Energizer Holdings, Inc. · NYSE:ENR
Energizer — 2024 Morgan Stanley Global Consumer & Retail Conference
42 slides from Energizer's conference presentation, Dec 4, 2024
Slide 1: 2024 Morgan Stanley Global Consumer & Retail Conference
2024 Morgan Stanley Global Consumer & Retail Conference December 4, 2024 + Exhibit 99.1
Slide 2: Forward-looking statements
This document contains both historical and forward-looking statements. Forward-looking statements are not based on historical facts but instead reflect our expectations, estimates or projections concerning future results or events, including, without limitation, the future sales, gross margins, cost
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures The Company reports its financial results in accordance with accounting principles generally accepted in the U.S. ("GAAP"). However, management believes that certain non- GAAP financial measures provide users with additional meaningful comparisons to the corresponding his
Slide 4: Who we are
2 1 4 3 Who we are Financials Our winning proposition Driving shareholder value
Slide 5: Energizer is a global household products leader
5 Energizer is a global household products leader leveraging its reach, scale and leading brands to deliver stable growth, top-tier cash flow, and long-term value creation Who We Are Our purpose We responsibly create household products to make lives better
Slide 6: Growth by category
FOR INTERNAL USE ONLY – DO NOT DISTRIBUTE6 GROWTH BY CATEGORY $2.4B $0.6B $2,224 $2,260 $521 $628 FY20 FY24 Batteries & Lights Auto Care +4.8% CAGR +0.4% CAGR 2024 Total Company Net Sales $2.9B Diversified portfolio with proven topline growth across Batteries & Lights and Auto Care +1.3% CAGR 2024 N
Slide 7: Net sales by region
FOR INTERNAL USE ONLY – DO NOT DISTRIBUTE7 NET SALES BY REGION $1.8B $1.1B2024 Net Sales ($B) North America International $2.4B $0.6B Global diversification with in-region, for-region manufacturing footprint 37% International 63% North America Denotes manufacturing facility 2024
Slide 8: A leading portfolio including #1 & #2 brands
FOR INTERNAL USE ONLY – DO NOT DISTRIBUTE A LEADING PORTFOLIO INCLUDING #1 & #2 BRANDS THAT COMPETE ACROSS MANY CONSUMER SEGMENTS
Slide 9: Global footprint, scale and world-class supply chain
FOR INTERNAL USE ONLY – DO NOT DISTRIBUTE9 Global footprint, scale and world-class supply chain EXPERTISEAVAILABILITY REACH World-class supply chain and distributor network 160+ markets around the world in every consumer channel Billions of consumers every day
Slide 10: Financials
FOR INTERNAL USE ONLY – DO NOT DISTRIBUTE 2 1 4 3 Who we are Financials Our winning proposition Driving shareholder value
Slide 11: Strategic priorities & FY'25 outlook
FOR INTERNAL USE ONLY – DO NOT DISTRIBUTE11 2024 Financial results1 Advancement of Strategic priorities 2 Gross Margin profile 3 4 Top-tier Free Cash Flow 5 Debt reduction & de-leveraging Strategic priorities & FY’25 outlook
Slide 12: 2024 financial results met or exceeded outlook
FOR INTERNAL USE ONLY – DO NOT DISTRIBUTE 2024 financial results met or exceeded outlook Organic Net Sales* Adjusted Gross Margin* Adjusted EBITDA* Adjusted EPS* Debt Paydown Net Leverage* Flat to down LSD +100 bps $600M - $620M $3.10 - $3.30 $150M - $200M Below 5.0x (2.2%)(1) +190 bps(2) $612M(3) $
Slide 13: Rebuilding gross margin to pre-pandemic levels
FOR INTERNAL USE ONLY – DO NOT DISTRIBUTE Rebuilding to pre-pandemic levels 13 GAAP Gross Margin: FY 2020: 39.4%, FY 2021: 38.4%, FY 2022: 36.7%, FY 2023: 38.0%, FY 2024: 38.3% 40.6% 39.6% 37.3% 39.0% 40.9% 2020 2021 2022 2023 2024 +360 bps Our cost savings initiatives have rebuilt Adjusted Gross Ma
Slide 14: Energizer delivers top-tier Free Cash Flow
FOR INTERNAL USE ONLY – DO NOT DISTRIBUTE14 Energizer delivers top-tier Free Cash Flow Results based on Companies' Trailing 4 Quarters. Peers in Alphabetical Order: ACCO Brands, Church & Dwight, Clorox, Edgewell, Helen of Troy, Post Holdings Free Cash Flow Conversion* * See non-GAAP reconciliations
Slide 15: Debt reduction has driven steady de-leveraging
FOR INTERNAL USE ONLY – DO NOT DISTRIBUTE15 Our focus on Debt reduction has driven steady de- leveraging * See non-GAAP reconciliations in the Appendix for FY22 Q3, FY22, FY23, FY24 and forecasted FY25 Adj. EBITDA.
Slide 16: Advancement of strategic priorities
FOR INTERNAL USE ONLY – DO NOT DISTRIBUTE16 Advancement of our 3 strategic priorities has set the foundation for long-term growth and value creation Adj. Gross Margin Expansion* +360 bps Cumulative Free Cash Flow +$675M Debt Paydown +$425M +70% Total Shareholder Return** 1 3 2 Fiscal Years 2023 - 20
Slide 17: FY 2025 Financial Outlook
FOR INTERNAL USE ONLY – DO NOT DISTRIBUTE FY 2025 Financial Outlook Organic Net Sales +1% to +2% (Q1 +2% to +3%) Adjusted Gross Margin* +50 bps (Q1 + 50 to 100 bps) Adjusted EBITDA* $625M - $645M Adjusted EPS* $3.45 - $3.65 (Q1 $0.60 - $0.65) Free Cash Flow % Sales 8% - 10% Debt Paydown $150M - $200
Slide 18: Our winning proposition
FOR INTERNAL USE ONLY – DO NOT DISTRIBUTE 2 1 4 3 Who we are Financials Our winning proposition Driving shareholder value
Slide 19: Our winning proposition
Our winning proposition 19 Leading brands in solid, growing categories Consistent, ratable Sales growth Invest in strategic growth initiatives Build leading brands within growing categories and invest in strategic growth initiatives to deliver consistent, ratable growth
Slide 20: Leading brands across all categories
FOR INTERNAL USE ONLY – DO NOT DISTRIBUTE Energizer Holdings has leading brands across all categories #1 In Refrigerant Kits in Auto Appearance* #1 #1 Value Batteries #1 in the growing segment of specialty batteries Premium Batteries #1 #1 Battery Manufacturer *Units
Slide 21: Every room contains multiple battery-powered devices
FOR INTERNAL USE ONLY – DO NOT DISTRIBUTE Every room in the house contains multiple battery- powered devices Kitchen Kitchen Scale Kitchen Timer Wet Mop Meat Thermometer Smoke Detector Can Opener Wine Opener Home Security Sensor Bedrooms Smoke Detector Ceiling Fan Remote Touch/Tap Light Power Window
Slide 22: Household devices powered by primary batteries
Many household devices used on a daily basis are powered by primary batteries Source: Energizer FY23 Device Inventory Study, U.S.22
Slide 23: Supporting a healthy and growing Battery category
FOR INTERNAL USE ONLY – DO NOT DISTRIBUTE Supporting a healthy and growing Battery category 18.0 18.4 19.1 19.2 19.1 22.4 22.2 20.5 19.9 20.0 - 5.0 10.0 15.0 20.0 25.0 Source: Nielsen Global Track, Profitero, and Energizer estimates; uses 52 Weeks Ending Apr 2024 Nielsen Global Track+ Profitero Amaz
Slide 24: Three macro trends drive growth in Auto Care
FOR INTERNAL USE ONLY – DO NOT DISTRIBUTE Three macro trends drive growth in the Auto Care category 24 # OF CARS ANNUAL MILES DRIVEN AGE OF CAR US Average 12.6 years and Growing Europe Average 12.3 years and Growing Global Vehicle registrations 1.6B Today and growing, up +2.5% vs YA low, single-digi
Slide 25: Investing in key areas for growth
FOR INTERNAL USE ONLY – DO NOT DISTRIBUTE Investing in key areas for growth PRICING & MIX MARKET EXPANSION E-COMMERCE DISTRIBUTION 25 INNOVATION & BRAND BUILDING Expanding our footprint with new retailers and our space with existing customers Driving accelerated growth in e-commerce in the U.S. and
Slide 26: Strategic innovation in Battery category
FOR INTERNAL USE ONLY – DO NOT DISTRIBUTE Strategic innovation is key to maintaining our position as the Battery category leader Energizer is developing a packaging solution that is right for: Environment Consumers Retailers Merchandising26 Energizer offers the world’s first 3-in-1 Child Shi
Slide 27: Armor All Podium Series
FOR INTERNAL USE ONLY – DO NOT DISTRIBUTE Armor All® Podium Series will hit shelves in early 2025 27
Slide 28: Driving consistent, ratable sales growth
FOR INTERNAL USE ONLY – DO NOT DISTRIBUTE Driving consistent, ratable sales growth PRICING & MIX MARKET EXPANSION E-COMMERCE DISTRIBUTION 28 INNOVATION & BRAND BUILDING Investing in these 5 key areas creates multiple levers to drive Sales growth in line with our long-term algorithm levers to drive S
Slide 29: Driving shareholder value
FOR INTERNAL USE ONLY – DO NOT DISTRIBUTE 2 1 4 3 Who we are Financials Our winning proposition Driving shareholder value
Slide 30: Path to Creating Long-Term Shareholder Value
FOR INTERNAL USE ONLY – DO NOT DISTRIBUTE30 1. Steadily growing EBITDA through profitable Net Sales growth and disciplined cost management 2. Reducing debt, transferring value from debt to equity holders 3. Paying a competitive dividend 4. Opportunistic share-repurchase and accretive M&A Energizer's
Slide 31: Financial algorithm and capital allocation
FOR INTERNAL USE ONLY – DO NOT DISTRIBUTE31 Our financial algorithm and balanced approach to capital allocation… Organic Sales Gross Margin* SG&A % of Sales* EBITDA Growth* EPS Growth* +1% to +2% +25 bps FLAT +2% to +4% +6% to +8% 10% TO 12% FREE CASH FLOW RETURN OF CAPITAL HEALTHY BALANCE SHEET REI
Slide 32: Value creation through EBITDA growth and Net Debt reduction
FOR INTERNAL USE ONLY – DO NOT DISTRIBUTE32 …provides for significant value creation through modest EBITDA growth and Net Debt reduction 2% to 4% Adjusted EBITDA Growth + 200M Annual Debt Paydown ~11% Per Share IRR + Dividends Low-Teens Annual TSR = *Current Equity value is based on ENR closing pric
Slide 33: Appendix Materials: Non-GAAP Reconciliations
Appendix Materials: Non-GAAP Reconciliations 33
Slide 34: Non-GAAP Reconciliation: Net Sales
Non-GAAP Reconciliation: Net Sales (in millions) Organic. This is the non-GAAP financial measurement of the change in revenue that excludes or otherwise adjusts for the change in Argentina operations and impact of currency from the changes in foreign currency exchange rates as defined below: • Chang
Slide 35: Non-GAAP Reconciliation: Adjusted Gross Margin
Non-GAAP Reconciliation: Adjusted Gross Margin (in millions) Adjusted gross margin as a percent of sales excludes any charges related to restructuring programs, network transition costs, acquisition and integration, costs from exiting the Russian market and flood damage in our Brazil facility. 35
Slide 36: Non-GAAP Reconciliation: Adjusted Earnings Per Share
Non-GAAP Reconciliation: Adjusted Earnings Per Share (in millions, except per share data) Adjusted Net Earnings and Adjusted Diluted Net Earnings Per Common Share (EPS). These measures exclude the impact of restructuring and related costs, network transition costs, the costs related to acquisition a
Slide 37: Non-GAAP Reconciliation: Free Cash Flow & Conversion
Non-GAAP Reconciliation: Free Cash Flow & Free Cash Flow Conversion (in millions) Free Cash Flow is defined as net cash provided by operating activities reduced by capital expenditures, net of the proceeds from asset sales. Free Cash Flow Conversion is defined as the Company's Free Cash Flow as a pe
Slide 38: Non-GAAP Reconciliation: Adjusted EBITDA - September 30, 2024
Non-GAAP Reconciliation: Adjusted EBITDA - September 30, 2024 (in millions) EBITDA is defined as net earnings before income tax provision, interest, the loss/(gain) on extinguishment of debt, and depreciation and amortization. Adjusted EBITDA further excludes the impact of the costs related to restr
Slide 39: Non-GAAP Reconciliation: Adjusted EBITDA - September 30, 2023 and 2022
Non-GAAP Reconciliation: Adjusted EBITDA - September 30, 2023 and 2022 (in millions) EBITDA is defined as net earnings before income tax provision, interest, (gain)/loss on extinguishment of debt, depreciation and amortization. Adjusted EBITDA further excludes the impact of the restructuring and rel
Slide 40: Non-GAAP Reconciliation: Adjusted EBITDA - June 30, 2022
Non-GAAP Reconciliation: Adjusted EBITDA - June 30, 2022 (in millions) EBITDA is defined as net earnings before income tax provision, interest, the loss on extinguishment of debt, and depreciation and amortization. Adjusted EBITDA further excludes the impact of acquisition and integration costs, the
Slide 41: Non-GAAP Reconciliation: Net Debt and Net Leverage
Non-GAAP Reconciliation: Net Debt and Net Leverage (in millions) Net Debt is defined as total Company debt, less cash and cash equivalents. Net leverage is Net debt divided by the last twelve months Adjusted EBITDA. LTM is the last twelve months for June 30, 2022, September 30, 2022, 2023, and 2024,
Slide 42: Non-GAAP Reconciliation: FY 2025 Outlook
Non-GAAP Reconciliation: FY 2025 Outlook (in millions – except per share data) 42
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