Prestige Consumer Healthcare Inc. · NYSE:PBH
Prestige Consumer Healthcare — 2023 William Blair Growth Stock Conference
30 slides from Prestige Consumer Healthcare's conference presentation, Jun 6, 2023
Slide 1: 2023 William Blair Growth Conference
June 6, 2023 2023 William Blair Growth Conference
Slide 2: Safe Harbor Disclosure
Safe Harbor Disclosure 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, diluted EPS, leverage, free cash flow, and
Slide 3: Contents Overview
Contents Overview I. Introduction to Prestige Consumer Healthcare II. Brand-Building Playbook III. Financial Strategy & Capital Allocation IV. The Road Ahead & FY 23 Outlook William Blair Growth Stock Conference 3
Slide 4: I. Introduction to Prestige Consumer Healthcare
I. Introduction to Prestige Consumer Healthcare WWi l il li lai ammB Bl al ai ri rGGr or ow wt ht hS St ot oc kc kC Co on nf ef er er en nc ec e
Slide 5: Who We Are: Helping Consumers Care for Themselves
Who We Are: Helping Consumers Care for Themselves eye drops per year throat drops for every cold season doses of pain relief per week infections treated annually William Blair Growth Stock Conference 5
Slide 6: Diversified Portfolio of Leading Consumer Healthcare Brands
Diversified Portfolio of Leading Consumer Healthcare Brands Total Sales by Category Diverse Portfolio of Market-Leading Brands Oral Feminine Hygiene Care Vaginal Anti-Fungal Analgesics 9% Women’s Health Rehydration 11% Motion Sickness 23% Skin Allergy & Redness Relief Drop Care 11% Dry Eye Relief Tr
Slide 7: Proven Strategy Delivers Long-Term Performance
Proven Strategy Delivers Long-Term Performance Proven Ability to Execute Value Creation Strategy 1 Investing for Growth with Proven Brand-Building Playbook 2 Superior Business Attributes Drive Strong Free Cash Flow 3 Scalable & Efficient Platform Enables Capital Allocation Optionality +5.4% +3.5% +1
Slide 8: II. Brand-building Playbook
II. Brand-building Playbook WWi l il li lai ammB Bl al ai ri rGGr or ow wt ht hS St ot oc kc kC Co on nf ef er er en nc ec e
Slide 9: Brand-Building Focus Positions Us for Long-Term Growth
Brand-Building Focus Positions Us for Long-Term Growth 1 Understanding Consumer Insights and Opportunity 2 Flexible & Agile Brand Strategies in an Evolving Environment 3 E-Commerce Success through Investments 4 Proven New Product Development Result: Long-Term Success & Differentiation Across Channel
Slide 10: Dramamine: Thinking Beyond Motion Sickness
Dramamine: Thinking Beyond Motion Sickness Broadened Motion Sickness Offering Expanding an Iconic Brand into Nausea Robust Digital Campaigns Supporting Brand 2011 New Forms & Flavors #1 Brand* in Motion Sickness #1 Brand* in Nausea Successful Brand Building Resulting in Approximate +8% 10-Year Sales
Slide 11: Growth Through Execution of Proven Playbook
Growth Through Execution of Proven Playbook Brand-Building Playbook to Increase Penetration Category-Defining Brand Product Extensions & Solutions Robust Digital & Retail Marketing #1 Vomiting Heat & Sports & Work Travel & Diarrhea Outdoor Exercise Opportunity Long-Term 90%+ Wide Array of Formats &
Slide 12: E-Commerce: Winning in Consumer Shift to Online
E-Commerce: Winning in Consumer Shift to Online E-Commerce as a % of Net Sales Numerous Drivers of Success +3x ~14% Investment in ~13% Online User ~11% Experience ~5% Engaging Digital Campaigns FY 20 FY 21 FY 22 FY 23 ◼ Well-positioned due to early investments in E- Commerce behind brand portfolio O
Slide 13: Expanding Categories through New Product Development
Expanding Categories through New Product Development Successful History of Innovation Robust Pipeline Ongoing Innovation through Technology & Superior FY 24 Innovation Expands Brand Offerings Across Consumer Experience Prestige’s Portfolio William Blair Growth Stock Conference 13
Slide 14: III. Financial Strategy & Capital Allocation
III. Financial Strategy & Capital Allocation WWi l il li lai ammB Bl al ai ri rGGr or ow wt ht hS St ot oc kc kC Co on nf ef er er en nc ec e
Slide 15: Key Financial Results for Record FY 23
Key Financial Results for Record FY 23 Revenue of $1,128 million, up 3.8% vs. PY and 3.5% on an organic basis(1) 3.8% $1,127.7 $1,086.8 2.8% Adjusted EBITDA(3) of $378.1 million, up 2.8% $378.1 $367.7 vs. PY 3.7% $4.21 $4.06 Adjusted EPS(3) of $4.21, up 3.7% vs. PY despite Revenue Adjusted EBITDA Ad
Slide 16: Robust Free Cash Flow Profile Enabled by Key Attributes
Robust Free Cash Flow Profile Enabled by Key Attributes Strategic Business Model Attributes Strong FCF Supports Leverage Profile Low Capital Expenditures $240+ Million FY 24 Free Cash Flow Outlook(3) Leading Margin Profile Long-Term Cash Tax Savings Tranches >100% ~8% Ongoing Focus on Profitability
Slide 17: Positioned for Continued Strong Free Cash Flow
Positioned for Continued Strong Free Cash Flow Adj. Free Cash Flow & Leverage Capital Allocation Highlights Efficient & manageable debt at 3.3x Net Adj. FCF (3) (5) $254 $240 Leverage(4) and $1.3B in Net Debt at 3/31 $222 $207 $213 FY 20 FY 21 FY 22 FY 23 FY 24 E ~75% of debt outstanding at fixed ra
Slide 18: Lower Leverage Enables Capital Deployment Opportunities
Lower Leverage Enables Capital Deployment Opportunities Capital Deployment Priorities Unchanged Plentiful U.S. OTC M&A Opportunities Remain* 200 # of Brands Invest in Current Brands to Drive 150 1 Organic Growth 100 Consumer Healthcare Brands Landscape 50 Remains Highly 0 Fragmented >$200M $50-200M
Slide 19: IV. The Road Ahead & FY 24 Outlook
IV. The Road Ahead & FY 24 Outlook WWi l il li lai ammB Bl al ai ri rGGr or ow wt ht hS St ot oc kc kC Co on nf ef er er en nc ec e
Slide 20: Portfolio & Strategy Well-Positioned for Continued Value Creation
Portfolio & Strategy Well-Positioned for Continued Value Creation 1 Diversified Portfolio of Leading, Trusted Brands 2 Established Organic Growth Playbook 3 Superior Financial Profile Generating Consistent Cash Flow 4 Scalable Platform 5 Organic Growth Engine Reinforced by M&A Prestige’s Business At
Slide 21: FY 24 Outlook
FY 24 Outlook ◼ Remain well-positioned in dynamic macro environment ◼ Anticipate diverse portfolio delivering organic growth off of record FY 23 ◼ Revenue of $1,135 million to $1,140 million Top Line Trends — Organic growth of 1% to 2% ex-FX — Organic growth of 2% to 3% when excluding strategic exit
Slide 22: Portfolio Designed for Strong Financial Performance
Portfolio Designed for Strong Financial Performance Organic Long-Term Algorithm High Proven & Organic Growth(1) Free Cash Flow(3) Repeatable of 2.0% to 3.0% Generation M&A Strategy Upside 6.0% to 8.0% EPS Growth Potential Proven Value Creation Strategy William Blair Growth Stock Conference 22
Slide 23: Q&A
Q&A William Blair Growth Stock Conference
Slide 24: Appendix
Appendix (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 dated May 4, 2023 in the “About Non-GAAP Financial Measures” section. (2) Company consumption and m
Slide 25: Reconciliation Schedules
Reconciliation Schedules Organic Revenue Change Three Months Ended March 31, Year Ended March 31, 2023 2022 2023 2022 (In Thousands) GAAP Total Revenues $ 285,869 $ 266,936 $ 1,127,725 $ 1,086,812 Revenue Change 7.1% 3.8% Adjustments: Revenues associated with acquisition(a) - - (12,624) - Impact of
Slide 26: Reconciliation Schedules (Continued)
Reconciliation Schedules (Continued) Adjusted EBITDA Three Months Ended March 31, Year Ended March 31, 2023 2022 2023 2022 (In Thousands) GAAP Net (Loss) Income $ (240,552) $ 52,086 $ (82,306) $ 205,381 Interest expense, net 18,976 15,973 69,164 64,287 Provision for income taxes (58,970) 8,879 (11,6
Slide 27: Reconciliation Schedules (Continued)
Reconciliation Schedules (Continued) Adjusted Net Income & Adjusted EPS Three Months Ended March 31, Year Ended March 31, 2023 2022 2023 2022 Adjusted Adjusted Adjusted Adjusted Net Income EPS Net Income EPS Net Income EPS Net Income EPS (In Thousands, except per share data) GAAP Net (Loss) Income a
Slide 28: Reconciliation Schedules (Continued)
Reconciliation Schedules (Continued) Adjusted Net Income & Adjusted EPS Three Months Ended March 31, Three Year Months EndedEnded MarchMarch 31, 31, Year Ended March 31, 2021 2020 2021 2021 2020 2020 2021 2020 Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted Net Income EPS Net Income E
Slide 29: Reconciliation Schedules (Continued)
Reconciliation Schedules (Continued) Adjusted Free Cash Flow Three Months Ended March 31, Year Ended March 31, 2023 2022 2023 2022 (In Thousands) GAAP Net (Loss) Income $ (240,552) $ 52,086 $ (82,306) $ 205,381 Adjustments: Adjustments to reconcile net (loss) income to net cash provided by operating
Slide 30: Reconciliation Schedules (Continued)
Reconciliation Schedules (Continued) Adjusted Free Cash Flow 2019 2020 2021 GAAP Net Income $ (35,800) $ 142,281 $ 164,682 Adjustments Adjustments to reconcile net income to net cash provided by operating activities as shown in the statement of cash flows 233,400 66,041 76,523 Changes in operating a
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