Prestige Consumer Healthcare Inc. · NYSE:PBH

Prestige Consumer Healthcare — Prestige Brands Holdings — Morgan Stanley Global Consumer Conference 2014

30 slides from Prestige Consumer Healthcare's conference presentation, Nov 18, 2014

  1. Slide 1: Morgan Stanley Global Consumer Conference

    M O R G A N S T A N L E Y • G L O B A L C O N S U M E R C O N F E R E N C E 1 Morgan Stanley Global Consumer Conference Matt Mannelly, CEO & President Ron Lombardi, CFO November 18, 2014 Exhibit 99.1

  2. Slide 2: Safe Harbor Disclosure

    M O R G A N S T A N L E Y • G L O B A L C O N S U M E R C O N F E R E N C E 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 product introductions, investments in brand

  3. Slide 3: Agenda for Today's Discussion

    M O R G A N S T A N L E Y • G L O B A L C O N S U M E R C O N F E R E N C E 3 Agenda for Today’s Discussion I. Our Company: The Leading Independent Publicly Traded OTC Company in the U.S. II. Our Strategy: Three Core Pillars III. FY2015 Performance Outlook and the Road Ahead

  4. Slide 4: I. Our Company: The Leading Independent Publicly Traded OTC Company in the U.S.

    M O R G A N S T A N L E Y • G L O B A L C O N S U M E R C O N F E R E N C E 4 I. Our Company: The Leading Independent Publicly Traded OTC Company in the U.S.

  5. Slide 5: Prestige Today: Investment Highlights

    M O R G A N S T A N L E Y • G L O B A L C O N S U M E R C O N F E R E N C E 5 Prestige Today: Investment Highlights  Diversified consumer healthcare company competing in attractive OTC market  Portfolio of trusted brands with durable consumer franchises across multiple strategic platforms – Strong

  6. Slide 6: Building A Strong Portfolio Over Time

    M O R G A N S T A N L E Y • G L O B A L C O N S U M E R C O N F E R E N C E 6 Analgesics GI Women’s Health Cough & Cold Oral Care Sleep Aids Skin Care Household Cleaning Eye & Ear Care Care Pharmaceuticals New Brand New Brand New Brand New Brand New Brand New Brand New Brand New Brand New Brand New

  7. Slide 7: And Increased Scale Across Multiple Category Platforms

    M O R G A N S T A N L E Y • G L O B A L C O N S U M E R C O N F E R E N C E 7 …And Increased Scale Across Multiple Category Platforms $175 0% 20% 40% 60% 80% 100% $175 $200 $100 $140 $90 $70 ~$10 Women’s Health Cough Cold Analgesics Derm. Eye & Ear Oral Care Sleep Aids Other Insight Other Insight ~$

  8. Slide 8: The Power of Prestige's Portfolio

    M O R G A N S T A N L E Y • G L O B A L C O N S U M E R C O N F E R E N C E 8 The Power of Prestige’s Portfolio Create a Diversified OTC Portfolio Leverage Our Financial Model to Build the Portfolio  Build and add to our strategic category platforms and geographies  Invest behind brand building ef

  9. Slide 9: Leading, Independent Publicly Traded OTC Company in the U.S.

    M O R G A N S T A N L E Y • G L O B A L C O N S U M E R C O N F E R E N C E 9 Leading, Independent Publicly Traded OTC Company in the U.S. Dollar values in billions Source: Euromonitor (~$26BN North American OTC Retail Sales; 2013) Note: Adjusted for announced and pending M&A activity. $3.1 $2.7 $1.

  10. Slide 10: II. Our Strategy: Three Core Pillars

    M O R G A N S T A N L E Y • G L O B A L C O N S U M E R C O N F E R E N C E 1 0 II. Our Strategy: Three Core Pillars

  11. Slide 11: Drivers of Our Long-Term Value Creation Strategy

    M O R G A N S T A N L E Y • G L O B A L C O N S U M E R C O N F E R E N C E 1 1 Drivers of Our Long-Term Value Creation Strategy + + FY10 PF FY15 Free Cash Flow(1) +3x $59(2) ~$175(3) Dollar values in millions (1) Free Cash Flow is a Non-GAAP financial measure and is defined as Net Cash Provided by

  12. Slide 12: We Employ A Disciplined Strategy For Managing Our Portfolio

    M O R G A N S T A N L E Y • G L O B A L C O N S U M E R C O N F E R E N C E 1 2 We Employ A Disciplined Strategy For Managing Our Portfolio Dollar values in millions Source: Company data. (1) Based on Company's organic long-term plan. Invest for Growth Manage for Cash Flow Generation Portfolio Segme

  13. Slide 13: Invest in Brand Building Efforts to Drive Core OTC Growth

    M O R G A N S T A N L E Y • G L O B A L C O N S U M E R C O N F E R E N C E 1 3 Source: IRI multi-outlet retail dollar sales growth for relevant period. Excludes Insight Pharmaceuticals. Data reflects retail dollar sales percentage growth versus prior period. (1) Excludes PediaCare, Little Remedies,

  14. Slide 14: Expanded Focus on Attractive, Growing International Markets

    M O R G A N S T A N L E Y • G L O B A L C O N S U M E R C O N F E R E N C E 1 4 Expanded Focus on Attractive, Growing International Markets 2011 2014 U.S. International  Distributor model  Predominantly established markets  Local operations in Australia and New Zealand  Beachhead for attractive

  15. Slide 15: Industry Leading EBITDA Margins

    M O R G A N S T A N L E Y • G L O B A L C O N S U M E R C O N F E R E N C E 1 5 ~37% 33.8% 27.6% 27.4% 23.1% 22.8% 22.0% 20.2% 19.9% 16.8% 15.6% 13.7% 11.5% Industry Leading EBITDA Margins Median: 22.0% Source: Company filings and Capital IQ Notes: For the latest twelve month period as of November 1

  16. Slide 16: Operating Model Generates Superior Free Cash Flow and Conversion

    M O R G A N S T A N L E Y • G L O B A L C O N S U M E R C O N F E R E N C E 1 6 Prestige’s Operating Model Generates Superior Free Cash Flow and Free Cash Flow Conversion Dollar values in millions (1) Free Cash Flow is a Non-GAAP financial measure and is defined as Net Cash Provided by Operating Act

  17. Slide 17: Leading Free Cash Flow Conversion With Attractive Yields

    M O R G A N S T A N L E Y • G L O B A L C O N S U M E R C O N F E R E N C E 1 7 Prestige Continues to Have Leading Free Cash Flow Conversion With Attractive Yields 175% 152% 135% 126% 118% 115% 113% 111% 110% 108% 96% 94% 84% Median: 113% Source: Company filings and Capital IQ Notes: For the latest

  18. Slide 18: Strong Cash Flow Conversion Drives Rapid De-Leveraging

    M O R G A N S T A N L E Y • G L O B A L C O N S U M E R C O N F E R E N C E 1 8 Strong Cash Flow Conversion Drives Rapid De-Leveraging While Building Acquisition Capacity FY'15E FY'16E FY'17E ~$1.3 BN ~$2.1 BN (1) Leverage ratio reflects net debt / covenant defined EBITDA. (2) Assumes max leverage o

  19. Slide 19: Acquisitions Continue the Transformation of Prestige

    M O R G A N S T A N L E Y • G L O B A L C O N S U M E R C O N F E R E N C E 1 9 Acquisitions Continue the Transformation of Prestige by Expanding into Attractive OTC Segments and Geographies Six Acquisitions Completed in Past Five Years Have More Than Tripled Prestige’s OTC Business North American B

  20. Slide 20: Prestige Continues to be an Aggressive and Disciplined Acquirer

    M O R G A N S T A N L E Y • G L O B A L C O N S U M E R C O N F E R E N C E 2 0 Prestige Continues to be an Aggressive and Disciplined Acquirer Key Brands # of Key Brands: 3 1 5 1 1 3 Source: Private Equity Large U.S. Pharma Large U.K. Pharma Private Private Private Equity Type of Transaction: Going

  21. Slide 21: Acquisitions Have Strengthened Our OTC Platform

    M O R G A N S T A N L E Y • G L O B A L C O N S U M E R C O N F E R E N C E 2 1 Acquisitions Have Strengthened Our OTC Platform Category Breadth(1) International Expansion(1) Brand Scale (Top 4 OTC Brands)(2) Channel Diversity FY2010 FY2015 Food, Drug, Mass Food, Drug, Mass, Convenience, Club and Do

  22. Slide 22: 2014 OTC M&A Activity Indicative of Robust Transaction Environment

    M O R G A N S T A N L E Y • G L O B A L C O N S U M E R C O N F E R E N C E 2 2 2014 OTC M&A Activity Indicative of Robust Transaction Environment  Leading global franchise ($100MM+ brand scale)  Highly complementary to existing franchise  Unique JV structure in combination with Rx asset swap  F

  23. Slide 23: Drivers of Our Long-Term Value Creation Strategy

    M O R G A N S T A N L E Y • G L O B A L C O N S U M E R C O N F E R E N C E 2 3 Drivers of Our Long-Term Value Creation Strategy + + FY10 PF FY15 Free Cash Flow(1) +3x $59(2) ~$175(3) Dollar values in millions (1) Free Cash Flow is a Non-GAAP financial measure and is defined as Net Cash Provided by

  24. Slide 24: Prestige's Proven Track Record of Growth

    M O R G A N S T A N L E Y • G L O B A L C O N S U M E R C O N F E R E N C E 2 4 $0.67 $0.99 $1.53 $1.90 - $2.00 FY10A FY12A FY14A FY15PF Prestige’s Proven Track Record of Growth $88 $135 $204 $300 $293 $441 $602 $800 Dollar values in millions (1) Adjusted EBITDA may be found in our earnings releases

  25. Slide 25: III. FY2015 Performance Outlook and the Road Ahead

    M O R G A N S T A N L E Y • G L O B A L C O N S U M E R C O N F E R E N C E 2 5 III. FY2015 Performance Outlook and the Road Ahead

  26. Slide 26: Q2 Performance Highlights: Strong Performance in A Challenging Retail Environment

    M O R G A N S T A N L E Y • G L O B A L C O N S U M E R C O N F E R E N C E 2 6 Q2 Performance Highlights: Strong Performance in A Challenging Retail Environment  Q2 consolidated Total Revenue of $181.3 million, up 8.6% versus the prior year corresponding quarter  Adjusted E.P.S. of $0.50(1), up 6

  27. Slide 27: Consumption Continues to Outpace Shipments as Retailers Reduce Inventory

    M O R G A N S T A N L E Y • G L O B A L C O N S U M E R C O N F E R E N C E 2 7 Consumption Continues to Outpace Shipments as Retailers Reduce Inventory Notes: (1) Core OTC Brands; Excludes PediaCare, Little Remedies, Beano and Insight Pharmaceuticals. (2) Company estimate. 6.8% 3.4% 6.2% 3.2% Q3 Q4

  28. Slide 28: Integration of Insight Pharmaceuticals on Track

    M O R G A N S T A N L E Y • G L O B A L C O N S U M E R C O N F E R E N C E 2 8 Integration of Insight Pharmaceuticals on Track Regulatory / Quality Assurance Systems / Back-Office Supply Chain Sales & Distribution  IT systems and processes transferred  Personnel and offices transitioned Brand Bui

  29. Slide 29: Strategic Approach Continues to Create Shareholder Value

    M O R G A N S T A N L E Y • G L O B A L C O N S U M E R C O N F E R E N C E 2 9 Strategic Approach Continues to Create Shareholder Value − Improved Core OTC consumption trends leading to market share gains − Challenging retail environment continues to impact retailer inventory − Power of the portfol

  30. Slide 30: M O R G A N S T A N L E Y • G L O B A L C O N S U M E R C O N F E R E N C E 3 0

    M O R G A N S T A N L E Y • G L O B A L C O N S U M E R C O N F E R E N C E 3 0

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