Helen Of Troy Limited · NASDAQ:HELE
Helen Of Troy — Investor Day (May 2019)
146 slides from Helen Of Troy's investor day presentation, May 21, 2019
Slide 1: Investor Day
Invest in Leadership Brands Optimize Double Capital Down on Deployment International Investor Day Maximize Operating Selective & Strategic M&A Efficiency May 21, 2019 Accelerate Consumer Shared Service Centric Excellence Unify & Elevate the Best People
Slide 2: Julien Mininberg, Chief Executive Officer
Julien Mininberg Chief Executive Officer 2
Slide 3: Agenda
Agenda: 1. Julien Mininberg, CEO 2. Business Overviews o Christophe Coudray President Health & Home o Larry Witt President Housewares o Ronald Anderskow President Beauty o Jay Caron Chief Supply Chain Officer 3. Brian Grass, CFO 4. Innovation Showcase 5. Q&A with Global Leadership Team Note: During
Slide 4: Forward Looking Statements
Forward Looking Statements Forward Looking Statements: Certain written and oral statements made by the Company and subsidiaries of the Company may sources of supply and foreign manufacturing, and associated operational risks including, but not constitute “forward-looking statements” as defined under
Slide 5: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures his presentation includes non-GAAP financial measures. Adjusted Operating Income, Adjusted Income, Adjusted Diluted EPS, Adjusted Operating Margin, Adjusted EPS, Free Cash Flow, and Adjusted Operating Income may be considered non-GAAP financial informati
Slide 6: Helen of Troy Beauty: Personal Care Update
Helen of Troy Beauty: Personal Care Update • On March 11, 2019, Helen of Troy announced it has been in a process to explore the divestiture of its Personal Care Business • The Company conducted a sale process with the assistance of a financial advisor • After considering alternatives, we have decide
Slide 7: We Have Been Busy
We Have Been Busy Phase I Phase II Strategic Plan FY15 - FY19 FY20 - FY24 Refresh Corporate Recognition & Rewards Identity & Culture 7
Slide 8: Phase II Strategic Plan FY20 to FY24
Phase I Phase II Strategic Plan FY15 to FY19 FY20 to FY24 Refresh Corporate Recognition & Rewards Identity & Culture 8
Slide 9: Phase I Produced Strong Results
Phase I Produced Strong Results Revenue ($ in Millions) Adjusted Operating Income ($ in Millions) $1,564 $1,479 $239 $224 $210 $1,383 $1,398 $194 $183 $188 $1,335 $1,308 Adjusted Operating 14.0% 14.1% 14.0% 15.0% 15.1% 15.3% YOY Growth 1.5% 2.1% 3.6% 1.0% 5.8% 5.8% Margin FY14 FY15 FY16 FY17 FY18 FY
Slide 10: Phase I also Delivered Strong Return on Invested Capital
Phase I also Delivered Strong Return on Invested Capital 14.3% 15.0% 14.0% 10.9% 13.0% 6.3% 12.0% 3.3x 11.0% 1.9% 10.0%Cost of Capital 9.0% 8.0% 9.0% 8.0% 7.0% 6.0% 5.0% FY15 FY19 Cost of Capital (WACC) ROIC Margin Return on Invested Capital (ROIC) 10
Slide 11: Comparison of 62-Month Cumulative Return
COMPARISON OF 62-MONTH CUMULATIVE RETURN FOR HELEN OF TROY LIMITED, PEER GROUP INDEX AND NASDAQ MARKET INDEX 250 200 150 100 50 2014 2015 2016 2017 2018 2019 4/30/2019 HELEN OF TROY LIMITED PEER GROUP INDEX NASDAQ MARKET INDEX 11
Slide 12: Key Elements of Phase I
Key Elements of Phase I Transformational More Efficient and Leadership Strategy Collaborative Brands Operating Structure Improved Performance Collaboration & Best Practices Text & Home + + Housewares Sample Beauty Health Strategic Plan Global Shared Services Platform Culture Strategic Plan Strategic
Slide 13: Highly Experienced Global Leadership Team
Highly Experienced Global Leadership Team CEO Julien Mininberg General Chief Supply Chief Chief Corporate President President President Counsel Chain Officer People Officer Financial Business Health Housewares Beauty and Interim CIO Officer Development & Home Tessa Jay Lisa Brian Jack Larry Christop
Slide 14: Strong Portfolio of Leadership Brands
Strong Portfolio of Leadership Brands #1 #1 #1 #1 #1 #1 #1 Phase I 11.1% Leadership Brand Consumer Ear Faucet Mount Pharmacy Air Purifiers Outdoor Stylist Thermometers Purifiers Humidifiers Premium Kitchen Thermal Preferred Net Sales CAGR & Home Hydration U.S. #2 Gadgets Professional Curling Iron Pi
Slide 15: Investments in Digital are Driving Online Sales
Investments in Digital are Driving Online Sales 19% of total net sales +32.5%* YOY +28 % YAGO 6.4% * of 6% of total total net sales net sales FY14 FY15 FY16 FY17 FY18 FY19 15
Slide 16: Innovation Powered by Outstanding New Products
Innovation Powered by Outstanding New Products & New era of Cross-fertilization Consumer Centric 16
Slide 17: Strong Track Record as a Best-in-Class Licensee
Strong Track Record as a Best-in-Class Licensee 17
Slide 18: Winning in the Marketplace
Winning in the Marketplace 2017 2018 2018 18
Slide 19: Industry Awards Since 2018 for Outstanding Innovation, Design & Performance
39 Industry Awards Since 2018 for Outstanding Innovation, Design & Performance Honeywell HUL430 Humidifier Braun iCheck 7 Blood Pressure Monitor OXO Silicone Dough Rolling Bag OXO TOT Silicone Self Feeder (Feeding) Pur Advanced Filtration System BNA 100 Nasal Aspirator Braun ActivScan 9 Upper Arm Mo
Slide 20: Phase II Strategic Plan FY20 to FY24
Phase I Phase II Strategic Plan FY15 to FY19 FY20 to FY24 Refresh Corporate Recognition & Rewards Identity & Culture 20
Slide 21: Our Business Today is Vastly Different From Where We Began
Our Business Today is Vastly Different From Where We Began Beauty Beauty Housewares Beauty Health & Home 1968 2004 2019 ~$400M ~$1.56B Housewares A beauty Helen of Troy expands Three divisions company is born beyond Beauty powering our growth 21
Slide 22: Helen of Troy
22 Helen of Troy
Slide 23: 2018 Corporate Identity Refresh
2018 Corporate Identity Refresh 23
Slide 24: Energy and Excitement For Phase II & Beyond
Energy and Excitement For Phase II & Beyond 24
Slide 25: Phase II Strategic Plan FY20 to FY24
Phase I Phase II Strategic Plan FY15 to FY19 FY20 to FY24 Refresh Corporate Recognition & Rewards Identity & Culture 25
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Slide 27: Transformation Shares Awarded in 2018
Transformation Shares Awarded in 2018 50 Shares granted to Helen of Troy Associates “all levels & allall locations” levels & all locations Phase I - winning Shared Success: Celebrating 50th anniversary Phase II – exciting future Ownership behavior is powerful Thank You Helen of Troy Associates! 27
Slide 28: I R I S E
I R I S E In Touch Mutual Respect Ingenuity Shared Success Exceptional People We are deeply We treat each other as Our passion for Helen of Troy’s success A great organization is connected internally and each of us wants to be delighting consumers and that of our people powered by people. Our extern
Slide 29: Phase II Strategic Plan FY20 to FY24
Phase I Phase II Strategic Plan FY15 to FY19 FY20 to FY24 Refresh Corporate Recognition & Rewards Identity & Culture 29
Slide 30: Invest in Leadership Brands
Invest in Leadership Brands Optimize Double Capital Down on Deployment International Maximize Selective Operating & Strategic Efficiency M&A Accelerate Consumer Shared Service Centric Excellence Unify & Elevate the Best People 30
Slide 31: FY20 Outlook and Phase II Targets
FY20 Outlook and Phase II Targets* FY20 Outlook Phase II Targets* Annual Core Business Sales Growth 1.0% to 3.0% 2.5% to 3.5% Annual Operating Margin Expansion (1) ~20 bps 20 to 30 bps Annual EPS Growth (2) 2.4% to 5.5% ≥ 8% ROIC (1) 14% to 15% ≥ 20% by FY24 (1) Excludes acquisitions, material curre
Slide 32: Phase II Strategic Choices: Where to Play, How to Win
Phase II Strategic Choices WHERE TO PLAY Phase I Phase II ➢ Invest in Our Core ➢ Invest in Leadership Brands ➢ Double Down on International ➢ Strategic, Disciplined M&A ➢ Selective & Strategic M&A Phase I Phase II HOW TO WIN ➢ Consumer-Centric Innovation ➢ Consumer Centric ➢ Upgrade Our Organization
Slide 33: Invest in Our Leadership Brands
Invest in Invest in Our Leadership Brands Leadership Brands Optimize Double • Raise support levels across full consumer journey Capital Down on Deployment International • Next-level digital capabilities; test, learn & reapply across all Business Units and Regions Maximize Selective • Sharp eye on RO
Slide 34: Double Down on International
Invest in Double Down on International Leadership Brands Optimize Double • Asia Pacific and Europe offer largest growth Capital Down on opportunity for all Leadership Brands Deployment International • Phase II building blocks: ➢ Categories: where Leadership Brands can shine ➢ Countries: where underp
Slide 35: Our Global Footprint
Our Global Footprint… Operating Segment Shared Service Regional Market Organization (RMO) Corporate Headquarters Hydro Flask Canada RMO EMEA RMO Bend, OR Toronto Lausanne, Switzerland Health & Home Marlborough, MA Beauty Shared Service’s Danbury, CT El Paso, TX China Shared Services Housewares Shenz
Slide 36: Selective & Strategic M&A
Invest in Selective & Strategic M&A Leadership Brands Optimize Double • Add additional Leadership Brands to portfolio Capital Down on International Deployment • Consider smaller, early stage brands if they offer disruptive technology and skillsets • Accretive adjacencies within our wheelhouse Maximi
Slide 37: Consumer Centric
Invest in Consumer Centric Leadership Brands Optimize Double • Delighting consumers is the heart of everything we Capital Down on International do Deployment • Across entire consumer journey o Product innovations ➢ Deeply rooted in consumer understanding Maximize Selective Operating & Strategic ➢ Ma
Slide 38: Unify & Elevate The Best People
Invest in Unify & Elevate The Best People Leadership Brands Optimize Double • Attract & Retain: Employer of Choice Capital Down on Deployment International ➢ Winning culture ➢ Ownership mindset and behaviors ➢ Highly competitive compensation/benefits Maximize Selective ➢ Helen of Troy career mindset
Slide 39: Accelerate Shared Service Excellence
Invest in Accelerate Shared Service Excellence Leadership Brands Double • Further build on Phase I upgrade to world class Optimize Capital Down on Global Operating Company Deployment International • “Helen of Troy Way” ➢ Simplify, Standardize, Systematize Maximize Selective ➢ Better & Cheaper Operat
Slide 40: Maximize Operating Efficiency
Invest in Maximize Operating Efficiency Leadership Brands Double Optimize Down on • Fewer, Bigger, Better suppliers & agencies Capital Deployment International • Even sharper eye on: ➢ Working Capital: improvements to maximize cash flow Maximize Selective Operating & Strategic ➢ ROI: Leadership Bran
Slide 41: Optimize Capital Deployment
Optimize Capital Deployment Invest in Leadership Brands Double Optimize Down on • Capital priorities carry over from Phase I Capital Deployment International ➢ Accretive acquisition #1 ➢ Return of capital #2 • New $400 million buyback authorization Maximize Selective Operating & Strategic Efficiency
Slide 42: Invest in Leadership Brands
Invest in Leadership Brands Optimize Double Capital Down on Deployment International Maximize Selective Operating & Strategic Efficiency M&A Accelerate Consumer Shared Service Centric Excellence Unify & Elevate the Best People 42
Slide 43: Christophe Coudray, President Health & Home
Christophe Coudray President Health & Home 43
Slide 44: Award-winning, Global Branded, Consumer Device Business
Award-winning, Global Branded, Consumer Device Business Health Home 44
Slide 45: Health
Health #1 Leadership brands Theregionscan 7 Theregionscan 5 Theregionscan Lens No Touch + Digital Nasal 3-in-1 No Forehead ActivScan 9 iCheck 7 3 Filters Forehead Stick Aspirator Touch THERMOMETERS SINUS BLOOD PRESSURE MONITORS Sinus Sweet Warm Mist Mini Filter Free Filter Free Easy Fill 15 Second 8
Slide 46: Home
Home: #1 Leadership brands Leadership Brand Air Genius Ture HEPA Cool Moisture Cool Moisture Warm Mist Cool Mist Cool Mist Cool True HEPA True HEPA Air Genius Air Genius Humidity True HEPA Quiet Clean Permanent Professional Med Room Lg Room 99.9% Germ-free Ultrasonic Tower Lg Moisture Bluetooth Towe
Slide 47: Health & Home Mission Statement
Health & Home Mission Statement Delighting consumers with trusted solutions for healthy living and peace of mind 47
Slide 48: Invest in Leadership Brands
Invest in Leadership Brands Optimize Double Capital Down on Deployment International Maximize Selective Operating & Strategic Efficiency M&A Accelerate Consumer Shared Service Centric Excellence Unify & Elevate the Best People 48
Slide 49: Sustainable & Profitable Growth
Sustainable & Profitable Growth Invest in Maximize Double Down on Consumer Leadership Operating International Centric Brands Efficiency 49
Slide 50: Building Momentum on our Leadership Brands
Building Momentum on our Leadership Brands Maximize Invest in Operating Leadership Efficiency Brands Invest in Braun Thermometers, Vicks Humidifiers, Honeywell Air Purifiers and PUR Water Filtration products Best in class digital marketing & direct to consumers with sharp eye on ROI Raise household
Slide 51: Global Brand Consistency
Global Brand Consistency Seamless branding across regions, with local messaging for relevance 51
Slide 52: Data-Driven Targeted Advertising
Data-Driven Targeted Advertising Applying data on flu, allergy, and air quality conditions to target precise audiences Featuring current retail availability and nearest store location Retailers tagged are prioritized by purchases and promotions 52 Proprietary and Confidential
Slide 53: Expand Geographically
Expand Geographically Double Down on International Asia Pacific EMEA Consumers in Developed Markets 53
Slide 54: FY20 New Launches: Braun BNT100 in China & Vicks Humidifier in EMEA
FY20 New Launches: Braun BNT100 in China & Vicks Humidifier in EMEA RMB 199 54
Slide 55: Innovation & Ingenuity
Innovation & Ingenuity Consumer Centric Product Innovation Commercial Innovation Design & Consumer Experiences 55
Slide 56: Health and Home Recent Design Awards
Health and Home Recent Design Awards 56 7/23/2019
Slide 57: Design & Innovation: Vision Concept
Design & Innovation : Vision Concept The intention of the Vision is to: • Challenge us to think differently • Break the typical predevelopment cycle • Different, better, meaningful • Look 3-5 years out, potential for manufacturers today 57
Slide 58: Honeywell Dream Weaver: The First Sleep Fan with Pink Noise Technology
Honeywell Dream Weaver: The First Sleep Fan with Pink Noise Technology 58
Slide 59: Invest in Leadership Brands
Invest in Maximize Double Down on Consumer Leadership Operating International Centric Brands Efficiency 59
Slide 60: Larry Witt, President, Housewares
Larry Witt President, Housewares 60
Slide 61: Housewares Mission Statement
Health & Home Mission Statement 6161
Slide 62: Invest in Leadership Brands
Invest in Leadership Brands Optimize Double Capital Down on Deployment International Maximize Selective Operating & Strategic Efficiency M&A Accelerate Consumer Shared Service Centric Excellence Unify & Elevate the Best People 62
Slide 63: Invest in Leadership Brands
Invest in Unify & Double Down on Consumer Leadership Elevate the International Centric Brands Best People 63
Slide 64: Housewares Division FY19: $524 Million Net Sales
Housewares Division $524 $459 $418 $310 $296 $274 $259 $237 $217 $199 $164 $175 $128 $138 $98* FY 19: $524 Million Net Sales** 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 64 Source: Helen of Troy * Proforma FY 2005 Sales – HOT acquired June 2004. ** Results for Fiscal
Slide 65: Growing by Unifying & Elevating the Best People
Growing by unifying & elevating the best people Unify & Elevate the Best People Internal promotion of top talent Organization designed to take advantage of talent Divisionalization 65
Slide 66: Growing by Investing in our Brands
Growing by Investing in our Brands Invest in Leadership Brands Design Innovation Institutionalized Processes Leadership team Organizational structure Branding OXO and Hydro Flask 66
Slide 67: Housewares Mission Statement
Health Health &&Home HomeMission Mission Statement Statement 67
Slide 68: Make Everyday Better, Every Day: Activated Across Marketing Channels
Make Everyday Better, Every Day: Activated Across Marketing Channels Product Videos How-to Videos Digital Partnerships AMG Influencer / UGC Blog Emails OXO.com 68
Slide 69: Example A+ Level Product Launch: Product + Lifestyle
Example A+ Level Product Launch: Product + Lifestyle Landing Page Email Marketing Organic & Paid Social Ad Website Homepage YouTube Videos 69
Slide 70: Hydro Flask Digital Highlights
Hydro Flask Digital Highlights New Colors / Instagram National Park Limited Edition Cooler Cup / Facebook Stories Collection / Facebook Journey Series Insulated Hydration Packs Banner Ad & YouTube Video Ad 70
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Slide 73: Growth by Design
Growth by Design Consumer Centric Lifestyle Brands Consumer Centric Insights Award Winning Design and Engineering 73
Slide 74: OXO Products
940 Products TOOLS GADGETS MEASURING BAKING TOOLS BAKEWARE COOKWARE DRY FOOD STORAGE WET FOOD STORAGE BATH CLEANING BATH ORG. COFFEE BEVERAGE UTILITY TOT SEATING TOT FEEDING TOT BATH TOT ON THE GO TOT CLEANING 74 74
Slide 75: Hydro Flask Products
69 products Standard Wide Oasis Coffee Coffee Tumbler Cooler Growler Wine Wine Rocks Food Bottle Bottle Straw & Lid Flex Mouth Mouth Flip Lid Mug Cup Bottle Tumbler Flask Sling Brush Cleaning Kit Boot HYDRATION COFFEE DRINKWARE BEER WINE SPIRITS FOOD ACCESSORIES Soft Cooler Insulated Insulated Hydra
Slide 76: Growing Key International Markets
Growing Key International Markets Double Down on International Insights Global Mindset Regional Market Organization 76
Slide 77: Invest in Leadership Brands
Invest in Unify & Double Down on Consumer Leadership Elevate the International Centric Brands Best People 77
Slide 78: Ronald Anderskow, President, Beauty
Ronald Anderskow President, Beauty 78
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Slide 80: We make everyone look and feel more beautiful
Health & Home Mission Statement We make everyone look and feel more beautiful 80 80
Slide 81: Beauty Portfolio
Beauty Portfolio Flat Irons Curling Dryers Specialty Irons PROFESSIONAL BRUSHES COMBS & ACCESSORIES Flat Irons Dryers Specialty Dryers Curing Irons Curing Irons Flat Irons RETAIL APPLIANCES PERSONAL CARE 81 81
Slide 82: Invest in Leadership Brands
Invest in Leadership Brands Optimize Double Capital Down on Deployment International Maximize Selective Operating & Strategic Efficiency M&A Accelerate Consumer Shared Service Centric Excellence Unify & Elevate the Best People 82
Slide 83: Beauty Strategic Growth Choice Highlights
Beauty Strategic Growth Choice Highlights Consumer Unify & Double Down on Centric Elevate the International Best People 83 83
Slide 84: Winning with the Consumer
Winning with the Consumer Consumer Centric Innovation that delights with superior solutions today and delivers tomorrows new benefits Win online where consumers want to research and socialize and shop Win in the largest Brick & Mortar retailers 84
Slide 85: Innovation is Key to Winning
Innovation is Key to Winning Consumer Centric 85
Slide 86: Expanding our Consumer Centric Focus
Expanding our Consumer Centric Focus • One of Company’s Leadership Brands Consumer • Salon inspired Brand meeting both stylist and consumer needs Centric • Deliver great performance at great value…delivering on our Mission • Now available in major retailers in North America and online 86
Slide 87: Growing Consumer Centric Focus
Growing Consumer Centric Focus Consumer • Bringing the Hot Tools brand equity life Centric 87
Slide 88: Build Competitive Advantage – Omni-Channel GTM Strategy
Build Competitive Advantage – Omni-Channel GTM Strategy Consumer • Reaching the consumer at each step of their shopping journey Centric Brick & Mortar Online 88
Slide 89: Build Competitive Advantage – Rapid Shift to Online
Build Competitive Advantage – Rapid Shift to Online Consumer Centric % Net Revenue FY17 FY 18 FY 19 FY 20 TARGET 89
Slide 90: Globalize Franchise Management
Globalize Franchise Management Double Down on International Asia & EMEA regions Regional Market Organization 90
Slide 91: Sharpen our Competitive Edge
Sharpen our Competitive Edge Unify & Elevate the Best People Enhance channel team top leadership Product team/new product development top talent & next level 91
Slide 92: Consumer Centric, Double Down on International
Consumer Unify & Double Down on Centric Elevate the International Best People 92 92
Slide 93: Jay Caron, Chief Supply Chain Officer and Interim CIO
Jay Caron Chief Supply Chain Officer and Interim CIO 93
Slide 94: Our Global Footprint
Our Global Footprint… Operating Segment Shared Service Regional Market Organization (RMO) Corporate Headquarters Hydro Flask Canada RMO EMEA RMO Bend, OR Toronto Lausanne, Switzerland Health & Home Marlborough, MA Beauty Shared Services Danbury, CT El Paso, TX China Shared Services Housewares Shenzh
Slide 95: Building Supply Chain Excellence: Best in Class Processes and Solutions
Building Supply Chain Excellence: Best in Class Processes and Solutions Order Distribution Management Center Demand & Supply Planning Suppliers Unlocking Supply Chain Efficiencies to Maximize Value Global logistics Leverage Tech Global Procurement Raw Material and WIP 95
Slide 96: Building Excellence in Processes
Building Excellence in Processes Systemize Simplify Helen of Troy Way Standardize 96
Slide 97: Building Solutions Excellence to Meet Demands of the Future
Building Solutions Excellence to Meet Demands of the Future Invest in Leadership Brands Optimize Double Capital Down on Deployment International Maximize Selective Operating & Strategic Efficiency M&A Accelerate Consumer Shared Service Centric Excellence Unify & Elevate the Best People 97
Slide 98: Building Solutions Excellence to Meet Demands of the Future
Building Solutions Excellence to Meet Demands of the Future Accelerate Maximize Optimize Shared Service Operating Capital Excellence Efficiency Deployment 98
Slide 99: Meet the Customer, Consumer, and Channel Needs of the Future
Meet the Customer, Consumer, and Channel Needs of the Future Accelerate Shared Service Excellence Upgrade order entry, allocation, and D2C fulfillment capabilities. Build for speed and demand flexibility Support double down on international with regional sourcing & distribution capabilities Grow exi
Slide 100: Unlocking OPEX Efficiencies
Unlocking OPEX Efficiencies Maximize Operating Efficiency Operational Efficiency – Reducing OPEX through the “Helen of Troy Way” Supplier Consolidation – Consolidate and leverage spend with BIC suppliers to drive COGs savings Leverage technology to eliminate waste. Increase precision in PTP, OTC, an
Slide 101: Unlocking Working Capital Efficiencies
Unlocking Working Capital Efficiencies Optimize Capital Deployment Standardized and optimized Demand and Supply Planning Days Payable Outstanding improvement Shorter lead times and greater supply flexibility 101
Slide 102: Delighting our Customers
Delighting our Customers Consumer Centric Leverage Advanced Product Quality Planning (APQP) to ensure all consumer expectations are met or exceeded Leverage technology to improve consumer engagement on all platforms Leverage supplier consolidation to drive social and environment responsibility conti
Slide 103: Accelerate Shared Service Excellence
Accelerate Maximize Optimize Shared Service Operating Capital Excellence Efficiency Deployment 103
Slide 104: Brian Grass, Chief Financial Officer
Brian Grass Chief Financial Officer 104
Slide 105: Key Messages
Key Messages: • FY19 and 3-year financial results show acceleration • Strategic formula is enabling margin expansion while making higher levels of investment • Track record of consistent annual results • Strong shareholder return with the opportunity to create even more value in Phase II • We believ
Slide 106: FY19 and 3-Year Growth Highlights
FY19 and 3-Year Growth Highlights Net Sales $ and Growth vs YAGO Consolidated & Segment Net Sales $ and Growth vs YAGO 6% $1,564 6% $1,479 $1,383 1% $1,398 $695 $1,564 7% $674 3% $637 (2%) $627 $1,479 $1,383 $1,398 5.8% 5.8% 10% 14% $524 35% $419 $459 $311 3.6% $435 (19%) 1.1% $352 (2%) $346 0% $345
Slide 107: FY19 and 3-Year Profitability Highlights
FY19 and 3-Year Profitability Highlights Adjusted Operating Income $ and % of Sales Adjusted EBITDA $ and % of Sales $255 $239 $239 $224 $224 $210 $208 $194 16.0% 16.2% 16.3% 15.0% 15.1% 15.3% 15.0% 14.0% FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 Adjusted Income $ and Growth vs YAGO Adjusted Diluted E
Slide 108: Adjusted Operating Margin and Growth Investment Progression
Adjusted Operating Margin and Growth Investment Progression Margin Expansion Formula: $239 Drivers $224 $210 15.3% + Leadership Brand Growth $194 15.1% 15.0% + New Product Development 14.0% + Portfolio Enhancement + Project Refuel 3-Yr + Shared Service Efficiency CAGR 11% Investments - Growth invest
Slide 109: Adjusted EPS - Annual Consistency Despite Quarterly Variability
Adjusted EPS - Annual Consistency Despite Quarterly Variability Quarterly Adjusted EPS Growth vs YAGO and Full-Year Adjusted EPS $8.06 $7.24 11.3% $6.49 11.6% 7.7% $5.78 12.3% 9.0% (20.5%) 24.2% (4.0%) 8.2% 24.2% (6.5%) 20.0% 29.1% 24.1% 14.4% 38.7% 9.3% 32.6% (10.6%) FY16 FY17 FY18 FY19 Q1 Q2 Q3 Q4
Slide 110: Working Capital Improvement Highlights
Working Capital Improvement Highlights Inventory Turns / Balance ($M) DSO / A/R Balance ($M) DPO / A/P Balance ($M) 55.1 3.3x 68.3 3.0x 50.5 49.5 $144 2.8x $302 62.7 $129 $281 61.6 $276 $280 $252 $106 $232 FY17 FY18 FY19 FY17 FY18 FY19 FY17 FY18 FY19 • Solid improvement in inventory turns • FY19 acc
Slide 111: Strong Shareholder Return; Opportunity to Create Even More Value in Phase II
Strong Shareholder Return; Opportunity to Create Even More Value in Phase II COMPARISON OF 62-MONTH CUMULATIVE RETURN FOR HELEN OF TROY LIMITED, PEER GROUP INDEX AND NASDAQ MARKET INDEX 250 200 150 100 50 2014 2015 2016 2017 2018 2019 4/30/2019 HELEN OF TROY LIMITED PEER GROUP INDEX NASDAQ MARKET IN
Slide 112: We Believe We Have Strengths and Qualities that Set Us Apart
We Believe We Have Strengths and Qualities that Set Us Apart Strengths: Qualities: • Operational excellence • Track record of consistent results • Strategic plan and operating company structure • Above average returns with below average risk • Depth of business integration • High say to do ratio, cr
Slide 113: Valuation Multiples Compared to Peers
Valuation Multiples Compared to Peers EV / Adjusted EPS Multiple EV / EBITDA Multiple and EBITDA Free Cash Flow Conversion 35.5x 32.5x 33.9x 23.1x 24.1x 23.1x 19.9x 19.8x 15.4x 16.9x 14.0x 15.2x 12.4x 11.9x 11.9x 11.6x 0.9 0.9 0.8 0.7 0.7 0.6 0.5 0.4 HELE Median C D B A E F HELE Median A D F B C E E
Slide 114: EBITDA FCF Conversion and FCF per Share Compared to Peers
EBITDA FCF Conversion and FCF per Share Compared to Peers EBITDA Free Cash Flow Conversion Free Cash Flow per Share 0.9 $6.62 0.9 0.8 $5.93 0.7 0.7 0.6 0.5 $3.72 $3.43 0.4 $2.80 $2.43 $0.62 $0.58 HELE Median A F D E B C HELE Median B E A D F C 114
Slide 115: ROIC Progression and Comparison to Peers
ROIC Progression and Comparison to Peers ROIC Progression 14.3% ROIC improvement through: • Focus on Leadership Brands • Acquisition 10.9% 10.4% • Portfolio enhancement 10.1% • Working capital improvement • Risk management 7.2% • Project Refuel • Supply Chain initiatives FY15 FY16 FY17 FY18 FY19 • O
Slide 116: ROIC and Adjusted EPS Multiple Compared to Peers
ROIC and Adjusted EPS Multiple Compared to Peers FY19 ROIC vs EV / Adjusted EPS Multiple 40x C 35x D 30x EV / Adjusted EPS Multiple A B Median EV / Adjusted 25x EPS Multiple 23.1x E 20x HELE 15x F 10x 5x 0x 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% ROIC Median ROIC 9.9% 116
Slide 117: ROIC and EBITDA Multiple Compared to Peers
ROIC and EBITDA Multiple Compared to Peers FY19 ROIC vs EV / EBITDA Multiple 40x A 35x 30x EV / EBITDA Multiple 25x D 20x F HELE B 15x C E Median EBITDA Multiple 11.9x 10x 5x 0x 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% ROIC Median ROIC 9.9% 117
Slide 118: Debt Structure Efficiency
Debt Structure Efficiency Effective Interest Rate Debt Balance Fixed vs Floating 9.0% 31.3% 5.4% 5.5% 5.1% 66.0% 4.8% 3.8% 4.0% 93.6% 95.9% 3.5% 68.7% 34.0% 6.4% 4.1% HELE Median C A F E B D FY16 FY17 FY18 FY19 % Fixed Debt % Floating Debt • Optimal debt structure for strategic plan and risk profile
Slide 119: Tax Efficiency Compared to Peers
Tax Efficiency Compared to Peers Effective Tax Rate 26.6% 23.0% 21.8% 21.0% 17.9% 7.3% 5.9% HELE Median E B D F A 119
Slide 120: Capital Deployment with Low Leverage and Risk
Capital Deployment with Low Leverage and Risk Capital Deployment vs Leverage Ratio • Deployed a total of ~$1.2B of $474 capital without exceeding 2.6x leverage • Share repurchases of ~$750M 2.6x $285 • Acquisition totaling ~$450M 1.9x $218 • Ability to deploy over ~$1.3B of 2.1x capital in Phase II
Slide 121: FY20 Outlook Highlights - Continued Momentum
FY20 Outlook* Highlights - Continued Momentum Net Sales $ and Growth vs YAGO Adjusted EBITDA $ and % of Sales $266 $1,611 $255 $1,564 $1,479 $239 $1,398 $224 16.5% 16.3% 5.8% 5.8% 16.2% 16.0% 3.0% 1.1% FY17 FY18 FY19 FY20E FY17 FY18 FY19 FY20E Adjusted Income $ and Growth vs YAGO Adjusted Diluted EP
Slide 122: FY20 Adjusted Operating Margin and Growth Investment Implied in Outlook
FY20 Adjusted Operating Margin and Growth Investment Implied in Outlook $239 $224 +20-30bps $210 15.3% 15.1% 15.0% 3-Yr CAGR 11% FY17 FY18 FY19 FY20E Adjusted OI Growth Investments % of Sales 122
Slide 123: Tariff Mitigation Playbook Remains Unchanged
Tariff Mitigation Playbook Remains Unchanged List 3: • List 3 tariffs were recently increased from 10% to 25%; impacts certain categories in our H&H and HW segments • We have planned on these increases for some time • We believe that we are in a good position to take pricing action that will be effe
Slide 124: Adjusted EPS Track Record and FY20 Outlook
Adjusted EPS Track Record and FY20 Outlook Adjusted Diluted EPS - Actual vs Guidance $8.06 $7.24 $7.43 • Solid track record of long-term EPS performance $6.73 $6.70 $6.25 $6.10 $5.63 • Midpoint of original guidance • FY19 performance overcame a net tariff impact of $0.16 per share not considered in
Slide 125: Working Capital Improvement Opportunity
Working Capital Improvement Opportunity Inventory Turns / Balance ($M) DSO / A/R Balance ($M) 4.0x 68.3 3.3x 3.0x 65.0 2.8x $302 62.7 $281 61.6 $276 $280 $252 $232 Reduction in cash conversion cycle FY17 FY18 FY19 FY24 Target FY17 FY18 FY19 FY24 Target equates to over $90M DPO / A/P Balance ($M) Cas
Slide 126: FY20 Outlook and Phase II Targets
FY20 Outlook and Phase II Targets* FY20 Outlook Phase II Targets* Annual Core Business Sales Growth 1.0% to 3.0% 2.5% to 3.5% Annual Operating Margin Expansion (1) ~20 bps 20 to 30 bps Annual EPS Growth (2) 2.4% to 5.5% ≥ 8% Annual Growth Investment Increase 10% to 15% ≥ 10% ROIC (1) 14% to 15% ≥ 20
Slide 127: Long-Term ROIC Improvement Opportunity
Long-Term ROIC Improvement Opportunity ROIC Progression ≥20% 14.3% 10.9% 10.4% 10.1% 7.2% FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 127
Slide 128: Value Creation Flywheel
Value Creation Flywheel Accretive and Low Risk Leadership Brand Capital Deployment Innovation and Investment Organic Revenue Low Capex Growth Working Capital Margin Expansion Improvement Debt and Tax Efficiency 128
Slide 129: Value Creation Flywheel Illustration – FCF per Share
Value Creation Flywheel Illustration – FCF per Share Free Cash Flow per Share Progression FY20-FY24 CAGR ≥20% $7.06 $7.52 $6.62 $5.34 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 • Illustration of a potential Phase II outcome based on long-term targets, consistent adjusted EPS trading multiple and t
Slide 130: Value Creation Flywheel
Value Creation Flywheel Accretive and Low Risk Leadership Brand Capital Deployment Innovation and Investment Organic Revenue Low Capex Growth Working Capital Margin Expansion Improvement Debt and Tax Efficiency 130
Slide 131: Invest in Leadership Brands
Invest in Leadership Brands Optimize Double Capital Down on Deployment International Maximize Selective Operating & Strategic Efficiency M&A Accelerate Consumer Shared Service Centric Excellence Unify & Elevate the Best People 131
Slide 132: Innovation Showcase
Helen of Troy Innovation Showcase
Slide 133: Q&A Global Leadership Team
Q&A Global Leadership Team 133
Slide 134: Phase II is Designed to Deliver to All Key Stakeholders
Phase II is Designed to Deliver to All Key Stakeholders Associates Consumers Elevate our culture and Elevate lives every management capability day with high-quality to Attract, Retain, Unify solutions from and Train the best trusted, compelling people for rewarding brands long-term careers Customers
Slide 135: Invest in Leadership Brands
Invest in Leadership Brands Optimize Double Capital Down on Deployment International Maximize Selective Operating & Strategic Efficiency M&A Accelerate Consumer Shared Service Centric Excellence Unify & Elevate the Best People 135
Slide 136: Appendix
Appendix Helen
Slide 137: Glossary of Terms
Glossary of Terms Adjusted Diluted Earnings per Share (EPS) – Non-GAAP Adjusted Income divided by Days Payable Outstanding (DPO) – Average of the current and prior four quarters’ ending diluted shares outstanding accounts payable balances divided by trailing 12 months cost of goods sold, multiplied
Slide 138: Glossary of Terms
Glossary of Terms Free Cash Flow per Share – Free cash flow divided by diluted share count as reported at Individual Peers - A subset of the Company’s compensation peer group was selected for the end of the fiscal period direct comparison on valuation metrics based on as-reported amounts in public f
Slide 139: Selected Financial Data (Unaudited) (in thousands)
Selected Financial Data (Unaudited) (in thousands) 139
Slide 140: Selected Financial Data (Unaudited) (in thousands)
Selected Financial Data (Unaudited) (in thousands) 140
Slide 141: Leadership Brand Net Sales Revenue (Unaudited) (in thousands)
Leadership Brand Net Sales Revenue (Unaudited) (in thousands) 141
Slide 142: Reconciliation of Non-GAAP Financial Measures - GAAP Operating Income to Adjusted Operating Income
Reconciliation of Non-GAAP Financial Measures - GAAP Operating Income to Adjusted Operating Income (non-GAAP) (Unaudited) (in thousands) 142
Slide 143: Reconciliation of GAAP Diluted EPS to Adjusted Diluted EPS
Reconciliation of GAAP Diluted Earnings Per Share (“EPS”) to Adjusted Diluted EPS (non-GAAP) (Unaudited) 143
Slide 144: Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow
Reconciliation of Net Cash Provided by Operating Activities (GAAP) to Free Cash Flow (non-GAAP) (Unaudited) (in thousands) 144
Slide 145: FY20 Outlook
FY20 Outlook Fiscal 2020 Outlook for Net Sales Revenue (Unaudited) (in thousands) Net sales revenue $ 1,585,000 1,611,000 Reconciliation of Fiscal 2020 Outlook for GAAP Diluted Earnings Per Share (“EPS”) from Continuing Operations to Adjusted Diluted EPS from Continuing Operations (non-GAAP) (Unaudi
Slide 146: FY20 Outlook: Effective Tax Rate
FY20 Outlook 146 Effective Tax Rate (GAAP) and Adjusted Effective Tax Rate (Non-GAAP) (Unaudited) Effective tax rate, as reported (GAAP) Restructuring charges ‘Subtotal Amortization of intangible assets Non-cash share based compensation Adjusted effective tax rate Outlook Fiscal 2020 95% — 11.5 % 01