Energizer Holdings, Inc. · NYSE:ENR
Energizer — Q2 2019 Earnings Presentation
26 slides from Energizer's earnings presentation, May 7, 2019
Slide 1: Second Quarter Fiscal 2019 Supplemental Financial Information
Exhibit 99.2 Second Quarter Fiscal 2019 Supplemental Financial Information May 7, 2019
Slide 2: Key Headlines
Key Headlines Acquisitions transform us into a diversified global household products leader that will maximize shareholder value by: • Growing adjusted free cash flow to $330 to $370 million in 2020 • Generating adjusted EBITDA of $650 to $675 million in 2020 • Driving organic sales growth through p
Slide 3: Second Quarter Fiscal Year 2019 Results
Second Quarter Fiscal Year 2019 Results 3
Slide 4: Second Quarter 2019 Financial Headlines
Second Quarter 2019 Financial Headlines Key Financial Highlights METRIC Fiscal 2019 Outlook Adjusted EBITDA* • Second Quarter $101.4 million, margin 18.2% • First six months $261.8 million, margin 23.2% Adjusted Free • First six months $101.1 million, down due to increased working capital as we tran
Slide 5: Second Quarter 2019 Financial Headlines
Second Quarter 2019 Financial Headlines METRIC Second Quarter 2019 Financial Headlines Net sales on a reported basis of $556 million was up $182 million, inclusive of acquisitions from prior year • Organic net sales up 1.9%, driven by favorable pricing and distribution gains Net Sales* • Acquired au
Slide 6: Second Quarter 2019 Financial Headlines: Adjusted EPS Bridge
Second Quarter 2019 Financial Headlines Adjusted EPS Bridge $0.45 ($0.09) ($0.05) $0.13 $0.20 ($0.05) ($0.05) ($0.13) Deal Related Impacts Q2 FY18 Deal Related D&A Equity Dilution Preferred Interest Dilution Currency Organic Q2 FY19 Dividends from Acquisitions Performance 6 FOROn INTERNAL a reported
Slide 7: Second Quarter 2019 Financial Headlines: Other Financial Considerations
Second Quarter 2019 Financial Headlines METRIC Other Financial Considerations • Interest expense, excluding acquisition costs of $33.2 million, was Interest Expense $44 million, up $30.4 million from prior year • Increase due to higher debt from the acquisitions Ex-Unusual • Ex-unusual Tax rate of 2
Slide 8: Impact of Integration and Acquisition Costs
Second Quarter 2019 Financial Headlines Impact of Integration and Acquisition Costs • $33.2 million Interest Expense related to debt issuance fees Q2 2019 • $29.1 million Acquisition & Integration Costs $95.4 Million • $31.7 million Cost of Goods Sold ($27.2M Inventory Step-Up related to purchase ac
Slide 9: Year 2019 Outlook
Fiscal Year 2019 Outlook 9
Slide 10: 2019 Outlook Key Financial Highlights
Fiscal 2019 Outlook Key Financial Highlights METRIC Fiscal 2019 Outlook Adjusted EBITDA* • $540 to $560 million, up 35% to 40% • Margin of approximately 21.5% Adjusted Free • $220 to $250 million Cash Flow* • $2.9 to $3 billion, subsequent to the Varta divestiture and Net Debt and pay down of term l
Slide 11: 2019 Outlook
Fiscal 2019 Outlook METRIC Fiscal 2019 Outlook $2.52 to $2.57 billion: • Organic Sales up 3 to 3.5 percent • FX unfavorable 150 to 200 bps Net Sales • Argentina is a headwind of 30 bps • Battery acquisition contributes $350 to $370 million • Auto Care acquisition contributes $350 to $360 million Gro
Slide 12: 2019 Outlook
Fiscal 2019 Outlook METRIC Fiscal 2019 Outlook Interest Expense $155 million, reflecting a pay down of $100 million of debt during 2019 Ex-Unusual 21% to 23% Tax Rate Adjusted Net Earnings * $210 to $217 million Adjusted EPS * $2.90 - $3.00 Common share dividends of approximately $85 million Dividen
Slide 13: 2019 Outlook: Preferred Stock Impact
Fiscal 2019 Outlook Preferred Stock Impact Diluted Shares Preferred Dividend Q3 – 71 million shares $4 million Not Converted Q4 – 71 million shares $4 million Full Year – 68 million shares $12 million Q3 – 76 million shares N/A Converted Q4 – 76 million shares N/A Full Year – 72.5 million shares N/A
Slide 14: Year 2020 Outlook
Fiscal Year 2020 Outlook 14
Slide 15: 2020 Outlook Key Financial Highlights
Fiscal 2020 Outlook Key Financial Highlights METRIC Fiscal 2020 Outlook Adjusted • $650 to $675 million, up 20% EBITDA • Margin 23% to 24% Adjusted Free • $330 to $370 million, up 50% Cash Flow • Adjusted FCF Yield 10% to 11%* • $2.7 to $2.8 billion by the end of 2020, with assumed $200 Net Debt and
Slide 16: 2020 Outlook
Fiscal 2020 Outlook METRIC Fiscal 2020 Outlook 2.79 to $2.85 billion: • Organic Sales growing low single digits Net Sales • Battery growth of 1% to 2%, or $2.24 to $2.28 billion • Auto care growth of 2%, or $555 to $575 million Gross Margin 42% to 43%, excluding acquisition & integration costs Rates
Slide 17: 2020 Outlook
Fiscal 2020 Outlook METRIC Fiscal 2020 Outlook Interest Expense $175 to $180 million, reflecting paying down of $200 million of debt during 2020 Ex-Unusual 21% to 23% Tax Rate Adjusted Net Earnings $245 to $260 million $3.25 to $3.45 Adjusted EPS • assumes all preferred shares are converted to commo
Slide 18: 2020 Outlook: Preferred Stock Impact
Fiscal 2020 Outlook Preferred Stock Impact Diluted Shares Preferred Dividend Not Converted Full Year – 70.5 million shares $ 16 million Converted Full Year – 75.5 million shares N/A Other Key Financial Metrics • Amortization $65 million • Depreciation $62 to $67 million Other Metrics • Stock Compens
Slide 19: Forward-Looking Statements
Forward-Looking Statements Energizer Holdings, Inc. (the “Company”) and its management may make certain statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not
Slide 20: Important Presentation Information
Important Presentation Information • The information contained herein is preliminary and based on Company data available at the time of the earnings presentation. It speaks only as of the particular date or dates included in the accompanying slides. The Company does not undertake an obligation to, a
Slide 21: Appendix
Appendix 21
Slide 22: Non-GAAP Reconciliations – Q2 Key Financial Metrics
Non-GAAP Reconciliations – Q2 Key Financial Metrics (amounts in millions) EBITDA is defined as net earnings before income tax provision, interest and depreciation and amortization. Adjusted EBITDA further excludes the impact of the costs related to acquisition and integration and share-based payment
Slide 23: Non-GAAP Reconciliation – Q2 2019 Revenue
Non-GAAP Reconciliation – Q2 2019 Revenue (amounts in millions) Organic revenue is the non-GAAP financial measurement of the change in revenue that excludes or otherwise adjusts for the impact of acquisitions, change in Argentina and impact of currency from the changes in foreign currency exchange r
Slide 24: Non-GAAP Reconciliations – Gross Margin and SG&A
Non-GAAP Reconciliations – Gross Margin and SG&A (amounts in millions) Adjusted Gross Margin and SG&A as a percent of sales exclude the impact of costs related to acquisition and integration. 24 FOR INTERNAL USE ONLY – DO NOT DISTRIBUTE
Slide 25: Non-GAAP Reconciliations – Q2 2019 EPS
Non-GAAP Reconciliations – Q2 2019 EPS (amounts in millions) Adjusted Net (Loss)/Earnings From Continuing Operations and Adjusted Diluted Net Earnings Per Share From Continuing Operations (EPS) exclude the impact of the costs related to acquisition and integration and the one-time impact of the new
Slide 26: Non-GAAP Reconciliations – 2019 Outlook
Non-GAAP Reconciliations – 2019 Outlook (amounts in millions) The Company is unable to provide a reconciliation to the full year 2019 or 2020 Adjusted free cash flow range of approximately $220 to $250 million and $330 to $370 million, respectively, or the full year 2020 Adjusted EBITDA range of $65