Church & Dwight Company, Inc. · NYSE:CHD
Church & Dwight — 2020 Barclays Global Consumer Staples Conference
104 slides from Church & Dwight's conference presentation, Sep 9, 2020
Slide 1: 2020 Barclays Global Consumer Staples Conference
2020 Barclays Global Consumer Staples Conference
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; gross margin changes; trade and marketing spending; marketing expense as a percentage of net sales; sufficiency of cash flows from operations; e
Slide 3: Agenda
01 History of Solid Performance 02 Recession Friendly Portfolio 03 Performance in the Covid Environment Agenda 04 Life After Covid 05 ARM & HAMMER Masterbrand 06 2020 Innovation 07 How We Run the Company 08 Strong M&A Platform 09 Financials
Slide 4: History of Solid Performance
01 History of Solid Performance Matt Farrell, Chairman and Chief Executive Officer 4
Slide 5: Deliver Outstanding Returns to Our Shareholders
DELIVER OUTSTANDING RETURNS TO OUR SHAREHOLDERS 10 YEAR: 5 YEAR: 3 YEAR: 2019: 2020 YTD*: 20.5% 17.6% 18.0% 8.9% 33.5% * As of September 4, 2020 5
Slide 6: Over Ten Years of Solid Organic Sales Growth
OVER TEN YEARS OF SOLID ORGANIC SALES GROWTH 6.0% 3.7% organic sales average 5.0% Evergreen Model: 4.0% 3.0% 3.0% 2.0% 1.0% 0.0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 6
Slide 7: Over Ten Years of Solid EPS Growth
OVER TEN YEARS OF SOLID EPS GROWTH 25.0% 20.0% 15.0% Evergreen Model: 10.0% 8.0% 5.0% 0.0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Note: Adjusted EPS growth is a non-GAAP measure. Refer to the Appendix for a reconciliation to the most comparable GAAP measures. 7
Slide 8: Recession Friendly Portfolio
02 Recession Friendly Portfolio
Slide 9: The Company Performs Well in Good Times and Bad
THE COMPANY PERFORMS WELL IN GOOD TIMES AND BAD Organic Sales Growth EPS Growth 21.7% 4.8% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 9
Slide 10: CHD Composition of Sales Is Consistent
CHD COMPOSITION OF SALES IS CONSISTENT THEN AND NOW: International: International: U.S.: U.S.: 16% 17% 74% 2009 77% 2020 SPD: SPD: 10% 6% 2020 refers to the CHD estimate. 10
Slide 11: We Continue to Have a Diversified Portfolio
WE CONTINUE TO HAVE A DIVERSIFIED PORTFOLIO THEN AND NOW: A well-balanced portfolio of household and personal care products. SPD: SPD: Household: 10% Household: 6% 50% 45% 2009 2020 Personal Personal Care: Care: 40% 49% 2020 refers to the CHD estimate. 11
Slide 12: Balanced Portfolio Throughout the Years
BALANCED PORTFOLIO THROUGHOUT THE YEARS THEN AND NOW: Our unique product portfolio has both value and premium products. Value: Value: Premium: 40% 2009 Premium: 40% 2020 60% 60% Personal Care: 41% 2020 refers to the CHD estimate. 12
Slide 13: Ecommerce Skill
ECOMMERCE SKILL THEN AND NOW: all other all other channels channels 99% 88% 2009 2020 ecommerce ecommerce 12% <1% 2020 refers to the CHD estimate. 13
Slide 14: We Have More Power Brands Today Than in 2009
WE HAVE 4 MORE POWER BRANDS TODAY THAN IN 2009 THEN AND NOW: 8 12 Power Brands in 2009 Power Brands Today 2011 2012 2017 2019 14
Slide 15: We Have More Categories Today Than in 2009
WE HAVE 5 MORE CATEGORIES TODAY THAN IN 2009 THEN AND NOW: 11 categories in 2009 16 categories today 1. Clumping Litter 9. Condoms 1. Clumping Litter 9. Condoms 2. Toothache 10. Depilatories 2. Toothache 10. Depilatories 3. Toothpaste 11. Carpet Deodorizers 3. Toothpaste 11. Carpet Deodorizers 4. Ba
Slide 16: Strength of the Brands, Especially Household
STRENGTH OF THE BRANDS, ESPECIALLY HOUSEHOLD THEN AND NOW: Market share has grown since the 2009 recession. 13.0 23.5 54.9 20.9 77.0 77.0 38.0 7.2 A&H Liquid A&H Litter A&H Baking Soda OxiClean Stainfighters 2009 2019 Source: Nielsen Total U.S. AOC 16
Slide 17: International Portfolio
INTERNATIONAL PORTFOLIO THEN AND NOW: A well-balanced portfolio of household and personal care products. Personal Household: Personal Household: Care: 2009 20% Care: 2020 22% 80% 78% 2020 refers to the CHD estimate. 17
Slide 18: GMG Fastest Growing Part of International
GMG FASTEST GROWING PART OF INTERNATIONAL THEN AND NOW: International represented ~16% International represented ~17% of the Company’s net sales of the Company’s net sales Global Global Markets countries countries 82% 2009 66% 2020 Markets Group Group Personal 18% 34% Care: 41% 2020 refers to the CH
Slide 19: GMG Anchors International
GMG ANCHORS INTERNATIONAL Organic Sales 9.2% 7.8% 7.1% GMG: 16.6% 0.6% 2018 2019 Q1 2020 Q2 2020 Countries: -5.8% 19
Slide 20: Low Exposure to Private Label
LOW EXPOSURE TO PRIVATE LABEL Weighted Average Private Label Share of our Categories 20% Private Label Consistently ~12% 10% 0% 2013 2014 2015 2016 2017 2018 2019 2020YTD Source: Nielsen Total U.S. AOC 20
Slide 21: Private Label Shares
PRIVATE LABEL SHARES Only 5 of our 16 categories have private label exposure PREGNANCY TEST KITS BAKING SODA GUMMY VITAMINS 50% 30% 20% 40% 25% 15% 20% 30% 15% 10% 20% 10% 10% 5% 5% 0% 0% 0% ORAJEL EQUIVALENT CLUMPING CAT LITTER 30% 20% 15% 20% 10% 10% 5% 0% 0% Source: Nielsen Total U.S. AOC / 2012
Slide 22: Specialty Products Division Then and Now
SPECIALTY PRODUCTS DIVISION THEN AND NOW THEN AND NOW: non-dairy <1% non-dairy 20% performance dairy products dairy 41% 2009 30% 47% 2020 performance Brazil products chemical 33% 28% 2020 refers to the CHD estimate. 22
Slide 23: Non-Dairy Created a More Balanced Animal Business
NON-DAIRY CREATED A MORE BALANCED ANIMAL BUSINESS THEN AND NOW: non-dairy 1% dairy dairy: non-dairy: 99% 2009 73% 2020 27% 2020 refers to the CHD estimate. 23
Slide 24: International Animal Business Has Grown
INTERNATIONAL ANIMAL BUSINESS HAS GROWN THEN AND NOW: Domestic Domestic 97% 2009 86% 2020 International 14% International 3% 2020 refers to the CHD estimate. 24
Slide 25: Cyclical Dairy Industry Drives SPD Organic Revenue
CYCLICAL DAIRY INDUSTRY DRIVES SPD ORGANIC REVENUE Organic Sales 30% 22.6% 20% 11.5% 10% 6.0% 3.0% 0% -10% 2011 2014 2017 2020E Class III Milk Price: Historical and Futures 26 24 22 20 CIII ($/cwt) 18 16 14 12 10 2010 2011 2011 2012 2013 2014 2014 2015 2016 2017 2017 2018Source: 2019USDA2020E 2020 /
Slide 26: SPD International Has Grown
SPD INTERNATIONAL HAS GROWN THEN AND NOW: Domestic International Domestic International 75% 2009 25% 84% 2020 16% 2020 refers to the CHD estimate. 26
Slide 27: Performance in the Covid Environment
03 Performance in the Covid Environment
Slide 28: We Are in the Right Categories (Nielsen)
WE ARE IN THE RIGHT CATEGORIES (NIELSEN) 2016 2017 2018 2019 Q1 2020 Q2 2020 Clumping Litter Water Flossers Dry Shampoo Toothache VMS Toothpaste Baking Soda Battery Toothbrush Laundry Hair Thinning Pregnancy Test Kits Stain Fighters Condoms Depilatories Carpet Deodorizers Women’s Electric Hair Remov
Slide 29: Gummy Vitamins
Gummy Vitamins Q2 category consumption: +56% Source: Nielsen and Company data
Slide 30: #1 Adult Gummy Vitamin
#1 Adult Gummy Vitamin Adult VMS gummy form has increased from 3% to18% since 2012. 30
Slide 31: Baking Soda
BAKING SODA Q2 category consumption: +38% • cleaning more • baking more • early pool season Source: Nielsen and Company data
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Slide 33: Dry Shampoo
Q2 category consumption: -18% • beauty retail store closures • decreased usage occasions DRY SHAMPOO Source: Nielsen and Company data
Slide 34: Condoms
Q2 category consumption: -13% • social distancing put a stop to hookups among young people CONDOMS Source: Nielsen and Company data
Slide 35: Water Flossers
Q2 category consumption: -26% • dental offices closed in early April WATER FLOSSERS Source: Nielsen and Company data
Slide 36: Life After Covid
04 Life After Covid
Slide 37: Average time to change a habit is 66 days
“The average time it takes a person to change or create a new habit is 66 days” Source: www.healthline.com, October 2019
Slide 38: Rocketing Categories May Plateau
ROCKETING CATEGORIES MAY PLATEAU VMS Baking Soda 80% 70% 70% 60% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% Apr May Jun Jul Aug Apr May Jun Jul Aug “Half of people who take “Baking soda growth of an immunity supplement 23% vs. YAG is driven by say they’re taking them consumers who are more of
Slide 39: Liquid Laundry and Litter Turning Positive
LIQUID LAUNDRY AND LITTER TURNING POSITIVE Litter Liquid Laundry 2% 6% 0% 4% -2% 2% -4% 0% -6% -2% -8% -4% -10% -6% -12% -8% Apr May Jun Jul Aug Apr May Jun Jul Aug “New cat ownership has “On average, 41% of climbed steadily with laundry purchasers cite they household penetration up 5% are using muc
Slide 40: Depressed Categories Expected to Recover
DEPRESSED CATEGORIES EXPECTED TO RECOVER Dry Shampoo Water Flossers Condoms 0% 0% 0% -5% -10% -5% -10% -15% -20% -10% -20% -30% -15% -25% -40% -20% -30% -35% -50% -25% Apr May Jun Jul Aug Apr May Jun Jul Aug Apr May Jun Jul Aug “Lapsed users of dry “Reopening of dental offices “As mobility improves,
Slide 41: ARM & HAMMER Masterbrand
05 ARM & HAMMER Masterbrand Britta Bomhard, Chief Marketing Officer
Slide 42: A Billion Dollar Brand
a BILLION dollar brand. 72% of U.S. households are now using ARM & HAMMER products, up 3% in the last twelve months. 42
Slide 43: What Was the Parent's Biggest Worry?
What was the parent’s biggest worry? 43
Slide 44: ARM & HAMMER Free Virtual Summer Camp
ARM & HAMMER launched a free virtual summer camp to keep kids entertained.
Slide 45: 2020 Innovation
06 2020 Innovation
Slide 46: Church & Dwight Has Been Making Detergent Since the 1970s
CHURCH & DWIGHT has been making detergent since the 1970s and continues to innovate. 46
Slide 47: Reduce Chemicals Without Compromising Cleaning
“I’m trying to reduce the number of chemicals in the products I use, but I can’t compromise on cleaning efficacy.” 47
Slide 48: ARM & HAMMER Clean&Simple
ARM & HAMMER Clean&Simple ✓ 6 ingredients vs. an average of 20 ingredients for other detergents ✓ no unnecessary chemicals ✓ no compromise on efficacy 48
Slide 49: We Brought Baking Soda to Cat Litter in the 1990s
We brought baking soda to cat litter in the 1990s. 49
Slide 50: When Litter Is Wet, It Smells
“When litter is wet, it smells.” 50
Slide 51: Introducing ARM & HAMMER Clump & Seal AbsorbX
INTRODUCING ARM & HAMMER CLUMP & SEAL ABSORBX ✓ rapidly absorbs wetness in seconds to form rock hard clumps ✓ 100% dust free ✓ over 50% lighter than our regular litter 51
Slide 52: Entertaining Online Activation
ENTERTAINING ONLINE ACTIVATION 52
Slide 53: #1 Adult Gummy Vitamin
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Slide 54: Consumer Health Worry
“I try to take care of myself – eating and sleeping well, exercising when I can, but I’m worried that I’m not doing enough to keep myself healthy.” 54
Slide 55: VMS 2020 Innovation Pipeline
INTRODUCING VMS 2020 Innovation Pipeline 1H20 2H20 55
Slide 56: How We Run the Company
07 How We Run the Company
Slide 57: We Have Five Operating Principles
WE HAVE FIVE OPERATING PRINCIPLES Brands Consumers Love 1 Leverage Brands 2 Friend of the Environment 3 Leverage People Highly productive people in a place where people matter 4 Leverage Assets Asset Light 5 Leverage Acquisitions GOOD shareholder returns become GREAT shareholder returns 57
Slide 58: Brands Consumers Love
1 BRANDS CONSUMERS LOVE Brands Consumers Love 58
Slide 59: Friend of the Environment
2 FRIEND OF THE ENVIRONMENT 83% of consumers are mainstream or extreme green. Source: Nielsen Total U.S. AOC 59
Slide 60: Friend of the Environment: Then
FRIEND OF THE ENVIRONMENT: THEN Company institutes the use of recycled paperboard to package household products. Company introduces Sole sponsor of first pro-environmental Earth Day. wall charts & trading cards as product Launches first non- promotion. polluting, phosphate- free laundry detergent. 6
Slide 61: Friend of the Environment: Now
FRIEND OF THE ENVIRONMENT: NOW Partnering with the Arbor Day Foundation to plant millions of trees in the Mississippi River Valley. 50% of global 100% of global electricity demand electricity demand supplied by offset by green renewable energy energy. sources. 61
Slide 62: Water
WATER Goal: to reduce water and/or wastewater by 25% by 2022* * using 2016 as a baseline. 62
Slide 63: Solid Waste
SOLID WASTE Goal: to increase solid waste recycling rate to 75% by the end of 2020. 63
Slide 64: Air
AIR Goal: to achieve 100% carbon neutral status for all global operations by end of 2025. 64
Slide 65: ESG Recognition
ESG RECOGNITION 2020 NATIONAL TOP 100 2020 65
Slide 66: Highly Productive People in a Place Where People Matter
3 HIGHLY PRODUCTIVE PEOPLE IN A PLACE WHERE PEOPLE MATTER Revenue per Employee $913 (in ‘000s) $761 $717 $461 $458 $406 $357 $333 $324 CHD CLOROX PG KIMBERLY COLGATE RECKITT EDGEWELL ENERGIZER NEWELL Source: Most recent 10K filings 66
Slide 67: Simple Compensation Structure
SIMPLE COMPENSATION STRUCTURE 1. Bonuses are tied 100% to Gross business results. Net Revenue Margin Expansion 2. Equity compensation is 100% stock options. 3. Management is required to be heavily invested in Cash From EPS company stock. Operations 67
Slide 68: All Employees Focus on Gross Margin
ALL CHURCH & DWIGHT EMPLOYEES FOCUS ON GROSS MARGIN Gross margin is 25% of all employees’ a n n u a l b o n u s . 68
Slide 69: Asset Light
4 ASSET LIGHT 6.0% Capital Expenditures as a % of Sales 5.0% 5.4% 4.0% 3.0% 2.8% 2.5% 2.5% 2.0% 2.1% 2.1% 2.0% 1.8% 1.7% 1.4% 1.5% 1.0% 1.2% 0.0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020E Outlook as of July 31, 2020 69
Slide 70: Strong M&A Platform
08 Strong M&A Platform
Slide 71: We Have Five Operating Principles
WE HAVE FIVE OPERATING PRINCIPLES Brands Consumers Love 1 Leverage Brands 2 Friend of the Environment 3 Leverage People Highly productive people in a place where people matter 4 Leverage Assets Asset Light 5 Leverage Acquisitions GOOD shareholder returns become GREAT shareholder returns 71
Slide 72: Long History of Growth Through Acquisitions
5 LONG HISTORY OF GROWTH THROUGH ACQUISITIONS Net Sales (Billions) $4.4 $1.5 2004 2005 2006 2008 2010 2011 2012 2014 2015 2016 2017 2018 2019 Note: Trojan, Nair and First Response acquired in two parts – 2001 and 2004. 72
Slide 73: We Have Clear Acquisition Criteria
WE HAVE CLEAR ACQUISITION CRITERIA Primarily #1 Higher growth, Asset Light Leverage CHD Deliver or #2 share higher margin manufacturing, sustainable brands brands logistics and competitive purchasing advantage 73
Slide 74: Acquired 11 of Our 12 Power Brands Since 2001
ACQUIRED 11 OF OUR 12 POWER BRANDS SINCE 2001 Acquired 2001 Acquired 2001 Acquired 2001 Acquired 2001 Acquired 2005 #1 Extreme Value #2 Battery Powered #1 Condom Laundry Detergent #1 Pregnancy Kit #1 Depilatory Toothbrush Acquired 2006 Acquired 2008 Acquired 2011 Acquired 2012 Acquired 2017 Acquired
Slide 75: Acquisition Integration Competency
ACQUISITION INTEGRATION COMPETENCY THEN AND NOW: 2009 2020 Just one integration style: Several integration styles: 1. full scale integration 1. full scale integration 2. standalone 3. partial integration 75
Slide 76: 12 Power Brands Today, 20 Tomorrow
12 POWER BRANDS TODAY, 20 TOMORROW Net Sales (Billions) $5.0 $4.5 12 $4.0 11 $3.5 $3.0 10 9 $2.5 8 $2.0 7 6 $1.5 $1.0 5 $0.5 1 $0.0 1846 2001 2005 2006 2008 2011 2012 2017 2019… Note: Trojan, Nair and First Response acquired in two parts – 2001 and 2004. 76
Slide 77: Financials
09 Financials Rick Dierker Chief Financial Officer
Slide 78: We Have an Evergreen Business Model
WE HAVE AN EVERGREEN BUSINESS MODEL 3% Organic Sales Growth 8% EPS Growth 78
Slide 79: Evergreen Model
EVERGREEN MODEL TSR Model Organic Net Sales Growth +3.0% Gross Margin +25 bps Marketing FLAT SG&A -25 bps Operating Margin ∆ +50 bps EPS Growth 8%
Slide 80: Key Gross Margin Growth Drivers
KEY GROSS MARGIN GROWTH DRIVERS Good to Supply Great Cost Chain Optimization Optimization Acquisition New Synergies Products 80
Slide 81: Organic Sales Growth Since 2009 Recession
ORGANIC SALES GROWTH SINCE 2009 RECESSION ~7-8% 5.2% 4.8% 4.3% 4.4% 4.1% 3.6% 3.5% 3.2% 3.0% 2.7% 1.9% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020E Outlook as of July 31, 2020. 81
Slide 82: EPS Growth Since 2009 Recession
EPS GROWTH SINCE 2009 RECESSION 21.7% 17.0% 13.8% 13.9% 13.0% 11.6% 10.9% 8.9% 9.6% 8.8% 7.9% 8.0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020E Note: Adjusted EPS growth is a non-GAAP measure. Refer to the Appendix for a reconciliation to the most comparable GAAP measures. Outlook as
Slide 83: Outlook for 2020
OUTLOOK FOR 2020 SALES ORGANIC ADJUSTED GROWTH SALES GROWTH EPS GROWTH +9-10% +7-8% +13% Outlook as of July 31, 2020. Organic sales and adjusted EPS are non-GAAP measures. 83
Slide 84: Organic Sales Growth 2020
ORGANIC SALES GROWTH 2020 8.8% 7-8% 6.0% 1H 2H FY20E Outlook as of July 31, 2020 84
Slide 85: Gross Margin 2020
GROSS MARGIN 2020 Back Half Gross Margin Impacted By: +150 bps • Normal amounts of promotional activity • New product support (e.g. coupons) flat - • YOY impact of Flawless accounting • Incremental manufacturing and distribution capacity investments -150 bps • Higher Waterpik tariffs 1H 2H FY20E • C
Slide 86: Adjusted EPS Growth 2020
ADJUSTED EPS GROWTH 2020 Back Half Adjusted EPS Impacted By: 26.9% • Normal amounts of promotional activity • NPD (two big launches) • Higher amounts of advertising 13.0% • Investments 0.0% 1H 2H FY20E Outlook as of July 31, 2020 86
Slide 87: Best in Class FCF Conversion
“BEST IN CLASS” FCF CONVERSION 2019 FCF Conversion (%) Church & Dwight 126% Newell Colgate P&G Clorox Peer Average 90% Kimberly Clark Reckitt Energizer 0% 20% 40% 60% 80% 100% 120% 140% Sources: Bloomberg, Nasdaq and Company filings 87
Slide 88: Cash Conversion Cycle
CASH CONVERSION CYCLE TIGHT CONTROL OF WORKING CAPITAL DRIVES CCC IMPROVEMENT 52 40 34 36 32 32 27 21 18 22 21 19 days 16 days excluding 13 Waterpik & Flawless 8 8 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020E Outlook as of July 31, 2020 88
Slide 89: Strong Balance Sheet
STRONG BALANCE SHEET TOTAL DEBT/BANK EBITDA 2.6x 2.2x 1.6x 1.5x 1.9x <1.5x 1.4x 1.4x 1.4x 1.2x CREDIT RATING 0.6x A3/BBB+ 0.5x 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020E Note: Total debt/EBITA is a non-GAAP measure. Refer to the Appendix for a reconciliation to the most comparable
Slide 90: Significant Financial Capacity $4.4B
SIGNIFICANT FINANCIAL CAPACITY as of June 30, 2020 (in $millions) Cash & Cash $450 Equivalents on Hand Acquisition Power: Leverage Capacity $4,000 $4.4B • 2020 TTM Bank EBITDA = $1,201M Current • Leverage capacity to 3.75x EBITDA $1,890 Outstanding Debt • Example: Acquisition EBITDA multiple of 12x
Slide 91: 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 91
Slide 92: Minimal Capital Investment
MINIMAL CAPITAL INVESTMENT Capital Expenditures as a % of Sales 5.4% Evergreen Model: 2.5% 2.8% 2.5% 2.0% 2.1% 2.1% 2.0% 1.8% 1.7% 1.4% 1.5% 1.2% $135 $64 $77 $75 $67 $71 $62 $50 $45 $60 $74 $100 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020E Outlook as of July 31, 2020 92
Slide 93: Ensuring a Steady Supply for Our Categories
ENSURING A STEADY SUPPLY FOR OUR CATEGORIES 2020 LLD Unit Dose Baking Soda Cleaners VMS 2021- 2022 LLD Litter Baking Soda VMS Technology Capacity 93
Slide 94: 5.5% Dividend Increase in 2020
5.5% DIVIDEND INCREASE IN 2020 +5.5% +14% +5% 119 +6% +7% +7% consecutive years of dividends +119% +35% 2016 2017 2018 2019 2020 94
Slide 95: Slide 95
Slide 96: Reconciliations
Reconciliations www.churchdwight.com 96
Slide 97: 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 98: Reconciliation of Non-GAAP Measures
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 99: Reconciliation of Non-GAAP Measures
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 100: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES Free Cash Flow: Free cash flow (a non-GAAP measure) is defined as cash from operating activities (a GAAP measure) less capital expenditures (a GAAP measure). Management views free cash flow as an important measure because it is one factor in determining the amount
Slide 101: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES Total Debt to Bank EBITDA: Total Debt to Bank EBITDA is a ratio used in our debt agreements. Bank EBITDA (a non-GAAP measure) is a form of adjusted EBITDA, and represents earnings from Income (a GAAP measure), excluding interest income, interest expense, and befor
Slide 102: Total Company Organic Sales Reconciliation
TOTAL COMPANY ORGANIC SALES RECONCILIATION Acquisitions & Discontinued System Calendar Shipping Year Reported FX Divestitures Operations Upgrade / Other Terms Organic 2019 5.1% 0.5% -1.2% 0.0% 0.0% 0.0% 0.0% 4.4% 2018 9.8% 0.0% -5.5% 0.0% 0.0% 0.0% 0.0% 4.3% 2017 8.1% 0.0% -5.4% 0.0% 0.0% 0.0% 0.0%
Slide 103: Debt to Bank EBITDA Reconciliation
DEBT TO BANK EBITDA RECONCILIATION Church & Dwight Co., Inc ($ in millions) 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 Total Debt as Presented (1) $ 2,063.1 $ 2,107.1 $ 2,374.3 $ 1,120.1 $ 1,050.0 $ 1,086.6 $ 797.3 $ 895.6 $ 246.7 $ 333.3 $ 816.3 Other Debt per Cov enant (2) 15.9 56.7 59
Slide 104: Reported & Adjusted Non-GAAP Reconciliations
REPORTED & ADJUSTED NON-GAAP RECONCILIATIONS For the year ending December 31, 1H 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 Adjusted EPS Reconciliation EPS - Reported $ 1.67 $ 2.44 $ 2.27 $ 2.90 $ 1.75 $ 1.54 $ 1.51 $ 1.40 $ 1.23 $ 1.06 $ 0.94 $ 0.85 Restructuring Charges $ - $ - $
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