Prestige Consumer Healthcare Inc. · NYSE:PBH

Prestige Consumer Healthcare — Q3 FY2019 Earnings Presentation

25 slides from Prestige Consumer Healthcare's earnings presentation, Feb 7, 2019

1. Slide 1: Third Quarter 2019 Results

   Exhibit 99.2 a Prestige Consumer HEALTH GAR Third Quarter 2019 Results February 7*", 2019 i

2. Slide 2: Forward-looking statements

   This presentation contains certain “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements regarding the Company’s expected financial performance, including revenue growth, organic growth, adjusted EPS, and adjusted free cash flow;

3. Slide 3: Agenda for Today's Discussion

   0 aaa... Agenda for Today's Discussion |. Performance Highlights ll. Financial Overview Ill. FY 19 Outlook and the Road Ahead Third Quarter FY 19 Results

4. Slide 4: I. Performance Highlights

   |. Performance Highlights Summer’ Eve

5. Slide 5: Results: Strong Profitability in Spite of Topline Headwinds

   93 Results: Strong Profitability in Spite of Topline Headwinds Third Quarter FY 19 Results

6. Slide 6: Q3 results summary

    Q3 Revenue of $241.4 million, (3.1%) versus PY on an organic basis(1) – Consumption growth(2) continues to meaningfully outpace shipments  Revenue impacted by key retailers accelerating de-stocking efforts, as well as other macro headwinds – Incidence rates across cough/cold and lice categories h

7. Slide 7: Strong Financial Performance in YTD FY19

   Strong Financial Performance in YTD 93 FY 19 Revenue of $734.8 million, (0.8%) us prior year on an organic basis“ Solid consumption growth of 1.8%!) outpaced both category and private Label growth Adjusted Gross Margin of 56.8%°), up 90 bps us YTD 93 FY 18; freight and warehouse expenses have return

8. Slide 8: Superior Brand Portfolio Continued Outperformance

   Superior Brand Portfolio Continued Outperformance Fiscal YTD Consumption YoY Growth Ex-Drug(2)  Despite retailer de-stocking, our portfolio continues to outpace both the category and private label within the channel 3.1%  Well-positioned portfolio of brands with long-standing brand heritage and ne

9. Slide 9: Differentiated Formulation and Superior Product Exceptional Long-Term Growth

   Differentiated Formulation and Superior Product Exceptional Long-Term Growth  Differentiated new products have driven superior 3-Yr Consumption CAGR(2) performance against the category and competitors +1,600 15.0% bps  ‘Super Lice’ positioning better positions products with retailers Total Points

10. Slide 10: Innovative and Superior Product Exceptional Long-Term Growth

    Innovative and Superior Product Exceptional Long-Term Growth (2)  Innovation and incremental 3-Yr Consumption CAGR SKUs have driven superior +500 4.2% performance bps – New Nitrofreeze product is one of the most effective OTC products on the market (0.8%) – Launched Kids SKU in March 2018  Have ex

11. Slide 11: II. Financial Overview

    Il. Financial Overview leet. Summer’ Eve

12. Slide 12: Solid profit performance in Q3 and YTD Q3 FY19

     Solid profit performance in Q3 and YTD Q3 FY 19: − Q3 Revenue of $241.4 million, an organic(1) decrease of (3.1%) vs prior year − Q3 Adjusted EBITDA(3) of $85.2 million; up 100 bps as a percentage of revenue vs prior year − Q3 EPS of $0.73, an increase of 4.3% vs prior year Adjusted EPS(3) of $0.7

13. Slide 13: Q3 and YTD income statement detail

     Organic Revenue(1) decline of Q3 FY 19 Q3 FY 18 % Chg Q3 FY 19 Q3 FY 18 % Chg (3.1%) vs. PY Q3 Total Revenue $ 241.4 $ 270.6 (10.8%) $ 734.8 $ 785.2 (6.4%) – Impacted by elevated levels (3) Adjusted Gross Margin 139.2 147.7 (5.7%) 417.5 439.0 (4.9%) of retailer inventory % Margin 57.7% 54.6% 56.8%

14. Slide 14: Q3 Adjusted Free Cash Flow and net debt

     Q3 Adjusted Free Cash Flow(3) of $57.2 million, up Q3 FY 19 Q3 FY 18 YTD Q3 FY 19 YTD Q3 FY 18 27.7% vs prior year – YTD FY19 impacted by sale of Household (0.8%)  Net Debt(3) at December 31 of $1.8 billion; leverage $154.9 $156.2 ratio(4) of 5.1x at end of Q3  $55 million debt paydown in Q3, YT

15. Slide 15: III. FY19 Outlook and the Road Ahead

    Ill. FY 19 Outlook and the Road Ahead Fleet. Summers€ve Dramamine di Ep Hn MONISTAT amma

16. Slide 16: FY19 outlook

     Solid consumption performance across our portfolio; continue to win share versus categories and private label  Continue to gain market share with consumers and grow categories with retailers  Prestige’s portfolio of leading brands well positioned for long-term growth despite macro headwinds at c

17. Slide 17: Brand portfolio

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18. Slide 18: Footnotes and non-GAAP definitions

    (1) Organic Revenue is a Non-GAAP financial measure and is reconciled to the most closely related GAAP financial measure in the attached Reconciliation Schedules and / or our earnings release in the “About Non-GAAP Financial Measures” section. (2) Total company consumption is based on domestic IRI m

19. Slide 19: Organic revenue reconciliation

    Three Months Ended Dec. 31, Nine Months Ended Dec. 31, 2018 2017 2018 2017 (In Thousands) GAAP Total Revenues $ 241,414 $ 270,615 $ 734,751 $ 785,214 Revenue Growth (10.8%) (6.4%) Adjustments: Revenue associated with divestiture - (19,203) (19,811) (60,830) Allocated costs that remain after divestit

20. Slide 20: Adjusted gross margin and A&P reconciliation

    Three Months Ended Dec. 31, Nine Months Ended Dec. 31, Three Months Ended Dec. 31, Nine Months Ended Dec. 31, 2018 2017 2018 2017 2018 2017 2018 2017 (In Thousands) (In Thousands) GAAP Total Revenues $ 241,414 $ 270,615 $ 734,751 $ 785,214 GAAP Advertising and Promotion Expense $ 34,504 $ 35,835 $ 1

21. Slide 21: Adjusted G&A reconciliation

    Three Months Ended Dec. 31, Nine Months Ended Dec. 31, 2018 2017 2018 2017 (In Thousands) GAAP General and Administrative Expense $ 20,485 $ 20,820 $ 68,460 $ 63,229 GAAP General and Administrative Expense as a Percentage of GAAP 8.5% 7.7% 9.3% 8.1% Total Revenue Adjustments: Integration, transition

22. Slide 22: EBITDA reconciliation

    Three Months Ended Dec. 31, Nine Months Ended Dec. 31, 2018 2017 2018 2017 (In Thousands) GAAP Net Income $ 38,167 $ 314,793 $ 103,474 $ 379,257 Interest expense, net 26,327 25,864 79,337 79,041 Provision for income taxes 12,829 (257,154) 37,501 (219,609) Depreciation and amortization 7,887 8,340 24

23. Slide 23: Adjusted EPS reconciliation

    Three Months Ended Dec. 31, Nine Months Ended Dec. 31, 2018 2017 2018 2017 Net Net Net Income EPS Income EPS Net Income EPS Income EPS (In Thousands, except per share data) GAAP Net Income $ 38,167 $ 0.73 $ 314,793 $ 5.88 $ 103,474 $ 1.97 $ 379,257 $ 7.08 Adjustments: Integration, transition and oth

24. Slide 24: Adjusted free cash flow reconciliation

    Three Months Ended Dec. 31, Nine Months Ended Dec. 31, 2018 2017 2018 2017 (In Thousands) GAAP Net Income $ 38,167 $ 314,793 $ 103,474 $ 379,257 Adjustments: Adjustments to reconcile net income to net cash provided by operating activities as shown in the Statement of Cash Flows 14,371 (260,426) 37,4

25. Slide 25: 2019 projected free cash flow and EPS reconciliation

    2019 Projected Free Cash Flow 2019 Projected EPS Low High (In millions) Projected FY'19 GAAP EPS $ 2.66 $ 2.69 Projected FY'19 GAAP Net Cash provided by operating activities $ 189 Adjustments: Additions to property and equipment for cash (13) Sale of Household Cleaning Business 0.07 0.07 Projected N

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