Edgewell Personal Care Company · NYSE:EPC
Edgewell Personal Care — dbAccess Global Consumer Conference 2024
30 slides from Edgewell Personal Care's conference presentation, 2024
Slide 1: dbAccess Global Consumer Conference
dbAccess Global Consumer Conference
Slide 2: Today's Speakers
Today’s Speakers Rod R. Little Dan Sullivan President & CEO CFO, President- Europe & LATAM
Slide 3: Forward-looking statements
Forward-looking statements Certain statements in this presentation, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives and expected operating results, and the assumptions upon which those statements are based, are "forwar
Slide 4: Non-GAAP financial measures
Non-GAAP financial measures While the Company reports financial results in accordance with accounting principles generally accepted in the U.S. ("GAAP"), this discussion also includes non-GAAP measures. These non- GAAP measures are referred to as "adjusted" or "organic" and exclude items which are c
Slide 5: Edgewell's Transformation Announced in November 2020
Edgewell’s Transformation Announced in November 2020
Slide 6: A Compelling Strategy – Launched Investor Day November 2020
A Compelling Strategy – Launched Investor Day November 2020 We will transform into a growing, sustainable and consumer-centric personal care company and we will drive stable topline and accelerated profit growth and predictable cash generation, delivering a meaningful total shareholder return Strate
Slide 7: Built Around a Diversified Portfolio of Brands
Built Around Accelerate Growth Stabilize the Profit Pool in categories with brands where we have a in categories with brands that give us a a Diversified Right to Win Right to Play Portfolio Leading Share Positions in Growing of Brands Global Categories Strong Brands in Recovering Categories Groomin
Slide 8: A Diversified Global Shave Business
Geographic Profile Category Profile A Diversified Global Shave Business Preps 11% • A diversified shave portfolio business, and the only North America Men's Branded manufacturer operating across 16% 48% all sub-category tiers (globally) North America • Well positioned to capitalize Disposables on po
Slide 9: Accelerated International Growth
Accelerated International FY22 FY23 FY24e(1) Growth Organic Growth +6% +6% ~+6% • Represents close to 40% of our revenue profile based on FY 2023 results…growing at an accelerated rate last 18 months • Market Leading Men’s and Women’s shave position in Japan(2), and strong #2 positions across Europe
Slide 10: Enabled by Strengthened Core Capabilities
Enabled by Strengthened Core Capabilities Consumer Focused Enhanced Commercial Demonstrated Innovation Capabilities Productivity Focus
Slide 11: Underpinned by Strong Business Fundamentals
Underpinned by Strong Business Fundamentals • Strong Gross Margin Profile • Relentless Cost Management • Strong Cash Flow Generation • Disciplined Capital Allocation
Slide 12: Balanced and Disciplined Approach to Capital Allocation
Balanced and Disciplined Approach to Capital Allocation ~20% Dividend Payout Ratio Invest for Growth $250M Systemic Investing in our brands and growth Share Buy-back opportunities, accretive M&A, capex for innovation and productivity gains (FY22 - FY24) Improve Capital Return Return of cash to share
Slide 13: A Clear Financial Algorithm for Value Creation
Leveraging clear Right to Win portfolio 2% - 3% Disciplined, prioritized investment cadence Organic Net Sales growth Consumer centric innovation at the core And a Clear Strengthened gross margin profile Financial 4% - 6% Next level cost reduction Adjusted EBITDA growth Algorithm for Investment stanc
Slide 14: Our Strategy is Working
Wt Our Strategy is Working Ved igewell
Slide 15: Delivering at or Above Algorithm
FY21 FY22 FY23 FY24e (1) Organic Growth +3.7% +3.9% +4.3% +2-4% • Stronger brands and retail partnerships strengthen our position on shelf Delivering at • Healthy contribution from both volume and price or Above • Broad-based market growth Algorithm • Successful portfolio shift with growth-oriented
Slide 16: A Stronger Portfolio of Brands...Delivering Better Shelf Outcomes
A Stronger Portfolio of Brands...Delivering Better Shelf Outcomes ✓ Our Portfolio is Healthier ✓ We Are Stronger on Shelf
Slide 17: A Core Competency of Cost Excellence
FY19-23 FY24-Beyond Project Fuel for Growth Continuous Cost Improvement $400M Realized Gross Savings Contributing ~200bps (1) to GM A Core Since 2019 (1) Improvement Annually Competency of Cost • Project Fuel: Enterprise-wide effort • Productivity and efficiency efforts Excellence that delivered ~$2
Slide 18: Controlling the Controllables to Mitigate Inflation and FX Headwinds
+675bps(1) Cumulative Gross Margin Benefit from Gross Cost Savings FY21-23 Controlling the +465bps(1) Controllables Cumulative Gross Margin Benefit From Price to Mitigate Significant Inflation and ~$710M Brand Support through A&P Spend FX Headwinds >100% Free Cash Flow Conversion of Net Earnings (1)
Slide 19: Productivity and Revenue Management Execution Drives Gross Margin Inflection
+240bps(2) FY 2024 Cumulative Gross Margin Benefit from Gross Cost Savings Productivity and Revenue +130bps(2) Management Cumulative Gross Margin Benefit From Price and Revenue Management Execution Drives Gross Margin ~42.9% (1) Estimated Fiscal Year Adjusted Gross Margin Inflection point +120bps (1
Slide 20: Continued Strong Cash Flow Generation
Continued Strong Cash Flow Generation FY20 FY21 FY22 FY23 FY24e(2) FCF % of Sales 10% 8% 2% 8% 7% Net Debt Leverage 2.7x 2.1x 3.6x 3.4x 3.0x 233 229 ~230 216 Free Cash Flow 189 175 169 ~170 Operating Cash 102 53(1) FY20 FY21 FY22 FY23 FY24e(2) (1) FY22 FCF primarily impacted by temporary increase in
Slide 21: Delivering on our Model
Outlook Presented During our FY24 Q2 Earnings Call FY 24 Outlook(1) FY24 @ CC(3) Long-Term Algorithm(4) Delivering 2% to 4% (Low End) 2% to 4% (Low End) 2% - 3% on our Model Reported Net Sales growth Organic Net Sales growth Organic Net Sales growth ✓ Top-Line Growth 3% 7% 4% - 6% ✓ Gross Margin Acc
Slide 22: Our Transformation Continues
Our Transformation Continues
Slide 23: Building a Company People Love to Work For
Sustainability is core to our business model Sustainability embedded across brands, operations and supply chain. Committed to carbon neutrality by 2030. Building a Company Diversity, Equity, and People Inclusiveness (DEI) is a Strength Advanced focus on DEI to support our global Love to workforce, c
Slide 24: Building Stronger Commercial Fundamentals
Building Stronger Commercial Fundamentals • Transformational Approach to Innovation • Driving Better Return on our Brand Investments • Price & Revenue Management Excellence • Modern Brand Building and Activation
Slide 25: Sustained International Growth
Sustained International Growth Organic Growth Objective +MSD • Accelerated Growth From Right to Win Categories, Through Market Expansion in Europe, Mexico and Oceania • Maintain Market Leading Wet Shave Position in Japan and China (Women’s) • Invest to Win in Core European Shave Markets • Capitalize
Slide 26: Invest to Win.
BUS T-SIDES AV OOH Invest to Win. ECOMM SOCIAL SHOPPER
Slide 27: Portfolio Diversification Through Brand Expansion
Portfolio Diversification Through Brand Expansion into New Adjacencies and Geographies
Slide 28: Productivity Based Programs Achieve Pre-Covid Adjusted Gross Margin of ~45%
Productivity Based Programs Remain Cornerstone of Gross Cost Savings Go Forward Objective Price and Revenue Management Achieve Pre- Driven by Opportunistic Price Execution and Revenue Management Excellence Covid (2019) Adjusted Gross Margin Enhanced Capabilities of ~45% Across Supply Chain and Comme
Slide 29: What to Expect From Edgewell
Strong Business Model Strong Execution What to Expect • Structurally strong, non-discretionary • Strong portfolio of brands with enhanced categories innovation that wins on shelf From Edgewell • Consistent, durable top-line growth • Return to 45%+ GM profile over time • Sustained Earnings Growth and
Slide 30: Q&A
Q&A
Edgewell Personal Care Company — dbAccess Global Consumer Conference 2024 on 6ix