Edgewell Personal Care Company · NYSE:EPC
Edgewell Personal Care — Investor Day (November 2020)
114 slides from Edgewell Personal Care's investor day presentation, Nov 20, 2020
Slide 1: A Bold Path Forward
“A Bold Path Forward” November 20th 2020
Slide 2: Forward-looking statements
Forward-looking statements Unless the context otherwise requires, references in this presentation to “Edgewell,” “we,” “our,” and “the Company” refer to Edgewell Personal Care Company, a Missouri corporation, and its consolidated subsidiaries. Forward-looking statements are not based on historical f
Slide 3: 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“, "organic" or “underlying” and exclude item
Slide 4: Section 1: Welcome and introduction
Section 1: welcome and introduction Section 1: welcome and introduction Page 4 BOS 20201120 EPC investor da ... 1-6 v3
Slide 5: Strong Brands in Compelling Categories
Strong Brands in Compelling Categories Men’s Women’s Grooming Feminine Care Sun Hygiene Page 5 BOS 20201120 EPC investor da ... 1-6 v3
Slide 6: Our Leadership Team
Our Leadership team Today’s Presenters Rod Little Dan Sullivan Anne-Sophie Gaget Eric O’Toole Nick Powell Chief Executive Officer Chief Financial Officer Chief Growth & Innovation President, North America President, International Officer Paul Hibbert John Hill Marisa lasenza Chief Supply Chain Offic
Slide 7: Key takeaways for the day
Key takeaways for the day A strong core: Focused on stabilization: We have high quality brands, strong Over the last 18 months, we have solidified financial fundamentals and unique our topline performance, divested non-core manufacturing capabilities businesses and executed on our cost savings progr
Slide 8: Agenda
Agenda Our story Rod Little, Chief Executive Officer Who we are and our path here Rod Little, Chief Executive Officer Our strategy Dan Sullivan, Chief Financial Officer A compelling new growth strategy Anne-Sophie Gaget, Chief Growth & Innovation Officer Our path forward Eric O’Toole, President, Nor
Slide 9: Section 2: Our story
Section 2: our story Page 9 BOS 20201120 EPC investor da ... 1-6 v3
Slide 10: First, we separated from Energizer
First, we separated from Energizer • Strategic Rationale • Establish two thriving companies with clear investment theses • Attract long-term investor bases well suited to each business • Focus on distinct commercial priorities of Household Products and Personal Care • Maximize strategic flexibility
Slide 11: We then faced significant challenges
We then faced significant challenges Both in our markets… … and in our model Increased A legacy leadership model that needed to adapt for the pressure from task established competitors and new insurgents An organization focused on technology rather than consumer-centric innovation Significant disrup
Slide 12: As a result, financial performance suffered…
As a result, financial performance suffered… …leading to reactive decision making and a volatile EBITDA Product portfolio faced challenging topline headwinds… profile that was not sustainable Note: Edgewell internal financials; Adjusted EBITDA excludes one-time costs Page 12 BOS 20201120 EPC investo
Slide 13: …but still demonstrated key business and financial successes in FY2020
…but still demonstrated key business and financial successes in FY2020 23% 25% market share market share Maintained our #2 position in U.S. Market share gains in the U.S. sun Razors & Blades care category 49% 31% >100% $270M JP shave share MX sun share Free cash flow conversion Projected cost saving
Slide 14: Starting as CEO, I took stock of our position
Starting as CEO, I took stock of our position Advantages we needed to press What we needed to improve Under-leveraged advantages that we needed to Key gaps or challenges with our position better put to use to drive success that required action to address Page 14 BOS 20201120 EPC investor da ... 1-6
Slide 15: We are capitalizing on existing strengths…
we are capitalizing on existing strengths…. Page 15 BOS 20201120 EPC investor da ... 1-6 v3
Slide 16: We have globally scaled operational and commercial capabilities
We have globally scaled operational and commercial capabilities Global sourcing World class Flexible, efficient Commercial capabilities manufacturing supply chain Innovation and R&D capabilities Sourcing of Best in class Quick supply chain that Leading edge innovation Access to scale markets high gr
Slide 17: We have a strong portfolio of brands with leading market positions
We have a strong portfolio of brands with leading market positions U.S. Market Share International Market Share (top countries) Men’s shave 18% 48% 25% 14% (Branded, Private Label, Disposables) (Japan) (Australia) (Western EU: GB, DE, FR, IT, ES) Women’s shave 31% 52% 37% 22% (Japan) (Australia) (We
Slide 18: We have the right operating model
We have the right operating model 4 core businesses … … operating globally Note: Edgewell internal financials. Page 18 BOS 20201120 EPC investor da ... 1-6 v3
Slide 19: We've been taking bold actions to better position our business…
we’ve been taking bold actions to better position our business… Page 19 BOS 20201120 EPC investor da ... 1-6 v3
Slide 20: We have reshaped our leadership team…
We have reshaped our leadership team… With the best of both legacy EPC… …and new execs with broader experiences in key roles Nick Powell Dan Sullivan President, International 16 years at Chief Financial Officer Anne-Sophie Gaget Eric O’Toole Chief Growth & 18 years at President, North Innovation Off
Slide 21: We are over-delivering on aggressive cost reduction targets
We are over-delivering on aggressive cost reduction targets Stronger operating model Simplified organization Improved manufacturing & RTM $270M $53M 14% projected expected labor cost operations footprint gross cost savings from Fuel reduction reduction Note: Edgewell internal financials Page 21 BOS
Slide 22: We have forged expanding retail partnerships
We have forged expanding retail partnerships Page 22 BOS 20201120 EPC investor da ... 1-6 v3
Slide 23: We have made portfolio-shaping M&A decisions
We have made portfolio-shaping M&A decisions ACQUIRED DIVESTED We’ve successfully utilized M&A to fill category needs/complement category strengths and bolster capabilities Page 23 BOS 20201120 EPC investor da ... 1-6 v3
Slide 24: We are honing our capabilities…
We are honing our capabilities… We are balancing the organization to maximize the impact of our capabilities and get talent in areas we are missing Digital and e-commerce Consumer led Innovation Brand building Sustainability marketing Page 24 BOS 20201120 EPC investor da ... 1-6 v3
Slide 25: …and have added critical capabilities…
…and have added critical capabilities… Strategic Financial Brand Marketing E-commerce & Digital Matt Bell Stephanie Lynn Leadership SVP North America SVP Global E-commerce Fran Weissman SVP Finance & Strategy E-commerce & Digital Sustainability Category Growth Lee Sterling Amy Knight Camilla Medeiro
Slide 26: …while activating a culture that is strong & growing
…while activating a culture that is strong & growing Page 26 BOS 20201120 EPC investor da ... 1-6 v3
Slide 27: We've stabilized our business…
We’ve stabilized our business… Flat topline 45% ~$190M Stable organic run rate 2020 Gross Margin flat to PY 2020 Free Cash Flow Generation Note: Edgewell internal financials as of October 2020. Cash flow after accounting for Infant sale/Cremo acquisition. Page 27 BOS 20201120 EPC investor da ... 1-6
Slide 28: …with a compelling new strategic direction
…with a compelling new strategic direction Clarity to our M&A to further Excellence in execution portfolio positions reshape the portfolio Where we seek to accelerate topline growth How our strategy is realized in-market via Where we target inorganic growth to fill and stabilize our profit pool stro
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Slide 31: Section 3: Our strategy
Section 3: our strategy Page 31 BOS 20201120 EPC investor day mate ...
Slide 32: Sustainable Topline Growth
Sustainable Topline Growth Accelerate growth Stabilize the Profit Pool in categories with brands that give us a Right to Win in categories with brands that give us a Right to Play Sun International U.S. Feminine Men’s Grooming Personal Hygiene and Skin Shave Shave Care Growing market share Steadily
Slide 33: Accelerate Growth: Our Right to Win
Accelerate Growth: Our Right to Win We have leading positions in categories, with our brands that …and we have been growing the share of our business in these have a clear right to continue winning… areas 59% US Market Share for Hand/Face Wipes* 25% US Market Share 24% 1/5 1/4 1/3 US Market Share**
Slide 34: Accelerate Growth (Men's Grooming): An Insurgent portfolio of brands
Accelerate Growth (Men’s Grooming): An Insurgent portfolio of brands +4% 2020 – 2024 forecast growth for Men’s Grooming excl. shaving/fragrance ~15 Historical out-performance of niche insurgent/emerging brands vs. total market Prestige p.p. Masstige Successful & repeatable insurgent playbook (with B
Slide 35: Accelerate Growth (Men's Grooming): A Compelling Portfolio
Accelerate Growth (Men’s Grooming): A Compelling Portfolio ~15% organic topline growth Geographic and Channel and Channel, geography and category category expansion e-commerce expansion expansion Note: Internal management estimated organic brand growth for our portfolio of insurgent brands, pro form
Slide 36: Accelerate Growth (Skin Caring Hygiene): Market Leading Position
Accelerate Growth (Skin Caring Hygiene): Market Leading Position #1 Personal hygiene now a top consumer priority…and we are the market leader in skin wipes Compelling brand recognition and consumer advocacy within the category +18% Dramatic performance of personal wipes category (CAGR over last 2 ye
Slide 37: Accelerate Growth (Skin Caring Hygiene): Durable Demand and Category Leadership
Accelerate Growth (Skin Caring Hygiene): Durable Demand and Category Leadership 2x growth Increased production capacity Innovation and New Product Accelerated International Development Expansion Capitalize on consumer needs to remain the reference brand for Personal Hygiene Wipes, doubling net sales
Slide 38: Accelerate Growth (Sun & Skin): Broadening our Sun and Skin Care Portfolio
Accelerate Growth (Sun & Skin): Broadening our Sun and Skin Care Portfolio 25% Share leader in US mainstream sun care (and leading positions in Mexico & Australia) Low single Attractive and growing global sun care category digit Opportunity to increase presence in fast-growing premium sun care categ
Slide 39: Accelerate Growth (Sun & Skin): Broadening our Sun and Skin Care Portfolio
Accelerate Growth (Sun & Skin): Broadening our Sun and Skin Care Portfolio Leverage existing brand leaders Gain access to Premium sun care Gain share in a growing category We have a clear position in mainstream outdoor …and we are gaining access to premium sun sun, with demonstrated capabilities in
Slide 40: Stabilize the Profit Pool: Our Right to Play
Stabilize the Profit Pool: Our Right to Play We have solid positions in categories where our brands have a …and while we stabilize these, our portfolio will naturally shift clear right to continue to play… from them as other categories grow faster 23% 4/5 US Market Share 3/4 2/3 12% US Market Share
Slide 41: Stabilize our Profit Pool (Wet Shave): U.S. Men's branded business challenged
Stabilize our Profit Pool (Wet Shave): U.S. Men’s branded business challenged, however strong market positions globally N. America branded shave business has However, our whole wet shave portfolio We have line of sight to stability underperformed is diverse Stiff and increasing competition Leading p
Slide 42: Stabilize our Profit Pool (Wet Shave): Enhance value for global hair removal consumers
Stabilize our Profit Pool (Wet Shave): Enhance value for global hair removal consumers Stabilize Share Re-architect men’s Center innovation Protect/Grow Accelerate an Re-forge customer In a flat to slightly branded w/ Hydro on the consumer private brands Omni-Channel relationships and declining cate
Slide 43: Stabilize our Profit Pool (Fem Care): Historically neglected
Stabilize our Profit Pool (Fem Care): Our Fem care business was historically neglected Currently we are However, we are underinvested in this segment reinvigorating our approach We have line of sight to stability Portfolio of strong, trusted brands with Executing better on shelf Improving topline tr
Slide 44: Stabilize our Profit Pool: Secure share and stabilize topline for Fem Care
Stabilize our Profit Pool: Secure share and stabilize topline for Fem Care Stabilize Share In a flat to slightly growing category Compete aggressively Expand our loyal Consumer Innovate across strong Sport Execute with Excellence in better-for-you segment base and Breathe brands Stabilize the toplin
Slide 45: A new organic growth outlook for our Portfolio
A new organic growth outlook for our Portfolio Historical Today Trajectory By 2023 + mid single Accelerate Growth digits 1/4 25 10-15% 1/3 33 Portfolio growth trend of our business growth trend of our business - mid single Stabilize Profit Pool digits 3/4 75 Flat to -1% 2/3 67 Portfolio growth trend
Slide 46: Section 4: Our path forward
Section 4: our path forward Page 46 BOS 20201120 EPC investor da ... 1-6 v3
Slide 47: Executing our playbook
Executing our playbook We are working quickly to execute and deliver against our new strategy Building capabilities, Omni-channel execution Market deployment innovation, and sustainability Page 47 BOS 20201120 EPC investor da ... 1-6 v3
Slide 48: Building capabilities, innovation, and sustainability
building capabilities, innovation, and sustainability Page 48 BOS 20201120 EPC investor da ... 1-6 v3
Slide 49: Our global approach is centered around the consumer
Our global approach is centered around the consumer Consumer trends, needs, Branding elevation & Behaviors and values simplification Innovation & Sustainability Brand Creatives and Lab Consumer New Innovation machine Consumer engagement machine Page 49 BOS 20201120 EPC investor da ... 1-6 v3
Slide 50: 6 major consumer trends that we value
Consumer trends inform our innovation and thinking 6 major consumer trends that we value Value Tangible, measurable benefits from products / Durability, protection and functionality. Trust Identity Looking for brands that have Understanding and expressing experience and science expertise; oneself in
Slide 51: Brand elevation and simplification helps us engage with consumers
Brand elevation and simplification helps us engage with consumers Develop consumer empathy Simplify our brand portfolio Elevate our brand purpose Mapping “Demand Space”, identifying Ignite consumer emotions and Ten “Megabrands” now communities for strategic growth immerse brands authentically into r
Slide 52: Increased and in-sourced creative capability amplifies our voice
Increased and in-sourced creative capability amplifies our voice In-sourcing Set up Creative Assets Capabilities Social Marketing Teams Development and Incubation Increased content for the US and key Brand led development, internal global markets, enhanced brand incubator lab with insurgent brand em
Slide 53: Our consumer engagement machine is built within our company
Our consumer engagement machine is built within our company Digitally-enabled consumer platform Increased presence with enhanced brand sites e-commerce & digital Page 53 BOS 20201120 EPC investor da ... 1-6 v3
Slide 54: Our innovation engine caters to the needs and trends of consumers
Our innovation engine caters to the needs and trends of consumers Leading edge innovation Brand & design innovation Agile innovation platform Develop Science and Invent the platform Better serve unique regional needs, Win with design and of tomorrow with 4 R&D centers and approx. 70 co-development p
Slide 55: We have an exciting innovation pipeline across our categories
We have an exciting innovation pipeline across our categories Grooming Sun Hygiene Shave Fem care Page 55 BOS 20201120 EPC investor day mate ...
Slide 56: Sustainability is built into our strategy and our product design
Sustainability is built into our strategy and our product design Be good to people A clear mineral story Be good to animals Reef friendly and cruelty free Be good to Earth First & unique More sustainable 90%+ use of bamboo & glass packaging recycled materials handles Page 56 BOS 20201120 EPC investo
Slide 57: Sustainability is embedded in the core of our business model
Sustainability is embedded in the core of our business model Our sustainability strategy supports EPC’s business strategy and enables us to connect and build trust with our customers, consumers, colleagues, and investors Page 57 BOS 20201120 EPC investor da ... 1-6 v3
Slide 58: Channel and brand activation
channel and brand activation Page 58 BOS 20201120 EPC investor da ... 1-6 v3
Slide 59: A Sales profile designed for the Omni-channel landscape
A Sales profile designed for the Omni-channel landscape Strong brick and mortar partnerships Add strategic value – dedicated Cat Management for Walmart, Target by biz line Joint planning to support distinct retailer missions Share expertise via Private Brands A seamless digital experience for the sh
Slide 60: Our key retailer partnerships have depth
Our key retailer partnerships have depth Private brand partner to Walmart, Target, Amazon, CVS and more Validator or Category Captain roles at all top customers to inform thinking and shape store execution Joint annual business plan development Item exclusives with Walmart and others Page 60 BOS 202
Slide 61: A roadmap to continue extraordinary e-commerce growth
A roadmap to continue extraordinary e-commerce growth 1 Coordinate channel activity 2 Build a digital marketing backbone 3 Build a DTC engine Omni, Amazon/pureplay, Promote line breadth and +68% DTC Ecomm in beginning of planning process Leading-edge, full-suite team Holistic media planning educate
Slide 62: Renovating our DTC experience to be fit-for-purpose
Renovating our DTC experience to be fit-for-purpose Full DTC suite Provide in depth Shape relationship Collect consumer product content with consumer data & insights All our other brands lie on this spectrum Test & learn messaging Collect and syndicate Showcase brand’s full consumer reviews item ran
Slide 63: Edgewell North America
Edgewell North America Page 63 BOS 20201120 EPC investor da ... 1-6 v3
Slide 64: Edgewell brands have strong roots in Americans' lives
Edgewell brands have strong roots in Americans’ lives $1.5B #1 or 2 75MM total sales brand set in most categories households purchase measured in xAOC our brands in the US Niche Men’s Hand Edgewell’s… Wet Shave Feminine Care Sun Care Grooming Wipes 23% 12% $ Share of Category 27% liners 25% 24%* 59%
Slide 65: Winning in North America
Winning in North America Stabilize Accelerate Execute the fundamentals and Capitalize on new category leadership positions to expand explore new pathways for growth brand reach and spark sustainable growth Page 65 BOS 20201120 EPC investor da ... 1-6 v3
Slide 66: Wet Shave: Our Shave business is diversified over four segments
Wet Shave: Our Shave business is diversified over four segments Women’s and Private Brand lines represent EPC’s critical mass in Shave Note: Edgewell internal financials Page 66 BOS 20201120 EPC investor da ... 1-6 v3
Slide 67: Wet Shave: How we win in each segment
Wet Shave: How we win in each segment Men’s Women’s Disposables Private Label Brand: Relaunch Schick Hydro Product: Extension of Sustainability: Xtreme Eco Innovation: Offer comparable Skintimate into systems Glide innovation to national brands Innovation: The Stubble Eraser Digital: New digital-fir
Slide 68: Men's Branded Wet Shave: Headwinds have shaped branded Men's performance
Men’s Branded Wet Shave: Headwinds have shaped branded Men’s performance External factors Internal factors Competition Retailer Choices Consumer Trends Portfolio Strategy Mainstream competitors with Neighboring growth categories Popularity of facial hair styling Complex sub-brand structure to trade
Slide 69: Men's Branded Wet Shave: How we strengthen the business
Men’s Branded Wet Shave: How we strengthen the business Integrated portfolio strategy Execute against sub-brand consolidation Disruptor-like A&P investment A simpler, consumer- Strengthen targeting and agility via rotation to digital marketing driven pivot Omni-channel Activation Support the user’s
Slide 70: Men's Branded Wet Shave: Hydro relaunch
Men’s Branded Wet Shave: Hydro relaunch: reposition around leading category benefit Old New Insight: Men’s increased interest in skin care New Positioning: “Advanced Skin Comfort…” Key features: Cushioning gel pools, skin guards on every blade Clearer, consumer-driven differentiation Simplified grap
Slide 71: Men's Branded Wet Shave: The Stubble Eraser
Men’s Branded Wet Shave: The Stubble Eraser – first to tackle the heavy-stubble shave Insight: New habits: (1) abrupt flips from several days of growth to clean-shaven (2) Shaving heavy growth creates painful tugging, pinching Benefit: Clean-shaves up to 7 days of growth in one stroke, with no irrit
Slide 72: Feminine Care: Stabilize the business
Feminine Care: Stabilize the business -6% to An improvement in -3% the trajectory of US Topline Return to growth & share gain Breakthrough advertising & precise media targeting Complete Carefree Breathe launch – Expand distribution – Drive trial & conversion Note: Edgewell internal financials Page 7
Slide 73: Feminine Care: New Marketing tactics for FY21
Feminine Care: New Marketing tactics for FY21 Carefree Breathe Modernized Packaging Social Hyper-targeting Inventive Sampling #rydellynch Incorporating podcasts and micro-influencers Carefree Breathe Breakthrough Advertising Shoppable Ad Units Versatile Sampling HAND-TO-HAND E-COM OPT-IN NETWORKS RE
Slide 74: Winning in North America
Winning in North America Stabilize Accelerate Execute the fundamentals and Capitalize on new category leadership positions to expand explore new pathways for growth brand reach and spark sustainable growth Page 74 BOS 20201120 EPC investor da ... 1-6 v3
Slide 75: Sun Care: Build on share momentum to set clear category leadership
Sun Care : Build on share momentum to set clear category leadership Pivoted “Protect the Fun” outside to be even more relevant during COVID Offered tips on how to have more backyard fun, not just beach fun Championed Care for our skin, ourselves, our communities, our planet Offered beachside (inside
Slide 76: Sun Care: Extend new leadership momentum…
Sun Care: Extend new leadership momentum… Leaning in on mineral & better-for-you Delivering Banana Boat’s Expanding into adjacent products that care for the consumer “Protect The Fun” promise - “Sunless” category and nature colored-foam mineral sunscreen Page 76 BOS 20201120 EPC investor day mate ..
Slide 77: Skin Hygiene: Wet Ones' powerful consumer equity is extendable
Skin Hygiene: Wet Ones’ powerful consumer equity is extendable Hygiene Wipes Hand Sanitizer $182M Market size $1.2B Market size 59% 2020 Wet Ones’ share +485% 2x Latest 52w growth Unrestricted future growth Note: Nielsen AOD 52W ending 10/3/20 Hand Sanitizer category; Hand Sanitizer is defined by Ni
Slide 78: Skin Hygiene: Surround the consumer with Wet Ones hygiene options
Skin Hygiene: Surround the consumer with Wet Ones hygiene options Increase capacity on base business Expand wipes w/alcohol-based platform - Wet Ones Plus Franchise-extend into hand sanitizer category with premium position Invest in brand to strengthen defense against new entrants Page 78 BOS 202011
Slide 79: Men's Grooming: A growing category presents an exciting invitation
Men’s Grooming: A growing category presents an exciting invitation to EPC! $605M +26% vs YA ~15% premium grooming insurgent brands grew during Organic topline growth for our market size* COVID brands Note: *Conservative custom definition using Nielsen & Euromonitor with a custom category of Niche Me
Slide 80: Men's Grooming: Develop market leadership in Men's grooming
Men’s Grooming: Develop market leadership in Men’s grooming Extend brand awareness Expand into adjacent personal care categories Use brand range to tailor fit by channel/retailer Build transactional DTC strength – Cremo, Bulldog Exploit founder-style agility to strengthen EPC's customer partnerships
Slide 81: 2021 Innovation: A lineup to support consumers' evolving needs
2021 Innovation: A lineup to support consumers’ evolving needs “Make Useful Things Joyful” Page 81 BOS 20201120 EPC investor da ... 1-6 v3
Slide 82: Edgewell North America roadmap to growth
Edgewell North America roadmap to growth Sustain Women’s Extend sun care Capitalize on skin Stabilize Men’s Turbo-charge Shave Momentum leadership hygiene tailwinds branded & Femcare Men’s Grooming Serve our customer Leverage existing Leverage position to Lead with consumer Use our insurgent needs w
Slide 83: Edgewell International
Edgewell International Page 83 BOS 20201120 EPC investor da ... 1-6 v3
Slide 84: Operations in 20 Markets, with a Strong Distributor Network
Operations in 20 Markets, with a Strong Distributor Network extending footprint to over 60 Markets Globally Direct Distributor Development Markets Scale Market Lower scale Future scale potential Local Team Low Cost Custom Solution Direct customer Distributor Led Strategic Local partners relationship
Slide 85: Edgewell International
Edgewell International We’ll drive our growth from key scale markets… … with a deliberate focus on Sun & Skin expansion Growth Growth Expand segments & markets Continue to optimize cost vs. Wet Ones impact Skin Grooming Continue accelerated growth Increase share & profit Leverage core market distrib
Slide 86: Growth from key scale markets: We are the market leader in Japan
Growth from key scale markets: We are the market leader in Japan J A PA N Strong Schick launched Expanding portfolio Clear No. 1 brand equity in 1963 across shave 49% Deep customer and market share consumer New master-brand 18,000 POS … and still growing! understanding rollout in the last 3 months P
Slide 87: Growth from key scale markets: Line of sight to continued growth
Growth from key scale markets: Line of sight to continued growth Strengthen the core Continue to build Schick via Masterbrand & Innovation Build skin presence in market Leveraging existing brands Expand portfolio new brands and channels Page 87 BOS 20201120 EPC investor da ... 1-6 v3
Slide 88: Focus on Skin: Continued opportunity to scale a strong brand
Focus on Skin: Continued opportunity to scale a strong brand we’ve developed Edgewell understands Bulldog understands Men personal care worldwide We’ve only just begun! Relevant extensions to range consistent Launched in 2006 Acquired Bulldog in 2016 with brand ethos Excellent Brand proposition Acce
Slide 89: Focus on Sun: Continued opportunity to build scale
Focus on Sun: Continued opportunity to build scale International can leverage global scale benefits to fuel global innovation roadmap Globally scaled R&D Consumer centricity Distinct brand propositions International distribution capability …building on strong foundation for growth Oceania LATAM Euro
Slide 90: Edgewell International roadmap to growth
Edgewell International roadmap to growth Scale up in Accelerate personal Solidify shave Expand Japan Grow Sun Care grooming hygiene Accelerate the pace of Leverage the Strengthen shave Continue to drive Expand range and growth, building on potential of our market leadership & growth via LatAm, Distr
Slide 91: Section 5: Our long-term financial profile
Section 5: our long-term financial profile Page 91 BOS 20201120 EPC investor day mate ...
Slide 92: Our Framework for Sustainable Value Creation
Our Framework for Sustainable Value Creation Deliver Organic Topline Growth Reshaped portfolio as the catalyst for sustainable organic growth Save to Strategically Invest Continued savings initiatives fund disciplined reinvestment in brands and capabilities to optimize portfolio performance Drive Co
Slide 93: Sustainable model required transformation
Sustainable model required transformation Recent 12-15 Months – Stability in the Business Stable and Predictable Stabilized Gross Margin Continued Robust Free Cash Underlying Topline Profile Flow 2 Flat ~$340M2 FY19 + FY20 1 organic sales excl. COVID 1 Management estimated the impact of the COVID-19
Slide 94: We have a growth outlook for 2021
We have a growth outlook for 2021 Flat Core Portfolio Accelerated Wet Ones COVID uncertainty; likely Organic net sales drives organic growth gradual recovery Low single Mid single ~$60M digit organic net sales growth digit adjusted EBITDA Growth Projected Gross Cost Savings Note: Internal management
Slide 95: Driving Sustainable Value
Driving Sustainable Value Deliver Organic Topline Growth We’re on the right track Reshaped portfolio as the catalyst for sustainable organic growth Stabilized underlying top and Save to Strategically Invest bottom line performance Continued savings initiatives fund disciplined reinvestment in brands
Slide 96: Priority 1: Deliver organic topline growth
Priority 1: deliver organic topline growth Page 96 BOS 20201120 EPC investor day mate ...
Slide 97: A Balanced Portfolio for Sustainable Growth
DELIVER TOPLINE GROWTH A Balanced Portfolio for Sustainable Growth Total Right to Win Right to Play Edgewell Organic Net 10 – 15% Sales Growth Outlook +2-3% Growth Flat to -1% Note: Internal management estimates. Page 97 BOS 20201120 EPC investor day mate ...
Slide 98: Priority 2: Save to strategically invest
Priority 2: save to strategically invest Page 98 BOS 20201120 EPC investor day mate ...
Slide 99: Addressing our Cost Base
S AV E TO S T R AT E G I C A L LY I N V E S T Addressing our Cost Base Poised to significantly over-deliver original expectations ($225-240M) Original Target ~75% of the gross savings within COGS and ~25% in Overheads Net realization slightly below expectations given lower volumes and inflationary p
Slide 100: Continuous Cost Improvement
S AV E TO S T R AT E G I C A L LY I N V E S T Continuous Cost Improvement An Additional $125M Gross Savings across our Business Model by 2023 Additional Increased organizational efficiency Overhead Technology driven simplification Efficiencies Fit for Purpose organization Further Further intelligent
Slide 101: Strategically Investing in Growth
S AV E TO S T R AT E G I C A L LY I N V E S T Strategically Investing in Growth Prioritizing Strategic Digitally Enabled Brand Investment Innovation Platform Markets Consumer Centricity Develop end to end consumer An investment stance behind our Developing a consumer-centric, Focus on markets with c
Slide 102: Priority 3: Drive consistent gross margin performance
Priority 3: drive consistent gross margin performance Page 102 BOS 20201120 EPC investor day mate ...
Slide 103: Strengthened Gross Margins
DRIVE CONSISTENT GROSS MARGIN PERFORMANCE Strengthened Gross Margins Strong track record of Enhanced revenue delivering cost savings management Margin accretive innovation Page 103 BOS 20201120 EPC investor day mate ...
Slide 104: Priority 4: Capital allocation priorities
Priority 4: capital allocation priorities Page 104 BOS 20201120 EPC investor day mate ...
Slide 105: Cash flow generation is strong
P R I O R I T I Z E C A P I TA L A L LO C AT I O N Cash flow generation is strong FY18 FY19 FY20 FY21-23F FCF % of Sales 9% 7% 10% ~10% Net Debt Leverage 2.5x 2.2x 2.7x ~2.0-3.0x 259 250 233 Key 212 191 189 185 Free Cash Flow 146 Operating Cash F Note: Edgewell internal financials; *FY21-23 Operatin
Slide 106: Balanced approach to Cash Priorities
P R I O R I T I Z E C A P I TA L A L LO C AT I O N Balanced approach to Cash Priorities Investing in our brands and growth opportunities, accretive M&A, Invest for growth capex for innovation and productivity Improve Capital Return Return of cash to shareholders through the initiation of a dividend
Slide 107: Enabling our Growth
P R I O R I T I Z E C A P I TA L A L LO C AT I O N Enabling our Growth Unlock Sustainable Organic Accretive Acquisitions Help Growth Further Reshape Portfolio Page 107 BOS 20201120 EPC investor day mate ...
Slide 108: Cremo: Aligned to our Strategy
P R I O R I T I Z E C A P I TA L A L LO C AT I O N Cremo: Aligned to our Strategy Grooming Portfolio, Insurgent Playbook Category Diversity Profitable, Accretive Growth Prestige Masstige Mainstream Page 108 Note: Edgewell internal financials BOS 20201120 EPC investor day mate ...
Slide 109: Returning capital to shareholders
P R I O R I T I Z E C A P I TA L A L LO C AT I O N Returning capital to shareholders Dividend $0.15 Quarterly Dividend per Share ~20% Initial Dividend Payout Ratio Share repurchase Opportunistic in nature Excess cash and price opportunity Note: Edgewell internal financials; Internal management estim
Slide 110: A New Algorithm
A New Algorithm Leveraging clear Right to Win 2% - 3% Disciplined, prioritized investment cadence Organic Net Sales growth Consumer centric innovation at the core Strengthened gross margin profile 4% - 6% Next level cost reduction Adjusted EBITDA growth Investment stance towards our brands 6% - 7% S
Slide 111: Key takeaways on our long-term financial profile
Key takeaways on our long-term financial profile Deliver Organic Topline Growth Clear and compelling Reshaped portfolio as the catalyst for sustainable organic growth strategy to drive consistent organic growth Save to Strategically Invest Continuous cost Continued savings initiatives fund disciplin
Slide 112: Closing thoughts
closing thoughts Page 112 BOS 20201120 EPC investor da ... 1-6 v3
Slide 113: Key takeaways for the day
Key takeaways for the day A strong core: Focused on stabilization: We have high quality brands, strong Over the last 18 months, we have solidified financial fundamentals and unique our topline performance, divested non-core manufacturing capabilities businesses and executed on our cost savings progr
Slide 114: Q&A
Q&A
Edgewell Personal Care Company — Investor Day (November 2020) on 6ix