Wd-40 Company · NASDAQ:WDFC

Wd-40 — Q2 2024 Earnings Presentation

28 slides from Wd-40's earnings presentation, Apr 9, 2024

  1. Slide 1: Q2 FY24 Earnings Results

    Q2 FY24 Earnings Results APRIL 9, 2024

  2. Slide 2: Forward-Looking Statements

    Forward-Looking Statements Historical financial and operating data in this presentation reflect the consolidated results of WD-40 Company and its subsidiaries (collectively, the “Company”). The Company markets maintenance products (“MP”) under the WD-40®, 3-IN-ONE® and GT85® brand names. The WD-40 b

  3. Slide 3: Q2 FY24 Results

    Q2 FY24 Results ©6\- > EN

  4. Slide 4: Q2 FY24 Results

    Q2 FY24 Results ($M except EPS, gross margin and % change) Financial Results Q2 FY24 Q2 FY23 % Change As reported Net Sales $139.1 $130.2 7% Gross Margin 52.4% 50.8% +160 bps Operating Income $20.9 $22.2 -5% Net Income $15.5 $16.5 -6% EPS (Diluted) $1.14 $1.21 -6% • Non-GAAP constant currency net sa

  5. Slide 5: Americas Segment

    Americas Segment Americas – Q2 FY23 vs. Q2 FY24 • Total reported segment sales  1% • Segment = 46% of global net sales • WD-40® Multi-Use Product sales  1% • WD-40 Specialist ® sales  3% • In constant currency sales were flat • Maintenance product (MP) sales: • U.S. MP sales ▲ 1% • Latin America

  6. Slide 6: EIMEA Segment

    EIMEA Segment EIMEA – Q2 FY23 vs. Q2 FY24 • Total reported segment sales  16% • Segment = 39% of global net sales • WD-40® Multi-Use Product sales  17% • WD-40 Specialist ® sales  23% • In constant currency sales  11% • Maintenance product (MP) sales: • EIMEA MP sales  18% • Gross margin 53.7%

  7. Slide 7: Asia-Pacific Segment

    Asia-Pacific Segment Asia-Pacific – Q2 FY23 vs. Q2 FY24 • Total reported Asia-Pacific sales  4% • Segment = 15% of global net sales • WD-40® Multi-Use Product sales  3% • WD-40 Specialist ® sales  3% • In constant currency sales  5% • Maintenance product (MP) sales: • Australia MP sales  3% • C

  8. Slide 8: Growth Aspirations

    Growth Aspirations ae h| Me %

  9. Slide 9: Strong Historical Growth with Clear Runway Ahead

    Strong Historical Growth with Clear Runway Ahead Maintenance Products 504 10-year Sales CAGR 469 425 318 335 355 377 364 6% 294 300 EIMEA 6.4% APAC 5.7% Americas 1. FY23 maintenance product net sales presented as reported; all prior years presented on a constant currency basis using FY23 foreign cur

  10. Slide 10: Long-Term Growth Targets for Maintenance Products

    Long-Term Growth Targets for Maintenance Products Non-GAAP Constant Currency Long-Term Growth Ambition By Segment Americas EIMEA APAC Total Company 50% 36% 14% CAGR Target of global net sales* of global net sales* of global net sales* mid-to-high CAGR Target CAGR Target CAGR Target single digits 5-8

  11. Slide 11: Our Four-by-Four Strategic Framework

    Our Four-by-Four Strategic Framework Four Must-Win Battles 01 02 03 04 Lead Geographic Accelerate Drive WD-40 Turbo-Charge Expansion Premiumization Specialist Growth Digital Commerce Four Strategic Enablers 01 Ensure a People-First Mindset 02 Build a Sustainable Business For the Future 03 Achieve Op

  12. Slide 12: Must-Win Battles – Year-to-Date

    Must-Win Battles – Year-to-Date Must-Win Battles YTD Results 01 02 03 04 Lead Geographic Accelerate Drive WD-40 Turbo-Charge Expansion Premiumization Specialist Growth Digital Commerce • WD-40 Multi-Use • WD-40 Smart Straw • WD-40 Specialist  10% • E-commerce sales Product  10% and EZ Reach • Amer

  13. Slide 13: Employee Engagement Survey

    Employee Engagement Survey 13

  14. Slide 14: High Employee Engagement Continues as a Key Source of Competitive Advantage

    High Employee Engagement Continues as a Key Source of Competitive Advantage PARTICIPATION EES COMPARATIVE RESULTS ACTUAL : 617 2024 % FAV : 92.9 POSSIBLE : 630 98% 92.9% 2022 % FAV : 93.3 HIGHEST RATED QUESTIONS 2024 2024 Question WD-40 Company Rank Results 1 I love to tell people that I work for WD

  15. Slide 15: Business Model

    Business Model 15

  16. Slide 16: Our Business Model Enables Long-term Value Creation

    Our Business Model Enables Long-term Value Creation Generate Mid-to-High-Single GDP+ Digit Revenue Growth 50→55% Achieve Gross Margin Target ROIC 25%+ 35→30% Manage Cost Of Doing Business Annual dividends targeted at >50% 20→25% Drive Adjusted EBITDA Margin of earnings Low Capital Invest in Brands a

  17. Slide 17: Gross Margin Detail – Q2 FY24

    Gross Margin Detail – Q2 FY24 Gross margin improved by 160 basis points over prior year period primarily due to the following favorable impacts: Gross Margin Drivers Change vs. Prior Year Gross Margin Trend As reported (basis points) Sales mix and other misc. mix impacts +130 Lower costs of specialt

  18. Slide 18: What Makes Up the Cost of a Can?

    What Makes Up the Cost of a Can? Approximate Cost Breakdown Of A Typical Can Of WD-40® Multi-Use Product Manufactured in the United States FY23 Corrugate Petroleum-Based Specialty Plastic Manufacturing Fees Tin-Plate Can Data as of August 2023. Represents average input costs over 6-month period of a

  19. Slide 19: FY 2024 Guidance

    FY 2024 Guidance 19

  20. Slide 20: Updated Fiscal Year 2024 Guidance

    Updated Fiscal Year 2024 Guidance Sales Growth Between 6 and 12% (Constant Currency Basis) Net Sales Between $570 and $600 million (Constant Currency Basis) Gross Margin Narrowed range to 51.5% and 53% (prior range between 51% and 53%) A&P Investment Between 5% and 6% of net sales Provision For Inco

  21. Slide 21: Appendix

    Appendix 21

  22. Slide 22: Sales Impact – Consolidated Net Sales Changes

    Sales Impact – Consolidated Net Sales Changes Changes from Prior Year Fiscal Period ($ in millions) Year to Price, Volume and FX Impact Q1 FY24 Q2 FY24 Date Increase in average selling price(1) $ 4.1 $ 3.6 $ 7.7 Increase in sales volume(1) $ 7.6 $ 2.3 $ 9.9 Currency impact on current period – non-GA

  23. Slide 23: Foreign Currency Translation Impact or Constant Currency – Q2 FY24

    Foreign Currency Translation Impact or “Constant Currency” – Q2 FY24 ($ in millions; except EPS, gross margin and % change) Financial Results Q2 FY24 Q2 FY23 % Change As reported Net Sales $139.1 $130.2 7% Gross Margin 52.4% 50.8% +160 bps Operating Income $20.9 $22.2 -5% Net Income $15.5 $16.5 -6%

  24. Slide 24: Foreign Currency Impact

    Foreign Currency Impact Transaction Impact Translation Impact Conversion from transaction Translation from functional currency to subsidiaries’ functional currency to WD-40 Company’s currency reporting currency Transaction currency Functional currency Reporting currency Currency in which sales, Main

  25. Slide 25: Additional Foreign Currency Exchange Impact – Q2 FY24

    Additional Foreign Currency Exchange Impact – Q2 FY24 Q2 FY24 Net Sales (In millions) In total, changes in FX rates increased net sales by ~$2.1M in Q2 FY24 25

  26. Slide 26: Non-GAAP Reconciliation

    Non-GAAP Reconciliation This presentation contains certain non-GAAP (generally accepted accounting principles in the United States of America) measures, that management believes provide our stockholders with additional insights into WD-40 Company’s results of operations and how it runs its business.

  27. Slide 27: Non-GAAP Reconciliation

    Non-GAAP Reconciliation In order to show the impact of changes in foreign currency exchange rates on our results of operations, we have included constant currency disclosures, where necessary, in this presentation. Constant currency disclosures represent the translation of our current fiscal year re

  28. Slide 28: Slide 28

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