolt-on Acquisitions KEY ACQUISITION PRIORITIES Hardware & Global Pet Supplies Home & Garden Global Auto Care Home Improvement Spectrum Brands continually evaluates synergistic, bolt-on acquisitions to expand its product lines, extend market penetratio
Slide 16: Successful Track Record of Acquisition Integration/Delevering
Successful Track Record of Acquisition Integration/Delevering Strong free cash flow used to manage capital structure and drive value Proven integrator – Russell Hobbs, HHI, FURminator, Black Flag/TAT, Tong Lung, Liquid Fence, Tell, Salix, IAMS/Eukanuba, Global Auto Care Fiscal Year-end Total Lev
Slide 17: Key New Products
Key New Products Global Batteries & Hardware & Home Pet, Home & Garden Global Auto Care Appliances Improvement 17
Slide 18: Global Batteries & Appliances
Global Batteries & Appliances Pet, Home & Garden Hardware & Home Improvement Global Auto Care
Slide 19: Global Batteries & Appliances Overview
Global Batteries & Appliances Overview Value brands appeal to consumers Adjusted EBITDA Performance Capitalizing on platform with innovation and a ($ in millions) $327 $307 $308 $304 $307 $297 stream of new product launches Strong adjusted EBITDA performance despite soft economy and volatile F
Slide 20: Pet, Home & Garden
Global Batteries & Appliances Pet, Home & Garden Hardware & Home Improvement Global Auto Care
Slide 21: Global Pet Supplies Overview
Global Pet Supplies Overview Global market leader in aquatics category with a broad Adjusted EBITDA Performance and innovative product line led by the Tetra brand ($ in millions) $120 $125 $113 $113 Strong new product pipeline in FY16 in both aquatics $104 $99 and companion animal categories I
Slide 22: Home & Garden Overview
Home & Garden Overview Another record year in FY15 Adjusted EBITDA Performance High barriers to entry ($ in millions) $125 Strong new product pipeline $87 $90 $102 $78 Operational excellence $68 FY 10 (a) FY 11 FY 12 FY 13 FY 14 FY 15 (a) Reflects pro forma as if Russell Hobbs merger complet
Slide 23: Home & Garden Share Leadership in the Industry
Home & Garden Share Leadership in the Industry U.S. Retail Home & Garden Pest Control Market Vendor Market Share Estimate Home & Garden Share All Other Controls 24% 20% H&G $1,498M H&G Share 27% Bayer Household 5% 34% $876M H&G Share Central Garden and Pet Repellents 33% 4% H&G Share $586M SC Johnso
Slide 24: Hardware & Home Improvement
Global Batteries & Appliances Pet, Home & Garden Hardware & Home Improvement Global Auto Care
Slide 25: Hardware & Home Improvement Overview
Hardware & Home Improvement Overview 12 consecutive quarters of YOY net sales and adjusted EBITDA Adjusted EBITDA Performance increases since December 17, 2012 acquisition ($ in millions) Leading provider of residential locksets, builders hardware and $226 $210 plumbing and accessories $182 Di
Slide 26: Global Auto Care
Global Batteries & Appliances Pet, Home & Garden Hardware & Home Improvement Global Auto Care
Slide 27: Global Auto Care
Global Auto Care Market-leading auto care brands, including Adjusted EBITDA Performance Armor All, STP and A/C PRO ($ in millions) $136 Armor All and STP enjoy 32% and 19% unaided brand awareness while A/C PRO holds 73% $89 market share in the North America DIY refrigerant category Acquired in M
Slide 28: Fiscal 2016 Outlook
Fiscal 2016 Outlook Planning for 7th consecutive year of record performance Reported sales growth in the high-single digit range Continued cost improvement discipline FX headwinds Free cash flow is projected to be between $505-$515 million Focus remains on growing adjusted EBITDA and maxim
Slide 29: NYSE: SPB
Global Batteries & Appliances NYSE: SPB Pet, Home www.spectrumbrands.com & Garden investorrelations@spectrumbrands.com david.prichard@spectrumbrands.com Hardware & Home Improvement Global Auto Care
Slide 30: Appendix
Global Batteries & Appliances Pet, Home & Garden Appendix Hardware & Home Improvement Global Auto Care
Slide 31: Long and Successful History of Acquisitions
Long and Successful History of Acquisitions Hardware & Home Improvement (HHI) Rayovac Changes Acquisition to Spectrum DEC 2012 Brands Acquisition MAY 2005 JAN 2015 Acquisition of Tong Lung Metal Rayovac Reacquires (Taiwan) Brand in Brazil APR 2013 (Microlite SA) 100% European Ownership of Rayovac Me
Slide 32: Financial Snapshot
Financial Snapshot Pro forma net sales Adjusted EBITDA ($ in millions) ($ in millions) Capital expenditures Adjusted EBITDA less capital expenditures ($ in millions) ($ in millions) (a) Reflects pro forma as if Russell Hobbs merger completed at beginning of respective period. (b) Reflects pro forma
Slide 33: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA 9/30 FY2010 9/30 FY2011 9/30 FY2012 PF9/30 FY2012 PF9/30 FY2013 9/30 FY2014 9/30 FY2015 Net income (loss) ($190) ($75) $49 $49 ($55) $215 $149 Income tax expense 63 92 60 60 27 59 44 Interest expense 277 208 192 192 376 202 272 Depreciation and amortization 118 135
Slide 34: Reconciliation of Adjusted EBITDA by Segment
Reconciliation of Adjusted EBITDA by Segment FY 2015 Global Batteries & Global Pet Home & Garden Hardware & Home Corporate / Unallocated Consolidated Global AutoCare Appliances Supplies Business Improvement Items (1) Spectrum ($ in millions) Net Income (Loss), as adjusted $220 $60 $108 $166 $18 ($42
Slide 35: Presentation to
Global Batteries & Appliances Presentation to Pet, Home & Garden Hardware & Home Improvement Global Auto Care
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