Spectrum Brands Holdings, Inc. · NYSE:SPB
Spectrum Brands — Bank of America Merrill Lynch Leveraged Finance Conference 2019
20 slides from Spectrum Brands's conference presentation, Dec 3, 2019
Slide 1: Bank of America Merrill Lynch Leveraged Finance Conference
Bank of America Merrill Lynch Leveraged Finance Conference December 3, 2019
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains, and certain oral and written statements made by our representatives from time to time may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements m
Slide 3: Reconciliation of Non-GAAP Financial Measurements
Reconciliation of Non-GAAP Financial Measurements Management believes that certain non-GAAP financial measures may be useful in certain instances to provide additional meaningful comparisons between current results and results in prior operating periods. Within this presentation, including the table
Slide 4: Portfolio of Leading Brands
Portfolio of Leading Brands 4
Slide 5: Spectrum 20/20
Spectrum 20/20 Culture of Sustainable Cash Flow Accountability Focus Customer-Driven with Operational Outstanding Service Excellence Experienced Invest in the Leadership Team Business 5
Slide 6: The New Spectrum Brands 2019 Financials
The New Spectrum Brands 2019 Financials Net Sales $3.8 billion Adjusted EBITDA* $567 million 6 * Total Company Adjusted EBITDA includes (4%) of corporate costs not allocated to the segments.
Slide 7: The New Spectrum Brands
The New Spectrum Brands Hardware & Home Improvement 36% of Net Sales 45% of Adjusted EBITDA* Home & Personal Care 28% of Net Sales 15% of Adjusted EBITDA* Global Pet Care 23% of Net Sales 25% of Adjusted EBITDA* Home & Garden 13% of Net Sales 19% of Adjusted EBITDA* * Total Company A
Slide 8: FY 2019 Accomplishments
FY 2019 Accomplishments NET LEVERAGE DEBT PAYDOWN RETURNING CASH (USD Millions) TO SHAREHOLDERS (USD Millions) 5.2 $4,812 $85.5 $94.2 3.1 $2,385 Dividends $269 Repurchase $228 9/30/18 FY 2018 9/30/19 FY 2019 9/30/18 FY 2018 9/30/19 FY 2019 FY 2018 FY 2019 8
Slide 9: Capital Structure Overview
Capital Structure Overview SB/RH Pro Forma Capitalization Ratings Overview Fiscal Year End - September 30 As of 9/30/19 Pro Forma as of 9/30/19 ($ in millions) Amount xLTM EBITDA ▲ Amount xLTM EBITDA Cash $627 ($117) $510 (1) Revolver ($800M) - - Capitalized Leases and Other Debt 175 175 Secured Deb
Slide 10: Top Brands Driving Customer and Consumer Value
Top 15 Brands Driving Customer and Consumer Value Represents ~80% of FY19 revenues of $3.8 billion from continuing operations 10 .
Slide 11: Global Reach – FY19
Global Reach – FY19 ($2,818 million) ($205 million) ($657 million) ($122 million) 11 . .
Slide 12: Accelerating E-Commerce Sales by Enhancing Internal Capabilities
Accelerating E-Commerce Sales by Enhancing Internal Capabilities - Increasing dedicated staff and expanding toolsets and cross-divisional cooperation ‐ Amazon a top 5 customer in FY 2019 ‐ Attractive margin structure ‐ Greater price/value transparency, ratings and reviews E-Commerce Share of FY19 U.
Slide 13: Global Productivity Improvement Plan (GPIP)
Global Productivity Improvement Plan (GPIP) • Expect gross, annualized savings from sourcing and other GPIP cost improvements to be at least $100 million within the next 18 to 24 months Strategic Sourcing Implement and execute strategic sourcing initiatives across the business units Commercial Right
Slide 14: Compelling Investment Opportunity
Compelling Investment Opportunity Leading Brands with Barriers to Strong Balance Sheet with Shareholder Friendly Entry and Long-Standing Retailer Ample Liquidity Capital Allocation Relationships Strong Cash Flow Generation and 5.3 Million Share Valuable NOLs (~$800 Million) Ownership in Energizer 14
Slide 15: Capital Allocation Priorities
Capital Allocation Priorities Strong cash flow generation and improved balance sheet resulting in capital allocation optionality Opportunistic Share Reinvest Profitably Maintain Strong Uses of Cash Debt Paydown Disciplined M&A Repurchases in the Business Dividend Repurchased $269 million of shares
Slide 16: FY 2020 Outlook for Continuing Operations
FY 2020 Outlook for Continuing Operations Expect low single-digit reported net sales growth, with foreign exchange expected to have a slightly negative impact based upon current rates Adjusted EBITDA expected to be between $570–$590 million Adjusted free cash flow expected to be between $240-$
Slide 17: Appendix
Cee mm ete Mm =} OO) 1 OY Brands Appendix
Slide 18: Reconciliation of GAAP Net Income to Adjusted EBITDA and Adjusted EBITDA Margin
SPECTRUM BRANDS HOLDINGS, INC. RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN (Unaudited) Twelve Month Period Ended Sept. 30, 2019 (in millions, except %) HHI HPC GPC H&G Corporate Consolidated Net income (loss) from continuing operations $ 214.6 $ (127.8) $ 63.4 $ 8
Slide 19: Reconciliation of Forecasted Net Income to Adjusted EBITDA
SPECTRUM BRANDS HOLDINGS, INC. RECONCILIATION OF FORECASTED NET INCOME TO ADJUSTED EBITDA (Unaudited) (in millions) F2020 Net income $ 50 - 94 Income tax expense 13 - 24 Interest expense 140 - 150 Depreciation and amortization 200 - 210 EBITDA 423 - 458 Share and incentive based compensation 55 - 60
Slide 20: Spectrum Brands
Spectrum Brands BALDWIN spectraciie’ BLACK+DECKER) Breadman cutter NATURES GloFish As Balanced By Nature if 4 iDreamBonew-K Wrihey ce EZSET TiO FARBERWARE TT) n HOT. FORTIS. Furnithator CSF) GEORGE FOREMAN Good SmartBones’ sor 1AMs* Instant {Qoean guiceman Junge Kwikset Maid Bs LIQUID FENCE © )MARIN
Spectrum Brands Holdings — Bank of America Merrill Lynch Leveraged Finance Conference 2019 on 6ix