Church & Dwight Company, Inc. · NYSE:CHD
Church & Dwight — Shareholder Meeting (April 2023)
32 slides from Church & Dwight's shareholder meeting presentation, Apr 27, 2023
Slide 1: Church & Dwight Co., Inc. Stockholders' Meeting 2023
CHURCH & DWIGHT CO., INC. stockholders’ meeting 2023
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT This presentation contains forward-looking statements, including, among others, statements relating to net sales and earnings growth; the impact of the COVID-19 pandemic and the Company’s response; gross margin changes; trade, marketing, and SG&A spending; sufficiency of cash f
Slide 3: We have confidence in our future
We have confidence in our future. Steady U.S. Sustainable high Consistent Digitally Long-term Strong 2023 growth International innovation savvy evergreen fundamentals ahead growth rate model is healthy 2023 STOCKHOLDERS’ MEETING 3
Slide 4: Church & Dwight: Who We Are
CHURCH & DWIGHT: Who We Are
Slide 5: We started with ARM & HAMMER baking soda
We started with ARM & HAMMER baking soda 2023 STOCKHOLDERS’ MEETING 5
Slide 6: We Are A $5.4 Billion Company
We Are A $5.4 Billion Company FABRIC CARE HOME HEALTH & HAIR & SKIN PERSONAL WATERPIK INTERNATIONAL SPECIALTY CARE WELL-BEING CARE CARE PRODUCTS 2023 STOCKHOLDERS’ MEETING 6
Slide 7: Power Brands
FIRST _ RESPONSE POWER BRANDS
Slide 8: 14 Power Brands
more than 85% of sales & profits are represented by these 14 POWER BRANDS
Slide 9: Acquired 13 of 14 Power Brands Since 2001
Acquired 13 of 14 Power Brands Since 2001 ACQUIRED 2001 ACQUIRED 2001 ACQUIRED 2001 ACQUIRED 2001 ACQUIRED 2005 ACQUIRED 2006 ACQUIRED 2008 #1 CONDOM #1 EXTREME #2 PREGNANCY #1 DEPILATORY #2 BATTERY #1 LAUNDRY #1 ORAL CARE VALUE LAUNDRY TEST KIT POWERED ADDITIVE PAIN RELIEF DETERGENT TOOTHBRUSH ACQU
Slide 10: Long History of Growth Through Acquisitions
Long History of Growth Through Acquisitions Net Sales $ Billions $5.4 $1.5 2004 2005 2006 2008 2010 2011 2012 2014 2015 2016 2017 2018 2019 2020 2021 2022 Note: Trojan, Nair and First Response acquired in two parts – 2001 and 2004. 2023 STOCKHOLDERS’ MEETING 10
Slide 11: We Have Clear Acquisition Criteria
We Have Clear Acquisition Criteria Primarily #1 High growth and Asset Leverage C&D Deliver or #2 share high margin light manufacturing, sustainable brands brands that are logistics and competitive fast moving purchasing advantage consumables 2023 STOCKHOLDERS’ MEETING 11
Slide 12: 14 Power Brands Today, 20 Tomorrow
14 Power Brands Today, 20 Tomorrow Net Sales $6.0 $ Billions 14 $5.0 13 12 $4.0 11 $3.0 10 9 8 $2.0 7 6 $1.0 5 1 $0.0 1846 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Note: Trojan, Nair and First Response acquired in tw
Slide 13: How We Run the Company
How We Run the Company
Slide 14: Evergreen Model
Evergreen Model Organic Sales +3% Gross Margin +25 bps Marketing FLAT SG&A -25 bps Operating Margin +50 bps EPS Growth +8% 2023 STOCKHOLDERS’ MEETING 14
Slide 15: Prioritized Uses Of Free Cash Flow
Prioritized Uses Of Free Cash Flow 1 TSR-Accretive M&A 2 Capex For Organic Growth & G2G 3 New Product Development 4 Debt Reduction 5 Return Of Cash To Shareholders 2023 STOCKHOLDERS’ MEETING 15
Slide 16: We Have Five Operating Principles
We Have Five Operating Principles 1 2 3 4 5 Leverage Friend of the Leverage People Leverage Assets Leverage Brands Environment Acquisitions Highly productive We strive to be asset Brands consumers Long history of being people in a place light Good shareholder love around the world a friend to the wh
Slide 17: Church & Dwight Heritage
Church & Dwight Heritage 1888 1907 1970s 2017 2018 2021 Company Company Sole sponsor Partnering 100% of Commitment introduces institutes the of first Earth with the global to Science pro- use of Day. Arbor Day electricity Based environmental recycled Foundation demand Targets wall charts paperboard
Slide 18: Environmental Goals
Environmental Goals AIR WATER SOLID WASTE 100% carbon neutral 10% reduction of 75% recycling rate via offsets by 2025 water use annually** Committed to 1.5 C o science-based targets over the next 10 years for scope 1 and 2* o * Well below 2 C for scope 3 ** Normalized 2023 STOCKHOLDERS’ MEETING 18
Slide 19: ESG Recognition
ESG Recognition 2023 STOCKHOLDERS’ MEETING 19
Slide 20: Our ESG Scores Continue to Improve
Our ESG Scores Continue to Improve 2020 CCC B BB BBB A AA AAA 2021 CCC B BB BBB A AA AAA 2022 CCC B BB BBB A AA AAA 2023 STOCKHOLDERS’ MEETING 20
Slide 21: Financials
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Slide 22: FY 2022 Financial Highlights
FY 2022 Financial Highlights Reported Sales Growth 3.6% Organic Sales Growth 1.4% Gross Margin -170 bps Adjusted EPS -2%, $2.97 Reported EPS -49%, $1.68 Cash from Operations $885MM Organic sales and adjusted EPS are non-GAAP measures. Refer to the Appendix for a reconciliation to the most directly c
Slide 23: First Quarter 2023 Highlights
First Quarter 2023 Highlights Domestic +5.5% Organic Sales Growth 5.7% International +11.6% SPD -5.9% Gross Margin 43.5%, +90 bps Marketing % 8.6%, +70 bps Adjusted SG&A 14.0%, +90 bps Adjusted EPS Growth 2.4%, $0.85 Cash from Operations $273MM Organic sales and adjusted EPS are non-GAAP measures. R
Slide 24: FY 2023 Financial Outlook
FY 2023 Financial Outlook Reported Sales Growth 6% to 7% Organic Sales Growth 3% to 4% Gross Margin ~+120 bps Marketing +50 bps, 10.5% SG&A higher Other Expense ~-$110M Effective Tax Rate ~23% Adjusted EPS Growth 2% to 4% Cash from Operations $950MM, +7.3% Organic sales and adjusted EPS are non-GAAP
Slide 25: 4% Dividend Increase In 2023
4% Dividend Increase In 2023 $1.05 $1.09 $1.01 $0.96 $0.87 $0.91 122 $0.76 consecutive years of dividends +119% +7.0% +14.5% +4.6% +5.5% +5.2% +4.0% +4.0% +35% 2017 2018 2019 2020 2021 2022 2023 2023 STOCKHOLDERS’ MEETING 25
Slide 26: Q&A
y Q&A
Slide 27: Reconciliations
Reconciliations www.churchdwight.com +119% +7.0% +14.5% +4.6% +5.5% +35% 2023 STOCKHOLDERS’ MEETING 27
Slide 28: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES Church & Dwight Co., Inc.’s Reconciliation of Non-GAAP Measures: The following pages provide definitions of the non-GAAP measures used in this presentation and reconciliations of these non- GAAP measures to the most directly comparable GAAP measures. These non-GAA
Slide 29: Reconciliation of Non-GAAP Measures: Organic Sales Growth
RECONCILIATION OF NON-GAAP MEASURES Organic Sales Growth: The presentation provides information regarding organic sales growth, namely net sales growth excluding the effect of acquisitions, divestitures and foreign exchange rate changes, from year-over-year comparisons. Management believes that the
Slide 30: Reconciliation of Non-GAAP Measures: Adjusted SG&A
RECONCILIATION OF NON-GAAP MEASURES Adjusted SG&A: This presentation discloses the Company’s SG&A expenses as a percent of net sales. Adjusted SG&A, as used in this presentation, is defined as selling, general and administrative expenses excluding significant one-time items that are not indicative o
Slide 31: Reconciliation of Non-GAAP Measures: Adjusted EPS
RECONCILIATION OF NON-GAAP MEASURES Adjusted EPS: This presentation discloses reported EPS excluding the following, namely, earnings per share calculated in accordance with GAAP adjusted to exclude significant one-time items that are not indicative of the Company’s period-to-period performance. We b
Slide 32: Reconciliation of Non-GAAP Measures - Outlook
RECONCILIATION OF NON-GAAP MEASURES - OUTLOOK Reported and Organic Forecasted Sales Reconciliation Reported and Adjusted Diluted Earnings Per Share - Outlook 2023 STOCKHOLDERS’ MEETING 32