Church & Dwight Company, Inc. · NYSE:CHD
Church & Dwight — Investor Day (February 2018)
120 slides from Church & Dwight's investor day presentation, Feb 5, 2018
Slide 1: Church & Dwight's Analyst Day 2018
CHURCH & DWIGHT’S ANALYST DAY 2018
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 – THE SHORT STORY 06 – INTERNATIONAL STORY 02 – WHO WE ARE 07 – ANIMAL PRODUCTIVITY STORY 03 – STATE OF THE BUSINESS 08 – HOW WE RUN THE COMPANY 04 - 2018 INNOVATION 09 – FINANCIALS 05 – DIGITAL CAPABILITIES 3
Slide 4: The Short Story
01 THE SHORT STORY 4
Slide 5: The Short Story
The Short Story 2017 was another solid year. We have confidence in 2018 and beyond... Strong financial results Digital capabilities All 3 segments are healthy International growth continues Consistent innovation Animal Productivity opportunity 5
Slide 6: Who We Are
02 WHO WE ARE
Slide 7: Power Brands
TROIANR = tir Fons) 11 sranos
Slide 8: These Brands Drive Our Results
These 11 Brands Drive Our Results more than 80% of sales & profits are represented by these 11 POWER BRANDS 8
Slide 9: Our Portfolio Is Balanced & Diversified
Our Portfolio Is Balanced & Diversified A well-balanced portfolio of household and personal care products. Household: 47% Specialty Products: Personal Care: 8% 45% 9
Slide 10: Diversified Product Portfolio
Diversified Product Portfolio Our Unique Product Portfolio Has Both Value and Premium Products Premium: 60% Value: 40% 10
Slide 11: We Operate in the Land of Giants
We Operate in the Land of Giants 2016 Net Sales (billions) $65.1 $55.5 $18.2 $15.2 $12.2 $5.8 $3.5+ P&G Unilever Kimberly Clark Colgate Reckitt Clorox Church & Dwight Source: 2016 SEC Filings and Corporate Websites 11
Slide 12: Nimble Organizational Structure
Nimble Organizational Structure quick decision easy ability to making communication adapt 12
Slide 13: Long History of Growth Through Acquisitions
Long History of Growth Through Acquisitions net sales in billions $4.5 $4.0 $4.0 $3.5 $3.0 $2.5 $2.0 $1.5 $1.5 $1.0 $0.5 $- 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Note: Trojan, Nair and First Response acquired in two parts – 2001 and 2004. 13
Slide 14: Acquired 10 of our 11 Power Brands Since 2001
Acquired 10 of our 11 Power Brands Since 2001 Acquired 2001 Acquired 2001 Acquired 2001 Acquired 2001 Acquired 2005 #1 Extreme Value Laundry #1 Battery Powered #1 Condom #1 Pregnancy Kit #1 Depilatory Detergent Toothbrush Acquired 2006 Acquired 2008 Acquired 2011 Acquired 2012 Acquired 2017 #1 Power
Slide 15: We are an Acquisition Platform
We are an Acquisition Platform BBB+ Revenue Operational Excellent Access to Growth Efficiencies Integration Capital Track Record 15
Slide 16: We Have Clear Acquisition Criteria
We Have Clear Acquisition Criteria Primarily #1 Higher growth, Asset Light Leverage CHD Deliver or #2 share higher margin capital base in sustainable brands brands manufacturing, competitive logistics and advantage purchasing 16
Slide 17: 2017 Acquisition: 11th Power Brand
2017 Acquisition: 11TH Power Brand #1 power flosser, #1 showerhead replacement 17
Slide 18: 11 Power Brands Today, 20 Tomorrow
11 Power Brands Today, 20 Tomorrow Net sales in billions $4.0 $3.5 11 $3.0 10 9 $2.5 8 $2.0 7 6 $1.5 $1.0 5 $0.5 1 $0.0 … 1846 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Note: Trojan, Nair and First Response acquired in two part
Slide 19: State of the Business
03 STATE OF THE BUSINESS 19
Slide 20: Q4 Organic Sales, Adjusted EPS and FCF
Q4 organic sales up Q4 FCF up 3.4% Q4 Adjusted 44% EPS up 18% Organic sales is a non-GAAP measure. Please refer to the Appendix for a reconciliation to net sales, the most directly comparable GAAP measure. 20
Slide 21: All Three Businesses Are Healthy
All Three Businesses Are Healthy 2017 Consumer Domestic 2017 Consumer International 2017 Specialty Products organic sales: 1.4% organic sales: 7.8% organic sales: 5.3% net sales: ~$2,850M net sales: ~$600M net sales: ~$300M Organic sales is a non-GAAP measure. Please refer to the Appendix for a reco
Slide 22: Measured Channels - Church & Dwight Report Card
Measured Channels - Church & Dwight Report Card 2013 2014 2015 2016 2017 7 out of 11 power brands grew share in 2017. Power Brands have met or exceeded category growth 2 out of 3 times over the last five years. share increase share unchanged share decreased Source: Nielsen Total U.S. AOC 22
Slide 23: Nielsen-Measured Channels Share of Category Growth
Nielsen-measured channels account for 1.7% of our total category growth. Source: Nielsen Total U.S. AOC 23
Slide 24: "All In" Category Growth is Healthy
“All In” Category Growth is Healthy ALL IN NON – CATEGORY MEASURED MEASURED GROWTH ~1.7% ~1.0% ~2.7% Source: Nielsen Total U.S. AOC & Company Estimates 24
Slide 25: Private Label Shares are Stable
Private Label Shares are Stable Only 5 of our 14 categories have private label exposure. PREGNANCY TEST KITS BAKING SODA GUMMY VITAMINS 40% 30% 20% 25% 30% 15% 20% 20% 15% 10% 10% 10% 5% 5% 0% 0% 0% 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 ORAJEL EQUIVALENT CLUMPING
Slide 26: 2018 Innovation
04 2018 INNOVATION 26
Slide 27: Build on Full Year 2017 SLIDE Success
Build on Full Year 2017 SLIDE Success SLIDE had the #2 highest repeat among the past 15 category launches, next to #1 Clump & Seal. 27
Slide 28: Unscented Clump & Seal Lightweight
Unscented Clump & Seal Lightweight with powerful odor neutralizers Unscented litter is growing in appeal. 28
Slide 29: Odor Blasters
Odor Blasters Eliminates tough odors. “Odor is the new stain” 29
Slide 30: Gummy Probiotics
Gummy Probiotics Supports digestive health by providing friendly bacteria to the gut. Health starts in the gut. 30
Slide 31: First Response Triple Check
First Response Triple Check Get results three ways. Hopeful positives will test early, and retest often, hoping for a positive result. 31
Slide 32: Batiste Naughty, Nice and Rose Gold
Batiste Naughty, Nice and Rose Gold 80% of women do not wash their hair daily. 32
Slide 33: Waterpik Whitening Water Flosser
Waterpik Whitening Water Flosser Precision whitening while you floss. Convenience of whitening while flossing 33
Slide 34: Waterpik Pet Wand Pro
Waterpik Pet Wand Pro Watercomb spray for a more effective clean. Shampooing your dog is a challenge. 34
Slide 35: Digital Capabilities
05 DIGITAL CAPABILITIES Britta Bomhard, EVP Chief Marketing Officer 35
Slide 36: Church & Dwight Online Sales
Church & Dwight Online Sales 5% 2% 1% 2015 2016 2017 36
Slide 37: How Did We Accelerate?
How Did We Accelerate? 1. Be and invest where the consumer is spending 2. Growing expertise in digital attribution models 3. Developing our DTC skills 37
Slide 38: Consumers Are Online Over 5½ Hours Per Day
consumers are online over 5½ hours per day Source: eMarketer 9/14 (2008-2010), eMarketer 4/15 (2011-2013), eMarketer 4/17 (2014-2016). Note: Other connected devices include OTT and game consoles. Mobile includes smartphone and tablet. Usage includes both home and work. Ages 18+; time spent with each
Slide 39: Consumers are Online
Consumers are Online over 35% of our advertising spend is online a majority of our products have 4.5 stars or higher 39
Slide 40: Church & Dwight Products - #1 on Amazon
Church & Dwight Products - #1 on Amazon 40
Slide 41: Church & Dwight Products - #1 on Amazon
Church & Dwight Products - #1 on Amazon 41
Slide 42: Church & Dwight Products - #1 on Amazon
Church & Dwight Products - #1 on Amazon greater than 50% market share 42
Slide 43: Online presents great opportunities for Church & Dwight
Online presents great opportunities for Church & Dwight… 43
Slide 44: …while obtaining great consumer insights…
…while obtaining great consumer insights… 44
Slide 45: …which leads to better targeting, a better message
…which leads to better targeting, a better message and better results. 45
Slide 46: Predictive Modeling Drives Results
Predictive Modeling Drives Results +12% 46
Slide 47: OxiClean: A Great Example Of Targeting
OxiClean: A Great Example Of Targeting 47
Slide 48: Targeting Wine Drinkers
Targeting Wine Drinkers DEAR OXICLEAN,
Slide 49: OxiClean Hyper-Targeting: Lapsed Bleach Users
OxiClean Hyper-Targeting: “Lapsed Bleach Users” Digital Radio Social Media Digital Radio 49
Slide 50: OxiClean – The Result?
OxiClean – The Result? greater than 50% market share 50
Slide 51: Direct-to-Consumer Skills via Acquisitions
Direct-to-Consumer Skills via Acquisitions 2016 DTC Group 2017 51
Slide 52: Skills in How Online Advertising Works
Skills in How Online Advertising Works PRESENT & PAST FUTURE Emotion Features & Humor & Benefits 52
Slide 53: Kaboom – Having Fun With How Online Works
Kaboom – Having Fun With How Online Works 53
Slide 54: The Future is Bright
The Future is Bright • #1 online market shares • Growing expertise in digital attribution models • Developing our DTC skills • Skilled in connecting with consumers 54
Slide 55: …and we are only at the beginning…
and we are only at the beginning… 55
Slide 56: International Story
06 INTERNATIONAL STORY Steve Cugine, EVP International
Slide 57: Subsidiaries Located Outside the U.S.
Subsidiaries Located Outside the U.S.? new subsidiary 57
Slide 58: International Business is Growing Organically
International Business is Growing Organically 10.0% EVERGREEN 6% GROWTH 8.1% 7.8% TARGET [VALUE] 3.7% 3.3% 2013 2014 2015 2016 2017 2018E Note: Organic sales growth is a non-GAAP measure. Refer to the Appendix for a reconciliation to the most directly comparable GAAP measure. 58
Slide 59: Developed Markets – Leveraging Markets & Brands
Developed Markets – Leveraging Markets & Brands North America Europe North Asia (UK) 59
Slide 60: Emerging Markets – Leveraging Markets & Brands
Emerging Markets – Leveraging Markets & Brands China & SE Asia South America Middle East & Africa 60
Slide 61: International Net Sales Composition
International Net Sales Composition [CATEGOR Y NAME] 2017 International [CATEGOR [VALUE] Australia [VALUE] Y NAME] Net Sales: [VALUE] [CATEGOR Y NAME] [VALUE] [CATEGOR ~$600 million 81% Y NAME] [VALUE] United States [CATEGOR Y NAME] [VALUE] *Includes exports from our subsidiaries to over 100 countri
Slide 62: Established Export Offices in Panama, Singapore and UK
Established Export Offices in Panama, Singapore and UK denotes new office 62
Slide 63: Focus Shifting to Asia Pacific
Focus Shifting to Asia Pacific Asia Pacific Middle Class Consumers (millions) 3,228 1,740 525 2009 2020 2030 Source: OECD Development Centre, The Emerging Middle Class in Developing Countries, January 2010 63
Slide 64: Transforming Church & Dwight's Asia Pacific Business
Transforming Church & Dwight’s Asia Pacific Business 64
Slide 65: Transforming Church & Dwight's Asia Pacific Business
Transforming Church & Dwight’s Asia Pacific Business 65
Slide 66: Transforming Church & Dwight's Asia Pacific Business
Transforming Church & Dwight’s Asia Pacific Business 66
Slide 67: International Has Achieved Critical Mass
International Has Achieved Critical Mass OVER $600MM NET SALES IN 2017 Leveraging our global platform to drive growth of acquired businesses. 67
Slide 68: Positioned for 6% Organic Growth
Positioned for 6% Organic Growth • Brands have significant runway • Exports grow double digits • Investment in SE Asia & China • Acquired brands are big opportunity • Great international management team 68
Slide 69: Animal Productivity Story
07 ANIMAL PRODUCTIVITY STORY Scott Druker, PhD General Manager, Animal Productivity
Slide 70: Slide 70
Slide 71: Humans are consuming resources faster than we are replacing them
Humans are consuming resources faster than we are replacing them. Source: World Wild Life Fund and the Global Footprint Network 71
Slide 72: Improving Productivity is Key
Improving Productivity is Key Control Change What Leverage Population We Eat Technology 72
Slide 73: An Example of the Significance of Improved Productivity
An Example of the Significance of Improved Productivity ½ glass Just per cow per day…reduces the need to add 66,000,000 Feed to fill 6,000 Land the Size of Alaska Water to Supply Which saves: Source: Elanco Animal Health
Slide 74: Consumers Drive Alternatives to Traditionally Raised Livestock
Consumers Drive Alternatives to Traditionally Raised Livestock Consumers Retailers Farmers no antibiotics ever no added hormones no chemicals added 74
Slide 75: Natural Solutions: Nutritional Supplements
Natural Solutions NUTRITIONAL SUPPLEMENTS
Slide 76: What Makes Our Probiotic Business Unique
What Makes Our Probiotic Business Unique is How We Go About Our Business Typical Probiotic Targeted Microbial Solutions Company • Mass market • Mass market • NON SPECIFIC • CUSTOMIZED 76
Slide 77: Acquisitions Created a More Balanced Business
Acquisitions Created a More Balanced Business… % Non-Dairy Sales 2015 2017 2018E
Slide 78: …and an International Presence
…and an International Presence % International Sales 2015 2017 2018E
Slide 79: Positioned for 5% Organic Growth
Positioned for 5% Organic Growth • Our brand is trusted #ScienceHearted • Consumer trends align with our natural solutions • New products offer growth across species • Opportunities for growth across the globe 79
Slide 80: How We Run the Company
08 HOW WE RUN THE COMPANY
Slide 81: We Have 4 Operating Principles
We Have 4 Operating Principles 1 LEVERAGE BRANDS #1 brands 2 LEVERAGE ASSETS Asset light 3 LEVERAGE PEOPLE Highly productive people 4 LEVERAGE ACQUISITIONS GOOD shareholder returns become GREAT shareholder returns 81
Slide 82: Key Gross Margin Growth Drivers
Key Gross Margin Growth Drivers Good to Supply Chain Great Cost Optimization Optimization Acquisition New Synergies Products 82
Slide 83: Incentive Compensation Directly Linked to TSR
Incentive Compensation Directly Linked to TSR 1. Bonuses tied 100% to NET business results REVENUE GROSS MARGIN 2. Equity compensation is EXPANSION 100% stock options EPS 3. Management required to be CASH FROM OPERATIONS heavily invested in company stock 83
Slide 84: All CHD Employees Focus on Gross Margin
All CHD Employees Focus on Gross Margin GROSS MARGIN IS 25% OF ALL EMPLOYEES’ ANNUAL BONUS. 84
Slide 85: Financials
Wf. \ a - FINANCIALS
Slide 86: 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% 86
Slide 87: Evergreen Model – Organic Sales
Evergreen Model – Organic Sales Total Domestic International SPD Organic Sales +2.0% +6.0% +5.0% +3.0% 87
Slide 88: Q4 2017 Highlights – Strong Finish
Q4 2017 Highlights – Strong Finish Domestic: 2.7% Organic sales growth +3.4% International: 5.8% SPD: 5.1% Consumer organic +3.2% Adjusted gross margin +50 bps Adjusted operating margin +90 bps Adjusted EPS +18.2% to $0.52 Organic sales, adjusted gross margin, adjusted operating margin, and adjusted
Slide 89: 2017 Quarterly Organic Sales
2017 Quarterly Organic Sales 3.4% 3.2% 2.3% 1.8% Q1 Q2 Q3 Q4 89
Slide 90: 2 Year Stacked Quarterly Organic Sales – Global Consumer
2 Year Stacked Quarterly Organic Sales – Global Consumer 8.5% 6.7% 6.6% 6.1% 5.4% Q1 Q2 Q3 Q4 FY 2016 2017 Organic sales is a non-GAAP measure. Please refer to the Appendix for a reconciliation to net sales, the most directly comparable GAAP measure. 90
Slide 91: Full Year 2017 Highlights
Full Year 2017 Highlights Domestic: 1.4% Organic sales growth +2.7% International: 7.8% SPD: 5.3% Adjusted gross margin +10 bps Marketing % -20 bps to 12.0% Adjusted SG&A +70 bps to 13.3% Adjusted operating margin -40 bps Adjusted EPS +9.6% to $1.94 Free Cash Flow $637MM Adjusted FCF Conversion 123%
Slide 92: We are exiting 2017 with strong momentum
We are exiting 2017 with strong momentum. 92
Slide 93: 16% - 18% Adjusted EPS Growth in 2018
16% - 18% Adjusted EPS Growth in 2018 2018 Outlook Reported Sales 8% Organic Sales ~3% Adjusted Gross Margin flat Marketing flat SG&A + Adjusted Operating Margin - FY Other Expense ~($70MM) Adjusted Effective Tax Rate 24% - 25% Adjusted EPS 16% - 18% Outlook as of February 5, 2018. Organic sales, ad
Slide 94: CHD Consistent Solid Organic Sales Growth
CHD Consistent Solid Organic Sales Growth 3.5% 3.6% 3.2% ~3.0% 2.7% 1.9% 2013 2014 2015 2016 2017 2018E Note: Organic sales growth is a non-GAAP measure. Refer to the Appendix for a reconciliation to net sales the most comparable GAAP measures. 94
Slide 95: Focus on Gross Margin
Focus on Gross Margin 45.7% 45.8% 45.8% 45.0% 44.5% 44.1% 2013 2014 2015 2016 2017 2018E Note: Percentages are adjusted gross margin, a non GAAP measure. See appendix for adjustments to gross margin presented in accordance with GAAP. 95
Slide 96: Commodities & Distribution Costs Continue to Rise
Commodities & Distribution Costs Continue to Rise resin surfactants diesel transportation 96
Slide 97: Consistent Marketing Spend
Consistent Marketing Spend 12.5% 12.6% 12.3% 12.2% 12.0% ~[VALUE] 2013 2014 2015 2016 2017 2018E 97
Slide 98: Superior SG&A Management
Superior “SG&A” Management • Acquisition higher rate + • Amortization 13.3% 13.0% 12.6% 12.1% 12.1% 2013 2014 2015 2016 2017 2018E Note: Adjusted SG&A is a non-GAAP measure. Refer to the Appendix for a reconciliation to the most comparable GAAP measures. Excludes Waterpik. 98
Slide 99: SG&A Flat Excluding Acquisition Amortization
“SG&A” Flat Excluding Acquisition Amortization Flat 12.4% 12.1% + 11.0% 10.9% 11.3% 11.6% 2012 2013 2014 2015 2016 2017 2018E Note: Adjusted SG&A is a non-GAAP measure. Refer to the Appendix for a reconciliation to the most comparable GAAP measures. Excludes Waterpik. 99
Slide 100: Consistent Strong Adjusted EPS Growth
Consistent Strong Adjusted EPS Growth $2.24 – $2.28 $1.94 $1.77 16% - $1.62 18% $1.51 9.6% $1.40 9.3% 7.3% 7.9% 13.8% 2013 2014 2015 2016 2017 2018E 100
Slide 101: Cash Flow Generator
EPC CHD AVP CLX CL HSY RB-GB EL K GIS 2017 Revenue KMB KHC Cash Flow Generator KO PEP PG KO KHC HSY K RB-GB PEP EPC GIS EL CLX CL 2017 FCF Conversion KMB PG AVP CHD 101
Slide 102: Cash Conversion Cycle
Cash Conversion Cycle Tight Control of Working Capital Drives CCC Improvement. 52 40 34 36 32 32 27 21 18 2009 2010 2011 2012 2013 2014 2015 2016 2017 Days 102
Slide 103: Strong Balance Sheet
Strong Balance Sheet Total Debt/Bank EBITDA 2.6x 1.4x 1.5x 1.4x 1.4x 1.2x 2012 2013 2014 2015 2016 2017 2018E 2019E Note: Total debt/EBITA is a non-GAAP measure. Refer to the Appendix for a reconciliation to the most comparable GAAP measures. 103
Slide 104: Prioritized Uses of Free Cash Flow
Prioritized Uses of Free Cash Flow 1 TSR-Accretive M&A 2 Debt Reduction 3 New Product Development 4 Capex For Organic Growth & G2G 5 Return Of Cash To Shareholders 104
Slide 105: Minimal Capital Investment
Minimal Capital Investment Capital Expenditures as a % of Sales $100 2.5% 2.1% 2.1% $90 1.8% 2.0% 1.7% $80 1.4% 1.5% $70 1.2% $11 $35 $8 $60 VMS VMS Capacity Capacity 1.0% $16 VMS $50 Capacity $62 0.5% $56 $40 $50 $45 $45 $36 $30 0.0% 2013 2014 2015 2016 2017 2018 Major Projects On-going CapEx % of
Slide 106: 14% Dividend Increase in 2018
14% Dividend Increase in 2018 $0.87 $0.76 +14% $0.71 $0.67 117 $0.56 +17% $0.62 +11% +8% +11% +6% +8% +11% +7% +6% +8% +7% consecutive +17% +41% +17% +41% years of +119% dividends +35% 2013 2014 2015 2016 2017 2018 106
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Slide 108: Reconciliations
Reconciliations www.churchdwight.com 108
Slide 109: 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-GAAP
Slide 110: 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, the change in customer shipping arrangements, foreign exchange rate changes, the impact of an in
Slide 111: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Adjusted Gross Profit and Gross Profit Margin This presentation discloses the Company’s Gross Profit and Gross Profit Margin. Adjusted Gross Profit and Gross Profit Margin , as used in this presentation, is defined as gross profit excluding significant one-time it
Slide 112: 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 113: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Adjusted SG&A: This presentation discloses the Company’s SG&A expenses as a percent of net sales. Adjusted SG&A, as used in this presentation, is defined as selling, general and administrative expenses excluding significant one-time items that is not indicative of
Slide 114: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Adjusted Operating Profit and Margin: The presentation discloses Operating Income and margin (a GAAP measure) and Adjusted Operating Income and margin (a non-GAAP measure) which excludes significant one time items. We believe that excluding the significant one-tim
Slide 115: 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 116: 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 117: Total Company Organic Sales Reconciliation
Total Company Organic Sales Reconciliation System Calendar/ Shipping Year Reported FX Acq/Div Disc. Ops. Upgrade Other Terms Organic 2017 8.1% 0.0% -5.4% 0.0% 0.0% 0.0% 0.0% 2.7% 2016 2.9% 1.2% -0.9% 0.0% 0.0% 0.0% 0.0% 3.2% 2015 2.9% 2.7% -2.0% 0.0% 0.0% 0.0% 0.0% 3.6% 2014 3.2% 0.5% -0.2% 0.0% 0.0
Slide 118: Reported & Adjusted Non Gaap Reconciliations
Reported & Adjusted Non Gaap Reconciliations For the year ending December 31, 2017 2016 2015 Adjusted Gross Margin Reconciliation Gross margin Reported 45.8% 45.5% Brazil Charge 0.0% 0.2% Gross Margin - Adjusted (non-gaap) 45.8% 45.7% Adjusted SG&A Reconciliation SG&A - Reported 14.4% 12.4% Pension
Slide 119: SG&A less Amortization Expense Reconciliation
Church & Dwight Co., Inc. and Subsidiaries SG&A less Amortization Expense Reconciliation 2017 2016 2015 2014 2013 2012 SG&A as % of Net Sales - Reported 14.4% 12.6% 12.4% 12.0% 13.0% 13.3% Pension Settlement Charge -1.0% 0.0% -0.3% 0.0% 0.0% 0.0% Brazil Charge -0.1% Amortization Expense -1.7% -1.3%
Slide 120: Total Debt to Bank EBITDA Reconciliation
Church & Dwight Co., Inc Total Debt to Bank EBITDA Reconciliation ($ in millions) 2017 2016 2015 2014 2013 2012 Total Debt as Presented (1) $ 2,374.3 $ 1,120.1 $ 1,050.0 $ 1,086.6 $ 797.3 $ 895.6 Other Debt per Covenant (2) 59.2 75.1 83.5 88.0 90.3 79.1 Total Debt per Credit Agreement $ 2,433.5 $ 1,