Edgewell Personal Care Company · NYSE:EPC
Edgewell Personal Care — The Raymond James 2024 Institutional Investors Conference
26 slides from Edgewell Personal Care's conference presentation, 2024
Slide 1: The Raymond James 2024 Institutional Investors Conference
The Raymond James 2024 Institutional Investors Conference
Slide 2: Today's Speakers
Today’s Speakers Dan Sullivan Chris Gough CFO, President- Vice President, Investor Europe & LATAM Relations & Treasury
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 Growth Strategy – Launched Investor Day November 2020
A Compelling Growth 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 growth and predictable cash generation, delivering a meaningful total shareholder return Strategic Priorities Bu
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: Driven by Significantly Strengthened Core Capabilities
Driven by Significantly Strengthened Core Capabilities Consumer Focused Enhanced Commercial Demonstrated Innovation Capabilities Productivity focus
Slide 10: Underpinned by Strong Business Fundamentals
Underpinned by Strong Business Fundamentals • Strong Gross Margin Profile • Relentless Cost Management • Strong Cash Flow Generation • Balanced Capital Allocation
Slide 11: 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 Buyback opportunities, accretive M&A, capex for innovation and productivity gains (FY22 - FY24) Improve Capital Return Return of cash to shareh
Slide 12: And 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 13: Our Strategy is Working
Ww Our Strategy is Working Ved igewell
Slide 14: Delivering 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 • Healthy contribution from both volume and price Above • Broad-based market growth Algorithm • Successful portfolio shift with growth-oriented acquis
Slide 15: A Stronger Portfolio of Brands….Delivering Better Shelf Outcomes
A Stronger Portfolio of Brands….Delivering Better Shelf Outcomes ✓ Our Portfolio is Better ✓ We Are Stronger on Shelf
Slide 16: 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 17: Controlling the Controllables
+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 18: 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 19: 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 20: Delivering on our Model
FY 24 Outlook(1) FY24 @ CC(3) Long-Term Algorithm(4) 1% to 3% 2% to 4% 2% - 3% Delivering Reported Net Sales growth Organic Net Sales growth Organic Net Sales growth on our Model ✓ Top-Line Growth 1% 5% 4% - 6% Adjusted EBITDA growth (2) Adjusted EBITDA growth (2) Adjusted EBITDA growth ✓ Gross Marg
Slide 21: Our Transformation Continues
Our Transformation Continues
Slide 22: 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 23: Portfolio Diversification Through High-Growth Acquisitions
Portfolio Diversification Through High- Growth Acquisitions & Expanding into New Category Adjacencies
Slide 24: Accelerated International Growth
Accelerated FY22 FY23 FY24e(1) International Growth Organic Growth +6% +6% +4-6% • Represents 36% of our revenue profile based on FY 2023 results • Market Leading Men’s and Women’s shave position in Japan(2) • Strong presence in Global Suncare, including Mexico, Puerto Rico, Australia and Europe • S
Slide 25: What to Expect From Edgewell
Healthy Categories Outlook Strong Execution What to • Expect Structurally strong, non- discretionary categories • Strong portfolio of brands with enhanced innovation that wins on shelf From • Consistent, durable growth Edgewell • Return to 45%+ GM profile over time • Limited disruption • Disciplined
Slide 26: Q&A
Q&A
Edgewell Personal Care Company — The Raymond James 2024 Institutional Investors Conference on 6ix