Church & Dwight Company, Inc. · NYSE:CHD
Church & Dwight — Consumer Analyst Group of New York (CAGNY) Conference 2013
145 slides from Church & Dwight's conference presentation, Feb 21, 2013
Slide 1: Presentation by Jim Craigie and Matt Farrell
Presentation by: Jim Craigie, Chairman & CEO Matt Farrell, EVP & CFO February 21, 2013 _
Slide 2: Safe Harbor Statement
afe Harbor Statement This presentation contains forward-looking statements relating, among others, to short- and long-term financial objectives, sales and earnings growth, margin improvement, marketing spending, new product introductions, the timing of new product launches, consumer demand for the C
Slide 3: Agenda
Agenda HA YY oO oan 6 Ae 1. Opening Remarks Jim Craigie 2. “Top 10" TSR Drivers Jim Craigie 3. Full Year 2012 Financials Matt Farrell 4. 2013 Outlook Matt Farrell 5. Q&A Jim Craigie Matt Farrell
Slide 4: Who Is Jim Craigie?
‘Who Is Jim Craigie? OF years. =» Only 1 of 28 CEO’s at CAGNY have more tenure as CEO. » “Where | came from, if there’s a buck to be made, you don’t ask questions, you go ahead and make it.” James Cagney
Slide 5: One of the Smallest Companies at CAGNY
= One of the Smallest Companies at CAGNY Net Revenue Market Cap CHD: $3B $8B CAGNY Rank: 28/ 28 24 / 28
Slide 6: Cumulative total shareholder return vs peers
300% 292% 31% 250% 200% 183% 58% 145% 150% 261% 117% 66% 100% 39% 80% 77% 74% 2% 125% 56% 46% 37% 50% 79% 78% 78% 31% 26% 30% 38% 25% 0% Reckitt Unilever Colgate Energizer Kimberly- Clorox P&G S&P 500 Benckiser Clark Source: Bloomberg of 12/31/2012. 6 (1) Represents cumulative $USD return to equity
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Slide 8: Great History, But What About The Future?
ia Great History, But What About The Future? 10 Reasons Why CHD Can Continue to Deliver Superior TSR Results!
Slide 9: Top 10 TSR Drivers: Recession Resistant Product Portfolio
“Top 10” TSR Drivers y 1. Recession Resistant Product Portfolio
Slide 10: Our Unique Product Portfolio Has Both Value and Premium Products
Our Unique Product Portfolio Has Both Value and Premium Products 60% Premium 10
Slide 11: Category Brands Price vs. Premium Brands
Category Brands Price vs. Premium Brands Laundry Detergent 50-65% lower than Tide Fabric Softener Sheets Over 50% lower than Bounce Toothpaste 50% Lower than Crest /Colgate Pregnancy Kits 30% Lower than ClearBlue Cleaners 45% lower than Scrubbing Bubbles 11
Slide 12: Premium, Mid, Value tier growth
+14.2% +1.5% -3.7% -8.4 Premium Mid Value Extreme Value Source: Nielsen Homescan Panel 52 W/E 6/28/08 vs. 52 Weeks Ending 12/22/12. 12
Slide 13: Liquid Detergent Priced Tiers
% Liquid Detergent $ Share Priced Tiers 2009 2012 Premium 42.1% 42.0% Mid-Priced 28.4% 26.1% Value 25.9% 28.6% Private Label 3.6% 3.2% Source: C&D Custom Nielsen Scanning Database – Expanded AOC 52 wks end 12/22/12 and 2009. 13
Slide 14: Household penetration by price tier
60.0% 51% 50.0% 40.0% 32% 32% 30.0% 20.0% 10.0% 0.0% Value Mid Premium Nielsen Homescan Panel 52 Weeks ending December 2012. 14
Slide 15: Liquid detergent dollar share
14.9% 13.6% 12.3% 11.4% 10.1% 9.1% 2007 2008 2009 2010 2011 2012 Source: AC Nielsen, $ Share AOC 52 Weeks Ending December 2012 and For All Prior Years. 15
Slide 16: Dollar Share Liquid Detergent Manufacturers
Dollar Share Liquid Detergent Manufacturers 2009 2012 Change P&G 57.0% 56.6% (0.5 pts.) Sun 17.1% 14.6% (2.4 pts.) CHD 11.4% 14.9% +3.5 pts. Henkel 7.0% 6.7% (0.2 pts.) All Other 7.6% 7.3% (0.3 pts.) Source: C&D Custom Nielsen Scanning Database – Expanded AOC 52 Weeks Ending 12/22/12 and 2009. 16
Slide 17: Liquid detergent share by manufacturer
Rem Phoenix Rem MF Phoenix MF Brands 0.7% 0.6% Brands 4.9% 3.0% P&G 8.1% P&G 9.1% Sun Sun 15.3% C&D 11.7% 44.1% C&D 52.0% Henkel 23.6% Henkel 27.0% Source: C&D Custom Nielsen Scanning Database – Expanded AOC 52 wks end 12/22/12 . 17
Slide 18: Liquid Laundry Washload Shares
Liquid Laundry Washload Shares 2009 vs. 2012 Share Point 2009 2012 Change Procter & Gamble 39.0 37.4 -1.6 Church & Dwight 20.4 25.8 +5.4 Sun Products 21.7 18.9 -2.8 Henkel 9.8 10.0 +0.2 Private Label 4.9 4.0 -0.9 All Other 4.1 3.9 -0.2 Source: C&D Custom Nielsen Scanning Database – Expanded AOC 52 w
Slide 19: Outlook: Continued Strong Growth of CHD Laundry Brands
013 Outlook Expect Continued Strong Growth of CHD Laundry Brands in 2013!
Slide 20: Increased Distribution of CHD Laundry Brands
ncreased Distribution of CHD Laundry Brands _at Major North American Accounts in 2013 = Accounts increasing ARM & HAMMER and XTRA shelf space to keep up with increased consumer == a pm pm “yi fer reve ia 20
Slide 21: Which Major North American Accounts?
Which Major North American Accounts? @: Sorry — No Details For Competitive Reasons. 21
Slide 22: New Products
N ew Products Both ARM & HAMMER and XTRA Will Launch Great New Products to Drive Increased Sales!
Slide 23: Two New XTRA Products
- Two New XTRA Products = XTRA Provides Extreme Value To Consumers. = XTRA Laundry Detergent Achieved All-time High Share In Q4 2012 (6.4%). « XTRA is Now Bigger Than P&G’s Era (2.8%) And Cheer (1.7%) Brands Combined. = XTRA is Now Bigger Than Vestar’s Sun (3.1%) And Wisk (1.7%) Brands Combined. » L
Slide 24: New ARM & HAMMER Ultra Power
Ne MRQANTSGL ee ew ARM & HAMMER Ultra Power Everyone Wins With A&H Ultra Power 1. 2. Consumer: v Improved Value: 20% More Loads Free! v Smaller Bottle for Easier Handling. v Environmentally Friendly - Less Waste. ¥ Consumer-controlled Dosage. Retailer: Lower Transportation Costs. Higher Shelf ROI. F
Slide 25: Unit dose market share
Source: Nielsen, FDMx WM, 52 W/E 6/30/07 vs. 52 W/E 6/27/09. 25
Slide 26: Total Unit Dose Sales vs. YAG
2012 U.S. All Channels $MM Q1 Q2 Q3 Q4 Total Unit Dose Sales vs. YAG +22 +95 +123 +140 Total Laundry Detergent +41 (5) (24) (58) (Liquid + Powder + Unit Dose) UNIT DOSE LAUNCHED Source: C&D Custom Nielsen Scanning Database – Expanded AOC 52 wks end 12/22/12. Based on EQ Washloads. 26
Slide 27: Top 10 TSR Drivers: Build Power Brands Share
“Top 10” TSR Drivers iG y 2. Build Power Brands Share (
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Slide 29: Power Brands Represent Over 60% of CHD's Sales & Profits
lhe 6 Power Brands Represent Ove! 60% CHD’s Sales & Profits 29
Slide 30: Power brands: #1 positions
A&H A&H Products in 86% of US Households Trojan #1 Condom Brand XTRA #1 Extreme Value Laundry Detergent First Response #1 Pregnancy Kit Brand Nair #1 Depilatory Brand Spinbrush #1 Battery Powered Toothbrush Brand OxiClean #1 Laundry Additive Brand Orajel #1 Oral Care Pain Relief Brand 30
Slide 31: CHD's Consistent Share Growth Formula
cHD’s Consistent Share Growth Formula (<¥ Innovative New Products Ww os Increased Marketing Spending =a Increased Distribution | | Share Growth on Power Brands 31
Slide 32: Innovative New Products
mn > Sensitive cx
Slide 33: Two New XTRA Products
aa Two New XTRA Products XTRA Provides Extreme Value to Consumers. = XTRA Laundry Detergent Achieved All-time High Share in Q4 2012 (6.4%). = XTRA is Now Bigger Than P&G’s Era (2.8%) and Cheer (1.7%) Brands Combined. = XTRA is Now Bigger Than Vestar’s Sun (3.1%) and Wisk (1.7%) Brands Combined. « La
Slide 34: New ARM & HAMMER Ultra Power
New ARM & HAMMER Ultra Power Everyone Wins With A&H Ultra Power 1. 2. Consumer: v Improved Value: 20% More Loads Free! v Smaller Bottle for Easier Handling. v Environmentally Friendly - Less Waste. ¥ Consumer-controlled Dosage. Retailer: Lower Transportation Costs. Higher Shelf ROI. Fewer Out-of-Sto
Slide 35: New Size of A&H Ultra Last Cat Litter
; New Size of A&H “Ultra Last” Cat Litter « Every Granule is Coated EXTRA VALUE With Baking Soda for - Ee toot) Long Lasting Freshness. = #1 New Cat Litter Launch Since 2005. « Larger Size Expansion in 2013. 35
Slide 36: Trojan new condom launch
FEELS LIKE NOTHING'S THERE! Mel _ 5 — > a ti Ss / ] ‘aT ae = ES ee Sl = =A ‘10 LATEX coNDoMs For Contraception Plus STI Protection =" Revolutionary Patent Design Feels Like Nothing’s There! = Ultrasmooth™ Lubricant for a Purely Smooth Experience. 36
Slide 37: NEW: Nair Spa Clay Total Care Trio
) NEW: Nair Spa Clay Total Care Trio ; = Individual Spa Clay Products Nair Were #1 Innovations in 2012. MEM srazicra * Building on 2012 Success SPA CLAY With Trio Products for Face | | and Body: \ i v Prepare Skin @ REMOVE © moisturize v Remove Hair ¥ Moisturize Skin 37
Slide 38: 2013 New Products: Expanding Into New White Space Categories
2013 New Products: Expanding Into New “White Space” Categories oy FROJAN’ =z TROJAN mo | ROJAN . Wises See : ) Orael ; ros COLD SORES ONE DAY, ONE DOSE, HEALING BEGINS. wd CRYSTAL CLEAR WB GLASSES & DISHES!
Slide 39: Expand CHD Power Brands Into White Space Categories
Expand CHD Power Brands Into 4"“White Space” Categories Category Size = Manual Toothbrush: $800 Million = Cold Sore: $200 Million = Dishwashing Additives: $140 Million » Sexual Lubricants: $250 Million 39
Slide 40: Spinbrush Toothtunes
= Launched in Second Half of 2012. = Proprietary Technology Plays 2 Minutes of Top Rated Music. « Encourages Kids To Brush Longer (Moms Like). = Achieved Top 3 Kid’s Manual Toothbrush in Q4 2012. 40
Slide 41: Big Toothtunes News
a “Big” Toothtunes News in aie wy ¥ Sold over 23MM Singles, Albums and DVDs. ¥ Named Billboard’s and MTV’s Top New Artist of 2012. ¥ 2013 World Tour Sold Out!! ¥ One Direction 3D Movie Premiers August 2013. 41
Slide 42: Cold Sore: Orajel Single Dose Treatment
Co Id Sore: Orajel Single Dose Treatment of 2012. = Patented Cold Sore Instant Pain Relief Tech no I ogy. FoR COLD SORES . ONE DAY, ONE DOSE, « Treatment Starts Healing HEALING BEGINS: SINGLE DOSE Patented Cold Sore Treatment With One Dose. ea | « Achieved Top 10 SKU = Status in Cold Sore Category i
Slide 43: Dishwashing Additives: OxiClean
Dishwashing Additives: OxiClean Dishwashing Booster REMOVES: 1 Cloudy Film 1 Food Particles CRYSTAL CLEAR GLASSES & DISHES! 15.6FLOZ (461ml) meiagwseea #1 New Product in Dishwashing Additives Category Launched in Second Half of 2012. Restores Cleaning Power of Dishwashing Brands Due to Government Ba
Slide 44: Trojan Entering Sexual Lubricant Category
Big 2013 News: Trojan ENTERING sexual Lubricant Category 5 TROJAN LUBRICANTS = New “Crazy Sexy Feel” Line is wy ¥ a Strong Fit With Trojan aS Brand. = Expand the Category by Appealing to Younger Gen Y. Feel” Vrecuas « 3SKU’s: Arouses & Intensifies, Continuous Silkiness & Tingly Warmth. = Heavy Sampl
Slide 45: Lubricant myths and truths
MYTHS Lubrication is an issue ONLY for older women. Lubricant is good ONLY to fix a problem. OVERALL TRUTH Lubricant use fulfills wants and needs across a wide range of users and situations. Lubricants enhance Pleasure, Fun and Comfort. SOURCE: Qualitative 2010-2011; Quantitative AcuPOLL Oct
Slide 46: Lubricant category data
Source: Nielsen AOC, Latest 52 Weeks Ending 12/22/12. 46
Slide 47: Condom, lubricant and vibrator use by age
60 50 40 30 20 10 0 18-24 25-34 35-44 45-60 Condom Use Lubricant Use Vibrator Use Lubricants information from BASES I; to be confirmed with IU Study data. All data among women: Lubricant data from 2012 BASES I Lubricant Study, (n=375), past 6 month usage. Condom data from 2009 Indiana University (IU
Slide 48: Condoms, Vibrations, Lubricants
Condoms Vibrations Lubricants Grow to 66% Become Leading Premium Become Leading Premium Share of $500MM Brand in $300MM Brand in $250MM NA Market NA Market NA Market 48
Slide 49: Trojan 2012 Market Share
U.S. Canada Mexico Total NA 2012 Market Share $’s 76.1% 57.9% 20.7% 65.7% vs. YAG +0.5 pt. +4.6 pts. +0.4 pt. +0.9 pt. 49 Source: Nielsen AOC Latest 52 Weeks Ending 12/22/12 and Prior Years.
Slide 50: Vibrating product types
Vibrating \_Rings _/ Finger/Mini \ Vibrators y, triohoriar & Small Full Size S Vibrators yy, \ Vibrators ) 50
Slide 51: Vibrator use data
Source: 2008 IUVibrator Study, 51
Slide 52: 2012: Sex Gaining Mainstream Acceptance
| 2012: SEX GAINING “MAINSTREAM” ACCEPTANCE “Fifty Shades of Grey” #1 Best Seller for 25 Weeks ovie Planned for 2014 EL James a1 Now York Fimes Bestselle E L James al Mow York Dimes Lestseller 52
Slide 53: Free vibrator news headlines
N.Y. Post N.Y. Post August 9, 2012 August 10, 2012 FREE VIBRATORS ON AGAIN! OH, YES! FT City ste stops vibrator osm rates re Sy eh St om aera bole) City Hall OKs 53
Slide 54: Free Vibrator Giveaway in Cities Across America
=» Free Vibrator Giveaway in 15 Cities Across America =» Drive Expanded Distribution in Traditional Retail Channels 54
Slide 55: CHD's Consistent Share Growth Formula
il CHD’s Consistent Share Growth Formula Wy Innovative New Products wi ae Increased Marketing Spending =a Increased Distribution | | Share Growth on Power Brands 55
Slide 56: Marketing and trade investment growth
+4% +8% +6% +23% 2009 2010 2011 2012 Includes Trade + Marketing Investments 56
Slide 57: CHD's Consistent Share Growth Formula
il CHD’s Consistent Share Growth Formula Wy Innovative New Products wi a. Increased Marketing Spending =a Increased Distribution eae | Share Growth on Power Brands 57
Slide 58: Change in All Channel Distribution
Change in All Channel Distribution 2012 Change 2009 - Index vs. 2009 - Index A&H Liquid Detergent 100 142 A&H Clumping Litter 100 143 Trojan 100 112 First Response 100 118 XTRA Liquid Detergent 100 123 Nair 100 104 Spinbrush 100 116 OxiClean 100 133 Source: Nielsen AOC 52 Weeks Ending 12/22/12 vs. 1
Slide 59: CHD's Consistent Share Growth Formula
il CHD’s Consistent Share Growth Formula Wy Innovative New Products im Increased Marketing Spending 7 Increased Distribution | | Share Growth on Power Brands 59
Slide 60: Power brand share growth 2008-2012
2008 2009 2010 2011 2012 CHD CHD CHD CHD CHD A&H Liquid XTRA OxiClean First Response (PTK) Nair Trojan Spinbrush Orajel (Toothache) Source: Nielsen All Outlet YE 2007, 2008, 2009, 2010, 2011, 2012 All Outlet. 60
Slide 61: A&H liquid detergent sales and initiatives
Launched Unit Dose Sensitive Skin + Scent Launched Power Gels Increased Media $682 A&H + A&H+ OxiClean OxiClean HE plus Incr $569 Launch Media 1st Detergent + $504 Softener in Value Full Year $405 Print Support $354 $301 $276 $240 198.545 180.798 61
Slide 62: Long-term brand sales history
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: Nielsen 62
Slide 63: Co-branded A&H Plus OxiClean
*Co-Branded : A&H Plus OxiClean includes Kaboom, Detergent and Carpet Source: 2006-2008 Nielsen Channel Views; 2009-12 Total U.S.AOC 63
Slide 64: First Response Pregnancy Share
“6 Days Sooner” “6 Days “Claim & Claim Economic Empathy More Media Programs “Moment” Campaign Pregnancy $ Share 30.1% 30.2% 28.6% Went on TV Increased Media 26.2% 25.4% 24.3% 22.7% 21.5% 19.1% 15.5% 13.6% 12.0% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 We Tell You Only Test Tells Y
Slide 65: CHD Power Brands Had Great Year in 2012
“CHD Power Brands Had Great Year in 2012 and Exited With Momentum L] 4 ré "aoago 6° = 6 of 8 Power Brands Grew Annual Share in 2012 to. Record Levels. ‘ ~~ » Exited 2012 With Great Momentum: Y 7 of 8 Grew Share in Q4 vs. YAG. Y 4of 8 Hit “All-time” Record Quarterly Shares in Q4. 65
Slide 66: Top 10 TSR Drivers: Ferociously Defend Our Brands
“Top 10” TSR Drivers y 3. Ferociously Defend Our Brands fj
Slide 67: Ferociously Defend our Brands
Ferociously Defend our Brands 67
Slide 68: Stain Fighters Share
Stain Fighters Share 40.7% 27.0% 2006 2009 Nielsen FDMxWM, Dollar Share of Stain Fighters. 68
Slide 69: Innovation through new forms, products and claims
We Did This Through Innovation New Forms, New Products, and Claims... Increased Pretreat Support “See It Work Before Your Eyes” 2008 Premium Pretreat Line Extension “The Best in Stain Removal” Increased Liquid Support “Cleaner, Whiter, Brighter” 2009-10 Versatility Emphasis “Gets Tough Stains Out Al
Slide 70: Annual Marketing Index
500 Annual Marketing Index 450 400 350 300 250 500 200 150 100 50 0 100 2006 2009 Source: First Response Actual Yearly Marketing Spending. 70 70
Slide 71: In Mid-2009, the #1 Laundry Brand Attacked the Category
In Mid-2009, the #1 Laundry Brand Attacked the Category With Major New Product Launch ide yide ide 4 rele / =—s = 7 71
Slide 72: Competitor product claims
More Power Clings to Seeks out In Every Drop! and breaks stains in your wash! down stains! 72
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Slide 74: Fabric Care Reported Media Spending
100 60 36 35 24 2 Fabric Care Reported Media Spending, Kantar Strategy 52 Weeks Ending October 2012. 74 74
Slide 75: Market Share
Market Share 2009 2012 Change OxiClean 40.7% 41.3% +0.6 P&G 11.5% 13.1% +1.6 Reckitt 13.9% 9.2% -4.7 SC Johnson 20.2% 20.8% +0.6 Source: Nielsen Scanning Database – AOC 52-week 12/22/12 and for 2009. 75
Slide 76: Top 10 TSR Drivers: Driving International Growth
“Top 10” TSR Drivers y 4. Driving International Growth @
Slide 77: CHD 2001-2012 Geographic Mix Transformation
CHD 2001 — 2012 Geographic Mix Transformation CHD has transformed from almost totally a U.S. business to more of a global player. 2001 2012 INTERNATIONAL - 2% INTERNATIONAL - 18% United States United States 98% 82% 77
Slide 78: International sales by region
5% 4% 9% 37% 12% 15% 18% * Includes Exports From These Subsidiaries to Over 100 Countries. 78
Slide 79: 2007 vs. 2012 CAGR by country
2007 vs. 2012 CAGR Australia +13% England +9% Brazil +7% Canada +6% Mexico +4% France (1)% 79
Slide 80: International growth strategy
1. Continue to Grow International Power Brands 2. Expanding Corporate Power Brands Canada: A&H Laundry Detergent, Cat Litter & Toothtunes Mexico: A&H Laundry Detergent UK: A&H Toothpaste & Toothtunes Australia: A&H Toothpaste, Baking Soda & Spinbrush 3. Building Scale Through Acquisitions
Slide 81: Top 10 TSR Drivers: Expanding Gross Margin
“Top 10” TSR Drivers y 5. Expanding Gross Margin (
Slide 82: CHD 2001-2012 Gross Margin Expanded 1,510 bps
CHD 2001 -— 2012 Gross Margin Expanded 1,510 bps 44.2% 2001 2007 2012 82
Slide 83: Gross Margin vs peers
Gross Margin 2007 2012 Change CHD 39.1% 44.2% +510 bps Colgate 56.2% 58.1% +190 bps Kimberly-Clark 31.2% 32.0% +80 bps Clorox* 43.1% 42.1% (100 bps) P&G* 52.3% 49.3% (300 bps) Source: SEC Filings *June 30 Fiscal Year End 83
Slide 84: Gross margin actions and examples
Actions Good to Great Cost Optimization Program Supply Chain Restructuring Acquisition Synergies Price / Mix Examples Reformulation, Reduce Packaging, Reduce SKU’s, Laundry Compaction, Hedges New Laundry & Cat Litter Plants - York, PA (2008) - Victorville, CA (2012) Acquire Higher Margin Brands And
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Slide 86: We Have Clear Acquisition Guidelines
We Have Clear Acquisition Guidelines e to Ensure Accretive Acquisitions LZ m Primarily #1 or #2 Share Brands m Higher Growth, Higher Margin Brands = Asset Light m Leverage CHD Capital Base in Manufacturing, Logistics and Purchasing = Deliver Sustainable Competitive Advantage 86
Slide 87: Church & Dwight Revenue Development
CHURCH & DWIGHT REVENUE DEVELOPMENT – PAST 12 YEARS $MM CARTER- SIMPLY CARTER- WALLACE ORAJEL SALINE AVID WALLACE (50%) OXICLEAN (50%) FELINE PINE USA SPINBRUSH BATISTE DETERGENTS $2,922 $2,422 $2,521 $2,589 $2,749 $2,221 $1,946 $1,737 $1,462 $960 $1,047 $1,057 $691 2000 2001 2002 2003 2004 2005 200
Slide 88: Brands acquired and year acquired
YEAR ACQUIRED Arm & Hammer $1 Billion Brand --- Trojan #1 Condom Brand 2001 XTRA #1 Extreme Value Laundry Detergent 2001 First Response #1 Pregnancy Kit Brand 2001 Nair #1 Depilatory Brand 2001 Spinbrush #1 Battery Powered Toothbrush Brand 2005 OxiClean #1 Laundry Additive Brand 2006 Orajel #1 Oral
Slide 89: Pre-acquisition share vs 2012 share
Year Pre-Acquisition 2012 Acquired Share Share Trojan 2001 68.9% 76.1% XTRA 2001 5.1% 6.2% First Response 2001 12.0% 30.2% Nair 2001 22.8% 43.3% Spinbrush 2005 30.1% 41.6% OxiClean 2006 26.1% 41.3% Nielsen All Outlet Scanning Share for 2012. Nielsen FDMx Share for 2005 and Later. IRI FDMx Share prio
Slide 90: Latest CHD Acquisition: Avid Health
gi atest CHD Acquisition: Avid Health Avid Health is a Fast Growing “VMS” (Vitamin/Mineral/Supplement) Business Driven by a Unique Gummy Form and Superior Taste Profile. _— — > vitafusion MultiVites 90
Slide 91: Vitamin category data
91 Source: IRI FDMx 52 Weeks as of March 2012.
Slide 92: Gummy vitamin category size
Category Gummy % of Size Category KIDS 0.2B 58% ADULT 3.3B 3% Source: Nielsen VMS Quick Start Database, Total U.S. AOC, Latest 52 WE 1/19/13, Dollar Sales. 92
Slide 93: Kids gummy vitamin market share
Disney All Other Disney All Other (NBTY) P/L 5% (NBTY) 22% 16% 11% 16% P/L 11% Flintstones, (Bayer) Flintstones, 2% (Bayer) 2 Li'l Critters, Li'l Critters, 45% 27% *Source: IRI FDMx 52 Weeks as of March 2012.. 93
Slide 94: Adult vitamin and gummy categories
ADULT VITAMIN CATEGORY ADULT GUMMY CATEGORY $3,300MM (FDMx) $100MM (FDMx) All Other, 9% One-A-Day Tablet (Bayer), 91% 24% P/L 10% Liquid Gummy Vitafusion, 6% 3% 57% *Source: IRI FDMx 52 Weeks as of March 2012. 94
Slide 95: Vitafusion and L'il Critters Gross Sales
Steady Double Digit Growth in Kids Category Triple Digit Growth in Adult VMS Category Vitafusion: Gross Sales L’il Critters: Gross Sales $103 $85 $94 $83 $73 $41 $18 $2 2008 2009 2010 2011 2008 2009 2010 2011 95
Slide 96: Acquisition Plays to CHD Strengths
"Acquisition Plays to CHD Strengths Fragmented Category Provides an Opening for a Strong, Agile Competitor. Track Record of Building Market Share. Field Sales Resources to Expand Distribution Base. Internal Manufacturing Know-How on Batch Systems and Packaging Line. Economies of Scale in Purchasing
Slide 97: 2013 EPS: Core CHD vs CHD with Avid
Core CHD CHD w/ Avid +9% +14% 2013 EPS $2.66 $2.79 97
Slide 98: Vitafusion Adult Gummy Vitamins in Goodie Bag
Enjoy the Great Taste Yourself! vuliVits % Re Vitafusion Adult Gummy Vitamins in CHD Goodie Bag!
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Slide 100: Free cash flow conversion of net income
$MM 2002 2004 2006 2008 * 2010 * 2012 ** 111.9% NI 183.1% NI 100% NI 143.9% NI 131.0% NI 118.1% NI • Excludes 2008 York Plant And 2010 Pension Related Funding. ** 2012 FCF Excludes a $36 Million Federal Tax Payment That Was Deferred From December 2012 to January 2013. 100
Slide 101: Free cash flow conversion vs peers
Year Average 2007 - 2011 CHD 2012 118.0% Church & Dwight 118.5% Clorox 114.3% Energizer 114.1% Estee Lauder 111.4% Heinz 105.9% Colgate 99.4% P&G 96.1% Brown-Forman 92.6% Constellation 92.5% Consumer Staples Average 90.3% Monster 90.2% General Mills 89.5% Coca-Cola Enterprises 89.1% Kellogg 88.9% Kr
Slide 102: Superior Overhead Management
8. Superior Overhead Management
Slide 103: Revenue, employees and EPS 2004 vs 2012
2004 2012 Change Revenue $1.5B $2.9B 93% # Employees 3,800 4,350 15% EPS $0.68 $2.45 260% 103
Slide 104: Revenue per employee vs peers
Revenue Revenue Per Employees ($MM) Employee Church & Dwight 4,350 $2,922 $671,000 Clorox 8,100 $5,231 $645,800 Procter & Gamble 129,000 $82,600 $640,300 Colgate 39,200 $15,564 $397,000 Kimberly Clark 57,000 $19,746 $346,400 Energizer 15,000 $4,646 $309,700 Avon 42,000 $10,863 $258,600 Source: SEC F
Slide 105: Management Team Walks the Walk on Tight Overhead Controls
anagement Team “Walks the Walk” on Tight Overhead Controls 105
Slide 106: New Health Care Plan and Information System
New Health Care Plan New Information System 106
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Slide 108: We Believe in Leadership Expertise and Longevity
| elieve in Leadership Expertise and Longevity _ Versus Cross-Functional Experiences and Management Turnover i _ m= The Average Tenure of Our 8 Strategic Business Unit Leaders (SBUs) in Their Current Role is 5 Years. m The Average Experience of Our SBU Leaders in The CPG Industry is 23 Years. 108
Slide 109: Power Brands Exceeded Category Growth Rate
8 Power Brands Exceeded Category Growth Rate 30 Out of 40 Times in Last 5 Years. Able to Minimize Headcount Growth. Outstanding Execution Across All Functions. Able to Absorb Acquisitions With Minimal Additional Headcount. Source: Nielsen All Outlet 2008-2012. 109
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Slide 111: Adjusted free cash flow
*Adjusted FCF Excludes a $36 Million Federal Tax Payment That Was Deferred From December 2012 To January 2013. 111
Slide 112: Delivered Outstanding Returns to Our Shareholders
F And Delivered Outstanding Returns Swe to Our Shareholders Vy —- EE .... ee — 10YEAR —— / TSRCAGR ™ as Ae ay 19. ah oy
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Slide 114: Bonuses Tied 100% to Business Results
Bonuses Tied 100% to Business Results: v 25% Net Revenue ¥ 25% Gross Margin Expansion ¥v 25% EPS v 25% Cash Flow Equity Compensation is 100% Stock Options. Required to be Heavily Invested in Company Stock. 114
Slide 115: Agenda
Agenda pening Remarks Jim Craigie 2. “Top 10" TSR Drivers Jim Craigie 3. Full Year 2012 Financials Matt Farrell 4. 2013 Outlook Matt Farrell 5. Q&A Jim Craigie Matt Farrell 115
Slide 116: Guidance
Guidance Organic Sales +3-4% Gross Margin +25-50 bps Operating Margin +60-70 bps EPS Growth 8%-10% Dividend Yield 2.0% TSR 10%-12% 116
Slide 117: Adjusted EPS and free cash flow footnotes
* Adjusted EPS Excludes a Deferred Tax Valuation Allowance Charge of $0.09 From Q4 2011. ** Adjusted FCF Excludes a $36 Million Federal Tax Payment That Was Deferred From Dec 2012 to Jan 2013. 117
Slide 118: Adjusted EPS 2008-2012
$2.45 $2.21 $1.98 $1.74 $1.43 2008 2009 2010 2011 * 2012 * Adjusted EPS Excludes a Deferred Tax Valuation Allowance Charge of $0.09 From Q4 2011. 118
Slide 119: Organic sales growth 2008-2012
7% 5% 5% 4% 3% 2008 2009 2010 2011 2012 119
Slide 120: Gross margin 2008-2012
44.8% +30 bps 44.7% 44.5% 44.2% 44.2% x-Avid X-AVID 40.5% 2008 2009 2010 2011 2012 2012 120
Slide 121: 2012 Marketing Spending Remains in the 12% to 13% Range
2012 Marketing Spending Remains in the 12% to 13% im, 14. ye. © 1 13.1% 12.9% 12.2% oO 2008 2009 2010 2011 2012 121
Slide 122: 2012 Growth
2012 Growth * Market share is Nielsen 52-week 12/22/12 All-Outlet. 122
Slide 123: Free cash flow 2008-2012
FCF = Operating Cash - CAPEX $500.0 $413 $400.0 $375 $361 $339 $300.0 $289 $200.0 $100.0 $0.0 2008 2009 2010 2011 2012 Excludes New Plant, Abbott Settlement in 2009. Excludes Pension Settlement in 2010. Excludes a $36 million federal tax payment that was deferred from Dec 2012 to Jan 2013. 123
Slide 124: Free cash flow conversion
Conversion % = Free Cash Flow / 100% Net Income 2012 118% 2011 112% 2010 131% 2009 136% 2008 143% Excludes New Plant, Abbott Settlement in 2009. Excludes Pension Settlement in 2010. Excludes a $36 million federal tax payment that was deferred from Dec 2012 to Jan 2013. 124
Slide 125: Excludes Avid in Q4 2012
52 42 38 36 28 26* *Excludes Avid in Q4 2012. 125
Slide 126: Q4 Avid $650M Acquisition
Q4 Avid $650M Acquisition 2008 2009 2010 2011 2012 126
Slide 127: Capital expenditures 2008-2012
5.4% 4.1% 2.5% 2.8% 2.6% $51 $85 $47 $50 $64 $77 $75 2008 2009 2010 2011 2012 127
Slide 128: Dry Powder
$ MM Dec 31, 2012 Cash $343 Credit Lines 250 “Dry Powder” $593 Credit Rating* BBB/Baa2 *With Positive Outlook From Both S&P and Moodys. 128
Slide 129: Prioritized Uses of Free Cash Flow
P Prioritized Uses of Free Cash Flow (<3 2 As Soy 1. TSR-Accretive M&A. 2. New Product Development. 3. Capex For Organic Growth & G2G. 4. Return Of Cash To Shareholders. 5. Debt Reduction.
Slide 130: Dividends Per Share: Maintaining 40% Payout Ratio
Dividends Per Share $1.50 $1.12 $0.96 $1.00 $0.50 $0.00 2012 2013 Maintaining 40% Payout Ratio 130
Slide 131: Agenda
Agenda 1. Opening Remarks Jim Craigie 2. “Top 10" TSR Drivers Jim Craigie 3. Full Year 2012 Financials Matt Farrell 4. 2013 Outlook Matt Farrell 5. Q&A Jim Craigie Matt Farrell 131
Slide 132: Organic sales growth 2008-2013
7% 5% 5% 4% 3-4% 3% 2008 2009 2010 2011 2012 2013 132
Slide 133: Gross margin 2008-2013
44.8% 44.7% 44.2% 44.2% 44.2% 40.5% 2008 2009 2010 2011 2012 2013 133
Slide 134: 2013 Marketing Spending Up, % of Sales Consistent
2013 Marketing Spending $ Up and % of Sales consistent with 2012 14.0% 13.1% 12.9% 12.2% 12.2% 12.1% 1, 2008 2009 2010 2011 2012 2013 134
Slide 135: EPS 2008-2013
+14% $2.79 $2.45 $2.21 $1.98 $1.74 $1.43 +16% +22% +14% +12% +11% 2008 2009 2010 2011 2012 2013 135
Slide 136: 2013 Guidance
2013 Guidance Organic Sales +3-4% Gross Margin +25-50 bps ex-Avid Operating Margin +60 bps EPS $2.79 (+14%) Dividend Yield 2.0% 136
Slide 137: Still Time to Get on Board
Slide 138: Agenda
Agenda 1. Opening Remarks Jim Craigie 2. “Top 10" TSR Drivers Jim Craigie 3. Full Year 2012 Financials Matt Farrell 4. 2013 Outlook Matt Farrell 5. Q&A Jim Craigie Matt Farrell 138
Slide 139: Thank You
Slide 140: Appendix
The following pages address the non-GAAP measures used in this presentation and reconciliations of non-GAAP measures to the most directly comparable GAAP measures: Non-GAAP measures: Organic Sales Growth, Adjusted Gross Margin, Adjusted Selling, General and Administrative Expenses Adjusted Opera
Slide 141: Non-GAAP measures used in this presentation
Slide 142: Organic Sales Reconciliation
Organic Sales Reconciliation Acq Discontinued System Calendar Shipping Year Reported FX /Div Operations Upgrade Other Terms Organic 2012 6.3 0.8 -3.1 0.0 0.6 0.6 0.0 5.2 Q412 10.8 0.1 -9.8 0.0 1.1 2.2 0.0 4.4 Q312 3.5 1.2 -0.3 0.0 0.2 0.0 0.0 4.6 Q212 3.2 1.6 -1.1 0.0 0.0 0.0 0.0 3.7 Q112 7.5 0.3 -0
Slide 143: Reconciling Items 2007-2012
Reconciling Items 2007-2012 2012 2011 2010 2009 2008 2007 Net Sales NA NA 2,589.2 2,520.9 2,422.4 NA Rpt Gross Margin NA NA NA 43.7% 40.1% NA Adjustment NA NA NA -28.4 -10.2 NA Adj Gross Margin NA NA NA 44.8% 40.5% NA Rpt SG&A NA NA 374.8 NA NA Rpt Patent Settlement 20.0 Adjustment NA NA -24.3 -20.0
Slide 144: Reconciling Items Footnote 2008-2012
Reconciling Items Footnote 2008-2012 Reconciling Items by year 2012 –Cash flow excludes a $36 million federal tax payment that was deferred from Dec 2012 to Jan 2013 2011 - $12.8 million deferred tax valuation allowance 2010 - $24.3 million charge for settlement of the Company’s US pension benefit o
Slide 145: Reconciling Items Q4 2012 & Q4 2010
Reconciling Items Q4 2012 & Q4 2010 Q4 2012 Q4 2011 Q4 2010 Net Sales NA NA 656.9 Rpt SG&A NA NA 116.3 Adjustment NA NA -24.3 Adj SG&A 92.0 Reported Op Margin NA NA 12.2% Adj Op Margin 15.9% Rpt Taxes NA 54.2 NA Adjustment -12.8 Adj Taxes 41.4 Effective Tax Rate NA 45.9% Adjusted Tax Rate 35.1% Rpt
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