Prestige Consumer Healthcare Inc. · NYSE:PBH

Prestige Consumer Healthcare — Prestige Brands Holdings — Q2 FY2013 Earnings Presentation

24 slides from Prestige Consumer Healthcare's earnings presentation, Nov 1, 2012

  1. Slide 1: Review of Second Quarter F'13 Results

    1 Review of Second Quarter F’13 Results Matthew M. Mannelly, CEO Ronald M. Lombardi, CFO November 1, 2012 Exhibit 99.2

  2. Slide 2: Safe Harbor Disclosure

    2 This presentation contains certain “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements about the Company’s growth strategies, investments in advertising and promotion, market position, product introductions and innovations, le

  3. Slide 3: Agenda

    3 Q2 FY2013: Performance Highlights Q2 FY2013: Financial Overview Prestige’s Strategy: Delivering Results; Poised for Continued Success 1 2 3 Agenda

  4. Slide 4: Prestige Brands: Delivering Value Now and Into the Future

    4 OTC M&A Focus Strong FCF Resulting in Debt Reduction Drive Core OTC Growth  A&P Driven Growth for Core OTC Brands  Investment in Multi-Year New Product Development Pipeline  Select investment in Other Brands  High Conversion of EBITDA to Free Cash Flow  Free Cash Flow Used for Rapid Debt Redu

  5. Slide 5: Q2 FY2013 Performance Highlights

    5  Excellent financial performance for the quarter − Record Q2 consolidated net revenue of $161.8 million, up 53.4% − Financial profile, including acquired GSK brands, in line with expectations; GM expansion of ~600bps − Adjusted EPS(1) of $0.42, up 61.5% versus prior year corresponding quarter − A

  6. Slide 6: FY'13 Q2: A Stellar Quarter with Strong Momentum

    6 $51.4 $51.4 $36.7 $137.9 $161.8 $110.8 FY’13 Q2 FY’12 Q2 +53.4% +74.2% +11.3% Net Revenue in millions FY’13 Q2: A Stellar Quarter with Strong Momentum Industry Leading Organic Growth Strong OTC Growth Double-Digit Growth +4.7% +9.3% +66.5% % Growth: GSK Brands GSK Brands GSK Brands

  7. Slide 7: Nine Straight Quarters of Core OTC Organic Revenue Growth

    7 Dollar values in millions Note: Excludes acquired GSK brands (1) Q4 FY’12, Q1 FY’13 and Q2 FY’13 prior year comparable quarter includes Blacksmith Brands and Dramamine. Nine Straight Quarters of Core OTC Organic Revenue Growth Excluding Acquisitions (1) (1) Double Digit Core OTC Organic Revenue Gr

  8. Slide 8: Accelerating Consumption Performance Across the Portfolio

    8 Accelerating Consumption Performance Across the Portfolio… Total Prestige(1) Total OTC(1) Core OTC(1) Prestige Categories Prestige Categories Prestige Categories Source: IRI multi-outlet retail dollar sales for the periods ending 10/7/12; Multi-outlet now covers ~87% of ACV (1) Includes acquired G

  9. Slide 9: Nine Straight Quarters of Category Outperformance and Market Share Gains

    9 … Resulting In Nine Straight Quarters of Category Outperformance and Market Share Gains Category Source: Latest 12-week data for Q2’13 IRI Multi-Outlet; IRI FDMx for all other periods. Note: Data reflects retail dollar sales percentage growth versus prior period. (1) Blacksmith Brands added Q3 ’11

  10. Slide 10: Case Study: Compound W Rises To #1 in Medicated Skin Care/Wart Removers

    10 +3.8 pts Case Study: Compound W Rises To #1 in Medicated Skin Care/Wart Removers Strategic Building Blocks #1 in Wart Care Market Share New Consumer Insights In-Store Merchandising Professional Endorsement Compelling Creative Favorable “Word-of-Mouth” +1.9 pts * Source: IRI multi-outlet for the P

  11. Slide 11: Driving Core OTC Growth Through Integrated Brand Strategies

    11 Driving Core OTC Growth Through Integrated Brand Strategies “Kid Friendly” “Easy to use, Deeper Clean” “Discreet No-Water Tablet” “Headache Powder means Fast Pain Relief” Dosage and Flavoring 10x Cleaning Power Packaging and Delivery Speed and Efficacy +4.8 pts +10.4 pts +5.7 pts +13.1pts Consume

  12. Slide 12: Agenda

    12 Q1 FY2013: Performance Highlights Q1 FY2013: Financial Overview Prestige’s Strategy: Delivering Results; Poised for Continued Success 1 2 3 Agenda 2

  13. Slide 13: Summary Financial Performance

    13 Summary Financial Performance Dollar values in millions, except per share data Notes: (1) These non-GAAP financial measures are reconciled to their most closely related GAAP financial measures in our earnings release in the “About Non-GAAP Financial Measures” section. Adjusted EPS is also reconci

  14. Slide 14: Q2 Consolidated Financial Summary

    14  Net Revenue grew by $56.4 million, or 53.4%, over year ago, driven by core OTC growth and acquired GSK Brands – 11.3% growth in core OTC, excluding core GSK brands – 4.7% organic growth in legacy business – GSK brands acquisition added $51.4 million  Gross margin expanded by 5.9 pts. due to hi

  15. Slide 15: YTD Consolidated Financial Summary

    15  YTD results consistent with Q2 trends and financial profile  Adjusted Net Revenue grew by $108.4 million, or 54.0%, over year ago, driven by core OTC growth and acquisition of GSK brands(1) – 7.7% growth in core OTC, excluding core GSK brands – 2.5% total legacy organic growth – GSK brands acq

  16. Slide 16: Q2 FY'13 and YTD Net Income and EPS Reconciliation

    16 Q2 FY’13 and YTD Net Income and EPS Reconciliation Dollar values in millions, except per share data Note: These Non-GAAP financial measures are being reconciled to their reported GAAP amounts. For Further information about Non-GAAP financial measures, refer to our Earnings Release in the “About N

  17. Slide 17: YTD FY'13 Cash Flow from Operations and Debt Profile

    17 Q2 FY'13 Q2 FY'12 YTD FY'13 YTD FY'12 Net Income - As Reported 19.2$ 12.9$ 33.9$ 27.7$ Depreciation & Amortization 3.3 2.6 6.6 5.1 Other Non-Cash Operating Items 8.8 4.1 18.3 8.6 Working Capital 0.6 (1.6) 1.7 (8.0) Adjusted Cash Flow from Operations 31.9$ 18.0$ 60.4$ 33.5$ Debt Profile & Financia

  18. Slide 18: Significant Acquisition Capacity While We Continue to Rapidly Delever

    18 Significant Acquisition Capacity in Place While We Continue to Rapidly Delever Leverage Ratio(1) Illustrative Financial Capacity(2) ~$1.0 BN ~$2.0BN = Guidance at time of GSK acquisition = Reported Note: (1) Leverage ratio reflects net debt / covenant defined EBITDA. (2) Assumes max leverage of 5

  19. Slide 19: Agenda

    19 Q1 FY2013: Performance Highlights Q1 FY2013: Financial Overview Prestige’s Strategy: Delivering Results; Poised for Success 1 2 3 Agenda ’ lt ; r Continued Success

  20. Slide 20: What Sets Prestige Apart: Delivering Value Now and Into the Future

    20 What Sets Prestige Apart: Delivering Value Now and Into the Future  #1 and #2 brands deliver nearly two-thirds of OTC revenue  Core OTC brands generating superior growth and market share gains  Scale platforms in highly relevant OTC categories  Leading margins and strong cash flow generation

  21. Slide 21: Leading Net Organic Revenue Growth

    21 Leading Net Organic Revenue Growth(1) Source: Company filings Note: Latest fiscal quarter organic net revenue growth (1) Organic sales growth excludes impact from acquisitions, divestitures, FX rate fluctuations and other factors. (2) Represents core OTC organic net revenue growth; excluding GSK

  22. Slide 22: EPS Guidance Revised Upwards

    22  EPS Guidance Revised Upwards  Deliver FY’13 Adjusted EPS guidance of $1.37 - $1.42, up from prior guidance of $1.22 - $1.32 • Excludes estimated adjustments of $0.14 for full year(1)  Clear goals for FY’13 to build on success and momentum − Successfully integrate and transition the acquired b

  23. Slide 23: Q2 FY2013: Delivering Against Stated Strategy

    23  Core OTC organic net revenue growth of 11.3%(1)  Core OTC consumption growth of 10.5% in L-12 weeks compared to category of 1.5%(2)  Core OTC A&P of 16.8% of net revenue(1)  Cash flow from operations of $31.9 million  On track with ~$110 million target for full year  Leverage ratio(3) of ~

  24. Slide 24: ee Bs,

    ee Bs, PrestigeBrands November 1, 2012

Prestige Brands Holdings — Q2 FY2013 Earnings Presentation on 6ix