Prestige Consumer Healthcare Inc. · NYSE:PBH
Prestige Consumer Healthcare — ICR Conference 2020
23 slides from Prestige Consumer Healthcare's conference presentation, Jan 13, 2020
Slide 1: ICR Conference January 13, 2020
a Prestige Consumer HEALTHCARE ICR Conference January 13', 2020
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 revenues, organic growth, adjusted EPS, and adjusted free cash flow; the ma
Slide 3: Contents
Contents I. Introduction to Prestige Consumer Healthcare Il. Long-Term Growth Through Brand Building Ill. Financial Profile & Capital Allocation Strategy ees ICR Conference 2020 3
Slide 4: I. Introduction to Prestige Consumer Healthcare
|. Introduction to Prestige Consumer Healthcare Summers €ve Dramamine Le . Cear EP eyes. MONISTAT fies oa
Slide 5: Helping Consumers Care for Themselves
Helping Consumers Care for Themselves © NS. wer Gy throat drops for every cold season 2 doses of pain relief per week» ys @ infections treated annually ICR Conference 2020 ica ; eye drops per year (ear MURINE
Slide 6: Total Sales by Category; #1 Brands Represent Two-Thirds of Total Sales
Total Sales* by Category #1 Brands Represent Two-Thirds of Total Sales* Dermatologicals 10% Women’s Eye & Health Ear Care 27% 12% Oral Care 11% 17% 11% GI Cough / 12% Cold Analgesics * FY’19 Revenues, Excludes Divested Household Cleaning Segment & Other OTC (less than 1%)
Slide 7: Business Positioned for Long-Term Success
Business Positioned for Long-Term Success eS ee ICR Conference 2020 v
Slide 8: Business Positioned for Long-Term Success
Positioned for long-term 2% to 3% (1) Organic growth Brand building to drive long-term success Industry-leading financial profile Cash Generation Consistent and strong FCF generation Enables capital allocation opportunities Disciplined capital allocation priorities Capital Allocation Opt
Slide 9: II. Long-Term Growth Through Brand Building
Il. Long-Term Growth Through Brand Building Summers €ve Dramamine ry , Clear Goodys eyes. .BCY MONISTAT [eso
Slide 10: Boomers Accelerating Demand for Health Care
Boomers Accelerating Employers Shift Demand for Health Responsibility to Care Employees ACA Increasing Growing Incidence of Demand with More Chronic Disease Newly Insured Millennials Interest in Shortage of Primary Health & Wellness Care Physicians
Slide 11: Retail Traffic Driver and Long-Term Brand Building Toolkit
Retail Traffic Driver Long-Term Brand Building Toolkit Need-based products sought by consumers, Develop and understand consumer insights beginning a basket of purchases Wide-ranging and flexible brand strategies Retailers dedicating more shelf space to Health focused on growing categories an
Slide 12: Portfolio: Power Core, Core, International, Other OTC
Power Core Core International Other OTC 10% 50% 10% Sales Contribution to Portfolio (Approximate %) 30% # of Brands Representative Brands Long-Term Organic Growth Target (approximate):
Slide 13: Innovation reduces barriers to entry and adds new users
Innovation reduces barriers to entry and adds new users ~$60M Retail Sales* New Category New Formulation More Impactful New Form Revitalized Claims Packaging *U.S. IRI MULO + C-store for the 52 weeks ended 3-24-19
Slide 14: History of Winning: Top Brands Are Market Leaders
Top PBH Brands Rank U.S. Market Share* FY19 vs Category Summer’s Eve Monistat #1 #1 55% 60% History of Winning Continued in FY19 BC/Goody’s #1 100%/5%*** Clear Eyes #1 25% DenTek #2 25% Dramamine #1 50% ~2.5x Average Share vs. Largest Competitor Luden’s #3 5% Fleet #1 50% Compound W #1 45% Chlorasep
Slide 15: III. Financial Profile and Capital Allocation Strategy
Ill. Financial Profile and Capital Allocation Strategy Summers €ve Dramamine Le . Cear EP eyes. MONISTAT [ime ot
Slide 16: Key Attributes and Positioning; Capital Deployment
Key Attributes and Positioning Capital Deployment Debt at September 30 of ~$1.7 billion and leverage ratio of 5.0x(2) – Target leverage ratio of between 3.5x to less than 5.0x – Expect to reach ~4.7x leverage by year-end FY 20 if remaining cash flows used for debt reduction High Free Cash Flow G
Slide 17: Free Cash Flow Conversion and Yield vs Peers
FCF 128% Conversion: 124% 108% 103% 98% 96% 88% 84% 81% FCF Yield: 11% 9% 5% 4% 5% 5% 4% 4% 4% CHD CL PG EPC CLX ENR HELE JNJ Source: FactSet data as of January 7, 2019; comparable set includes selected HPC companies Note: Free Cash Flow Conversion defined as Calendar 2019 Non-GAAP Operating Cash Fl
Slide 18: Free Cash Flow and Leverage History
$197 $208 $202 $200+ $165 $185 $127 $131 $67 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 E ~5.0x ~5.2x ~5.0x ~5.7x ~5.2x ~5.0x ~4.3x ~4.3x ~4.7x FY 12 FY 13 FY 14 FY 15 * FY 16 FY 17 FY 18 FY 19 FY 20 E Dollar values in millions. * Peak leverage of 5.75x at close of the Insight Acquisition
Slide 19: Fiscal 2020 Outlook
Continue to gain market share with consumers and grow categories for retailers Expect continued strong international performance Portfolio of need-based brands continues to be well positioned for long-term growth, despite continued inventory reduction at retail that are expected to continue in
Slide 20: Our Long-Term Value Creation Strategy
Our Long-Term Value Creation Strategy Upside Potential SS Shareholder Value Enhancement ICR Conference 2020 20 Long-Term E.P.S. Growth
Slide 21: Non-GAAP footnotes
(1) Organic Revenue is a Non-GAAP financial measures and is reconciled to the most closely related GAAP financial measure and defined in our September 30, 2019 earnings release in the “About Non-GAAP Financial Measures” section. (2) Leverage ratio reflects net debt / covenant-defined EBITDA. (3) Adj
Slide 22: Free Cash Flow reconciliation
2013 2014 2015 2016 2017 2018 2019 GAAP Net Income $ 65,505 $ 72,615 $ 78,260 $ 99,907 $ 69,395 $ 339,570 $ (35,800) Adjustments Adjustments to reconcile net income to net cash provided by operating activities as shown in the statement of cash flows 59,497 52,562 65,998 98,181 92,613 (113,698) 233,4
Slide 23: Projected FY20 EPS and Free Cash Flow reconciliation
2020 Projected Free Cash 2020 Projected EPS Flow Low High (In millions) Projected FY'20 GAAP EPS $ 2.61 $ 2.68 Projected FY'20 GAAP Net Cash provided by operating activities $ 205 Adjustments: Additions to property and equipment for cash (15) Integration of new logistics provider (a) 0.15 0.15 Proje