Church & Dwight Company, Inc. · NYSE:CHD
Church & Dwight — Barclays Global Consumer Staples Conference 2024
104 slides from Church & Dwight's conference presentation, Sep 5, 2024
Slide 1: Church & Dwight Co., Inc.
CHURCH & DWIGHT CO., INC. Barclays Global Consumer Staples Conference 2024
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT This presentation contains forward-looking statements, including, among others, statements relating to net sales and earnings growth; gross margin changes; trade, marketing, and SG&A spending; recessionary conditions; interest rates; inflation; sufficiency of cash flows from op
Slide 3: Who We Are
Who We Are Matt Farrell Chairman, President & Chief Executive Officer 3
Slide 4: Historical Total Shareholder Return
Historical Total Shareholder Return 10 YEAR 5 YEAR 3 YEAR 2023 2024 YTD* 12.6% 8.8% 4.0% 18.7% 8.4% *2024 YTD is through August 30, 2024 Barclays Global Consumer Staples Conference 2024 4
Slide 5: Evergreen Model
Evergreen Model Domestic: 3% Organic Net Sales +4% International: 8% SPD: 5% Gross Margin +25 to +50 bps Marketing Constant 11%, Higher YOY $ SG&A -25 to 0 bps Operating Margin +50 bps EPS Growth +8% Barclays Global Consumer Staples Conference 2024 5
Slide 6: Organic Sales Growth: 10 Year History
Organic Sales Growth: 10 Year History 9.6% 10 Year 5.3% ~4.0% Average: 3.5% 4.3% 4.4% 4.3% 4.2% 3.6% 3.2% 2.7% Evergreen Target: 1.4% 4.0% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024E Organic sales is a non-GAAP measure. Refer to the Appendix for a reconciliation to the most directly comp
Slide 7: Power Brands
POWER BRANDS 7
Slide 8: 7 Power Brands
more than 70% of sales & profits are represented by these 7 POWER BRANDS 8
Slide 9: Church & Dwight's Business Segments
Church & Dwight’s Business Segments 78% 17% 2024E Domestic International Total Company Net Sales $6.1B 5% Specialty Products Division Outlook as of August 2, 2024. Barclays Global Consumer Staples Conference 2024 9
Slide 10: We Have a Winning Formula
We Have a Winning Formula A Balanced and Diversified Portfolio Low Private Label Exposure Online Success Strong and Consistent Innovation Acquisitive Company Barclays Global Consumer Staples Conference 2024 10
Slide 11: A Balanced and Diversified Portfolio
A Balanced and Diversified Portfolio 5% SPD 46% Household 2024E 49% Personal Care Outlook as of August 2, 2024. Barclays Global Consumer Staples Conference 2024 11
Slide 12: Product Portfolio of Both Value and Premium Products
Product Portfolio of Both Value and Premium Products 37% 63% Value Premium Barclays Global Consumer Staples Conference 2024 12
Slide 13: Consistent Low Private Label Exposure
Consistent Low Private Label Exposure Weighted Average Private Label Share of Our Categories 15% 10% 5% 0% 2018 2019 2020 2021 2022 2023 2024E Source: Circana; Total US – MULO. Outlook as of August 2, 2024. Barclays Global Consumer Staples Conference 2024 13
Slide 14: eCommerce Continues to Accelerate for our Brands
eCommerce Continues to Accelerate for our Brands % of Global Church & Dwight Consumer Net Sales 21% 2% 2016 2017 2018 2019 2020 2021 2022 2023 2024E Outlook as of August 2, 2024. Barclays Global Consumer Staples Conference 2024 14
Slide 15: Category Leading Innovation
Category Leading Innovation 15
Slide 16: We Have Clear Acquisition Criteria
We Have Clear Acquisition Criteria Primarily High growth Asset Leverage Deliver #1 or #2 and high margin light C&D sustainable share brands that are manufacturing, competitive brands fast moving logistics and advantage consumables purchasing 16
Slide 17: Long History of Growth Through Acquisitions
Long History of Growth Through Acquisitions Net Sales $6.1 $ Billions $1.5 2004 2005 2006 2008 2010 2011 2012 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024E Note: Trojan, Nair and First Response acquired in two parts – 2001 and 2004. Outlook as of August 2, 2024. Barclays Global Consumer St
Slide 18: 7 Power Brands Today and More to Come
7 Power Brands Today and More to Come Net Sales $ Billions $7.0 $6.0 7 $5.0 6 $4.0 5 $3.0 4 3 $2.0 2 $1.0 $0.0 1 1846 1998 1999 2000 2001 2002 2003 2004 20052006 1846 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2011 2012 2017 20212022 Barclays Global Con
Slide 19: Financials
Financials Rick Dierker Chief Financial Officer & Head of Business Operations 19
Slide 20: FY 2024 Outlook
FY 2024 Outlook FY OUTLOOK (as of August 2) Reported Sales Growth ~3.5% Organic Sales Growth ~4% Adjusted Gross Margin +100 to +110 bps Adjusted EPS Low end 8% to 9% Cash from Operations $1.08B Barclays Global Consumer Staples Conference 2024 20
Slide 21: Organic Sales Growth: 10 Year History
Organic Sales Growth: 10 Year History 9.6% 10 Year 5.3% ~4.0% Average: 3.5% 4.3% 4.4% 4.3% 4.2% 3.6% 3.2% 2.7% Evergreen Target: 1.4% 4.0% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024E Organic sales is a non-GAAP measure. Refer to the Appendix for a reconciliation to the most directly comp
Slide 22: Volume Trend Continues to Improve
Volume Trend Continues to Improve 8.1% 5.0% 3.4% 3.7% 3.7% 3.5% 3.1% 1.0% 1.0% 0.9% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2024 2024 Q1 Q2 FYE -5.1% Outlook as of August 2, 2024 Barclays Global Consumer Staples Conference 2024 22
Slide 23: 2024 Focus On Adjusted Gross Margin
2024 Focus On Adjusted Gross Margin Evergreen Target: +25 to +50 bps +100 - 110 bps 45.5% 45.1% - 45.2% 2018 2019 2020 2021 2022 2023 2024E Outlook as of August 2, 2024 Barclays Global Consumer Staples Conference 2024 23
Slide 24: 2024 Marketing Spend Target
2024 Marketing Spend Target ~11.0% 11.7% 11.8% 12.1% 11.1% 10.9% 10.0% 2018 2019 2020 2021 2022 2023 2024E Outlook as of August 2, 2024 Barclays Global Consumer Staples Conference 2024 24
Slide 25: Consistent Strong Adjusted EPS Growth
Consistent Strong Adjusted EPS Growth low end of +8 to 9% $3.17 $3.02 $2.97 $2.83 $2.47 $2.27 $1.94 $1.77 9.3% 9.6% 17.0% 8.8% 14.6% 6.7% -1.7% 6.7% 2016 2017 2018 2019 2020 2021 2022 2023 2024E Note: Adjusted EPS growth is a non-GAAP measure. Refer to the Appendix for a reconciliation to the most c
Slide 26: "Best In Class" FCF Conversion
“Best In Class” FCF Conversion 10 Year Average: 119% 129% 131% 126% 126% 125% 123% Elevated 116% Capex 112% 103% 97% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024E Refer to the Appendix for a reconciliation to the most directly comparable GAAP measures. Barclays Global Consumer Staples Conf
Slide 27: Strong Balance Sheet
Strong Balance Sheet Credit Rating: Total Debt/Bank EBITDA A3/BBB+ 2.6x 2.2x 1.9x 1.9x 1.6x 2.1x 1.5x 1.4x 1.8x 1.7x 1.6x 1.4x 1.4x 1.2x 0.7x 0.5x 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024E Note: Total debt/EBITA is a non-GAAP measure. Refer to the Appendix for
Slide 28: Significant Financial Capacity
Significant Financial Capacity (in $millions) Cash & Cash Equivalents $490 Acquisition Power: Leverage Capacity $4,800 $5.3B • TTM Bank EBITDA = $1,430M • Example: Acquisition EBITDA multiple of 12x Current Debt $2,225 Outstanding As of 6/30/24 Barclays Global Consumer Staples Conference 2024 28
Slide 29: Prioritized Uses Of Free Cash Flow
Prioritized Uses Of Free Cash Flow 1 TSR-Accretive M&A 2 Capex For Organic Growth & G2G 3 New Product Development 4 Debt Reduction 5 Return Of Cash To Shareholders Barclays Global Consumer Staples Conference 2024 29
Slide 30: Minimal Capital Investment
Minimal Capital Investment Capital Expenditures as a % of Sales 5.4% 3.8% 3.3% 3.0% 2.8% 2.5% 2.5% 2.3% 2.1% 2.1% 2.0% 1.8% ~2.0% 1.7% 1.4% 1.4% 1.2% $135 $64 $77 $75 $67 $71 $62 $50 $45 $60 $74 $99 $119 $179 $224 $180 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024E
Slide 31: U.S. Story
U.S. Story 31
Slide 32: US Domestic Sales Evergreen Target: +3%
US Domestic Sales Evergreen Target: +3% 3% United States 4% 8% International 5% Specialty Products Barclays Global Consumer Staples Conference 2024 32
Slide 33: Consumer Domestic Organic Sales Performance
Consumer Domestic Organic Sales Performance We Are 10.7% Leaders In Growing Categories 5.7% We Thrive In 4.3% Difficult 4.3% 4.0% Environments 3.8% Evergreen 3.0% 3.1% 3.6% Target: 2.0% 3.0% 1.4% 0.9% Acquisitions Have Room 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2024 2024 To Run Q1 Q
Slide 34: Our Power Brands Fuel Our Growth
Our 7 Power Brands Fuel Our Growth 34
Slide 35: Power Brands Compete in Healthy, Growing Categories
These 7 Power Brands Compete in 8 Healthy, Growing Categories: 2020 2021 2022 2023 2024 YTD Laundry Clumping Litter Stain Fighters VMS Gummy Power Flossing Dry Shampoo Alcohol Free Mouthwash Acne Patch Source: Circana; Total US – MULO; YTD 2024 data through 06.30.24 Barclays Global Consumer Staples
Slide 36: Fabric Care
Fabric Care 36
Slide 37: Liquid Laundry Detergent
Liquid Laundry Detergent LLD Category $ % Chg vs. YAG $ % Chg vs. YAG 2024 2024 2.8% 1.9% 1.2% 0.9% Q1 Q2 Q1 Q2 Category growth slowing while Arm & Hammer grows share driven by innovation Source: Circana; Total US – MULO Barclays Global Consumer Staples Conference 2024 37
Slide 38: Arm & Hammer Laundry: Converting and Retaining Consumers
Arm & Hammer Laundry: Converting and Retaining Consumers Over the Long Term A&H Liquid Laundry Dollar Share All-time share high 14.5% 5.0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 YTD Source: Circana Total MULO Liquid Laundry; 2024 YTD = L26 WE 0
Slide 39: Arm & Hammer Laundry Architecture Good/Better/Best
Arm & Hammer Laundry Architecture Good/Better/Best Good Better Best Barclays Global Consumer Staples Conference 2024 39
Slide 40: Arm & Hammer Deep Clean
Arm & Hammer Successful first entry into Deep Clean the Mid-Tier Laundry Detergent category. Proving highly incremental to category and brand; Trading consumers up. Also attracting younger Launched Nationally in Q1 2024 4.7 rating consumers to A&H. 40 Rating (LLD): Walmart.com
Slide 41: Cat Litter
Cat Litter 41
Slide 42: Cat Litter
Cat Litter Litter Category $ % Chg vs. YAG $ % Chg vs. YAG 2024 2024 5.5% 5.4% 5.5% 2.3% Q1 Q2 Q1 Q2 Category growth slowing while Arm & Hammer grows share driven by innovation Source: Circana; Total MULO Barclays Global Consumer Staples Conference 2024 42
Slide 43: A&H Litter: All Time Share High Achieved In 2024
A&H Litter: All Time Share High Achieved In 2024 Clumping Litter Dollar Share All-time 2020 - 2024 share high 24.8% 23.1% 2020 2021 2022 2023 YTD 2024 Source: Circana Total MULO + Pet A&H Clumping Litter Sales: YTD 2024 as of 06.30.24 Barclays Global Consumer Staples Conference 2024 43
Slide 44: Arm & Hammer HardBall
Arm & Hammer Lightweight Litter is HardBall a $400MM+ sub-segment.1 Arm & Hammer LW share Pre-HardBall = 4%; Today = 7.9%2 Attracting new users to the Expanded Nationally In 2024 brand and retaining them 4.4 rating Rating: Walmart.com Sources: 1Circana US TOTAL MULO+Pet, L52WE 08.18.24. 2Circana US
Slide 45: Mouthwash
TheraBreath. Mouthwash
Slide 46: Alcohol-Free Mouthwash
Alcohol-Free Mouthwash Alcohol-Free Mouthwash Category $ % Chg vs. YAG $ % Chg vs. YAG 2024 2024 65.9% 42.8% 19.9% 14.8% Q1 Q2 Q1 Q2 Strong category growth fueled primarily by explosive TheraBreath consumption … Source: Circana; Total MULO Barclays Global Consumer Staples Conference 2024 46
Slide 47: TheraBreath is #1 Share Position in Alcohol-Free Segment
TheraBreath is Expand #1 Share Position in Alcohol-Free Segment TheraBreath widened the gap over key competitor in Q2 40.0 35.0 33.5 30.0 33.0 25.0 27.1 20.0 Former #1 14.1 Competitor 15.0 10.0 5.0 0.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Ja
Slide 48: TheraBreath: All Time Share High Achieved In 2024
TheraBreath: All Time Share High Achieved In 2024 All-time #1 share high NON- ALCOHOL Mouthwash Dollar Share 2020 - 2024 16.5% 3.9% 2020 2021 2022 2023 YTD 2024 Source: Circana; Total MULO Total Mouthwash; YTD 2024 as of 06.30.24 Barclays Global Consumer Staples Conference 2024 48
Slide 49: TheraBreath Still Has Lots Of Room To Run
TheraBreath Still Has Lots Of Room To Run … Average Weekly TDP Household Penetration Mouthwash 2.4x Category 2.0x 2020 65.6% 2.6% 2021 64.3% 3.2% 2022 61.9% 4.5% 2023 63.7% 7.6% Average Weekly TPD 5.1% -2.0% 47.9% 2024* 64.4% 8.8% % Chg vs YA Sources: L: Circana, Total US – Multi Outlet, L52 WE 06-3
Slide 50: TheraBreath Deep Clean
TheraBreath Deep Clean #1 New Product in the Mouthwash Category. Winning share from the competition. And bringing in new buyers too. Launched Nationally In 2024 4.7 rating 1Numerator Panel YTD through 07/07/24 50 Rating: Amazon.com
Slide 51: Dry Shampoo
eo eee,, e e e Dry Shampoo 51
Slide 52: Dry Shampoo
Dry Shampoo Dry Shampoo Category $ % Chg vs. YAG $ % Chg vs. YAG 2024 2024 19.4% 17.8% 12.5% 9.9% Q1 Q2 Q1 Q2 Strong category growth fueled primarily by Batiste consumption Source: Circana; Total MULO Barclays Global Consumer Staples Conference 2024 52
Slide 53: Batiste: All Time Share High Achieved in 2024
Batiste: All Time Share High Achieved in 2024 All-time Dry Shampoo Dollar Share share 2020 - 2024 high 46.6% 36.8% 2020 2021 2022 2023 YTD 2024 Source: Circana Total MULO Dry Shampoo; YTD 2024 as of 06.30.24 Barclays Global Consumer Staples Conference 2024 53
Slide 54: Batiste Sweat & Touch Activated
Batiste Sweat & Touch #1 New Dry Shampoo Activated launch in 2024. Fueling Category Growth. Gaining Loyalty. Launched Nationally In 2024 4.4 rating 54 Rating: Amazon.com
Slide 55: Vitamins
Vitafusion) Vitamins
Slide 56: Gummy VMS Category Doubled in Three Years and is Now Relatively Flat
Gummy VMS Category Doubled in Three Years and is Now Relatively Flat Total Gummy Category Consumption Dollars (in Millions) & % Change YOY +20.6% +1.8% -1.5% -2.1% +58.1% +16.5% $3,078 $3,137 $3,097 $3,079 $2,548 $1,540 2019 2020 2021 2022 2023 2024 L52wks (as of 7.21.24) Source: Circana; US Total M
Slide 57: Vitamins
Vitamins Adult Gummy Category $ % Chg vs. YAG $ % Chg vs. YAG 0.7% -1.6% -3.4% -3.5% -10.2% -11.3% -12.1% -12.3% Q3 23 Q4 23 Q1 24 Q2 24 Q3 23 Q4 23 Q1 24 Q2 24 Category softness continues in discretionary environment; Vitafusion declining more than Category Source: Circana; US Total MULO
Slide 58: Vitafusion Stabilization Activities
Vitafusion Stabilization Activities Heat Resistant Formula New Displays Online Channel Focus Texture & Flavor Enhancements Grow core eComm sales +30% New Packaging Focus on No Sugar Added More pop! at shelf. Simpler for consumers to shop. Barclays Global Consumer Staples Conference 2024 58
Slide 59: Acne Treatment
Hero. Acne Treatment
Slide 60: Acne Treatment
Acne Treatment Acne Treatment Category $ % Chg vs. YAG $ % Chg vs. YAG 2024 2024 68.7% 36.0% 26.2% 17.8% Q1 Q2 Q1 Q2 Strong category growth fueled primarily by excellent HERO consumption Source: Circana; Total MULO Barclays Global Consumer Staples Conference 2024 60
Slide 61: Hero: All Time Share High Achieved In 2024
Hero: All Time Share High Achieved In 2024 All-time #1 share ACNE Total Acne Dollar Share high BRAND 2020 - 2024 19.5% 1.2% 2020 2021 2022 2023 YTD 2024 Source: Circana; Total MULO Total Acne; YTD as of 06.30.24 Barclays Global Consumer Staples Conference 2024 61
Slide 62: Hero Acquisition Still Has Lots Of Room To Run
Hero Acquisition Still Has Lots Of Room To Run … Average Weekly TDP Household Penetration 2.7x Acne Treatment Category 2020 20.3% 0.9% 2021 21.4% 2.9% 2022 21.3% 4.5% 2023 23.4% 7.1% Average Weekly TPD % -3.9% 60.5% -11.2% 2024* 23.7% 7.8% Chg vs YA Sources: L: Circana, Total US – Multi Outlet, L52
Slide 63: U.S. Consumer Business In Summary
U.S. Consumer Business In Summary: Strong Execution in a Dynamic Environment We Are Leaders In We Thrive In Acquisitions Growing Difficult Have Room To Categories Environments Run
Slide 64: Consumer International
Consumer International 64
Slide 65: International Organic Sales Evergreen Target: +8%
International Organic Sales Evergreen Target: +8% 3% United States 4% 8% International 5% Specialty Products Barclays Global Consumer Staples Conference 2024 65
Slide 66: International Sales By GMG & Subsidiaries
International Sales By GMG & 6 Subsidiaries 37% 27% Canada Global International Markets Net Sales Group 12% ~$1B UK 8% Mexico 7% 3% 6% Australia Germany France Barclays Global Consumer Staples Conference 2024 66
Slide 67: Geographic Expansion: International Runway Ahead
Geographic Expansion….International Runway Ahead % of % of U.S. Domestic International Sales Sales Top 10 CPG Company 41% 59% AVG% Church & Dwight 83% 17% Barclays Global Consumer Staples Conference 2024 67
Slide 68: International Organic Sales Performance
International Organic Sales Performance Our Brands Travel Well Evergreen 9.2% 9.3% Target: 8.6% 8.5% 8.8% 7.8% 8.0% Investing in GMG Infrastructure 5.0% 2.8% Accelerating recent acquisitions 2018 2019 2020 2021 2022 2023 20242024 2024 Q1 Q2 Organic sales growth is a non-GAAP measure. Refer to the Ap
Slide 69: Brands Consumers Love That Travel the Globe
Brands Consumers Love That Travel the Globe U.S. Brand Expansion International OTC & Acquisition and Leveraging Personal Care Portfolio Acceleration Innovation Barclays Global Consumer Staples Conference 2024 69
Slide 70: Investing in GMG Infrastructure Across Regions
Investing in GMG Infrastructure Across 5 Regions APAC 2016 CHINA 2017 EA 2018 LATAM 2018 IME 2021 JAPAN 2024 Barclays Global Consumer Staples Conference 2024
Slide 71: Specialty Products
Specialty Products 71
Slide 72: SPD Organic Sales Evergreen Target: +5%
SPD Organic Sales Evergreen Target: +5% 3% United States 4% 8% International 5% Specialty Products Barclays Global Consumer Staples Conference 2024 72
Slide 73: Specialty Products Division
Specialty Products Division 55% 12% SPD Animal Megalac Nutrition Net Sales ~$321MM 33% Specialty Chemicals Barclays Global Consumer Staples Conference 2024 73
Slide 74: SPD Organic Sales Performance
SPD Organic Sales Performance 12.0% Evergreen 7.2% Target: 3.9% 5.0% 3.7% 0.4% -3.4% -3.3% -7.9% 2018 2019 2020 2021 2022 2023 2024 2024 2024 Q1 Q2 Organic sales growth is a non-GAAP measure. Refer to the Appendix for a reconciliation to the most directly comparable GAAP measure. Barclays Global Con
Slide 75: Animal & Food Production
Animal & Food Production Delivers Gut Health Solutions & Maximizes Feed Efficiency Barclays Global Consumer Staples Conference 2024 75
Slide 76: How We Run The Company
How We Run The Company 76
Slide 77: We Have Five Operating Principles
We Have Five Operating Principles 1 2 3 4 5 Leverage Friend of the Leverage Leverage Leverage Brands Environment People Assets Acquisitions Brands consumers Long history of Highly productive We strive to be Good shareholder love around the being a friend to people in a place asset light returns beco
Slide 78: We Have Five Operating Principles
We Have Five Operating Principles 1 2 3 4 5 Leverage Friend of the Leverage Leverage Leverage Brands Environment People Assets Acquisitions Brands consumers Long history of Highly productive We strive to be Good shareholder love around the being a friend to people in a place asset light returns beco
Slide 79: We Have Five Operating Principles
We Have Five Operating Principles 1 2 3 4 5 Leverage Friend of the Leverage Leverage Leverage Brands Environment People Assets Acquisitions Brands consumers Long history of Highly productive We strive to be Good shareholder love around the being a friend to people in a place asset light returns beco
Slide 80: Climate Is More Relevant Than Ever, Especially For Younger Consumers
Climate Is More Relevant Than Ever, Especially For Younger Consumers 67% make a sustainable planet their top priority. Datapoints shown for Gen Z Source: Pew Research Center, survey April 20-29, 2021; NCP survey, 2021 80
Slide 81: 1888: Promoting the Importance of Preserving the Environment
1888: Promoting the Importance of Preserving the Environment Barclays Global Consumer Staples Conference 2024 81
Slide 82: Church & Dwight's Environmental Heritage
Church & Dwight’s Environmental Heritage 1888 1907 1970s 2017 2018 2023 Company Company Sole sponsor of Partnering 100% of global Commenced introduces institutes the first Earth Day. with the Arbor electricity projects for pro- use of Day demand offset Science Based environmental recycled Launches f
Slide 83: Our ESG Score Remains High
Our ESG Score Remains High 2022 CCC B BB BBB A AA AAA 2023 CCC B BB BBB A AA AAA 2024 CCC B BB BBB A AA AAA Barclays Global Consumer Staples Conference 2024 83
Slide 84: We Have Five Operating Principles
We Have Five Operating Principles 1 2 3 4 5 Leverage Friend of the Leverage Leverage Leverage Brands Environment People Assets Acquisitions Brands consumers Long history of Highly productive We strive to be Good shareholder love around the being a friend to people in a place asset light returns beco
Slide 85: Industry Leading Revenue Per Employee
Industry Leading Revenue Per Employee Revenue per Employee $1,020 (in ‘000s) CHD CLOROX PG Kenvue COLGATE KIMBERLY RECKITT NEWELL EDGEWELL Source: Most recent SEC filings Barclays Global Consumer Staples Conference 2024 85
Slide 86: eCommerce Talent
eCommerce Talent % of Global Church & Dwight Consumer Net Sales 21% 2% 2016 2017 2018 2019 2020 2021 2022 2023 2024E Outlook as of August 2, 2024. Barclays Global Consumer Staples Conference 2024 86
Slide 87: Simple Compensation Structure
Simple Compensation Structure Net Revenue Bonuses are tied 100% to business results. Strategic Gross Initiatives Margin Management is required to Expansion be heavily invested in company stock. Cash EPS From Operations Barclays Global Consumer Staples Conference 2024 87
Slide 88: All Church & Dwight Employees Focus On Gross Margin
All CHURCH & DWIGHT Employees Focus On Gross Margin Gross margin is of all 20% employees’ annual bonus. Barclays Global Consumer Staples Conference 2024 88
Slide 89: Key Gross Margin Growth Drivers
Key Gross Margin Growth Drivers Good to Supply Chain Great Cost Optimization Optimization Acquisition New Products Synergies Barclays Global Consumer Staples Conference 2024 89
Slide 90: We Have Five Operating Principles
We Have Five Operating Principles 1 2 3 4 5 Leverage Friend of the Leverage Leverage Leverage Brands Environment People Assets Acquisitions Brands consumers Long history of Highly productive We strive to be Good shareholder love around the being a friend to people in a place asset light returns beco
Slide 91: Minimal Capital Investment
Minimal Capital Investment Capital Expenditures as a % of Sales 5.4% 3.8% 3.3% 3.0% 2.8% 2.5% 2.5% 2.3% 2.1% 2.1% 2.0% 1.8% ~2.0% 1.7% 1.4% 1.4% 1.2% $135 $64 $77 $75 $67 $71 $62 $50 $45 $60 $74 $99 $119 $179 $224 $180 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024E
Slide 92: We Have Five Operating Principles
We Have Five Operating Principles 1 2 3 4 5 Leverage Friend of the Leverage Leverage Leverage Brands Environment People Assets Acquisitions Brands consumers Long history of Highly productive We strive to be Good shareholder love around the being a friend to people in a place asset light returns beco
Slide 93: Long History of Growth Through Acquisitions
Long History of Growth Through Acquisitions Net Sales $6.1 $ Billions $1.5 2004 2005 2006 2008 2010 2011 2012 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024E Note: Trojan, Nair and First Response acquired in two parts – 2001 and 2004. Outlook as of August 2, 2024. Barclays Global Consumer St
Slide 94: Strong Fundamentals Drive our Evergreen Model
Strong 1 Strong organic growth. Fundamentals 2 Great new product pipeline. Drive our 3 Meaningful gross margin expansion. Investing in International and Evergreen 4 E-commerce. Model 5 Strong cash flow generation to fund future acquisitions.
Slide 95: Slide 95
Slide 96: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES CHURCH & DWIGHT CO., INC.’s Reconciliation of Non-GAAP Measures: The following pages provide definitions of the non-GAAP measures used in this presentation and reconciliations of these non- GAAP measures to the most directly comparable GAAP measures. These non-GAA
Slide 97: Reconciliation of Non-GAAP Measures: Organic Sales Growth
RECONCILIATION OF NON-GAAP MEASURES ORGANIC SALES GROWTH The presentation provides information regarding organic sales growth, namely net sales growth excluding the effect of acquisitions, divestitures and foreign exchange rate changes, from year-over-year comparisons. Management believes that the p
Slide 98: Reconciliation of Non-GAAP Measures: Earnings Per Share
RECONCILIATION OF NON-GAAP MEASURES EARNINGS PER SHARE This presentation discloses reported EPS excluding the following, namely, earnings per share calculated in accordance with GAAP adjusted to exclude significant one-time items that are not indicative of the Company’s period-to-period performance.
Slide 99: Reported & Adjusted Non-GAAP Reconciliations
REPORTED & ADJUSTED NON-GAAP RECONCILIATIONS For the year ending December 31, 2023 2022 2021 2020 2019 2018 2017 2016 Adjusted EPS Reconciliation EPS - Reported $ 3.05 $ 1.68 $ 3.32 $ 3.12 $ 2.44 $ 2.27 $ 2.90 $ 1.75 Pension Settlement Charge $ - $ - $ - $ - $ - $ - $ 0.12 $ - Brazil Charge $ - $ -
Slide 100: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures Free Cash Flow Free cash flow (a non-GAAP measure) is defined as cash from operating activities (a GAAP measure) less capital expenditures (a GAAP measure). Management views free cash flow as an important measure because it is one factor in dete
Slide 101: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures Total Debt to Bank EBITDA Total Debt to Bank EBITDA is a ratio used in our debt agreements. Bank EBITDA (a non-GAAP measure) is a form of adjusted EBITDA, and represents earnings from Income (a GAAP measure), excluding interest income, interest
Slide 102: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures Total Debt to Bank EBITDA, Continued Total Debt to Bank EBITDA is a ratio used in our debt agreements. Bank EBITDA (a non-GAAP measure) is a form of adjusted EBITDA, and represents earnings from Income (a GAAP measure), excluding interest income
Slide 103: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures Forecasted Reported and Organic Sales Reconciliation Forecasted Adjusted Diluted Earnings Per Share Reconciliation Reconciliations 103
Slide 104: Reconciliation of Non-GAAP Measures (Q2 2024)
RECONCILIATION OF NON-GAAP MEASURES (Q2 2024) Barclays Global Consumer Staples Conference 2024 104
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